Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

April 03, 2006 09:39 ET

Phoenix Matachewan Commences Drilling at Nevada Gold-Silver Project

OTTAWA, ONTARIO--(CCNMatthews - April 3, 2006) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM) announced today that diamond drilling has commenced at its Bottle Creek low-sulphidation epithermal gold-silver project in northern Nevada. A program of five holes will be conducted, totalling some 2500m that will target mineralization and alteration defined following an aggressive exploration program in 2005 that saw approximately C$1,000,000 in expenditures on the project.

The drilling will focus on three distinctly anomalous drilling target areas, containing fourteen (14) drill sites, designated South Halberg, Canyon Dome and Bluebird; all are closely associated with past producing, high-grade mercury mines that are interpreted to be the surface manifestation of a mineralizing system capable of depositing gold and silver as well. Phoenix considers this drilling program to be the preliminary step in an ongoing program to test the highly prospective gold-silver targets at Bottle Creek, fourteen drill sites have been permitted so far and exploration has produced numerous anomalous responses elsewhere on the property.

The Bottle Creek project is under option from Golden Gryphon Explorations Inc. (GGE, a private company incorporated in British Columbia) whereby the Company has the option to earn 60% of the Bottle Creek property in Humboldt County, Nevada.

The property is located in the Bottle Creek mercury district of northwestern Nevada, approximately 250km northeast of Reno. Gold and silver exploration dates from 1982 when the area was worked for Carlin-type disseminated gold mineralization. Results of historical and current work indicate that the region displays widespread anomalous gold, silver, selenium, antimony, arsenic and mercury and low molybdenum, copper lead and zinc content - this coupled with altered rhyolite and basalt host rocks suggests that Bottle Creek fits into a distinct class of epithermal gold mineralization that includes the Ken Snyder (2.39 M oz gold), Mule Canyon (1.43 M oz gold) and Sleeper (1.68 M oz gold) deposits.

The Sleeper Deposit, located 21km east of the Bottle Creek district, exhibits similar host stratigraphy, displays similar geochemical anomalies, structural controls, vein, breccia and stockwork mineralisation as encountered at Bottle Creek. Sleeper contained bonanza veins grading up to 160opt Au as well as stockwork ore generally grading less than 0.1opt Au.

"The statements in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

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