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Feature article October 19, 2017:

 

MacDonald Mines (BMK.V) advancing Gold laden zones toward cash flow, and highly prospective for new discovery next to multi-million oz miners

 

Oxide Sands host Gold-Silver-Platinum-Palladium

MacDonald Mines

Exploration Ltd.

(TSX-V: BMK) (OTC: MCDMF) (Frankfurt: 3M72)

Share data, Capitalization, & Corporate info

 Shares Outstanding:  ~71.7 million

 Fully Diluted:  ~88M (most warrants @ 10 cents)

 Recently Traded: ~CDN$0.12/share (TSX-V: BMK)

 52 Week High/Low: $0.27 / ~0.05

 Current Market Capitalization: ~$8.6 million Canadian

 Corporate Website: www.macdonaldmines.com

 

The share price of MacDonald Mines is a coiled spring, the Company is advancing its Wawa-Holdsworth Gold Project, prime ground located between two multi-million ounce gold deposits in the Abitibi Gold Province of Ontario;

  • Wawa-Holdsworth Project is neighbor to Argonaut's >6Moz Au Magino deposit, & Richmont's >1Moz Au Island Gold Mine.

  • A 500m-wide deformation zone of Wawa-Holdsworth hosts gold in various styles of mineralization.

  • Gold-bearing oxide sand zones now being quantified offer a potentially quick road to production (e.g. 3.45 g/t gold and 29.99 g/t silver ave. grade from a composite of 23 panels by past operator), current trenching and sampling program returned up to 6.45 g/t gold (TR775-0), up to 52.7g/t silver (TR750-6), an EM Max-Min survey confirmed that the sands extend at least 1.8km along strike and reach depths beyond 8m.

  • Lode Gold in traditional quartz veins - Soocana Vein System; (e.g.* 16 g/t over 4.3 m, 6.9 g/t over 15.8 m). A recent grab sample from a quartz-tourmaline vein in the Soocana Vein System contains 34.9 g/t gold.

  • Reed-Booth quartz vein prospect; BMK.V grab samples 3.7 g/t, 4.77 g/t and 6.0 g/t gold in this newly acquired area. Main shaft and adit area assayed* (historic non 43-101) 0.91 oz/ton Au (Two veins appear to intersect in this area). A 2' to 3' wide quartz has been exposed in an old trench between Shaft 2 & Main Shaft and grab sample graded 0. 26 oz/ton. individual grab samples containing up to 124.49 g/t gold and 33.86 g/t silver.

running time 7 min.

  

Click to see CEO interview

 

Jay Taylor of Hard Money Advisors and Editor of J. Taylor's Gold, Energy & Tech Stocks, interviews Quentin Yarie, CEO of MacDonald Mines.

- Metals Investment Forum Q2, 2017

"If our calculations are right, we are looking at the ability to generate north of $100 million in revenue in a very short period of time." -- CEO Quentin Yarie

Click to view advisory

  

Mining expert Jay Taylor of Hard Money Advisors initiates coverage on MacDonald Mines.

 

"...with near-term positive news regarding a saleable gold-silver concentrate and various strong assay reports from both the sands and hard-rock targets over the summer, a move several fold above the current price..."

- J. Taylor April-2017

click to access

Sept. 2017 Report, $0.50/share target

MacDonald Mines Issued Significant Upside Market Valuation In Research Report

 

BMK.V is identified in a newly issued research report by Market Equities Research Group with several potential catalysts that exist near-term with potential to result in $50 million market cap ($0.50 /share) for BMK.

 

   

Valuation Commentary: MacDonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) is advancing a near-term mining production scenario at its Wawa-Holdsworth Gold Project located 25 km NE of Wawa Ontario, Canada, uniquely positioned proximal Argonaut's >6Moz Au Magino deposit property, and Richmont's >1Moz Au Island Gold Mine (along an underexplored extension of the prolific Michipicoten Greenstone Belt). The risk-reward characteristics are highly advantageous for investors establishing a long position in BMK.V as the current market cap (~$8.6M Canadian, trading at ~12 cents/share) relative to the inherent value of MacDonald Mines' Wawa-Holdsworth Gold Property appears disproportionate; near-term share price catalysts exist as the Company is aggressively exploring to build on known gold values, leveraging its exploration teams expertise and experience in the Wawa district gold camp, and preparing for large-scale bulk sampling of the projects gold-laden Oxide Sands.

 

 

Fig. 1 Location Map of MacDonald Mines' Wawa-Holdsworth Gold Project - Within a few km of impressive gold deposits of miners whose deposits keep growing, and mills. There is road access to the property, it is close to power, rail, and a stable workforce, in a mining-friendly region.

 

The Wawa-Holdsworth project is proximal to the crustal-scale Wawa–Hawk Lake–Manitowik Lake Fault and encompass a 500 metre-wide deformation zone where gold was concentrated in different structures. These includes the Pyrite Zones, source of the gold-bearing Oxide Sands, the Soocana Vein System and the Golden Goose Shear Zone.

Fig. 2 (below) Black Sands of Wawa-Holdsworth Property

    

Oxide Sand Zones offer a quick pathway to cash flow:

 

Voluminous gold-bearing oxide sand (black sand) zones near surface have demonstrated potential for an immediate pathway to production/cash flow; e.g. 3.45 g/t gold and 29.99 g/t silver average grade from a composite of 23 panels, with preliminary metallurgical testing resulting in between 69% and 98.7% gold recoveries (without even crushing). Recent sampling by BMK.V has demonstrated >200% better results; see August 30, 2017 release "MacDonald Mines Receives Final Precious Metal Assays on Trenching of Oxide Sands, Wawa-Holdsworth Gold Project", and May 16, 2017 release "MacDonald Mines assays of the Oxide Sands results in significant increase in Gold content - individual samples contain up to 6 g/t Gold"; yielding an average grade of 2.95 g/t gold in one sample zone (section A) and 5.45 g/t gold in another (section BE) of the Oxide Sands. Mettallurgy was re-affirmed on July 11, 2017 (click here for the related news release)  Highlights from preliminary test work on the Oxide Sands include:
- The concentration ratio of gold in rougher flotation averaged 6.0:1
- The concentration ratio of silver in rougher flotation averaged 5.2:1
- Reduction of feed volume in rougher flotation by approximately 85-90%
- The Oxide Sands can be processed by a simple crushing/flotation process
- No caustic treatments are necessary
- The processing will require low power requirements
- The waste material is inert (>70 percent silica/quartz)

 

Oxide Sands host Gold-Silver-Platinum-Palladium

 

A bulk composite sample of the Oxide Sands composed of 4 different locations returned 0.15 g/t platinum, and 0.36 g/t palladium, in addition to the average grade of 5.45 g/t gold. 2 kg oxide sand samples contain up to 59.8 g/t silver; see related June 29, 2017 release entitled "Golden Goose Discovery Returns 11.85 g/t Gold from Grab Sample and Oxide Sands Found to Contain High-Grade Platinum, Palladium and Silver"

 

The exploration team is now undertaking a program of quantifying these zones which were historically ignored for gold but characterized in the early-1900's as one of the best massive sulphide deposits in the country. There is the possibility of a 2.2 km strike length of gold laden Oxide Sands Zones over the auriferous iron formation (which acted as a trap for gold circulating in the system).

 

Company intends to extract 50,000+ oz Gold from oxide sands: The Company announced 100% ownership of the Wawa-Holdsworth Gold Project with terms that point to an imminent production scenario; aside from 5.5 million shares of BMK.V issued (along with equal warrants exercisable at $0.30 -- something we like to see as the belief is share price of BMK.V will rise substantially) and a partially repurchasable 1.5%NSR, the bulk of the principle consists of MacDonald Mines making a quarterly gold payment to Noble equal to ten percent (10%) of the amount which is obtained by: (i) multiplying the production of gold from the Oxide Sands by the average gold price received during the quarter; and (ii) subtracting the sum of all deductions and any capital and operating costs being amortized over the life of the project, up to a maximum aggregate payment of 5,000 ounces of gold.

