MacDonald Mines (TSX VENTURE:BMK) is pleased to present the assay results of the spring 2006 drill campaign from its McNugget Property west of the McFauld's Lake area of Northern Ontario. As announced previously the program consisted of eleven holes totaling 2390m. Of the 11 holes drilled, 10 hit sulphide mineralization, and 9 intersected massive to near massive sulphides. Holes were designed to intersect the favorable geology perpendicular to strike and dip. Drilling took place along a crescent shaped series of VTEM anomalies extending for 14 kilometers along a felsic fragmental stratigraphic package.

Exploration Objective

The 2006 spring drill program achieved the major goal of determining that the extensive anomalies on the McNugget property are due to massive sulphide accumulations and are not graphitic or barren formational conductors. The majority of these anomalies are still not tested. The current drill results coupled with the extensive anomalous base metal values and the long strike length of the known VTEM anomalies leads McDonald to conclude the McNugget Property has the potential to host a major VMS ore body.

Primary Drill Target

Holes MN06-12, 14, 16, 17, and 18 targeted a 4.6 km east-west VTEM anomaly trend along the northern margin of the favorable geology. Drilling occurred on two grids cut approximately 600m apart. Holes MN06-13 and 15 targeted short strike length VTEM anomalies to the north of the main trend, and hole MN06-19 targeted a short strike length anomaly south of the main trend approximately 2 km west of the next most westerly hole (MN06-16) and up stratigraphy from a 2004 hole (MN-01) that assayed 0.34% Cu over 28.0m in a siliceous breccia zone.

Highlights of the 2006 drill program include holes MN06-17 with 9.00m at 0.43% Cu, 3.12% Zn and 18.73 g/t Ag including 2.66m at 7.07% Zn; MN-06-18 with 6.49m at 0.64% Cu, 2.92% Zn and 18.94 g/t Ag including 2.79m at 5.21% Zn; and MN-06-14 with 2.57m at 1.01% Cu, 2.49% Zn and 31.00 g/t Ag. (Cu equals Copper; Zn equals Zinc; Ag equals Silver; Au equals Gold; g/t equals grams per ton)

C. TUCKER BARRIE, PH.D., of Ottawa, a leading expert on VMS deposits previously reported in January of 2005 on the similarities between the McNugget area and the Matagami VMS district in Quebec. This region hosted the Matagami Lake mine with 25.6 Mt grading 0.32% Cu, 5.10% Zn, 21.6 g/t Ag and 0.3 g/t Au.

Given the similar geological setting on McNugget, the higher-grade assays intersected in the 2006 drilling, and the extensive target area outlined by VTEM anomalies, it is considered that a high potential exists on the property for hosting a deposit similar to those in the Matagami VMS District.

Significant results from all the 2006 spring drill holes are listed below:

Depth Depth Sample Assay Results
Hole # Grid Inter- Cu Zn Pb Ag Au
From To val % % % g/t g/t Comment
MN06-09 Grid 5 102.40 106.88 4.48 0.17 0.01 0.01 5.25 0.32 Western Anomaly
MN06-10 Grid 5 58.90 60.30 1.40 0.19 0.14 0.01 4.61 0.03 Western Anomaly
69.30 74.85 5.55 0.12 0.07 0.01 3.65 0.01 Western Anomaly
MN06-11 Grid 6 Not assayed Gabbro (Kimberlite Target)
MN06-12 Grid 2 103.84 105.85 2.01 0.37 1.75 0.09 15.21 0.10 100m east of MN06-17
135.84 142.42 6.58 0.27 0.68 0.05 16.60 0.07
MN06-13 Grid 2 No Significant Assays Short Strike anomaly
MN06-14 Grid 1 82.22 84.79 2.57 1.01 2.49 0.18 31.00 0.22 1km west of MN06-17
MN06-15 Grid 1 21.94 24.10 2.16 0.40 0.01 0.00 3.35 0.03 Possibly miss target in O/B
MN06-16 Grid 1 126.20 128.70 2.50 0.02 1.04 0.04 4.90 0.00 300m west of MN06-14
133.47 135.00 1.53 0.40 1.54 0.13 11.96 0.10
MN06-17 Grid 2 86.09 95.09 9.00 0.43 3.12 0.17 18.73 0.23
Incl. 86.09 88.57 2.66 0.14 7.07 0.47 24.51 0.10
Incl. 90.26 95.09 4.83 0.70 2.30 0.08 22.01 0.37
130.40 133.74 3.34 0.33 1.85 0.11 19.00 0.11
140.26 143.27 3.01 0.27 2.98 0.18 18.97 0.06
MN06-18 Grid 2 101.32 108.31 6.49 0.64 2.92 0.08 18.94 0.13 35m down dip of MN06-17
Incl. 101.82 104.61 2.79 0.46 5.21 0.14 15.69 0.12 Hole did not intersect
Incl. 104.61 106.65 2.04 0.97 1.83 0.04 24.85 0.13 complete mineralized zone
M06-19 55.77 57.77 2.00 0.26 0.24 0.01 2.88 0.03 2km west of MN06-16
65.22 67.31 2.09 0.38 0.37 0.02 3.72 0.04 Short conductor

