Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

March 02, 2005 11:14 ET

Phoenix Matachewan Mines Inc.: 16.8% Zinc Over 4.9 m '15 ft' in Diamond Drill Core at Steel River




MARCH 2, 2005 - 11:14 ET

Phoenix Matachewan Mines Inc.: 16.8% Zinc Over 4.9 m
'15 ft' in Diamond Drill Core at Steel River

ORLEANS, ONTARIO--(CCNMatthews - March 2, 2005) - Phoenix Matachewan
Mines Inc. (TSX VENTURE:PMM) ("Phoenix") announced toady that a review
of previous diamond drilling by Gulf Minerals in 1980, obtained limited
intersections grading up to 8.9% zinc over 10m at a depth of 154 m. This
intersection contains a section of 16.8% over 4.9 m. The felsic sequence
that underlies the exhalite is extensively altered. The Steel River
project is the largest new VMS-gold exploration programme, at 155 sq.
km., in Canada. The target zone is a "U" shaped, zinc bearing,
sulphidic, cherty exhalite horizon with a total strike length of 34 km
along which several high grade zinc occurrences have been documented.
Phoenix has established eleven (11) targets over the 34 km strike length
for further work.

Phoenix has commenced preparation for ground geophysics its Steel River
Property. Establishment of grid control is currently underway on
selected, prioritized, target areas along the trend of the Steel River
target horizon. Grids are being cut in preparation for ground
electromagnetic and magnetic surveys that will be conducted immediately
upon completion of the grid work. In all approximately 60km of grid line
is contemplated. Diamond drilling is contemplated for the second quarter
of 2005.

The prioritized targets occur along the exhalite horizon, have zinc,
copper and gold enrichment in several areas, and also contain highly
anomalous geochemical indicators that provide vectors to zones of high
volcanogenic massive sulphide potential. These geochemical indicators
when combined with coincident airborne EM conductivity anomalies provide
highly prospective diamond drill targets. In all 11 target areas have
currently been identified.

The project is located in northwestern Ontario, midway between Marathon
and Terrace Bay in an area that has seen little historic mineral
exploration despite being located just five kilometres north of the
Trans-Canada Highway. Steel River is well situated for VMS
opportunities, being mid-way between two past-producing volcanogenic
massive sulphide (VMS) districts - at Manitouwadge (Geco, Willroy,
Willecho and Nama Creek mines, 65 million tonnes; av. 1.2%Cu, 0.12%Pb,
3.7%Zn, 40g/t Ag, 75 km ENE) and Winston Lake (Zenmac, Winston Lake and
Pic Lake mines, 7 million tonnes; av. 1.0 %Cu, 16.8% Zn, 33g/t Ag, 45 km
W). The presence of almost identical and possibly laterally equivalent
volcanic rocks at Steel River, coupled with excellent geochemical
indicators pointing to the presence of base metal mineralization provide
a strong indication of high VMS potential in the Steel River area.

A new and complete analysis of the Steel River play, as well as detailed
maps may be found at: Dr. James M. Franklin,
P. GEO., FRSC, is the qualified person on this project.

Correction to Press Release #05-03: Christopher Wagg has been granted
100,000 options, not 10,000.


Contact Information

    Phoenix Matachewan Mines Inc.
    Robin B. Dow
    (613) 834-8166 (FAX)
    Gus Garisto or Jonathan Buick
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.