Phoenix Matachewan explores for VMS deposits at Steel River

Vancouver — Starting with a high-precision, deep-penetrating airborne electromagnetic and magnetic geophysical survey, Phoenix Matachewan Mines (PMM-V, PXMMF-O) has launched an exploration program aimed at exploring for volcanogenic massive sulphide (VMS) deposits at its Steel River project in northwestern Ontario.

The 155-sq.-km property, which lies mid-way between Marathon and Terrace Bay, has seen little historic mineral exploration despite being situated a few kilometres from the Trans-Canada Highway and the Canadian Pacific Railway line. The terrain is rugged by Eastern Canadian standards, which has hindered past exploration efforts spurred by historic discoveries of VMS deposits that ultimately became significant producers in the district, such as Geco and Willroy, near Manitouwadge, and Winston Lake, north of Schreiber.

The Steel River property is hosted by the same volcanic assemblage and Archean greenstone belt as Manitouwadge and Big Duck Lakes, where more than 71 million tonnes of massive sulphide ore have been mined. The felsic volcanic rocks are high temperature, highly altered, and capped by exhalite units. The property covers 11 targets, defined by numerous coincident geophysical and zinc-copper-gold geochemical anomalies along a 34-km-long cherty exhalite horizon. Each of the targets is described as being at least 800 metres long and 300 metres wide.

In 2005, a limited, 11-hole drilling program confirmed widespread anomalous zinc and copper associated with the exhalite horizon. Only one of the 11 priority targets was tested, with the highlight being 16.5% zinc over 5 metres, intersected at shallow depths.

Along with the 1,100-km airborne geophysical program currently under way, Phoenix Matachewan plans to carry out a mapping and sampling program at Steel River this year. Diamond drilling is planned to further test any prospective targets identified on the property.

Phoenix Matachewan is also exploring for blind “bonanza-style” gold-silver, low-sulphidation epithermal deposits at the Bottle Creek project in Humboldt Cty., Nev. The project is a joint venture with privately held Golden Gryphon Exploration, which will act as operator until the company earns its 60% interest by spending US$2 million over three years and making modest payments related to maintaining the land.

The Bottle Creek property covers a number of past-producing mercury mines and showings. Previous operators focused on testing the property for shallow, disseminated gold targets, with little attention paid to structural controls or potential at depth. The current joint venture recently launched a 2,500-metre, 5-hole drilling program focused on exploring for high-grade, gold-silver veins similar to those discovered and exploited at the nearby Sleeper, Ken Synder and Mule Canyon mines.

Phoenix Matachewan also holds the Swanson property near Val d’Or, Que. Based on a newly released technical report, the project hosts a measured resource of 421,564 tonnes grading 3.26 grams gold per tonne, plus a further 687,078 tonnes at 3.11 grams in the indicated category. The company recently signed a letter of intent allowing Agnico-Eagle Mines (AEM-T, AEM-N) to acquire the project through exploration spending and staged payments, subject to a 1% net smelter royalty.