Phoenix Matachewan Mines Inc.
TSX VENTURE : PMM

Phoenix Matachewan Mines Inc.

October 03, 2005 11:51 ET

Phoenix Matachewan Mines Inc. Announces Significant Zinc in Steel River Drilling

OTTAWA, ONTARIO--(CCNMatthews - Oct. 3, 2005) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM)("PMM") announces preliminary diamond drilling results from its Steel River base metal project, northwestern Ontario. Eleven drill holes totaling 1683m have been completed targeted on two of eleven, highly prospective, combined geophysical and geochemical targets so far identified on the property. Drilling is currently halted pending receipt of geochemical and geophysical results necessary to locate future drill sites. The holes vary from 100m to 254m in length.

PMM Management considers the results to be very significant because they:

- Confirm historic drilling results obtained by Gulf Minerals (16.8% over 4.9 m).

- Demonstrate the continuity of the 34 km long target chert horizon.

- Provide abundant evidence of widespread anomalous zinc mineralization.

- Show that the host rocks have been strongly altered by mineralizing fluids.

- Leave enormous scope and potential for the, mostly untested, remainder of the property.

The drill targets are strong anomalies resulting from surface rock sampling and ground EM geophysics. The compiled work has identified a folded, 34km long, chert horizon that has zinc, copper and gold enrichment. Approximately two kms of this target have been intermittently tested by diamond drilling and continuity of the sulphide bearing chert band has been confirmed. Analytical results returned to date show very anomalous, widespread, zinc mineralization, peaking at 7.0% Zn over 1.2m (at 121m downhole) in DDH PS0507 in an extensive zone of strongly zinc mineralized rock that averages 0.58% Zn over 39m. Elsewhere the drilling intersected distinctly anomalous chlorite and garnet alteration, diagnostic of strong mineralizing fluid activity and providing evidence that the Steel River area is endowed with ample volcanogenic massive sulphide potential. Tabulated analytical results are presented below.



Min Max Min Max Min Max Min Max
Drill No. Zn Zn Cu Cu Au Au Ag Ag
Hole No. Samples ppm ppm ppm Ppm ppb ppb ppm ppm
less
PS0501 51 19 3733 4 638 5 33 than 1 7
less less less
PS0502 20 71 2721 18 444 than 5 than 5 than 1 4
less
PS0503 55 45 947 6 161 6 10 than 1 3
less less
PS0504 68 27 1.08% 7 2789 than 5 17 than 1 5
less less
PS0505 69 10 272 4 1467 than 5 79 than 1 5
less less less
PS0506 4 83 1503 24 49 than 1 20 than 1 than 1
less less
PS0507 75 10 7.01% 4 1314 than 5 20 than 1 8
less less
PS0508 53 8 4979 1 713 than 5 19 than 1 5
less less
PS0509 28 14 1667 9 55 than 5 44 than 1 6
less less
PS0510 23 40 782 9 96 than 5 88 than 1 7
less
PS0511 15 45 140 11 91 than 5 8 1 8



The 155km2 Steel River Property, in northwestern Ontario midway between Marathon and Terrace Bay, has seen little historic mineral exploration despite being situated just five kilometres north of the Trans-Canada Highway. It is located between past-producing volcanogenic massive sulphide (VMS) districts at Manitouwadge, (65Mt; ave. 1.2%Cu, 0.12%Pb, 3.7%Zn, 40g/t Ag), 75 km ENE and Winston Lake, (7Mt; ave. 1.0 %Cu, 16.8% Zn, 33g/t Ag), 45 km W. Eleven prioritized targets have been defined at Steel River, localized along the 34 km of prospective, cherty-exhalite horizon where several high grade zinc occurrences have been documented. Historically intersections peaking at 16.5% Zn over 5m at shallow depths have been obtained near Bozena Lake. The Bozena Lake area is the site of the first drill holes to be collared in the current program.

C.A.Wagg acts as the Qualified Person, under National Instrument 43-101, on the Steel River Project.

Phoenix Matachewan Mines Inc. is a mineral exploration company with head office in Ottawa, Canada. In addition to the Project, PMM operates the Swanson gold ore body and base metal project in northwestern Quebec, and the very prospective Bottle Creek gold project in Nevada. The Bottle Creek Project is a 48.6 square km (18.7 square mi) claim block staked over very prospective low-sulphidation, epithermal, gold-silver targets in a district noted for past-production of mercury. 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. In all 1.6M oz of gold was produced from Sleeper with bonanza veins grading up to 160 oz/ton Au as well as stockwork ore generally grading less than 0.1 oz/ton Au.


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