MacDonald Mines

High-Grade Gold Deposit in an Emerging Polymetallic District

This MacDonald Mines Exploration Ltd. profile is part of a paid investor education campaign.*

Overview

MacDonald Mines Exploration Ltd. (TSXV:BMK) is a mineral exploration company focused on gold exploration in Canada. The company retains 100 percent ownership of the 17,720-hectare SPJ project near the mining-friendly jurisdiction of Sudbury, Ontario. The property is accessible year-round and is close to key infrastructure such as rail, road, power and a skilled workforce.

The SPJ project hosts the past-producing Scadding mine, which reportedly produced 914 kg of gold from 144,000 tons of mineralized material grading 7.43 g/t gold during the 1990s. MacDonald Mines believes that it can bring the mine back into production quickly. Doing this should allow the company to capitalize on rising gold prices.

In the meantime, MacDonald Mines has confirmed the presence of iron oxide-copper-gold (IOCG) style mineralization at the Scadding deposit. IOCG deposits are some of the largest deposits on the planet. MacDonald Mines Chief Geologist Jean-Francois Montreuil is leading the company towards understanding the type of structures that control mineralization on the property, and is currently building a predictive model for targeted exploration on the SPJ Project.

Through Montreuil’s guidance, MacDonald Mines has identified several areas on the property that are rich in gold and other elements, which is indicative of an IOCG deposit. Highlights from this area include 6.14 meters grading 11.10 g/t gold and 1.8 meters grading 3.29 g/t gold.

These results were incorporated into a 2019 NI 43-101 technical report, which suggests a two-phased exploration plan for MacDonald Mines moving forward. Phase One is focused on understanding the attributes of the Scadding deposit’s high-grade gold mineralization, and Phase Two is expected to focus on expanding the mineralization at the deposit.

Phase One was completed this Fall and Phase Two exploration is currently underway at the SPJ project. These high-grade gold results have captured the attention of Eric Sprott, who has invested C$1.5 million into the company. The financing is expected to go towards exploring and developing the Scadding deposit

MacDonald Mines’ Company Highlights

  • MacDonald Mines owns 100 percent of a substantial land package in a mining-friendly jurisdiction near Sudbury, Ontario.
  • The SPJ project is close to key infrastructure such as rail, road, power, a skilled workforce, and is accessible year-round.
  • The past-producing Scadding mine reportedly produced 914 kg of gold from 144,000 tons of mineralized material grading 7.43 g/t gold during the 1990s.
  • MacDonald Mines has the potential to bring the Scadding mine back into production quickly.
  • The SPJ project is located within 500 meters of the historical Norstar mine, which reportedly produced 63,000 tons of ore grading 7.2 g/t gold and 0.9 percent copper.
  • MacDonald Mines believes that the project has the potential to host an IOCG-style deposit.
  • Ongoing exploration is focused on confirming the presence of an IOCG-style deposit on the property.
  • Eric Sprott has made a C$1.5 million investment into MacDonald Mines.

SPJ IOCG Project

The wholly-owned 17,720-hectare SPJ project is located 33 kilometers southeast of Sudbury, Ontario. The property is close to key infrastructure such as rail, road, power, a skilled workforce and resides in a mining-friendly jurisdiction. The property is also accessible year-round.

The SPJ project hosts the past-producing Scadding mine, which reportedly produced 914 kg of gold from 144,000 tons of mineralized material grading 7.43 g/t gold during the 1990s. The property is also located within 500 meters of the historical Norstar mine, which reportedly produced 63,000 tons of ore grading 7.2 g/t gold and 0.9 percent copper. Grab samples from the Norstar waste pile have also returned values between 0.065 percent to 0.3 percent cobalt.

Due to the past-producing nature of the Scadding mine, MacDonald Mines has an opportunity to push the Scadding mine back into production quickly.

macdonald mine SPJ property map

IOCG deposits

MacDonald Mines believes that the property has the potential to host an IOCG-style deposit. IOCG deposits are some of the largest deposits on the planet and can vary in their metal content. IOCG orebodies are usually found in Archean to Proterozoic-aged terrains throughout the world, often in crustal-scale fault zones.

The world’s largest IOCG deposit is BHP Billiton’s (ASX:BHP,NYSE:BHP,LSE:BLT) Olympic Dam deposit in Australia. Other notable IOCG deposits include Lundin Mining’s (TSX:LUN) Candelaria deposit in Chile, Wheaton Precious Metals Corp.’s (TSX:WPM,NYSE:WPM) Salobo deposit in Brazil and Vale’s (NYSE:VALE) Sossego deposit in Brazil.

As part of the company’s fall 2019 exploration program, MacDonald Mines completed grab sampling on the property within and outside of the Scadding mine area. The results were rich in gold and contained other elements, which are indicative of an IOCG deposit. Grab samples collected on the property returned anomalous cobalt, copper and nickel. A uranium anomaly in the host-rock, a typical indicator of IOCG deposits, was also identified on the property. Three uranium anomaly trends that extend over a trike length of up to 9 km illustrate the size potential.

macdonald mine deposit potential

Ongoing Exploration

MacDonald Mines’ focus for 2019 was to confirm and expand on known high-grade gold zones that comprise the Scadding deposit. To this aim, the company launched a 2,000-meters drilling program at the Scadding deposit that was quickly expanded to 10,000 meters.

