Matamec Explorations inc.

Matamec Explorations inc.

March 22, 2007 11:27 ET

Matamec Approves the Transfer of its Uranium Assets to a Subsidiary and the Acquisition of the Uranium Nord Property from Virginia Mines

MONTREAL, QUEBEC--(CCNMatthews - March 22, 2007) - Matamec Explorations Inc. ("Matamec")(TSX VENTURE:MAT) is pleased to announce that the Board of Directors has approved the transfer of its uranium assets to a wholly-owned subsidiary. At present, the company holds 100 % interest in 3 properties with potential in uranium, namely the Sakami, Tansim and Zeus properties (see Figure 1 at the following address:

The details and final structure of this transfer are currently being evaluated by Matamec's legal counsel and their tax advisers, and will be subject to regulatory approval. Following these discussions, the Board of Directors will provide the details and the timing of the transfer.

In the meantime, the company will continue to identify and search for the best geological models and for potential targets for uranium mineralization in the Sakami, Tansim, Zeus and Uranium Nord properties. In addition, it will evaluate the uranium potential of other properties and it will announce the results of these efforts as soon as they are available.

Acquisition Of Uranium Nord Property From Virginia Mines

Matamec also announces that it concluded an agreement with Virginia Mines Inc. (Virginia) by which it can acquire 100 % interest in the Uranium Nord property, consisting of 204 claims in four different blocks comprising a total of 9,487 hectares and located in the central area of the Uganva peninsula (Province of Quebec), approximately 250 kilometres West of Kuujjuak (see Figures 2 & 3 at the following addresses: and For the first 50 % interest, Matamec is required to make a cash payment of $47,532 to Virginia and for the remaining 50 % interest, Virginia will receive 200,000 common shares of a wholly-owned subsidiary of Matamec which will own its current uranium assets. Virginia will keep a 1% royalty, of which half can be repurchased at any time for $500,000.

The property is located in the geological Superior Province, of archeen age, exactly in the Goudalie domain which is distinguishable from the other domains by the presence of numerous enclaves of supercrustal rocks taken in a series of plutonics rocks including granodiorite, tonalite, diatexite and granite. In 1997, the Grand Nord geochemical survey of the Quebec's MRNF highlighted a real uraniferous geochemical province in lake sediments on this portion of Ungava. Values up to 1,900 ppm U were obtained in lake sediments surrounding the four blocks of claims.

Further to a radiometric and magnetometric airborne survey, the ground exploration completed in 1998 showed that the radiometric anomalies correspond to an important anatexis granites complex of pink colour (hematized) including fragments of paragneiss. These granites are very anomalic, with average values from 25 to 30 ppm U. Radiogenic granites constitute the most likely source of the regional anomaly. These granites are similar to the model of "intrusive" or "porphyric" uranium deposit, which are characterized by large tonnages and low grade, such as Rossing deposit type in Namibia with a producing value of 350 ppm.

In block C, a soil anomaly gave value of 0.58 % U. Also, in block C, a sample of an erratic block of pegmatite reported 672 ppm U.

No work has been done on the property since 1999 and Matamec estimates that new exploration could reveal mineralizations of intrusive type or filonian intragranitic and perigranitic type.

The geological data of this press release was prepared by Aline Leclerc, geologist and Exploration Vice-president of Matamec, and Qualifed Person under NI 43-101.

Conversion Of A Debenture Into Common Shares And Payment Of The Accrued Interest With Common Shares

Following the Press Release dated February 19 2007, Matamec also announces that it has converted the $150,000 debenture issued on January 15, 2004 and paid the accrued interest in the amount of $9,073.97 by issuing 940,233 common shares at a price of $0.169 per share to Solidarity Fund QFL, following regulatory approval. These securities will be subject to a compulsory four-month hold period from their date of issue.

About Matamec

Matamec is a mining exploration company which is exploring for significant gold and uranium deposits in Ontario and in Quebec. For gold, it has mainly targeted the East Timmins mining camp where certain properties have not been fully investigated on surface and/or at depth. Furthermore, it has 8 exploration projects in Quebec, 4 of which focus on uranium.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Matamec Explorations inc.
    Andre Gauthier
    Matamec Explorations inc.
    Michael D'Amico
    Investor Relations