MACDONALD INITIATES JANUARY EXPLORATION PROGRAM ON ITS MACNUGGET DRILL READY TARGETS....AREA PLAY IN MCFAULD'S LAKE/JAMES BAY LOWLANDS HEATS UP WITH MULTIPLE COMPANIES ANNOUNCING EARLY 2006 EXPLORATION PROGRAMS....FIRST TRANCHE FINANCING COMPLETED
MacDonald Mines (TSX VENTURE:BMK)
Kirk McKinnon, President & CEO stated "The company will award a ground geophysics contract for January 2006 on its MacNugget Property in the McFauld's Lake area. This program will position the upcoming drill program by conducting a Transient EM Survey over previously drilled discovery holes which identified highly mineralized VMS type Cu-Zn deposits on the MacNugget Property."
Each drill target benefits from:
- historical drill information;
- the area's most detailed airborne survey;
- multiple geological analyses by Tucker Barrie, P Geo., Joe Campbell, P. Geo., Claude Durocher, P Geo. and Ulrich Kretschmar, P Geo.
Their insights and experience combined with previously successful discoveries of VMS type anomalies should result in positive exploration drill results. It is our intention to take this knowledge and move forward in identifying new VMS deposits. The exploration program will be managed under direct supervision of Joe Campbell , P. Geo. of GeoVector Management Inc.
EXPLORATION PRESENTATION 2006
Visit MacDonald's website for a full report at www.macdonaldmines.com/
VMS POTENTIAL OF THE SACHIGO GREENSTONE BELT/MCFAULD'S LAKE AREA
The McFauld's Lake area has proven to possess a very mineralized Greenstone Belt, which features a significant VMS discovery by the Joint Venture partners KWG Resources & Spider Resources as reported in their November 8, 2004 press release with an intersection of 18.8 meters @ 8.02% Cu which included a section of 10.5 meters @ 9.35% Cu.
MacDonald followed on from this high potential McFaulds discovery with promising VMS discoveries on its MacNugget Property, which are on strike from the McFaulds discovery. MacDonald's press release dated January 24, 2005 reported intersections of 5.9 meters @ 1.16% Cu and 6.7 meters @ 1.55% Zn. As outlined in the exploration report MacDonald will initially focus on the MacNugget Property targets.
Early stage discoveries especially the high grade VMS discovery at McFaulds Lake offer the potential of a Noranda type VMS camp. Dr. James Franklin PhD., P. Geo in reports for KWG/Spider (PDAC - March, 2005) and Dr. Tucker Barrie PhD., P. Geo in reports for MacDonald (MacDonald Press Release - January 24, 2005 ) both outline the significant potential of this area through their collective insights and exploration involvement. Existing MacDonald airborne geophysics and preliminary ground exploration also offer the potential of both kimberlite and gold exploration targets.
Multiple Company Exploration Activity
McKinnon further stated that "we are also pleased to see that there has been an apparent realignment of land position in the McFaulds Lake area and with it should come a renewed level of exploration activity as the three companies actively explore for new VMS orebodies. There is no question that market focus has shifted away from the exploration successes in James Bay but we are confident that this new multiple company exploration activity (MacDonald/Spider/Probe) will lead to new discoveries and renewed market interest".FINANCING
As previously stated the financing challenges relating to dilution management and required exploration funds remain a delicate balance.
Richard Schler, Vice President & CFO of MacDonald Mines Exploration Ltd. (the "Corporation") is pleased to announce the following financing arrangement. The first tranche of private placement financing has been completed, which raised $200,000 in gross proceeds. We will raise an aggregate of about $750,000 to fund our next phase of exploration in early 2006.
|A non-brokered private placement of 2,000,000 flow-through units of the Corporation ("F/T Units") for gross proceeds of $200,000 (the "Offering"). Each F/T Unit is comprised of one common share of the Corporation and one-half (1/2) warrant ("Warrant"), with one whole Warrant being exercisable to purchase one common share of the Corporation at an exercise price of $0.15 and $0.20 per common share for a period of 12 months and 24 months respectively after the Closing Date. (The "Offering").|
All securities sold or issued under the Offering are subject to a four- month hold period.
The proceeds of this financing will be used primarily to advance exploration on the Corporation's properties located in the James Bay Lowlands region in Ontario.
The discovery potential in James Bay continues to offer magnitude and this potential is not yet reflected in our stock price. We believe the New Year will bring even stronger gold and base metal prices and hopefully this will translate into market appreciation for MacDonald's potential.
The Board granted the issuance of 600,000 stock options exercisable at $0.10 "per share" to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan approved by shareholders at the last AGM held on June 27, 2005 .
WARNING: The Company relies upon litigation protection for "forward- looking" statements.