Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

June 28, 2005 11:46 ET

Phoenix Matachewan Mines Inc.: Diamond Drill Moving to Steel River

ORLEANS, ONTARIO--(CCNMatthews - June 28, 2005) - Phoenix Matachewan Mines Inc. ("Phoenix")(TSX VENTURE:PMM) announced today that a diamond drilling rig is now moving to its 155 sq. km Steel River base metal project. The drill will test ground geophysical targets outlined along a cherty exhalite horizon coincident with strongly anomalous zinc, copper and precious metal enrichment. These targets are coincident with airborne geophysics and extensive ground mapping and sampling. The volcanic hosts present very strong indicators of volcanic massive sulfide potential.

Eleven prioritized targets have been defined along 34 km horizon along which several high grade zinc occurrences have been documented. One such base metal occurrence is present at Bozena Lake, where limited diamond drilling by Gulf Minerals in 1980 obtained intersections peaking at 16.5% zinc over 5m at shallow depths. Targets range in size from a few hundred metres to more than one kilometre in length. The current drilling program will test as many targets as practical.

The Steel River Project, in northwestern Ontario midway between Marathon and Terrace Bay, has seen little historic mineral exploration despite being located just five kilometres north of the Trans-Canada Highway. Past-producing volcanogenic massive sulphide (VMS) districts occur 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 of the property.

The program is being supervised for Phoenix Matachewan by Christopher Wagg, V.P. Exploration, who under Nation Instrument 43-101 is one of Phoenix's Qualified Persons.

Phoenix also announced that its current private placement has been increased in size to accommodate more drilling, and will now close on 15 July 2005. Also, on June 1, Phoenix granted 1,250,000 stock options, at a strike price of $0.10 to 1 June 2010 to directors, management and contractors.

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
    Gus Garisto or Jonathan Buick