Phoenix Matachewan Mines Inc.

Phoenix Matachewan Mines Inc.

March 16, 2005 09:00 ET

Phoenix Matachewan Mines Inc.: Nevada Gold


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PHOENIX MATACHEWAN MINES INC.

TSX VENTURE SYMBOL: PMM

MARCH 16, 2005 - 09:00 ET

Phoenix Matachewan Mines Inc.: Nevada Gold

ORLEANS, ONTARIO--(CCNMatthews - March 16, 2005) - Phoenix Matachewan
Mines Inc. ("Phoenix") (TSX VENTURE:PMM) announces today it has entered
into an option agreement with Golden Gryphon Explorations Inc. ("GGE") a
private company incorporated in British Columbia with head office in
Roberts Creek, British Columbia whereby the Company has the option to
earn 60% of the Bottle Creek epithermal gold-silver property in Humboldt
County, Nevada.

The property is located in the Bottle Creek mercury district of
northwestern Nevada, approximately 250km northeast of Reno. The core of
the Bottle Creek system lies beneath 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. Gold
and silver exploration in the area dates from 1982 when the area was
worked for both Carlin-type disseminated gold mineralization and
low-sulphidation epithermal mineralization at shallow depths. 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 the same host stratigraphy, displays similar geochemical
anomalies, structural controls, vein, breccia and stockwork
mineralization 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.

Subject to PMM satisfactorily completing due diligence within 45 days
the terms of the agreement stipulate that PMM can earn a 60% interest in
the project by spending $US 2 million on exploration of GGE's land
position over three years and paying GGE $US 450,000 before the third
anniversary. The current land position encompasses 15.95 km2 and
consists of 197 claims, 53 of which were vended to GGE. Prior to
earn-in, PMM will be responsible for maintaining the claim group in good
standing including meeting the terms and conditions of the underlying
agreement between GGE and the vendors of the 53 claim block. Prior land
costs incurred by GGE, specifically 50% of the fall 2004 Bureau of Land
Management and county claim maintenance costs and the recording costs
for a block of 60 claims recorded in December of 2004 will be reimbursed
by PMM upon signing a definitive agreement. Exploration will begin
immediately, under the option, GGE will be operator of the project until
such time as PMM becomes vested with a 60% participating interest.

Paul Jones, P. Geo., President of Phoenix, is the Qualified Person
responsible for the work programmes.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Phoenix Matachewan Mines Inc.
    Robin B. Dow
    CEO
    1-888-834-7708
    robin@ppau.ca
    or
    BAY STREET CONNECT
    Gus Garisto or Jonathan Buick
    1-416-907-0979
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.