FUNDING SECURED FOR ONTARIO PGE PROSPECT & CUBAN GOLD CUBANS TO J.V. PLATINUM
Toronto, Canada, December 17th, 1999 - 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
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