Secondary Drill Target

The initial two holes (MN06-09 & 10) were drilled along a 1.2 km trend of VTEM anomalies, and were collared approximately 1.1 km north of a 2004 hole (MN-03) which reported 1.16% Cu over 5.9 meters.

High Potential of the McNugget Property

In addition to the listed intersections, Cu and Zn values in the hundreds to thousands of ppm (parts per million) occur over tens of meters in the mineralized volcanic package. Assayed Au values in altered, sulphidic and silicified parts of the mineralized package typically produced grades in the 0.1 -0.2 g/t range, and values up to 1.42 g/t were recorded indicating the possibility of a gold enriched VMS deposit.

Assays were analyzed at Accurassay Laboratories in Thunder Bay. Reference standards and blanks were inserted into the sample streams as part of a QA/QC program to ensure accurate results. Approximately 10% of the samples were check assayed at TSL Laboratories in Saskatoon, and correlation of results between the two labs was very good.

Future Exploration Program Commencing in Mid July will Include 8-12 Drill Holes Totaling about 1,500 meters

The recently completed drill program revealed that although the known mineralized zones are proximal to EM anomalies, base metal endowed massive sulphide bodies often have weak to nil EM response. To help focus exploration drilling on the best parts of this large structure future work plans include a new cut grid over the complete 4.6 km strike of the known base metal endowed VTEM trend. This grid will be used to carry out gravity and IP surveys. These surveys will be done in the winter to take advantage of frozen ground conditions.

Prior to that work, a follow-up drill program will test for extensions to the known mineralization, and will drill several more of the more than 20 VTEM anomaly trends on the McNugget Property that have not been tested to date. Logistics planning and technical targeting studies have been started for this program, which will be carried out over the next couple of months. In addition long term planning will target the extensive VTEM anomalies on the Big Mac Property to the north of the McFauld's area.


Richard Schler, Vice President & CFO stated that the company has sufficient working capital to fund the next phase of exploration scheduled to begin in July. Based on the allocated budget for the upcoming program, a financing will be necessary in early fall to fund the planned late fall program. We are confident, however, that continued exploration successes will impact our share price favorably resulting in a significantly lower dilution "factor" for future financings.

The exploration work is being conducted under the supervision of GeoVector Management Inc and Joe Campbell (P. Geo.) is the qualified person for all technical information contained in this release.

WARNING: The Company relies upon litigation protection for "forward- looking" statements.

For further information: please contact J. A. Kirk McKinnon, President and CEO (416)364-4986,(416) 364-2753 (FAX), , or Richard Schler, Vice President & CFO, (416) 364-4986, (416) 364-2753 (FAX), This email address is being protected from spambots. You need JavaScript enabled to view it. '; document.write(''); document.write(addy_text83496); document.write('<\/a>'); //-->\n This email address is being protected from spambots. You need JavaScript enabled to view it. , www.macdonaldmines.com/