MacDonald Mines Exploration Ltd.
TSX VENTURE : BMK

MacDonald Mines Exploration Ltd.

February 28, 2012 08:00 ET

MacDonald Mines Receives Positive Results from the Ground Gravity Survey on the Butler Property and Prepares for March Drill Program

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2012) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald" or the "Company") announces results of a ground gravity survey over the Company's VMS targets on the Butler Property in the Ring of Fire.

The presence of density anomalies associated with and adjacent to the feeder/stockwork sulphides intersected to date on Butler 3 suggests either:

  • An increased presence of sulphides or
  • A different rock type of greater density or
  • a combination of both

The measurement of gravity is an effective technique for defining geometry, structure, and a proven tool in mapping intrusions in sedimentary and volcanic terrains. The use of ground gravity surveys, have historical success in the search for volcanogenic massive sulphide (VMS) deposits. The technique has been attributed to the discovery of the Sunridge Gold Embra Derho deposit in early 2007 (Approx 62.5 m/tonnes) in Eritea.

The gravity data collected over the Butler property by the Ontario Geological Survey ("OGS") and Geological Survey of Canada ("GSC") survey confirmed the Company's interpretation of a large mafic - ultramafic package that exists along the eastern portion of the property (Butler 5). This insight prompted MacDonald to utilize the technique over the highly prospective Butler 3 zone.

Ground Gravity Survey

At Butler 3, three distinct density anomalies coincident with anomalies from other geophysical techniques have been identified by Abitibi Geophysics. These density anomalies add credence to the interpretation of a large VMS system in the Zone identified as Butler 3. This system is associated with the stringer materials in diamond drill hole BP11-Cu06 which intersected 167 metres of 0.39% Cu and 1.13% Zn. Results for Butler 4 and Butler 5 are pending and data collection continues as exploration is ongoing

Butler 3 - Characteristics of a Volcanic Hosted Massive Sulphide Deposit (VMS)

The Butler 3 targets are quantified by the following geological characteristics:

  1. The volume of alteration is exceptional, indicating that a very large volume of hydrothermal fluid discharged in this region.
  2. Butler 3 is contained in a felsic-dominated sequence.
  3. The alteration zone is Cu-enriched, and the Cu content increases stratigraphically upwards towards the mineralized horizon. Cu tenor is high (greater than 3%).
  4. Zinc mineralization is less than expected - indicating a higher temperature system (Cu-enrichment).

Geophysically the targets have physical properties commonly identified with massive sulphides. These are:

  1. The Butler 3 targets are Electrically Conductive - indicative of metallic content
  2. Elevated magnetic susceptibility - signifying structure and potential sulphides
  3. Dense - suggesting the presence of sulphides

In summary Butler 3 exhibits a multitude of exploration vectors and proximity indicators of a VMS system. These include but are not limited to:

  • Geophysical properties - conductive, dense, magnetic.
  • Mineral zonation - stringer mineralization with elevated Cu values have been intersected over significant lengths
  • Alteration Indicies - the drilling has identified a large alteration system with sodium depletion. This is an indication of lateral distance from the core of the discharge zone
  • Mineral chemistry vectors - these are coincident with the geophysical anomalies (conductance and density)
  • Structural controls - the stringer zone is capped by a key marker horizon comprised of a siliceous relatively impermeable, black felsic unit

Deep Penetration and High Resolution IP Resistivity Survey

Insight Geophysics Inc. has been retained to apply their technology over Butler 3, Butler 4, Butler 5 and the Sanderson properties in the Ring of Fire. This array is currently being utilized in the Ring of Fire by Noront Resources who have commented on the success of the technique to identify zones of nickel sulphide in their recent press release.

Preliminary results of this survey over Butler 3 have confirmed chargeability anomalies coincident with the gravity results. Chargeability measures the ability of the sub-surface to temporarily maintain an electrical charge - sulphides are typically chargeable. The survey is expected to be completed in early March, 2012.

Drilling Contractor

Drilling on the Butler property is planned for March, 2012. Cyr Drilling International Ltd., of Winnipeg, MB currently has a drill and all supplies on site.

Qualified Person

Quentin Yarie, P.Geo., is the qualified person in regard to the technical data contained within this news release and will be responsible for overseeing all aspects of the Company's exploration programs.

About MacDonald Mines Exploration Ltd.

MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper, zinc, vanadium and titanium in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario.

With over 9 years of exploration in the James Bay Lowlands, the Company has systematically acquired quality land positions based on a very precise selection format that utilizes region-wide interpretations completed by geological consultant Hadyn Butler, P. Geo. MacDonald is now the second largest landholder in the Ring of Fire and has a proven track record of environmentally and socially conscious exploration practices.

MacDonald Mines exploration focus has been on 3 properties - the Butler, the Semple-Hulbert and the Sanderson. Recent exploration has been focused on the Butler property, where the Company has identified seven significant zones of multi-element mineralization, including copper-zinc VMS systems, vandiferous titano-magnetite and magmatic nickel sulphides.

The Company has established rapport with First Nation Communities in this region, which has culminated in the signing of exploration agreements with the Kasabonika Lake and Webequie First Nations.

More detailed information about the Company is available on the website: www.macdonaldmines.com.

Cautionary Statement:

The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. We seek safe harbour.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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