  
In brief, the oxide sands are the cap of the pyrite prospect on the property, which to date is just over 2,200 metres long and has a defined historic (non NI 43-101) resource of sulpher but never tested for Gold until 1988 (it was noted to have gold in it from trace to over 8 g/t, however no assaying was done for silver at the time). 43-101 compliant drilling in 2002 covered 332 m of strike length (of the 2,200 m); within that known length and extrapolated for tested widths + estimated depth we get sizeable tonnage of apparent ~3.45 g/t Gold (average grade tested) and ~29.99 g/t Silver (average grade tested) ready for the taking. Extrapolating that known 332 m length (x ~6) over the 2,200 m there appears 146,000 tonnes of such material for the taking in the initial strike set. The average depth based on historic drill holes would be much larger as far as surface extraction goes. The assumption on a parallel and multiple sets of sulphide sands is valid and has been proven in drill holes -- this rationalizes 550,000 to 675,000 tonnes (not yet NI 43-101, but the science is there to more than support an ~81,700+ ounce Gold equivalent target), most of which can be self financed from production that appears to require little capex at all to begin. Neither aggregate licencing nor bulk sampling permissions will be required for the extraction of the oxide sands on the Wawa-Holdsworth Project.

 

Market Equities Research Group projects (non NI 43-101) along the initial strike set of sulphide sands alone: ~81,700 oz Gold Equivalent (using US$17/oz Silver and US$1,200/oz Gold conversion) -- click here for full math in related market bulletin.

  

Oxide Sands can be treated like aggregate. Visible in the images of black oxide sands (seen in Fig. 2 above) taken from the property is gold and some course grain quartz (which likely also contain gold). The oxide sand zones appear amenable to MacDonald Mines simply obtaining a permit for mining aggregate; backhoe the material, then crush and ball mill the material (to maximize recoveries), and transport the floured material to one of the several mills located within a few kilometers of the property. Works programs performed this winter, spring, and summer 2017 were geared towards affirming a voluminous and robust understanding of these Oxide Sands Zones -- the potential for substantial share price appreciation from current price levels appears in order as exploration findings/results affirm what is suspected.

 

2017 Bulk sampling/trenching on Oxide Sands and 2000m sonic drill program:

 
In 2002, the Oxide Sands were sampled over 332.5 metres along strike. They were reported to reach a depth of at least 8 metres and contained an average gold grade of 3.45 g/t and an average silver grade of 29.99 g/t. The objective of MacDonald's trenching program is to confirm the Oxide Sands' strike length and thickness and to undertake a systematic sampling of the mineralized horizon over the total strike length. MacDonald Mines has encountered assays results up to 8.93 g/t AuEq, source: October 3, 2017 "MacDonald Mines Receives Highest Precious Metal Assays of the Oxide Sands to Date, Wawa-Holdsworth Gold Project". A 2000 m sonic drilling program of the Oxide Sands initiated this September-2017 will assist in providing insight.  The following are selected news releases that provide insight into the Oxide Sands:

 

------ ------ ------ ------ ------ ------

 

Excerpt of MacDonald Mines August 30, 2017 release:

 

MacDonald Mines Receives Final Precious Metal Assays on Trenching of Oxide Sands, Wawa-Holdsworth Gold Project

 

TORONTO, ONTARIO--(Marketwired - August 30, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", the "Company", or "BMK") announces that it has received gold and silver assays on 6 trenches across the Oxide Sands zone. Trenches 725, 750, 775, and 825 produced positive gold (Au) and silver (Ag) results.

Table 1 highlights the recently received results from the on-going sampling. The spatial relationship between these trenches and the Oxide Sands trend is shown in Figure 1.

Table 1: Highlights from on-going Oxide Sands trenching and sampling

Trench ID Au
(g/t)**
Ag
(g/t)
AuEq
(g/t)*
Sample length
(m)
TR725-0 2.58 14.7 2.78 0.32
TR725-1 1.881 0.8 1.89 0.37
TR725-5 3.44 3.57 3.49 0.22
TR725-7 1.205 3.91 1.26 0.4
TR750-3 1.84 15.1 2.04 0.7
TR750-5 1.778 7.67 1.88 0.3
TR750-6 3.79 52.7 4.49 0.18
TR750-6 5.601 3.03 5.64 0.53
TR750-7 3.47 38.1 3.98 0.16
TR750-8 1.754 8.04 1.86 0.3
TR750-14 3.55 42 4.11 0.25
TR750-15 0.776 29.3 1.17 0.75
TR750-16 4.15 22.5 4.45 0.6
TR775-0 6.45 6.09 6.53 0.28
TR775-1 3.51 6.77 3.60 0.24
TR775-7 5.692 1.36 5.71 0.3
TR775-11 1.04 11.8 1.20 0.26
TR775-12 3.55 3.6 3.60 0.2
TR825-2 2.641 3.56 2.69 0.38
TR825-3 1.21 1.24 1.23 0.27
TR825-8 1.216 6.08 1.30 0.27
TR825-9 2.77 7.26 2.87 0.4
TR825-14 1.93 0.91 1.94 0.21
TR825-15 1.168 1.98 1.19 0.28
TR825-16 1.255 2.06 1.28 0.13
TR825-17 3.55 1.35 3.57 0.27
*AuEq calculated using spot price of 1309.5 US$/oz for gold and 17.425 US$/oz for silver taken at market closure August 28, 2017. AuEq = (Grade Au) + [(Grade Ag)/(Gold Price/Silver Price)] (ratio rounded to 75).
**Gold assays for trenches 725, 750 and 775 were already released without the silver results August 9, 2017.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/bmk0830fig1.pdf.

Quentin Yarie, President and Chief Executive Officer of MacDonald Mines stated, "Our exploration program continues to expand the lateral extents of the Oxide Sands. Our trenching has uncovered new gold horizons within the Oxide Sands that expand the width of the precious metal footprint and indicate that the gold and silver inventory of the Oxide Sands at the Wawa-Holdsworth Project may be larger than initially anticipated."

Gold distribution in the "Oxide Sands" formation

The current trenching program is indicating that gold and silver in the soil formation are not solely distributed in the "black sands" layers as they are also found in soils ranging in colour from green-grey to orange and brown. The precious metal enrichments of this soil formation is possibly more widespread than initially anticipated as gold and silver enrichments appear not be restricted to purely the "black sands".

No significant results for precious metals were detected in trenches TR-800 and TR-850. TR-800 crosses a road where only disturbed material (road fill) was encountered. For TR-850, assays are still pending for nine stations along the trench where it encounters the favorable EM anomaly that is associated with the auriferous zones of the Oxide Sands formation.

Oxide Sands Sampling Procedure

The Oxide Sands samples are sampled like a borehole at systematic 1-metre intervals along the trenches. Overburden is not sampled - if the sands are exposed, they are sampled vertically along the wall of the trench in 2 to 3kg bags. Oxide Sands samples are not grab samples (seeSchematic below).

To view the schematic, please visit the following link: http://media3.marketwire.com/docs/bmk0830planview.pdf.

Wawa-Holdsworth Project Highlights

  • Neighbouring Richmont's Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp's Borden project
  • Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor
  • Year-long road access and easy access to rail, road, electrical power, labour force and suppliers

Overview of the Wawa-Holdsworth Project

Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:

  • Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);
  • BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);
  • Gold-bearing Oxide Sands developed from the weathering of the auriferous pyrite zones.

MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald's recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.

Positive preliminary metallurgical results (see July 11, 2017);

  • The concentration ratio of gold in rougher flotation averaged 6.0:1
  • The concentration ratio of silver in rougher flotation averaged 5.2:1
  • Reduction of feed volume in rougher flotation by approximately 85-90%
  • The Oxide Sands can be processed by a simple crushing/flotation process
  • No caustic treatments are necessary
  • The processing will require low power requirements
  • The waste material is inert (>70 percent silica/quartz)

The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company is working to better define the Oxide Sands in preparation for their potential extraction...

...click here for full copy from source

 

Excerpt of MacDonald Mines August 9, 2017 release:

 

MacDonald Mines Receives First Gold Assay on Trenching of Oxide Sands, Wawa-Holdsworth Project, Wawa, Ontario

 

TORONTO, ONTARIO--(Marketwired - August 9, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", the "Company", or "BMK") announces that it has received final gold assays on 4 trenches across the Oxide Sands zone. Trenches 725, 750 and 775 produced positive gold (Au) results. No significant results for gold (Au) were detected in trench TR-800 which crossed a road and where only disturbed material (road fill) was encountered. In all cases, where the Oxide Sands were sampled, gold was detected.

Table 1 highlights the recently received results from the on-going sampling. The results for silver content are pending. The spatial relationship between these trenches and the Oxide Sands trend is shown in Figure 1.

