Matachewan Consolidated Mines Ltd (MCM.A)

[NYBob]

Matachewan Consolidated Mines, Limited Announces Commencement of Royalty from Gold Production

http://ih.advfn.com/p.php?pid=nmona&article=55186288

Matachewan Consolidated Mines, Limited (TSX VENTURE:MCM.A) ("Matachewan or the
"company") is pleased to announce the commencement of actual royalties earned
from gold production at the Young Davidson mine operations.


The company reports that approximately 47,000 tonnes of ore was processed from
the Matachewan property during October 2012, recovering 2,300 ounces of gold,
and generating an estimated royalty of $215,000 US.


Under the terms of the agreement dated June 1, 1979 as amended, with Aurico Gold
Inc. (TSX:AUQ) ("Aurico"), Matachewan earns a base royalty of $1.105 US per
tonne of ore mined and processed from the former producing Matachewan mine
property, an additional sliding scale royalty is also earned if the price of
gold exceeds $270 US per ounce. This amounts to 5% of the increase per ounce
recovered above the base rate of $270 US per ounce, the price is based on the
average quarterly price of gold sold on the free market during the quarter that
the ore is processed.


The property is located in Powell and Cairo Townships, Larder Lake Mining
Division, Ontario, and forms a portion of the Young-Davidson mine operated by
Aurico. The Young-Davidson mine commenced commercial production effective
September 1, 2012.


Richard McCloskey, President and CEO of the company said that based on
production and price expectations the Company anticipates the royalty stream to
have a significant impact on future income.


Statements in this press release other than purely historical information,
including statements relating to the Company's future plans and objectives or
expected results, constitute forward-looking statements. Forward-looking
statements are based on numerous assumptions and are subject to all of the risks
and uncertainties inherent in the business of the Company, including risks
inherent in resource development. As a result, actual results may vary
materially from those described in the forward-looking statement.


FOR FURTHER INFORMATION PLEASE CONTACT:
Matachewan Consolidated Mines, Limited
Edward G. Dumond
Corporate Secretary
416.364.2173
416.814.3965 (FAX)

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