TORONTO, May 7 /CNW/ - MacDonald Mines Exploration Ltd. (TSX Venture:BMK) ("MacDonald" or the "Company") announces it has acquired the Worthington Property in the Sudbury District of Northern Ontario. The Property consists of a patented claim on ground that covers a new, never-tested portion of the Worthington offset dyke - a significant nickel, copper, and platinum-group-element ore carrier in the South Range of the world-class Sudbury Structure.
The Property is located immediately north of Highway 17 approximately 40 kilometres west of the town of Copper Cliff and 1.5 kilometres east of the community of Nairn Centre.
As per the agreement and subject to Exchange approval, MacDonald Mines has the option to acquire a 100% interest in the Worthington Property, in consideration of exploration work and cash payments totalling CA$130,000 over the next three years. MacDonald must also issue 350,000 common shares and 175,000 purchase share warrants which are exercisable at $0.25 per share for a period of 24 months from date of issuance. All securities issued with respect to this transaction are subject to a four-month hold.
The Worthington quartz diorite dyke is a 10-11 kilometre long offset feature which hosts the new Totten Mine discovery (10.1 million tonnes grading 1.5 % nickel, 2.0 % copper and 4.8 g/t PGEs) of VALE-Inco as well as the adjacent early-discovered Worthington Mine and Copper AER-Kidd Mine. The Totten Mine is actively being brought into production. These deposits are located approximately 8 kilometres to the northeast of the Property. The Worthington dyke also hosts FNX's Victoria Property located several kilometres to the northeast of the Totten Mine which hosts indicated reserves of 0.53M tons grading 1.2% Ni and 1.4% Cu.
Potential to Host Large-Scale Ni-Cu-PGE Mines
In the South Range, offset dykes and secondary structures host large-scale Ni-Cu-PGE mines and are of a size that, surprisingly, has yet to be fully tested by systematic drilling programs even after a century of mining in the region.
Hadyn Butler, P.Geo., Director states, "An outcrop located 50 meters to the west of the western boundary of the Property shows the blunt end of the Worthington offset dyke that hosts Sudbury-related sulphide mineralization. The blunt end dips south onto the Property and occurs there because the offset dyke intersects an older Nipissing diabase sill. At the Totten Mine, the same offset dyke also intersects a Nipissing diabase sill forming a blunt end. As a general rule, such structures appear to form traps to host nickel-copper-PGE sulphide mineralization in offset dykes."
MacDonald Mines is currently undertaking a surface magnetic and UTEM survey to define drill targets on the Property. The UTEM geophysical surveys are a proven technology in the Sudbury Mining Camp. This work is expected to be completed within the month. Anomalies generated from this work will be drill tested.
About MacDonald Mines
MacDonald Mines is a mineral exploration company with an established history in the exploration of gold and base metals. MacDonald has set upon a strategic direction of exploration in the Canadian Northlands, with particular focus in Ontario, Saskatchewan and Quebec.
In 2008, MacDonald Mines was ranked second in the TSX Venture 50's Annual Ranking of Top Canadian Mining Companies and trades under the symbol BMK.
Hadyn Butler, P.Geo., Director is the designated qualified person for technical information contained in this release.
WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
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