Table 1: Highlights from on-going Oxide Sands trenching and sampling

Trench ID   Au (gpt)
TR725-0   2.58
TR725-1   1.881
TR725-5   3.44
TR725-7   1.205
TR750-14   3.55
TR750-16   4.15
TR750-3   1.84
TR750-5   1.778
TR750-6   5.601
TR750-7   3.47
TR750-8   1.754
TR775-0   6.45
TR775-1   3.51
TR775-11   1.04
TR775-12   3.55
TR775-7   5.692

To view "Figure 1: Plan map of trenching locations with gold (Au) values" please visithttp://media3.marketwire.com/docs/1100534a.pdf

Figure 1: Plan map of trenching with gold (Au) values

Quentin Yarie, President and Chief Executive Officer of MacDonald Mines stated, "We will continue to expose and sample the Oxide Sands trend. In the next few weeks, with the arrival of a drill on site, we will begin to assess the vertical distribution of the gold within the sands with the ultimate goal of developing a resource. This resource model will be used to optimize a program for the extraction of the sands, their concentration and the production of a saleable product."

Oxide Sands Sampling Procedure

The Oxide Sands samples are sampled like a borehole at systematic 1-metre intervals along the trenches. Overburden is not sampled - if the sands are exposed, they are sampled vertically along the wall of the trench in 2 to 3kg bags. Oxide Sands samples are not grab samples (seeSchematic: http://media3.marketwire.com/docs/1100534b.pdf).

Wawa-Holdsworth Project Highlights

  • Neighbouring Richmont's Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp's Borden project

  • Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor

  • Year-long road access and easy access to rail, road, electrical power, labour force and suppliers

Overview of the Wawa-Holdsworth Project

Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:

  • Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);

  • BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);

  • Gold-bearing Oxide Sands developed from the weathering of the auriferous pyrite zones.

MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald's recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.

Positive preliminary metallurgical results (see July 11, 2017);

  • The concentration ratio of gold in rougher flotation averaged 6.0:1

  • The concentration ratio of silver in rougher flotation averaged 5.2:1

  • Reduction of feed volume in rougher flotation by approximately 85-90%

  • The Oxide Sands can be processed by a simple crushing/flotation process

  • No caustic treatments are necessary

  • The processing will require low power requirements

  • The waste material is inert (>70 percent silica/quartz)

The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company is working to better define the Oxide Sands in preparation for their potential extraction....

...click here for full copy from source

 

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Excerpt of MacDonald Mines July 6, 2017 release:

 

MacDonald Mines Begins to Excavate Oxide Sands at its Wawa-Holdsworth Project, Wawa Ontario

 

TORONTO, ONTARIO--(Marketwired - July 6, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", the "Company", or "BMK") announces that it has completed a surface Max-Min EM survey on its Wawa-Holdsworth Project. The survey was conducted to map the extent of the gold-bearing Oxide Sands. The Company has begun exposing the Oxide Sands for sampling at different locations along strike identified by the EM survey.

Quentin Yarie, MacDonald's President and CEO commented: "The EM survey confirms that the Oxide Sands extend at least 1.8 km along strike and supports the historic estimate that the Sands could reach depths beyond 8 metres. We have initiated an expanded trenching program to expose and sample the Sands along strike and we will mobilize a sonic drill in the next 4-6 weeks to begin testing their depth limits."

Max-Min EM Survey Results

Figure 1 presents the Max-Min data collected to date as a colour image, where red to white colours represent conductors approximately 1.8 km in length that are associated with the historic sampling locations of the oxide sands. 3D Modelling of the EM data over the known auriferous sands implies that the auriferous sands could extend well beyond their known depth of >8 metres (Figure 2). Exploration will now focus on confirming the surface and depth distribution of the gold-bearing sands along the 1.8 km trend highlighted by the Max-Min EM survey.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/1098710_figure1.jpg

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/1098710_figure2.jpg

The Company believes that the Oxide Sands are a weathering profile of the Holdsworth Pyrite Zones rather than a depositional sand deposit. The known historic Holdsworth Pyrite Zones dip the same direction as the modeled EM response and would sub-crop at the location of the Oxide Sands. The auriferous pyrite zones are believed to be the source of the Oxide Sands.

The Holdsworth Pyrite Zones underlying the Oxide Sands are also of interest for their gold potential (Table 1). A drill core sample taken by Falconbridge Nickel Mines Ltd. (Band, 1983) was reported to contain 2.26 g/t gold across 2.5 metres. Three of the five holes drilled by Reed Lake Exploration Ltd. were found to contain very anomalous gold values in the massive pyrite: 1.06 g/t gold over a core length of 2.13 metres (Hole R23); 1.23 g/t gold over 6.1 metres (Hole R26) and 1.13 g/t gold over 5.8 metres (Hole R27).

Table 1 - Historic drilling intersections in the Holdsworth Pyrite Zones

Company Hole No From (m) To (m) Length (m)* Grade (g/t gold)
Reed Lake Exploration Ltd. 88-R23 119.2 121.33 2.13 1.06
88-R26 25.9 32 6.1 1.23
88-R26 35 37.1 2.1 1.4
88-R27 42.4 48.2 5.8 1.13
Falconbridge Nickel Mines Ltd OR-5 89.5 92 2.5 2.26

*Drilling intersections presented as core length. As they represent early exploration targets, no true width can be estimated for the Holdsworth Pyrite zones and additional drilling is required to estimate the true width of the mineralized zones.

On-going Exploration Program

The Company has begun the process of sampling and exposing the Oxide Sands with an excavator (see Image 1). Surface sampling of the sands will continue over the next few months. In the next 4-6 weeks, a sonic drill will be mobilized to begin testing the depth limits and vertical distribution of the gold/silver and platinum group elements within the sand column. The following are the Company's latest assay results from the oxide sands (June 29, 2017 News Release):

Table 2 - Assay results from grab samples** in the Oxide Sands taken from location A and BE

Description Gold g/t Silver g/t
Oxide Sands Area A 3.09 38.8
Oxide Sands Area A 2.71 49.7
Oxide Sands Area A 3.05 59.8
Oxide Sands Area BE 6.0 24.1
Oxide Sands Area BE 5.62 30.7

** The reader is cautioned that grab samples are selected samples and may not be representative of the mineralization hosted on the property

To view Image 1, please visit the following link: http://media3.marketwire.com/docs/1098710_image1.jpg

About the Holdsworth and Soocana Claims

The project is located near Hawk Junction, approximately 20 km north east of Wawa, Ontario. The Holdsworth claims consist of a contiguous block of 30 fee simple absolute patented claims, including surface and mining rights covering approximately 1141 acres.

Wawa-Holdsworth Project Highlights

  • Neighboring Richmont's Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp's Borden project
  • Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor
  • Year-long road access and easy access to rail, road, electrical power, labour force and suppliers

Overview of the Wawa-Holdsworth Project

Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:

  • Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);
  • BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);
  • Gold-bearing Oxide Sands developed from the weathering of the auriferous Pyrite Zones.

MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald's recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.

Recent sampling of the Oxide Sands by MacDonald Mines at location BE returned an average grade of 5.45 g/t gold obtained by averaging the two individual grab samples of Oxide Sands taken at that location (see May 16, 2017 News Release and Table 2). Preliminary metallurgical testing conducted by previous operators on composite samples recovered, without crushing, between 69% and 98.7 % gold. Earlier this year, MacDonald Mines initiated in depth metallurgical testing of the Oxide Sands to achieve the highest possible gold and silver recovery. Results are expected this Fall. ...

...click here for full copy from source

   

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Excerpt of MacDonald Mines June 29, 2017 release:

 

Golden Goose Discovery Returns 11.85 g/t Gold from Grab Sample and Oxide Sands Found to Contain High-Grade Platinum, Palladium and Silver

 

TORONTO, ONTARIO--(Marketwired - June 29, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", "MacDonald" or the "Company") the "Company", or "BMK") announces it has received assay results from the recent ground sampling of its 2016 Golden Goose discovery, the Soocana Vein, and of the Oxide Sands at its Wawa-Holdsworth Project (Figure 1).

Highlights from the Sampling Program:

  • Grab samples, collected from the Golden Goose Discovery, contain 11.85 g/t and 2.98 g/t gold* and support the presence of reproducible gold grades along the newly discovered gold-bearing structure

  • A bulk composite sample of the Oxide Sands composed of 4 different locations returned 0.15 g/t platinum, and 0.36 g/t palladium, in addition to the average grade of 5.45 g/t gold previously reported (see May 16, 2017 News Release)

  • 2 kg oxide sand samples contain up to 59.8 g/t silver* (see Table 1 below)

  • A grab sample from a quartz-tourmaline vein in the Soocana Vein System contains 34.9 g/t gold*

*The reader is cautioned that grab samples are selected samples and may not be representative of the mineralization hosted on the property

Table 1. Gold and silver grades from collected grab samples

 

Description

 

 

Gold g/t

 

 

Silver g/t

 

Black Sands Area A

 

 

3.09

 

 

38.8

 

Black Sands Area A

 

 

2.71

 

 

49.7

 

Black Sands Area A

 

 

3.05

 

 

59.8

 

Black Sands Area BE

 

 

6

 

 

24.1

 

Black Sands Area BE

 

 

5.62

 

 

30.7

Quentin Yarie, MacDonald's President and CEO commented: "The large deformation and alteration corridor on the Holdsworth property hosts many known zones of gold mineralization. These results confirm that our Golden Goose Discovery is another potentially important gold-bearing structure on the property. Furthermore, the discovery of high-grade silver, platinum and palladium in the Oxide Sands, in addition to the anomalous gold content, makes the Oxide Sands an even more prospective target on our Wawa-Holdsworth Project."

