Matamec Explorations inc.

Matamec Explorations inc.

March 27, 2006 11:20 ET

Matamec Acquires Option on Montclerg Gold Property, Closing of Two Private Placements, Appointment of a New Director

MONTREAL, QUEBEC--(CCNMatthews - March 27, 2006) - Matamec Explorations inc. ("Matamec") (TSX VENTURE:MAT) announces that the TSX Venture has approved the options to acquire a 51% interest in the gold-bearing Montclerg property and to acquire a 100% interest in the Canada and Durham-Gervais properties (see Press Release dated January 10, 2006 concerning the terms of acquisition and option). These adjoining properties are situated in the well known Porcupine-Timmins gold mining camp.

Covering 402 hectares, the Montclerg project is situated along the Pipestone Fault between the Kidd-Munro volcanic assemblage and the Porcupine sedimentary assembly. It contains two gold-bearing zones: the Montclerg deposit and the CMX Zone. These zones are typical of the quartz-carbonates gold deposit model. This type of deposits accounts for more than 80% of the gold production in Canada.

The historic Montclerg deposit was discovered in 1938 and sporadically explored to this day. It is located 400 meters north of the Pipestone Fault in mafic volcanic rocks near contact with ultramafic rocks; the majority of the major gold deposits of the Porcupine-Timmins Camp are situated in a similar geologic environment, that is in or near the mafic/ultramafic contact. The deposit measures 360 meters at surface and extends below 140 meters at depth. Gold mineralization is found in both quartz-carbonates veins and in mafic volcanic altered walls. As for the CMX Zone, it is situated along de southern boundary of the Pipestone Fault and is spatially related to the occurrence of a quartz-feldspar porphyry intrusion. The gold mineralization is contained in quartz-ankerite-arsenopyrite veins.

Matamec acquired these properties because it considers that the Montclerg project offers a strong potential for the discovery of new gold-bearing zones at surface and for the continuation of known gold-bearing zones at depth. The evaluation of the geologic context of the Porcupine-Timmins mining camp and the Montclerg deposit lead to the following observations:

- First, the typical gold-bearing deposits in that region have
significant vertical extents often measured in thousand of metres.
The previous diamond drilling programs performed on the Montclerg
deposit consisted of shallow drill holes, generally less than 150
meters and were not uniformly distributed.

- Second, the ultramafic/basalt contact consists of a gold-bearing
geologic environment noticed in several mines in the area
(Holloway and Aunor mines) and was barely tested by drilling on
the Montclerg property.

In its technical NI 43-101 report dated March 6, 2006, G.A. Harron, P.Eng., recommends a first phase of exploration work including a $250,000 drilling program to verify the vertical continuity of the Montclerg deposit and the presence of gold-bearing mineralization at the ultramafic/basalt contact.

Closing of Two Private Placements

In order to perform the first phase of exploration work on Montclerg and to improve its working capital position, the Company has closed two placements for a total amount of $445,000. In relation to these two placements, Matamec issued 2,083,333 flow-through shares at a price of $0.12 per share, the proceeds of which will be committed as CEE (Canadian Exploration Expense) prior to December 31, 2007 and 1,950,000 shares at a price of $0,10 per share. Furthermore, Matamec issued a total of 4,033,333 warrants, of which 1,950,000 entitle the holders to purchase the same number of common shares and 2,083,333 entitle the holders to purchase the same number of flow-through shares at a price of $0.15 per share until September 24, 2007.

Matamec also compensated the acting agent of the flow-through placement, Jones, Gable & Company Ltd., by paying a commission of 9% of the proceeds as well as an amount of $17,000 as a corporate finance fee and for consulting services over the next twelve (12) months. Jones, Gable also received 208,333 non-transferable warrants ("Agent's compensation warrants"), as additional remuneration. Each warrant will entitle its holder to purchase one additional common share at a price of $0.15 by share until September 24, 2007. All common shares and warrants issued with these two placements are subject to a four-month hold period following their closing. Moreover, all warrants will expire within a delay of thirty (30) days from the receipt of a written notice from the Company that its shares have been trading at $0.30 or more for twenty consecutive trading days.

Appointment of Mr. James A. White as Independent Director

Matamec is also pleased to announce the appointment of Mr. James A. White as independent director as of the last board meeting of the Company on March 24, 2006. Mr White is the Chief Executive Officer and Founder of Baynes and White, an Ontario based actuarial consulting firm. Furthermore, Mr White has a very good experience of the exploration, production and financing aspects of the mining industry. Mr White's nomination to the board of Matamec will allow the Company to widen its business network. In agreement with the internal policy of the Company, Mr White was granted options to acquire 400,000 shares at $0.12 for a period of five years. These options, as well as their exercising conditions, are governed by the Company's stock option plan.

Payment in Shares of Accrued Interest on Convertible Debenture

Matamec also wishes to inform that it has issued 90,740 common shares at the price of $0.10 per share in payment for the accrued interests in the amount of $9,073.97 on a convertible debenture of $150,000 issued January 15, 2004. These securities are subject to a four-month hold period from their date of issue.

About Matamec

Matamec is a mining exploration company which has a polymineral exploration strategy, mainly focused on precious metals. Considering the increasing interest for gold, the geological potential of gold-bearing mineralization of Montclerg (Porcupine-Timmins mining camp), Sakami and La Grande Est (Sakami Fault in James Bay area), Lesperance and Valmont add value to Matamec. In 2006, exploration work is in progress or is forecast on the Montclerg, La Grande Est and Lesperance properties, as well as on the Vulcain property for nickel-copper and platinoids.

All amounts expressed in this Press Release are in Canadian dollars ($CA).

A map of the Montclerg Property is available on CCNMatthews' website at

Contact Information

  • Matamec Explorations inc.
    Andre Gauthier
    (514) 448-2161
    Matamec Explorations inc.
    Aline Leclerc
    V-P Exploration
    (819) 738-7134