Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

September 22, 2005 15:54 ET

Phoenix Matachewan Mines Inc.-Definitive Agreement Signed: Major Nevada Gold-Silver Property

ORLEANS, ONTARIO--(CCNMatthews - Sept. 22, 2005) - Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM) is pleased to announce that a definitive option agreement has been signed with Golden Gryphon Exploration Inc. (GGE - a private company registered in British Columbia) covering the Bottle Creek epithermal gold-silver project in northwestern 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 key indicators to the presence of an epithermal system are all present at Bottle Creek - anomalous gold, mercury, antimony, arsenic, and thalium. Hydrothermal breccias are also present and mark the probable centre of an epithermal system.

The Sleeper Deposit, located 21km east of the Bottle Creek district, exhibits the same host stratigraphy, displays similar geochemical anomalies, structural controls, vein, breccia and stockwork mineralization as encountered at Bottle Creek. Sleeper was the richest grade gold mine in Nevada, containing bonanza veins grading up to 160 ounces/t Au as well as stockwork ore generally grading less than 0.1opt Au.

PMM and GGE have been active at Bottle Creek for several months. To date geological, geochemical and geophysical surveys have been conducted as part of a comprehensive and ongoing exploration program.

In order to earn a 60% interest in Bottle Creek PMM will make cumulative cash payments totalling US$450,000 prior to 30 April 2008; conduct US$2,000,000 in exploration prior to 30 April 2008; reimburse GGE US$45,180 for recording and maintaining the lode mining claims. PMM also agrees to fund a regional airborne geophysical survey, and associated follow-up exploration, to be conducted in 2005 and estimated to cost US$785,000.

Dr. Jeffrey Abbott, P. Geo., President of Golden Griphon, is the qualified person supervising the exploration.

Phoenix Matachewan Mines Inc. is a mineral exploration company with head office in Ottawa, Canada. In addition to the Steel River Project PMM operates the Swanson gold (120,000oz Au deposit) in northwestern Quebec, and the very prospective Bottle Creek gold-silver project in Nevada.

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

Contact Information

  • Phoenix Matachewan Mines Inc.
    Robin B. Dow
    1 (888) 834-7708
    Gus Garisto or Jonathan Buick
    1 (416) 907-0979