Figure 1. Location of gold targets at the Wawa-Holdsworth Project

Figure 2. Location of Oxide Sands samples

About the Wawa-Holdsworth Project

The project is located near Hawk Junction, approximately 20 km north east of Wawa, Ontario. The Holdsworth property consist of a contiguous block of 18 fee simple absolute patented claims, including surface and mining rights covering approximately 705 acres.

Project Highlights

  • Neighbouring Richmont's Island Gold Mine, Argonaut's Magino Gold Project and Goldcorp's Borden Project

  • Numerous gold showings with diversified mineralization styles occurring in a 500 metres-wide deformation corridor

  • Year-long road access and easy access to rail, road, electrical power, labour force and suppliers

Overview of MacDonald's Exploration Program

Historic work by previous operators defined three gold targets on the Wawa-Holdsworth Project:

  • Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System and Reed-Booth Showing);

  • BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);

  • Gold-bearing Oxide Sands developed from the weathering of the auriferous Pyrite Zones.

MacDonald Mines is focusing its near-term exploration program on the Oxide Sands. These appear to extend for more than 2 kilometres on the property as corroborated by MacDonald's recent airborne magnetics results (see June 1, 2017 News Release) and reach a depth of at least 8 metres.

Recent preliminary sampling of the Oxide Sands by MacDonald Mines returned an average grade of 5.45 g/t gold (see May 16, 2017 News Release). Preliminary metallurgical testing conducted by previous operators on composite samples recovered, without crushing, between 69% and 98.7 % gold. Earlier this year, MacDonald Mines initiated in depth metallurgical testing of the Oxide Sands to achieve the highest possible gold and silver recovery. Results are expected this Fall.

The soft and relatively unconsolidated Oxide Sands material can be extracted like an aggregate. The Company is working to better define the Oxide Sands as continues to prepare for their potential extraction...

...click here for full copy from source

 

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Fig. 3 (below) Wawa-Holdsworth Gold Zones -Three styles of gold mineralization exist on the original 285 hectares Wawa-Holdsworth project (the Company has since added 84 claims of similar ground nearby), all part of the same gold system within the 500 metre-wide deformation corridor:

 

"*" in the image above signifies non NI 43-101 compliant values for the Soocana Vein.

 

The three gold mineralization styles on the property (and shown in the claims map above) are:

  1. An oxidized cap at surface developed over a massive pyrite zone (Algoma Iron Formation) -- "The Oxide Sands",

  2. The precursor to the Oxide Sands - a massive pyrite zone (Algoma Iron Formation) at depths -- "The Massive Sulphide", and

  3. Lode Gold in traditional quartz veins -- "The Soocana Vein".

 

Fig. 4 (above) Wawa-Holdsworth Gold & Silver Project Oxide Sands Zone Test Pit - Best composite samples; 5.95 g/t gold + 47.09 g/t silver in a 31x4.7x3.35m bloc, and 5.94 g/t gold+ 50.14 g/t silver in a 10x3.5x3.74m bloc.

 

Large near-term exploration upside potential - Oxide Sands, BIF, and Load Gold Vein

 

The exploration team has learned from other projects in the area that the alteration system associated in this land package is very large, something that people historically either didn't recognize, or know about, or chose to ignore, instead they would focus on the quartz veins. Banded Iron Formations (BIF) are hosted on the property, similar to other formations that were historically mined near Wawa. We know that when you put these type of rocks in an environment where gold bearing fluids are circulating they form very good traps for gold, and we know that BIF on this property are mineralized because the Oxide Sands are derived from the weathering of those banded formations. Additionally, localized drilling and samples in BIF have shown them to be gold bearing, historic samples were upwards of ~0.3 ounces/t.

 

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Lode Gold in traditional quartz veins -- "The Soocana Vein": Almost all the historic drilling and work done for gold on the property was concentrated into a 700 m strike length associated with this 'Soocana' vein with very little efforts put into other gold plays on the property, apart from the Oxide Sands. The Soocana vein system is a shear zone with stacked auriferous quartz veins. A poor understanding of the shear system geometry by previous operators is obvious as drilling occurred in every direction with un-systematic sampling practice. Noteworthy historic (non NI 43-101 compliant) drilling intersections include 16g/t gold over 4.3 m, and 6.9 g/t gold over 15.8m and demonstrates the potential.

 

Property claims map expanded to include all of the historic Soocana Claims; see related July 4, 2017 news release entitled "MacDonald Mines expands Wawa-Holdsworth Project: Acquires Contiguous Claims from Sage Gold". The Soocana Claims consist of a contiguous block of 12 claims that cover 437.3 acres. The claims are under a 99-year lease agreement with Josephine Forest Resources Ltd. that expires on July 31, 2039.

 

 

Fig. 5a (above) Location Map

 

Figure 5 (below) Surface Mining Plan of Soocana Vein from November 15, 1933 - From the then Soocana Mining Company. There were plans at one point to exploit the robust gold and silver values of the vein. At the time, the Soocana Mining Company Limited calculated a gold resource (historical non NI43-101) of 54,000 tons of material grading 0.556 oz/t (19.06 g/t), however the Soocana Vein was never meaningfully mined in any way, only a small pit scratched the surface in one spot from earlier on. A recent (announced June 29, 2017) grab sample from a quartz-tourmaline vein in the Soocana Vein System contains 34.9 g/t gold.

Fig. 6. (above) Soocana Vein

 

  

On February 28, 2017 MacDonald Mines announced that it has begun a core sampling program at its Wawa-Holdsworth Project. The Company has begun a systematic analysis of core from the 2008 Drill Program. It is developing a database of the lithological and geochemical signatures associated with high grade gold assays by utilizing XRF, magnetic susceptibility and SWIR measurements. Initial observations found that the highest grades of gold are associated with deformed quartz-iron-carbonate veins, with additional sericite, chlorite and tourmaline alteration, hosted in mafic metavolcanic rocks. These veins locally contain visible gold, accompanied by chalcopyrite, galena and pyrite mineralization. The Company will be assaying any previously un-sampled prospective zones, particularly those containing significant shearing and quartz-iron-carbonate veining, and re-sampling any significant quartz veins and analyzing them using metallic screening. Highlights from the 2008 Drill Program include:

28.35 g/t gold over 1.07 m
17.9 g/t gold over 0.54 m
13.5 g/t gold over 0.66 m
4.07 g/t gold over 0.95 m
4.03 g/t gold over 0.90 m

 

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'Reed-Booth' quartz vein prospect: This is a newly acquired section of the project.

 

Related July 13, 2017 news "Acquisition of Reed Booth Proves Favourable in first samples collected, returning 13.7 g/t Gold from Grab Sample";

 

 

TORONTO, ONTARIO--(Marketwired - July 13, 2017) - MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) ("MacDonald Mines", the "Company", or "BMK") is pleased to announce assay results from recent ground sampling of the newly acquired Reed Booth Vein (Figure 1).

 

Results from Sampling Program:

  • Grab sample* containing 13.7 g/t gold collected adjacent to the newly acquired Reed-Booth showing.

  • Grab samples* containing 4.77 g/t and 6.0 g/t gold collected from float at the main Reed-Booth showing; considered representative of the main style of mineralization at the showing.

*Grab samples are selective and may not represent the true mineralization of the prospect.

 
Quentin Yarie, MacDonald's President and CEO commented: "Confirmation of the gold-bearing structure associated with the Reed-Booth adds an additional exploration target for the Company. We will continue to prospect the area both for lode gold type targets as well as the extension of the oxide sands which represents MacDonald Mines' goal of being a near term producer."

 
About the Reed-Booth Prospect:
Excerpt from Booth Barry, Joan M REPORT OF A 1993 WORK PROGRAM OFF THE REED BOOTH PROSPECT McMURRAY TOWNSHIP, ONTARIO

 
The known gold mineralization on the claim is hosted by quartz veining localized within an altered (chlorite, calcite, sulphide, silica) and sheared intermediate to felsic intrusive rock. A grab sample from the vein system in the main shaft and adit area assayed 0.91 oz/ton, Au Two veins appear to intersect in this area.

