MacDonald Mines Exploration Ltd. - Funding Secured For Ontario PGE
Prospect & Cuban Gold Cubans To J.V. Platinum
Toronto, Canada--
MacDonald Mines Exploration Ltd. (CDNX-MMP.A) ("MacDonald Mines")
has optioned a 100% interest in the 13 claim Casson Lake Platinum
Group Elements ("PGE") property, near Whitefish Falls, Ontario.
GeoMinera S.A., MacDonald Mines' Cuban partner, will have an
option to acquire up to a 50% non-operating interest in the
property and exploration programs will be conducted by MacDonald
Mines with the assistance of GeoMinera. MacDonald Mines has,
through its Cuban partner, access to substantial technical
expertise developed in both Cuba's and Russia's commanding
polymetallic nickel resources.
Due to the doubling of the price of palladium, there has been
considerable new activity in Canada's PGE potential, focused on
Northern Ontario. Both junior mining companies including Mustang
Minerals, Northwest Capital, New Millenium and Flag Resources and
major mining companies including South Africa's Anglo American
Platinum (AMPLATS) and Australia's Impala Platinum (IMPLATS) the
world's largest and second largest platinum producers,
respectively, are actively exploring. This phenomenon is
reminiscent of activities in the Northwest Territories prior to
the discovery there of economic diamond deposits. There are now
a number of active PGE exploration projects at River Valley, East
Bull Lake, Rathbun Township and Agnew Lake; all, as with Casson
Lake, on the Lake Huron north shore.
The Casson Lake property has an extensive exploration data base
from work done by Curtin Mines (1979-80) and BP Minerals
(1987-89) and, subsequently, by local prospectors. Of ten due
diligence grab samples recently collected by a company geologist
from outcrops on the property, over a mineralized strike length
of some 5,000 meters, eight included significant platinum,
palladium and gold values as follows:
__________________________grams per ton__________________________
platinum palladium gold combined
.20 .22 .15 .57
.20 .29 .14 .63
.43 1.78 .51 2.72
.21 .41 .17 .79
.39 .98 .34 1.71
.50 .95 .36 1.81
--- --- 4.02 4.02
1.63 1.63
---- ----
.32 .76 .91 1.73
____________________________average_____________________________
Platinum and palladium prices currently average US$435.00 and
US$400.00 per ounce, respectively. Canada's only producing
palladium mine at Lac des Isles, operated by North American
Palladium Ltd., is profitably processing ores mined to a cut-off
grade of 0.7g/t. The mine is reported to be planning production
rates of 15,000 tons per day
An exploration program will commence immediately at Casson Lake,
upon completion of a data compilation and re-logging and sampling
of prior drilling core. To earn a 100% interest in the property,
the company must make cash payments and complete $400,000 of
exploration work over a four year period. The company has
received commitments for required initial funding.
The company has also received commitments to fund continuation of
the GeoMinera/MacDonald Mines gold exploration joint venture in
Cuba, commencing in January 2000. Some 36 mineralized target
areas previously identified in the joint venture's 2,000 square
kilometer concession will be assessed for drilling with
additional geophysical and geochemical analysis. It is expected
that the 12 or 13 highest priority target areas will then receive
diamond drill testing commencing in the second or third quarter
of the year, although some preliminary drilling of two or three
of these targets may be undertaken sooner.
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For further information:
Mario A. Miranda
MacDonald Mines Exploration Ltd.
Tel: (416) 865-1625
Fax: (416) 865-9386
www.macmines.com
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