06
Jul

MacDonald Mines Initiates Summer/Fall Drilling on McNugget Property and Outlines Targets in the James Bay Ring of Fire

(Toronto, ON, July 6, 2010) - MacDonald Mines Exploration Ltd. (TSX.V: BMK) ("MacDonald" or the "Company") announces that it has recommenced its 2010 exploration drilling program in the Ring of Fire, James Bay Lowlands.

The Company will be utilizing two drills for this phase of drilling and will focus on the results from its successful spring 2010 drilling program.

The spring 2010 drill program on its McNugget Property identified new volcanogenic massive sulfide (VMS) mineralization on four fold limbs. This large VMS system, which is open in all directions and yields VMS mineralization over a potential cumulative strike length of approximately 20 kilometres, is described by consulting geologist Hadyn R. Butler, P.Geo, as potentially being a new VMS camp. Hadyn Butler described this system in the Company's June 7, 2010 news release as displaying characteristics similar to the Matagami and Noranda VMS camps in Quebec, where large VMS deposits with smaller satellite deposits along strike were found.

Targeting Nickel and VMS on McNugget Property

"The McNugget Property has moderate to high potential for both Cu-Zn volcanogenic massive sulfide and Ni-Cu-PGE sulfide deposits." - Dr. Tucker Barrie, P. Geo.
This phase of drilling will focus on five principal base metal occurrence areas: 1) Campbell (Cu-Zn, to northeast); 2) Campbell West (Cu-Zn, north central); the 3) Fold Nose (Cu-Zn, to northeast); 4) Southern (Cu-Zn and Ni-Cu, to south); and 5) Area 39 (Ni-Cu-PGE, to southeast. (Figures are available on MacDonald's website at www.macdonaldmines.com). Initial drilling will be concentrated on the four VMS horizons identified through the previous drilling and geophysical investigations.

East Portion of McNugget Property on Same Stratigraphy as Noront's Eagles Nest

The DDH MN07-39 area has disseminated and veinlet Ni-Cu sulfides, similar to vein-controlled mineralization peripheral to many significant Ni-Cu-PGE sulfide orebodies (e.g., Sudbury Basin deposits, Kabanga, Montcalm, etc.).   "The high nickel tenor in the sulfides in DDH MN07-39 is comparable to that of Sudbury Ni-Cu-PGE ores"-  Dr. Tucker Barrie, P. Geo.   This indicates that hole 39 is in the halo of a potential massive magmatic sulfide orebody. The east side of the McNugget Property, where Area 39 is located, is on the same stratigraphy  as that of Noront's Eagles Nest (11.2 MT indicated resources 6.9 MT @ 2.04 % Ni, 0.95% Cu, 1.3 g/t Pt,  3.4 g/t Pd; Inferred resources 4.3 MT @ 1.42% Ni, 0.87% Cu, 0.8 ppm Pt, 3.4 g/t Pd: Golder Associates qualifying report for Noront, 2010).

Unlike Noront's discovery, the EM conductors (2) in the vicinity of MN07-39 are greater than 300m in strike length (based on both VTEM and Crone PEM - surface and borehole) compared to the Eagles Nest 100-200m strike length.  Six DDH holes are targeted in this area to explain the EM anomalies during the current drill program.

Company Provides  Detailed Outline of  Voisey's Bay-type Target on Hulbert-Salo Property

The Company has staked 14 mining claims covering an area of 3,140 hectares with magnetic and EM (VTEM survey) characteristics of an intact ultramafic-gabbroic intrusion.  Modelling of these data results in a spoon-shaped intrusion with multiple internal structures, similar in size and shape of the Voisey's Bay complex which hosts numerous Ni-Cu deposits.

The VTEM/Mag conducted over the Property has identified an anomaly approximately 10.9 km long by greater than 3.3km wide at its widest.   Historical prospecting over the area identified both gabbroic and ultramafic rocks. An interpreted "feeder zone/dyke" exists to the west of the main intrusive.  The most prospective EM conductor - the primary nickel target - is located just above the throat of the feeder dyke, similar in position to the Ovoid at Voisey's Bay. A 3D model of the magnetic data is available on our website.

"It is both unusual and highly prospective to find a system that appears to be so intact with EM anomalies identified in groups within the magnetic network/structures (cycles or influxes)",  comments Quentin Yarie, P.Geo. Vice President of Exploration.   "The Voisey's Bay mineralization has been explained in terms of a model calling for repeated influxes of magma and these characteristics are obvious in the Hulbert-Salo data."

Current short term work plans include a Crone PEM ground survey over the most prospective Nickel targets (identified from the VTEM inversion).  Upon review of this data, a drill program will be defined.  Because the Hulbert-Salo property is in a  new area MacDonald will engage in consultation with both Webequie and Kasabonica First Nations and outline the proposed first phase of drilling.  This is in keeping with MacDonald Mines established protocols regarding exploration on historical lands used by First Nation communities.

The ground geophysical program has been used by MacDonald Mines on its McNugget Property resulting in significant success in identifying targets of interest for drilling.  Based on previous experience, the Company is confident that this process can be completed quickly and with minimal impact on the ground as it requires no line cutting (GPS positioning would be utilized).

MacDonald Mines in presenting this target of opportunity cautions that drilling will be required to confirm the sources of the EM conductors.

Administration

A total of 130,000 options were reissued to Consultants of the Company on July 6, 2010 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on June 17, 2010. The options are exercisable at a price of $0.17 per share for a period of four years and are subject to a four-month hold period from the date of the issuance.

About MacDonald Mines Exploration Ltd.

MacDonald Mines is a mineral exploration company with an established history in the exploration of gold and base metals. MacDonald has set upon a strategic direction of exploration in the Canadian Northlands, with particular focus on the "Ring of Fire" in James Bay, Ontario. More detailed information is available on the website at www.macdonaldmines.com.

For more information, please contact


Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.macdonaldmines.com
(800) 818-5442
(416) 364-4986
(416) 364-2753 (FAX)

Brent Nykoliation, Vice President, Business Development 
or
Quentin Yarie, P.Geo, Vice President, Exploration
or
Kirk McKinnon, President & CEO


Cautionary Statement:
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. 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 Inc. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially from MacDonald Mines plans and expectations. These plans, expectations, risks and uncertainties are detailed herein and from time to time in the filings made by MacDonald Mines with the TSX Venture Exchange and securities regulators. MacDonald Mines does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.