 
Another shaft was located during this program (3 Shaft), 105 metres east- northeast of the main shaft. The vein system at the 3 Shaft is 4.0 feet wide, strikes at 076° and dips -85° towards the north. There is no outcrop in the area between these two shafts.

 
The 2 Shaft is located approximately 120 metres southeast along the baseline from the main Shaft. There is scattered small quartz veining developed in altered felsic rocks in this area, but no apparent vein in the rock exposed at the shaft collar. Between the Main and 2 Shafts, a 2' to 3' wide quartz has been exposed in an old trench. A grab sample from this vein contained 0. 26 oz/ton, Au. A sample from a vein in this area by earlier workers (Sears, 1986) assayed 0.12 oz/ton, Au.

 
Grab samples taken by the Ontario Geological Survey in 1981 and 1990 in the waste rock of the vein system also indicated a high gold content in the Vein #1, with individual grab samples containing up to 124.49 g/t gold and 33.86 g/t silver (OFR5798). ...

 

... click here for full copy from source

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Proven exploration team that understands area geology: One of the most effective investment techniques for generating superior returns in exploration mining stocks is to follow quality/proven people to new ventures. The advisory and exploration team for MacDonald Mines has enjoyed exploration success in the Wawa gold camp (e.g. another mining Company just raised ~$6M off the success of their exploration efforts on a neighboring property). For example, Dr. Jean-Philippe Desrochers ,Ph.D., P.Geo., is part of the MacDonald advisory/exploration team (Dr. Desroches is also currently the QP for Osisko) -- he was Vice-President of Exploration at the Windfall Lake Gold Project (now owned by Osisko Mining) in its early days from 2005 to 2010 (then Murgor), and became Eagle Hill's Chief Geologist in 2010 before becoming Vice-President Exploration for Eagle Hill in 2013. Under his watch from 2005 - 2013 he took the Windfall gold project from conceptual to advanced stage with impressive resource that resulted in the Osisko buy-out. The advisory and exploration team of MacDonald Mines is looking to replicate that type of success here on the Wawa-Holdworth property now and believe their success in the area and intimate understanding of the geology provides a level of insight and expertise that was never previously afforded this prime land package.

 

Plans -2017 works program:

 

There are many gold structures that are present on the property and the exploration team knows that the structures control the gold so the first order of business is to get a handle on them with geophysics this winter and map them all. The exploration team will pick targets, do trenching to test the Oxide Sands, expose structures, and perform channel sampling. The goal will be twofold; 1) lead to drilling load-hosted/shear-hosted structures highly prospective for significant discovery, and 2) to quantify the potential of the gold laden Oxide Sands for a short-term path to production which could finance the Company in exploration (non-dilutively) going forward and reward shareholders establishing a long position now.

 

Exploration Update: August 1, 2017 "Oxide Sands extended 500m along trend on Wawa-Holdsworth Project"

 

Press release excerpt....

Highlights from the trenching Program:

  • Oxide Sands observed in trenches over a strike of 1.1 km between TR-600 and TR-1700, expanding the known trend of Oxide Sands by more than 500 metres (Figure 1 [ http://media3.marketwire.com/docs/1100068_Fig1.jpg ]);
  • 30 trenches completed along the main Oxide Sands trend and 10 trenches sampled;
  • 325 trench samples sent for assay;
  • > 2km geophysical target (Max-Min anomaly) and the Oxide Sands correlate well; and
  • Similar geophysical anomalies parallel to the main Oxide Sands trend suggest additional zones of Oxide Sands.

Quentin Yarie, MacDonald's President and CEO commented: "as the trenching program progresses, we are encouraged by the visual indicators showing the trend of the Oxide Sands has almost doubled. The geophysics has mapped the sands as anticipated and has provided us with a robust exploration tool to both expand and define additional zone of Oxide Sands on the property."

 

The Company is topped up, and able to meet near-term exploration objectives. The area is hot, area miners keep growing their deposits, and the property has already yielded exceptional grades in different mineralization styles -- showing the potential of what we can expect in what is shaping up to be one of the most exciting exploration plays in North America this 2017.

  

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Below is expanded insight on MacDonald Mines Exploration Ltd. and its Wawa-Holdsworth gold & silver property.

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

  

 

Recent news releases regarding Company accomplishments and operational developments:

  

• October 3, 2017 "MacDonald Mines Receives Highest Precious Metal Assays of the Oxide Sands to Date, Wawa-Holdsworth Gold Project".

 

• September 27, 2017 "MacDonald Mines Exploration Enters into MOU with Michipicoten First Nation".

 

• September 20, 2017 "MacDonald Mines Commences Sonic Drill Program of Oxide Sands at its Wawa-Holdsworth Gold Project".

 

• August 31, 2017 "MacDonald Mines Provides Clarification on the Trenching of Oxide Sands, Wawa-Holdsworth Gold Project".

 

• August 30, 2017 "MacDonald Mines Receives Final Precious Metal Assays on Trenching of Oxide Sands, Wawa-Holdsworth Gold Project".

 

• August 24, 2017 "Province of Ontario to Fund Ring of Fire Road".

 

• August 9, 2017 "MacDonald Mines Receives First Gold Assay on Trenching of Oxide Sands, Wawa-Holdsworth Project, Wawa, Ontario".

 

• August 2, 2017 "MacDonald Mines Announces Private Placement and Strategic Investor on its Wawa-Holdsworth Project, Wawa, Ontario".

 

• August 1, 2017 "Oxide Sands extended 500m along trend on Wawa-Holdsworth Project".

 

• July 13, 2017 "Acquisition of Reed Booth Proves Favourable in first samples collected, returning 13.7 g/t Gold from Grab Sample".

 

• July 11, 2017 "MacDonald Mines Reports Positive Metallurgical Results of the Oxide Sands at its Wawa-Holdsworth Project, Wawa, Ontario".

 

• July 6, 2017 "MacDonald Mines Begins to Excavate Oxide Sands at its Wawa-Holdsworth Project, Wawa Ontario".

 

• July 4, 2017 "MacDonald Mines expands Wawa-Holdsworth Project: Acquires Contiguous Claims from Sage Gold".

 

• June 29, 2017 "Golden Goose Discovery Returns 11.85 g/t Gold from Grab Sample and Oxide Sands Found to Contain High-Grade Platinum, Palladium and Silver".

 

• June 12, 2017 "MacDonald Mines Announcing Closing of Sale of Holdsworth".

 

• June 1, 2017 "MacDonald Mines Exploration Ltd.: Airborne Magnetics Corroborates Interpreted >2km Strike Length of Oxide Sands at its Wawa-Holdsworth Project".

 

• May 16, 2017 "MacDonald Mines Assays of the Oxide Sands results in Significant Increase in Gold Content - Individual Samples Contain up to 6 g/t Gold".

 

• May 8, 2017 "MacDonald Mines Prepares for Airborne Geophysical Survey at its Wawa-Holdsworth Project".

 

• May 4, 2017 "MacDonald Mines Exploration Announces Results from its Annual General Meeting of Shareholders".

 

• May 4, 2017 "MacDonald Mines Acquires 100% Interest in Holdsworth Property".

 

• May 2, 2017 "MacDonald Mines Prepares for NI43-101 Resource at its Wawa-Holdsworth Project".

 

• April 27, 2017 "Mining Expert Jay Taylor of Hard Money Advisors Initiates Coverage of MacDonald Mines".

 

• April 5, 2017 "MacDonald Mines Begins Metallurgical Testing of the Oxide Sands at its Wawa-Holdsworth Project".

 

• March 30, 2017 "MacDonald Mines Signs Binding Letter of Intent to acquire 100% Interest in Holdsworth Property".

 

• March 21, 2017 "MacDonald Mines Prepares for 2017 Bulk Sampling Program at its Wawa-Holdsworth Project".

 

• March 8, 2017 "MacDonald Mines Introduces Technical Advisory Committee and Contractor for Oxide Sands Trenching Program".

 

• March 6, 2017 "MacDonald Mines Introduces Nominees for Election to Board of Directors at Upcoming AGM".

 

• February 28, 2017 "MacDonald Mines Adds Land Position in Wawa and Provides Update on Wawa-Holdsworth Gold District Project".

 

• February 23, 2017 "MacDonald Mines Provides Update on Exploration Programs of Both Holdsworth and Charlevoix: Composite Samples Up to 99.39% High Purity Silica From Charlevoix".

 

• February 17, 2017 "MacDonald Mines Announces Shares for Debt Transaction".

