TORONTO, ONTARIO--(Marketwire - Sept. 14, 2012) - MacDonald Mines Exploration Inc. (TSX VENTURE:BMK) ("BMK" or the "Company") would like to provide clarification regarding its press release of September 12, 2012.
Clarification on the Statement That the Company "…has identified vanadium and zinc-copper mineralization on the Butler Property that are economically viable with road access"
The Company stated it believes "it has identified vanadium and zinc-copper mineralization on the Butler Property that are economically viable with road access." Although the Company believes that the grades and widths of vanadium and zinc-copper mineralization intersected on the Butler Property are comparable to those being extracted in other mining jurisdictions with more accessible infrastructure, this statement is not based on a positive economic analysis based on a current resource statement, and the Company would like to retract the statement.
Clarification on the Use of "Potential to Host both a world-class VMS deposit, and an economically exploitable nickel deposit"
BMK also stated that it believes that "the Butler property has the potential to host both a world-class VMS deposit, and an economically exploitable nickel deposit." This statement was based on geological and geochemical data reviews of Butler Property drill hole data performed by well respected consultants.
After reviewing the geological and geochemical data collected at the Butler Property, Dr. James Franklin, PhD, FRSC, P.Geo., who has over 40 years of extensive geological knowledge and expertise of mineral deposits and regional metallogeny, serves as a Fellow of the Royal Society of Canada, was past President of both the Geological Association of Canada and the Society of Economic Geologists, has served as Chief Geoscientist of Earth Sciences Sector for the Geological Survey of Canada (GSC), and is an Adjunct Professor at Queen's, Laurentian and Ottawa universities stated "The volume of alteration is exceptional, indicating that a very large volume of hydrothermal fluid discharged in this region. There is good potential for a world-class VMS deposit here, possibly on the extension of the core of the Zn-Cu rich zone as mapped thus far."
Dr. Larry Hulbert, Ph.D, D.Sc., P. Geo. reviewed the nickel, vanadium, and platinum group element data collected at the Butler Property. Dr. Hulbert has over 38 years of extensive geological knowledge and expertise on Ni-Cu-PGE mineralization, with 23 years as Senior Research Scientist specializing in the metallogeny of mafic-ultramafic rocks and associated Ni-Cu-PGE mineralization with the GSC. Dr. Hulbert conducted a geological, geochemical, and geophysical review of data collected over the Butler property, and made the following observations:
- wide range of differentiated mafic-ultramafic rocks ranging from komattitic dunite-peridotite sills/flows to gabbro and ferro-gabbro differentiates on the property
- magmatic Ni-Cu sulphides have recently (2012) been found in the marginal zone rocks at the extremity of a large dunite-peridotite complex on Butler 5
- the country rock to the intrusions has an abundance of external sulphur in the form of VMS mineralization to contaminate the magmas and cause sulphide immiscibility of Ni-Cu-PGE mineralization identical to the komatiitic ores at Noronts Eagles Nest deposits
- geochemical analyses indicate that this same body as well as some of the gabbroic intrusions have zinc contents hundreds to thousands of times normal background for such rocks, and is clear evidence of sulphur country rock contamination
- an IP survey over the central portion of this body demonstrates a "rooted" resistivity and "chargeability" feature underlying the intrusion in an area flanked by a string of VTEM anomalies along the base
- encouraging Ni-Cu sulphides have also been found in mid-range differentiated gabbroic rocks on Butler 5 (MN07-039) that has an unusually high magnetic signature for magnetite-poor gabbros - the source of this anomalous magnetism could be due to untested sources of Pyrhotite-Pentlandite
Although the Company believes that the nickel prospectivity of the Butler property is high based on Dr. Hulbert's observations, BMK's statement the Butler property "has the potential to host…an economically exploitable nickel deposit is not based on a positive economic analysis based on a current resource statement, and the Company would like to retract the statement.
Clarification on Targeted Vanadium Resource
BMK stated that "…the Company is confident that an exploration target of over 50 MT grading in excess of 0.6% V2O5 is obtainable on the property". This statement should be clarified as a target range. In its place, the Company would like to state it believes that targeting a vanadium deposit between 40 and 60 million tonnes with a grade range of 0.6% 1.0% V2O5 is obtainable on the property, and that the development of a road to the Ring of Fire would be the impetus to further develop this vanadium mineralization.
The potential quantity and grade of the vanadium deposit target is conceptual in nature and there has been insufficient exploration to adequately define a mineral resource in accordance with NI 43-101 requirements. Further exploration to define a compliant NI 43-101 resource would be required to delineate a mineral resource. The potential quantity and grade of the target vanadium deposit has been determined through the progression of exploration methodology and initial metallurgical testing. This included airborne surveys, ground geophysics, and diamond drill holes, in conjunction with assay results. The low and high ranges of the resource target are based on confirmed drill hole intersection assays to date.
The grades of vanadium mineralization intersected at the Butler property are highly significant, as they are directly comparable to the current producing South African vanadium mines. The widths of vanadium mineralization found at the Butler property however, are much wider than those currently being mined in South Africa. Also of note, is that the magnetic concentrate obtained from metallurgical analysis of the Butler property vanadium mineralization is of superior tenor than that obtained in South Africa, with the Butler property concentrate having V2O5 values of 2.08%, Fe2O3 values of 93.70% and TiO2 values of 3.16%.
Quentin Yarie, P.Geo., is the qualified person in regard to the technical data contained within this news release.
About MacDonald Mines Exploration Ltd.
MacDonald Mines is a mineral exploration company with an established exploration history in the Canadian Northlands. MacDonald Mines has set upon a strategic direction of exploration with particular focus on nickel, chrome, copper, zinc, vanadium and titanium in the "Ring of Fire" area of the James Bay Lowlands of Northern Ontario.
More information about the Company is available at www.macdonaldmines.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. The foregoing information may contain forward-looking statements relating to the future performance of MacDonald Mines Exploration Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald's plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald with the TSX Venture Exchange and securities regulators. MacDonald does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. We seek safe harbour.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.