A 2019 NI 43-101 technical report was filed in October 2019. The report outlined a two-phased exploration program to demonstrate that a sizeable deposit on the SPJ project. Phase One is focused on understanding the attributes of the Scadding deposit’s high-grade gold mineralization, and Phase Two is expected to focus on expanding the mineralization at the deposit.

macdonald mines Villeuneuve VG sample

As part of Phase One exploration, MacDonald Mines drilled the Scadding deposit, near the Scadding Mine, to explore the high-grade gold zones to the south, east and west of the deposit along with newly discovered zones. The company also expanded its prospecting and trenching programs to include the areas surrounding the Scadding deposit.

MacDonald Mines expanded its initial 2,000 m drilling program at the Scadding Depsoit to 10,000 meters on Oct. 19, 2019. Results from the first 5 holes reported indicate that several N-S gold-bearing structures are present on the property. To date, the Company has traced mineralization over a width of 500 meters and a length of 650 meters at the Scadding deposit. The Company will undertake geophysical surveys in November 2019 and early 2020 to help pinpoint future drill targets.

Results from reported drill holes include:

  • SM-19-001: 52.02 g/t gold over 12.3 meters, 5.73 g/t gold over 5.5 meters and 11.12 g/t gold over 7.3 meters.
  • SM-19-002: 14.04 g/t gold over 4.21 meters, 3.21 over 15.29 meters
  • SM-19-003: 11.1 g/t gold over 6.14 meters including 23.32 g/t gold over 1.58 meters and 3.29 g/t gold over 1.8 meters
  • SM-19-004: 5.15 g/t gold over 3.0 meters, 3.03 g/t gold over 1.37 meters and 9.02 g/t gold over 1.98 meters including 20.38 g/t gold over 0.84 meters.
  • SM-19-005: 7.75 g/t gold over 1.44 meters, 21.66 g/t gold over 1.64 meters including 40.6 g/t gold over 0.87 meters and 8.1 g/t gold over 1.9 meters.

MacDonald Mines’ Management Team

Quentin Yarie, P.Geo. — President, CEO and Director

Quentin Yarie is an experienced geophysicist and a successful entrepreneur with extensive project management and business development experience. He was previously the Business Development Officer at Geotech Ltd., a geo-physical airborne survey company, and a Senior Representative of Sales and Business Development for Aeroquest Limited. From 1992 to 2001, he was a partner of a specialized environmental and engineering consulting group where he managed a number of large projects including the ESA of the Sydney Tar Ponds, the closure of the Canadian Forces Bases in Germany and the Maritime and Northeast pipeline project. Yarie currently serves as President and CEO for Red Pine Exploration Inc. and President and CEO for Honey Badger Exploration Inc., both resource exploration companies headquartered in Toronto, Canada.

Tara Gilfillan, CPA, ICD.D — CFO

Tara Gilfillan is a financial executive, entrepreneur and independent board member with over 20 years of experience, outside and within the mining industry. She holds a business degree from Queens University and a Chartered Accountant designation. She has a strong financial and operational background. She has held the roles of Controller and CFO of mining companies, CFO, interim CEO of a global engineering consulting company, as well as co-founding a successful start-up engineering company. Tara is currently co-founder of Optimize Group

Craig Scherba, P.Geo. — VP Exploration

Craig Scherba is a professional geologist with over 20 years of mineral exploration experience both in Canada and abroad. He 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 NextSource Materials’ Molo graphite project in Madagascar. Scherba serves as President and CEO of NextSource Materials Inc. and is the Vice-President Exploration of Red Pine Exploration Inc.

Pat Dubreuil, MBA — Director

Pat Dubreuil is a successful businessman and entrepreneur who was named the “2016 Northern Ontario Business Entrepreneur of the Year.” In 2017, he was appointed President of Manitou Gold Inc., a junior mining company with projects in Ontario. From 2014 to 2018, he was the Research and Development Director for the Centre of Excellence in Mining Innovation’s Ultra Deep Mining Network (UDMN). Previously, he held the positions of Vice-President of Business Development and Marketing at BESTECH Engineering, General Manager at ACR Fuller Industrial and Director of Sales at Les Entreprises Boréal. He holds an MBA from Athabasca University and an Honors degree in Psychology and Business from the University of Ottawa.

Kevin Tanas, P.Eng. — Director

Kevin Tanas is currently Principal, Metals and Mining Consulting with Wood Mackenzie, a research and consultancy business, and is focused on mineral market dynamics, government fiscal strategy and mining sector development. Previously, he worked for RPMGlobal where he spent over six years as Principal with primary focus in technical advisory consulting for project feasibility, funding, development and operation. He also served as Vice President of Business Development North America.

Tanas has 20 years of experience in mine technical study and review, financial modelling and technology planning. His experience encompasses all stages of the mine’s life cycle of open-pit and underground deposits. He has a strong understanding of the mining business model, operating philosophies and data management requirements for successful asset management. His operational and consulting experience spans the Americas, Africa and Australia. He holds a B.Sc. in Mine Engineering from Queen’s University and is a registered Professional Engineer. He currently serves on the Board of Directors of Honey Badger Exploration Inc.


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