 

• January 20, 2017 "MacDonald Mines Closes Third Tranche of Non-Brokered Private Placement".

 

• January 13, 2017 "Macdonald Mines Issues Shares in Connection with Charlevoix and Holdsworth Property Acquisitions".

 

• January 5, 2017 "Macdonald Mines Begins Exploration at its Charlevoix Silica Property". 

 

• January 3, 2017 ""MacDonald Mines Closes Initial Tranches of Non-Brokered Private Placement".

 

• December 21, 2016 "Macdonald Mines Files 43-101 Technical Report for its Wawa Holdsworth Project".

 

• December 19, 2016 "Macdonald Mines Announces $1,000,000 Non-Brokered Private Placement Financing".

 

• December 13, 2016 "Macdonald Mines Discovers a New Gold Bearing Shear Zone at the Wawa-Holdsworth Project - Grab Sample Contains 5.36 g/t Gold".

 

• December 8, 2016 "Macdonald Mines Announces Joint Venture Agreement".

 

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Wawa-Holdsworth Project

 

Ownership: MacDonald Mines has 100% ownership of the project.

 

Location, Region, and Infrastructure

 

MacDonald Mines Exploration Ltd.'s Wawa-Holdsworth Project is located in a stable mining-friendly jurisdiction of Ontario, along the Michipicoten Greenstone Belt -- host to an impressive array of neighboring deposits, and past and present producers.

 

Figure 7. (above) Location Map.

 

  Blue claims

  • 25 kilometres NE of Wawa, ON, in Corbiere and Esquega Townships.

  • 285 hectares.

  • 18 fee simple absolute patented claims that include surface and mining rights.

  • Close to vital infrastructure (rail, road, power, qualified workforce).

  • Easily accessed by public road and short trail ride.

  • There are no known environmental liabilities on this property.

Red claims:

  • 84 hectares.

 

Figure 8. (right) Claims Map.

 

 

Figure 9. (above) Regional geology map and inset section of regional magnetics. Within the Michipicoten Greenstone Belt, an under-explored sector of the Abitibi Gold Province with favourable regional geology for gold mineralization. Recent exploration by Richmont (>1Moz Au) Island Gold Mine, Argonaut (>6Moz Au) Magino Gold Mine, and others confirmed the potential for a multi-million ounce gold deposits.

 

Wawa-Holdsworth Gold Zones

 

Three styles of gold mineralization on the Wawa-Holdsworthproject -all part of the same gold system within the 500 metre-wide deformation corridor.

  1. Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System);

  2. BIF-hosted gold deposits (gold-bearing pyrite zones in an Algoma-type iron formation);

  3. Gold-bearing Oxide Sands developed from the weathering of the auriferous Pyrite Zones.

Most of the property outside the Soocana Vein and the center of the defined Oxide Sands Zones remain under-explored

 

Fig. 10 (right) Gold Zones

 

BIF-hosted gold mineralization (gold-bearing pyrite zones in an Algoma-type iron formation) was the earliest discovery on the property.

  • It was sparsely drilled for gold (7 exploration holes, un-systematic sampling).

  • Into a shear zone with penetrative deformation and strong alteration.

  • Gold mineralization inside pyrite, but also in sheared zones above and below sulfide horizons.

  • Prospective strike length of 2.2 km – Oxide Sands are derived from the BIF formation.

Fig. 11 (right) Auriferous and Pyrite-rich Algoma-type Iron Formation

 

Oxide Sands Zones are mapped over a 610 metres strike-length.

 
Of that, detailed sampling of panels sampled was done over a 332 metres strike length whereas the remaining zones were poorly defined and not systematically sampled.

 
Possible extensions over the entirety of the 2.2 km strike length of the auriferous and pyritic iron formation.

 
These extensions of the Oxide Sands remain to be proven and defined.

 

Fig. 12 (right) Oxide Sands shown in yellow.

 

  

Fig. 13 (above) Oxide Sands

 

The Oxide Sands are one of the main gold targets on the property. Gold mineralization occurs in black sands composed of fine quartz, non-magnetic iron oxides (likely oxidized pyrite) and free gold. The Oxide Sands are interpreted to be derived from the weathering of an auriferous and pyritized Algoma-type iron formation. The pyritized iron formation is, so far, traced on the property over a 2 km-long strike length.

 

In 2002, a detailed and systematic sampling of the Oxide Sands was conducted over a strike length of 332.5 metres (Blocks A and B). The mineralized sands reached a depth of at least 8 metres and contained an average gold grade of 3.45 g/t and an average silver grade of 29.99 g/t.

 

Results from the 2002 Sampling Program:

BLOCK

 

 

 

Block #

A

 

(m) LENGTH

 

(m)AVERAGEWIDTH

 

(m) AVERAGE DEPTH

 

 

SPECIFIC GRAVITY

 

 

INDICATED TONNES

 

GOLD GRADE

(gms/tonne)

 

SILVER GRADE

(gms/tonne)

A-1

30.0

6.9

4.65

2.5

2392

4.92

25.22

A-2

13.5

5.3

3.00

2.5

540

5.76

42.65

A-3

31.0

4.7

3.35

2.5

1228

5.95

47.09

A-4

10.0

3.5

3.74

2.5

328

5.94

50.78

A-5

24.0

2.9

3.66

2.5

630

5.10

50.14

A-6

8.0

5.3

5.49

2.5

583

2.99

36.01

A-7

11.5

7.5

5.03

2.5

1080

1.74

21.29

A-8

20.0

6.3

3.65

2.5

1140

0.85

9.91

Sub-total

148m

5.3

4.07

2.5

7921

4.03

30.89

 

BLOCK

 

B

 

 

 

 

 

 

B-1

21.0

6.4

1.92

2.5

645

1.17

17.43

B-2

53.0

3.8

1.14

2.5

576

1.20

17.94

B-3

17.5

2.8

1.60

2.5

193

3.04

44.06

B-4

17.5

5.5

3.20

2.5

769

3.88

50.56

B-5

10.0

5.5

3.20

2.5

439

3.51

41.28

B-6

45.5

3.6

2.28

2.5

944

1.84

16.83

B-7

20.0

3.0

1.83

2.5

275

1.54

18.6

Sb-total

184.5

3.8

1.87

2.5

3839

2.27

28.14

TOTAL

332.5

4.55

2.97

2.5

11760

3.45

29.99

 

 

 

 

 

 

 


 

 

The Pyrite Zones are believed to contain multiple Gold-laden Oxide Sand Zones:

 

The Pyrite Zones are a pyrite-altered Algoma-type iron formation and represent a iron formation-hosted gold target. Algoma-type iron formation are recognized hosts of large gold deposits in Canada and the United States. Key examples of gold deposits in Algoma-type iron formation in Canada the Meadowbank, Meliadine and Musselwhite gold deposits (Dubé et al., 2015). The pyrite Zones forms steeply dipping east-west trending lenses distributed along a mafic/felsic metavolcanic contact over a defined strike length of 2.2 kilometres. A gold intersection of 5.18 g/t gold over 1.5 metre were also obtained in a sericite-altered shear zone in the hanging wall of the pyrite zone whereas a 1988 drilling intersection in the pyrite contains 0.85 g/t over a 11.83 metres. This appears to be similar to the Bousquet deposit (see below) taken from 1917 report on the property which identified a historic (non NI 43-101) sulphide resource.

 

The Holdsworth Pyrite Prospect consists of massive lenses of pyrite situated at the contact between mafic and felsic metavolcanic rocks. These lenses trend approximately east-west and dip steeply towards the north. They are locally cut and offset by north-northwest trending faults. At present, five related zones have been confirmed by surface stripping and prospecting and several others indicated by ground geophysical surveys. The five confirmed zones (the 'East', 'East Extension', 'East Offset', 'West' and 'West Offset') have a combined strike length in excess of 2200 meters. Two drill programs completed from 1918 to 1926 (Algoma Steel Corp. and the Grasseli Chemical Co.) identified an iron reserve of 1,019,273 tons of 46 % sulphides within what is herein referred to as the East Pyrite Zone.
 
