Macdonald Mines Exploration Ltd. (TSX-V: BMK) (US Listing: MCDMF) (Frankfurt: 3M72) Wawa-Holdsworth Gold Project is located 25 km NE of Wawa Ontario, Canada, uniquely positioned proximal Arogonaut's >6Moz Au Magino deposit property, and Richmont's >1Moz Au Island Gold Mine, along an underexplored extension of the prolific Michipicoten Greenstone Belt. The risk-reward characteristics are highly advantageous for investors establishing a long position in BMK.V as the current market cap (~$8.12M Canadian, trading at 15 cents/share) relative to the inherent value of MacDonald Mines' Wawa-Holdsworth Gold Property appears disproportionate; near-term share price catalysts exist as the Company is aggressively exploring to build on known gold values and leverage its exploration teams expertise and experience in the Wawa district gold camp.
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Oxide Sand Zones - Quick pathway to cash flow: Voluminous gold-bearing oxide sand (black sand) zones near surface have demonstrated potential for an immediate pathway to production/cash flow; e.g. 3.45 g/t gold and 29.99 g/t silver average grade from a composite of 23 panels, with preliminary metallurgical testing resulting in between 69% and 98.7% gold recoveries (without even crushing). The exploration team is now undertaking a program of mapping and quantifying these zones which were previously not mapped well and historically ignored for gold but characterized in the early-1900's as one of the best massive sulphide deposits in the country. There is the possibility of a 2.2 km strike length of gold laden Oxide Sands Zones over the auriferous iron formation (which acted as a trap for gold circulating in the system).
Oxide Sands can be treated like aggregate. Visible in the images of black oxide sands (seen to the right) 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 winter and spring 2017 are geared towards affirming a voluminous and robust understanding of these Oxide Sands Zones -- the potential for a 6-bagger in share price appreciation from current price levels appears in order if exploration findings/results affirm what is suspected.
The three gold mineralization styles on the property (and shown in the claims map above) are:
An oxidized cap at surface developed over a massive pyrite zone (Algoma Iron Formation) -- "The Oxide Sands",
The precursor to the Oxide Sands - a massive pyrite zone (Algoma Iron Formation) at depths -- "The Massive Sulphide", and
Lode Gold in traditional quartz veins -- "The Soocana Vein".
Fig. 4 (above) Wawa-Holdsworth Gold & Silver Project Oxide Sands Zone Test Pit - Best composite samples; 5.95 g/t gold + 47.09 g/t silver in a 31x4.7x3.35m bloc, and 5.94 g/t gold+ 50.14 g/t silver in a 10x3.5x3.74m bloc.
Large near-term exploration upside potential - Oxide Sands, BIF, and Load Gold Vein
The exploration team has learned from other projects in the area that the alteration system associated in this land package is very large, something that people historically either didn't recognize, or know about, or chose to ignore, instead they would focus on the quartz veins. Banded Iron Formations (BIF) are hosted on the property, similar to other formations that were historically mined near Wawa. We know that when you put these type of rocks in an environment where gold bearing fluids are circulating they form very good traps for gold, and we know that BIF on this property are mineralized because the Oxide Sands are derived from the weathering of those banded formations. Additionally, localized drilling and samples in BIF have shown them to be gold bearing, historic samples were upwards of ~0.3 ounces/t.
Lode Gold in traditional quartz veins -- "The Soocana Vein": Almost all the historic drilling and work done for gold on the property was concentrated into a 700 m strike length associated with this 'Soocana' vein with very little efforts put into other gold plays on the property, apart from the Oxide Sands. The Soocana vein system is a shear zone with stacked auriferous quartz veins. A poor understanding of the shear system geometry by previous operators is obvious as drilling occurred in every direction with un-systematic sampling practice. 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.
Figure 5 (below) Surface Mining Plan of Soocana Vein from November 15, 1933 - From the then Soocana Mining Company. There were plans at one point to exploit the robust gold and silver values of the vein. At the time, 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), however the Soocana Vein was never meaningfully mined in any way, only a small pit scratched the surface in one spot from earlier on.