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MacDonald Mines
Exploration Ltd.
Mining,
Precious Metals, Industrial
TSX-V: BMK, OTC: MCDMF,
Franfurt: 3M72,
http://www.macdonaldmines.com |
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Prices |
Share:
C$0.23 |
MCap: ~C$13.8M |
On: 03/31/2017 |
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History |
52-Week:
C$0.005–C$0.27 |
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Prices |
Shares O/S:
59,638,874 |
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Fig. 2 (below) Oxide Sands Wawa-Holdsworth Property
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Investment Thesis
-- Near-term (12 month) TSX-V:BMK share price target; C$1.50
MacDonald Mines Exploration Ltd.
(TSX-V:
BMK) (US Listing: MCDMF) (Frankfurt: 3M72) this week
announced 100% LOI 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 paying the equivalent of 5,000 ounces of gold
equivalent to Noble once MacDonald has extracted, refined and sold a
minimum of 50,000 ounces of gold from the oxide sands portion of the
Property.
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:
|
Gold Oz |
Silver Oz |
|
146,000t |
146,000t |
|
@3.355
g/t |
@29.2
g/t |
|
15,750
oz |
137,000 oz |
| Can$1,500.00/oz |
Can$20.00/oz |
|
Can$23,625,000 |
Can$2,740,000 |
Table 1. Guesstimate of gold in initial strike set of sulphide sands alone.
and >four times that (totaling
675,000 tonnes = ~72,800 oz Gold, ~633,700 oz Silver *non NI
43-101 = ~81,700 oz Gold Equivalent (using US$17/oz Silver and
US$1,200/oz Gold conversion) on parallel and multiple
sets which have been proven in drill holes. Note: Values derived are
based on past exploration results of Reed Lake Exploration (pre dating
NI 43-101) and Hawk/Nobel's exploration results (NI 43-101 compliant)
which affirm 550,000+ tonnes.
|
Gold Oz |
Silver Oz |
|
675 ,000t |
675 ,000t |
|
@3.355
g/t |
@29.2
g/t |
|
72,800
oz |
633,700
oz |
| Can$1,500.00/oz |
Can$20.00/oz |
|
Can$109,200,000 |
Can$12,674,000 |
Table 2.
Guesstimate of gold from initial strike set and parallel/multiple sets.
Fig. 3 (above) Exposed gold laden black
oxide sands.
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 underway this spring 2017 are geared towards
affirming a voluminous and robust understanding of these Oxide Sands
Zones -- the potential for substantial
share price appreciation closer to $1.50/share from current price levels appears in order
as exploration findings/results affirm what is suspected.
Figure 4. 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.
The three gold mineralization styles on the
property (and shown in the claims map above) are:
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An oxidized cap at surface
developed over a massive pyrite zone (Algoma Iron
Formation) -- "The Oxide Sands",
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The precursor to the Oxide
Sands - a massive pyrite zone (Algoma Iron
Formation) at depths -- "The Massive Sulphide", and
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Lode Gold in traditional quartz
veins -- "The Soocana Vein"; 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.
In 1933 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) -- this is historic resource was never mined!
Sample of exploration results in support of Company's 50,000 oz
Gold target on Oxide Sands:
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. Preliminary metallurgical testing resulted in
between 69% and 98.7% gold recoveries, without even crushing.
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 |
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A-2 |
13.5 |
5.3 |
3.00 |
2.5 |
540 |
5.76 |
42.65 |
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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 |
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Sub-total |
148m |
5.3 |
4.07 |
2.5 |
7921 |
4.03 |
30.89 |
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BLOCK |
B |
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|
|
|
|
|
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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 |
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Sb-total |
184.5 |
3.8 |
1.87 |
2.5 |
3839 |
2.27 |
28.14 |
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TOTAL |
332.5 |
4.55 |
2.97 |
2.5 |
11760 |
3.45 |
29.99 |
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Table 2.
Drill Results within one section of Oxide Sands sound within Pyrite
Prospect.
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 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
underlying sulphides typically contain up to 5% sugary to greasy quartz
stringers and ribbons which are found locally within the black sand. 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.
Location details:
Figure 4. Regional Location Map - Wawa-Holdsworth Gold
Project is 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. 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.
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This release may contain forward-looking statements regarding future events that
involve risk and uncertainties. Readers are cautioned that these forward-looking
statements are only predictions and may differ materially from actual events or
results. Readers are cautioned that not until subject companies actually
releases official details themselves should anyone rely on the information
presented herein. Articles, excerpts, commentary and reviews herein are for
information purposes and are not solicitations to buy or sell any of the
securities mentioned.
Contact information:
Fredrick William,
Editor in Chief
Market Equities Research Group
f.william@marketequitiesresearch.com
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