 
The pyrite zone has been intersected in 6 holes in more recent exploration programs including 2 holes by Falconbridge in 1983 and 4 by Reed Lake Exploration Ltd. in 1988. The Holdsworth Pyrite zones are of interest for their gold potential for two reasons. One of these is represented by the unoxidized portion of the sulphide zone and it's surrounding rocks. A drill core sample taken by Falconbridge Nickel Mines Ltd. (Band, 1983) was reported to contain 0.35 oz/ton, Au across 1.5 meters. Another sample from this hole taken from a pyritic shear in the hanging-wall six (6) meters above the Pyrite Zone was assayed four times yielding a range of assays from 0.24 to 0.51 oz/ton, Au. The massive pyrite typically contain up to 5% sugary to greasy quartz stringers and ribbons similar to the black sands. The massive pyrite contained gold values ranging from nil to 0.14 oz/ton. Three of the five holes drilled by Reed Lake Exploration Ltd. were found to contain very anomalous gold values: 1.03 g/t Au over a core length of 2.13 meters (Hole R23); 3.06 g/t over 6.1 meters (Hole R26) and2.08 g/t Au over 5.8 meters (Hole R27).
 

The second zone of interest on the Holdsworth Pyrite prospect is a gold and silver bearing, black colored, "oxidized cap" that overlies the massive pyrite. This coarse sandy material is in excess of eight (8) meters thick in most locations, where sampled, and contains gold values ranging from a few parts per billion to a high of 14.2 g/t (0.41 oz/ton).
 

The oxidized material that forms a "cap" to the Holdsworth Pyrite deposit has been described by old-time prospectors as a 'black sand'. It consists of siliceous grains and non magnetic iron oxide pellets ranging from a few centimeters to several microns in size. It is assumed to be the oxidized equivalent of the underlying massive iron sulphide. The sulphide zones are frequently anomalous in gold. Assays from a number of drill holes (Band, 1983; Sears, 1989) have ranged from nil to 0.056 oz/ton, Au. The best intersection to date was from Hole R26 (Reed Lake Exploration, 1988) which contained a 6.1 meter (20 foot) section assaying 1.06 g/t (0.031) oz/ton, Au. The enriched gold values in the overlying material are assumed to be related to the oxidizing and weathering process.
 

In 1988, Reed Lake Exploration Ltd. carried out a stripping program over parts of the East and West Pyrite Zones (Figure 4). In the early part of the program, the overburden was stripped completely down to the black, oxidized granular material. When it was discovered that the overlying red and yellow soil was also highly elevated in gold, the remainder of the stripping stopped just below the overlying bouldery till. Sampling was then carried out by means of surface channels at regular intervals across the zone (Appendix 1). Two blocks within the East pyrite zone in which the oxidized cap was exposed yielded assays ranging from trace to 0.284 oz/ton, Au and an average grade of 0.208 oz/ton, Au. The sampled width averaged 2.9 meters (9.5 feet) for a strike length of approximately 100 meters (328 feet). The actual width of the underlying pyrite zone has a range of 2 to 10 meters (6.5 to 33 feet). In several test locations, the bottom of the zone was not reached at a vertical depth of 8 meters.
 

During the 1988 program, sampling from the red, yellow and grey soil above the black oxidized zone was also found to contain elevated gold values, ranging from trace to 0.206 oz/ton, Au. This material extends throughout the area stripped, so it was assumed that the black granular oxide occurred beneath it at shallow depths. A very limited amount of stripping was completed on the West Zone to check for the existence of the oxidized cap material. Six (6) grab samples were collected from two three meter sections across this zone. Four of these consisted of brown soil and contained trace amounts of gold. The other two were of black-green material and contained 0.052 and 0.064 oz/ton, Au.

 

 

Fig. 14 (above) Oxide Sands - A total of 340kg of material from the Black Sands Zones was sent to SGS Lakefield for metallurgical testing in 2009. Preliminary metallurgical testing of the oxide sands resulted in gold recoveries between 69% and 98.7% via 48 hours agitated cyanidation without crushing.

 

Load-Gold, Greenstone-hosted quartz-carbonate vein deposit (Soocana Vein System)

 

Soocana vein system – Shear zone with stacked auriferous quartz veins
 

Except for the Oxide Sands, almost all the historic drilling and work done for gold on that property was concentrated into a 700 metres strike length associated with this vein with very little efforts put on the others gold plays of the property.

 
 

 
Overall the property remains underexplored.

 

Fig. 15 (right) Soocana Vein shown in red.

 

Between 1931 and 1933, the Soocana Mining Company Limited drilled 6 diamond drill holes on the Holdsworth Property for approximately 525 metres for gold with the following results. 
 

Holdsworth Property Soocana Vein - 1931 Drill Results

Hole # 1

10' @ 0.4 oz Au/ton
4' @ 0.61 oz Au/ton

Average Grade

16.0 g/t Au/4.3m 

Hole # 2

14' @ 0.38 oz Au/ton
2' @ 0.12 oz Au/ton

Average Grade

11.9 g/t Au/4.9m

Hole # 3

6' @ 0.36 oz Au/ton
5' @ 0.56 oz Au/ton

Average Grade

15.5 g/t Au/3.4m

 

5' @ 0.33 oz Au/ton
6' @ 0.60 oz Au/ton

Average Grade

16.4 g/t Au/3.4m

Hole # 4

3' @ 0.30 oz Au/ton
5' @ 0.46 oz Au/ton

Average Grade

13.7 g/t Au/2.4m 

Hole # 5

6' @ 0.63 oz Au/ton
3' @ 0.21 oz Au/ton             
3.5' @ 0.06 oz Au/ton

Average Grade

12.7 g/t Au/3.8m 

 

4' @ 0.62 oz Au/ton
10' @ 0.01 oz Au/ton

Average Grade

6.3 g/t Au/4.3m

Hole # 6

10'@ 0.21 oz Au/ton
10'@ 0.12 oz Au/ton
4' @ 0.01 oz Au/ton

Average Grade

4.8 g/t Au/7.3m

 

7' @ 0.16 oz Au/ton
7'@ 0.71 oz Au/ton
10'@ 0.06 oz Au/ton
10' @ 0.04 oz Au/ton
4'@ 0.68 oz Au/ton
9'@ 0.06 oz Au/ton
5' @ 0.04 oz Au/ton

Average Grade

6.9 g/t Au/15.8m 


The Soocana Mining Company Limited calculated a gold resource of 54,000 tons of material grading 0.556 oz/t (19.06 g/t).*

*The above estimate of resources and assay values are historical and are non-NI 43-101compliant.
  

2009 drilling on Soocana Vein system

The following are highlights of the results from Hawk's 34-hole drill program in 2009:

 

 

Fig. 16 (above) Drill core storage.

 

 

Fig. 17 (above) Soocana quartz vein.

Hole #    

Sample
#

Depth
(m)

Interval
(m)

Au
(g/t)

Ag
(ppm)


HW 8-05

231215

31-87-32-37

0.50

0.59

0.2

HW 8-06

231509

41.24 -- 41.54

0.30

2.93

0.9

HW 8-07

231346

156.0 -- 157.0

1.0

0.58

0.3

 

231347

157.0 -- 158.0

1.0

0.57

0.8

HW 8-09

231462

19.84 -- 20.26

0.42

1.01

0.5

HW 8-11

245006

6.74 -- 7.40

0.66

(13.5)*

4.6

 

245033

31.0 -- 32.0

1.0

0.48

0.2

               

245034

32.0 -- 33.0

1.0

0.95

0.2

HW 8-13

231664

18.53 -- 19.10

0.57

(22.4)*

10.1

 

231665

19.10 -- 19.60

0.50

(35.2)*

7.0

 

231704

60.60 -- 61.27

0.67

0.60

0.9

 

231705

61.27 -- 61.75

0.48

0.92

0.5

HW 8-14

263403

27.50 -- 28.19

0.69

2.74

0.4

 

263405

28.70 -- 29.20

0.50

0.75

0.3

 

263406

29.20 -- 29.70

0.50

0.96

0.5

 

263407

29.70 -- 30.10

0.40

2.40

0.8

HW 8-20

245330

10.0 -- 10.48

0.48

0.51

0.3

HW 8-21

245433

32.46 -- 33.00

0.54

0.56

<0.2

 

245434

33.00 -- 33.59

0.59

3.67 (4.49)*

0.6

 

245435

33.59 -- 33.90

0.31

3.28 (3.19)*

1.9

 

245437

34.69 -- 35.33

0.64

1.30

<0.2

 

245477

103.32- 104.00

0.68

0.61

0.3

HW 8-25

263137

93.40 -- 93.95

0.55

6.42 (6.25)*

2.8

HW 8-27

263171

120.21- 120.66

0.45

2.4

0.2

HW 8-29

263195

108.00- 108.56

0.56

1.05

1.9

HW 8-30

245970

15.0 -- 15.51

0.51

(4.65)

0.7

 

245971

15.51 -- 15.95

0.44

(3.41)

0.7

HW 8-31

263225

17.47 -- 18.00

0.53

1.8

3.7

 

263247

125.35- 125.92

0.57

5.74 (4.38)*

0.3

HW 8-33

263301

89.46 -- 90.00

0.54

17.7 (17.9)*

5.3


*Bracketed values are Metallic Sieve Au analysis and check results using Metallic Sieve analysis. 

 

Highlights from the 2008 Drill Program include:

 

28.35 g/t gold over 1.07 m
17.9 g/t gold over 0.54 m
13.5 g/t gold over 0.66 m
4.07 g/t gold over 0.95 m
4.03 g/t gold over 0.90 m

 

The property is highly prospective for new discovery. The Golden Goose Discovery returned 11.85 g/t Gold from grab sample announced June 29, 2017.

 

 

Fig. 18 (above) Golden Goose Shear Zone - This discovery occurred as a result of MacDonald Mines exploration team simply prospect-walking the property after acquisition in Q4-2016, found next to the old railway bed in what seems to be a large shear zone formed near the contact between the volcanic sequence and the granitic intrusion.

------ ------ ------      ------ ------ ------      ------ ------ ------

 


MacDonald Mines' Technical Leadership, Management, and Governance  Skip to top

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Quentin Yarie, President, CEO, Director

Mr. Yarie is an experienced geophysicist and an entrepreneur with over 20 years of experience in the mining and environmental/engineering sectors. Mr. Yarie has project management and business development experience and has held positions of increasing responsibility with a number of Canadian-based geophysical service providers. He was previously the business development officer of Geotech Limited, an Ontario corporation and a senior representative of sales and business development for Aeroquest Limited. Mr. Yarie is also President and Chief Operating Officer of Red Pine Exploration Inc., and Honey Badger Exploration Inc. He has been a director of MacDonald Mines since February 2011.

  

Craig Scherba, Vice President of Exploration

Mr. Scherba has over 20 years of mineral exploration experience both in Canada and abroad. Mr. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high grade gold, copper and zinc Bisha Project in Eritrea and lead the exploration team that discovered Energizer Resource’s world-class Molo Graphite Project in Madagascar. Mr. Scherba serves as President and CEO of Energizer Resources and is the Vice President, Exploration of Red Pine Exploration Inc. and Honey Badger Exploration Inc.

  

Conrad Dix, Senior Project Manager

Mr. Dix has over 20 years of international mineral exploration experience – from grassroots to discovery, production and resource expansion including geology and geophysics. Mr. Dix is involved in the discovery and resource generation of Glencore’s Raglan Mine.

 

Tara Gilfillan, CPA, CA., Director

Ms. Gilfillan is a finance executive with over 20 years of business experience and has held several senior financial and operational roles in the mining industry. She currently serves as Principal and CFO/VP of Corporate Development for Halyard Inc. a privately owned project engineering company focused on the mineral and metals industry. Tara has expertise in public reporting, business and tax strategy, acquisitions, risk review, setting up international operations and raising capital. She holds a business degree from Queen's University.

 

Gordon McKinnon, Director

Mr. McKinnon is currently serving as President, CEO and a Director of Canadian Orebodies Inc. He is a principal of McKinnon Prospecting Ltd., a private exploration company, and a Director of Capha Pharmaceuticals Incorporated, Fox River Resources Corporation, and Noble Mineral Exploration Inc. Gordon was a co-founder of Mineral Streams Inc., a private mineral royalty company that was recently sold to AuRico Metals Inc. Prior to joining Canadian Orebodies, he served as Manager of Corporate Development with Baltic Resources Inc., a company which was acquired for over $70M. Gordon graduated with an Honours Bachelor degree in Management and Organizational Studies from the University of Western Ontario in 2006.

 

Kevin Tanas, P.Eng., Chairman, Director

Mr. Tanas currently serves as Vice President of Business Development - North America, and Principal Mining Consultant of RPMGlobal, a global technical advisory consulting firm. Kevin's 18 years of experience has encompassed project development, conceptual to detailed engineering, commissioning and operational stages of open pit and underground deposits. His expertise lies in mine design and planning, due diligence review, construction monitoring, and financial modeling. Kevin has acted in a project management capacity and as a Qualified Person providing technical services to base metals, precious metals, iron ore, lateritic ore, coal, and energy sectors. His operational and consulting experience spans North America, South America, Africa and Australia.

 

John Sanderson Q.C., Chairman, Director

John Sanderson, Q.C., C.Med., C.Arb, is a mediator, arbitrator, consultant and lawyer called to the Bar in Ontario and British Columbia. Mr. Sanderson has acted as mediator, facilitator and arbitrator across Canada in a wide variety of disputes including environmental, inter-governmental, employment matters and in relation to aboriginal claims. Representative parties have ranged from trade unions to the Federal Government, major banks and financial institutions, construction companies, and resource industries. Mr. Sanderson has been a Director of MacDonald Mines since February 2001.

  

Hadyn Butler B.Sc., P.Geo., P.Eng., Director, Technical Advisor

Mr. Butler is a Professional Geoscientist and a practicing member of the Association of Professional Geoscientists of Ontario. Mr. Butler had 30 years consulting experience with INCO and has enjoyed substantial success in mineral exploration. He has over 40 years of geological experience. He has been a Director of MacDonald Mines Exploration Ltd., since August 14, 2003 and a member of its Technical Advisory Committee since February 2011. He served as Director of Uranium Star Corp. (Formerly Yukon Resources Corp.) from December 22, 2006 to January 2, 2009. He graduated with a degree in geology in 1974 (Bachelor of Science, with First Class Honours and University Medal) at the University of New England, Armidale, New South Wales, Australia.

  

James Franklin Ph.D, FRSC, P.Geo, Technical Advisor

James Franklin, PhD, FRSC, P.Geo has over 40 years of extensive geological knowledge and expertise of mineral deposits and regional metallogeny. He 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 GSC, and is an Adjunct Professor at Queen’s, Laurentian and Ottawa university.

 

Larry Hulbert Ph.D, P.Geo, Technical Advisor

Larry Hulbert, Ph.D, D.Sc., P. Geo has over 38 years of experience and spent 23 years as a Senior Research Scientist with the Geological Survey of Canada (GSC). He specialized in the Metallogeny of Mafic-Ultramafic Rocks and associated Ni-Cu-PGE mineralization.

 

Mackenzie Watson, B.Sc., P.Geol., P.Eng., Technical Advisor

Mr. Mackenzie (Mac) Watson, has over 50 years experience in the exploration, development, and mining industry, and has been involved in the discovery of numerous mineral deposits in Canada. He is currently Honorary Chairman of the Board of Directors of Quest Rare Minerals. Mr. Watson spent his career in the junior mining sector, as CEO of Lynx Canada Exploration from l969 to 1985, and CEO of Freewest Resources from 1985 until 20l0 when it was taken over by Cliffs Natural Resources. Mr. Watson was awarded Canada's Prospector of the Year Award in 1991 for his contribution to the discovery of the Harker Holloway gold mine (Ontario), the Icon-Sullivan copper mine (Quebec), the Long Lake zinc mine (Ontario), the Ellison gold deposit (Quebec) and the Hebecourt copper deposit (Quebec); and again in 2010 for his contributions to the mineral discoveries in the Ring of Fire area of Northern Ontario. He was also awarded the Quebec Prospector of the Year Award in 1992 for his participation in the discovery of the Pusticamica and Verneuil gold deposits in Quebec. In January 2015, Mr. Watson was inducted into the Canadian Mining Hall of Fame.

 

Jean-Philippe Desrochers Ph.D., P.Geo., Technical Advisor

Mr. Jean-Philippe Desrochers, has over twenty years of experience in the mineral exploration industry in Canada, Central and South America. Dr. Desrochers has been involved with intermediate and junior mining companies with exploration projects ranging from grass-roots to mine-scale. He was Vice-President of Exploration at the Windfall Lake Gold Project for Murgor Resources Inc. from 2005 to 2010, and joined Eagle Hill as Chief Geologist in 2010 before becoming Vice-President Exploration for Eagle Hill in 2013. Past experience also includes senior positions with Aur Resources and SRK Consulting. Dr. Desrochers specializes in the field of structural geology applied to ore deposits in the search for Archean lode gold, volcanogenic massive sulphides, porphyry copper, skarn, and epithermal gold deposits.

 

Note: This article is not intended to be a complete overview of MacDonald Mines Exploration Ltd. or a complete listing of MacDonald Mines' projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact MacDonald Mines Exploration's head office at: Ph (416).364.4986

 

Company's web site: www.macdonaldmines.com   SEDAR Filings: URL

 

 

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*Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification. *Estimates of potential made by the mining analyst and journal(s) are non 43-101 and not from the Company. "*" in the image signifies non NI 43-101 compliant.

 

     

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