TORONTO, ONTARIO–(Marketwired – Nov. 22, 2016) – MacDonald Mines Exploration Ltd. (TSX VENTURE:BMK) (“MacDonald Mines“, “MacDonald” or the “Company“) is pleased to announce that it has entered into an agreement, subject to certain terms and conditions, to acquire 6 claims known as the “Charlevoix Silica Property” located approximately 42 kilometres north of Baie-Saint-Paul, on the north shore of the Saint Lawrence River, in the Province of Quebec.
Quentin Yarie, MacDonald’s President and CEO commented: “With this acquisition, MacDonald Mines is adding safe-jurisdiction, infrastructure-rich projects to its portfolio. The property is adjacent to Rogue Resources’ Silicon Ridge Project which hosts a 43-101 measured and indicated resource of 9.7Mt @ 98.6% SiO2 , and is located within 15 kilometres of the Sitec Silica Mine which has been in operation for over fifty years. We believe that the quartzite-rich lithologies on our property could be extensions of the high-purity quartzite units found at Silicon Ridge and our team is excited about the property’s potential.1“
Charlevoix Silica Property Details
The geology on the property appears to be an extension of Rogue Resources (“Rogue”) Silicon Ridge Property (Figure 1) and displays similar geology to the Sitec Silica Mine (“Sitec”), located within 15 kilometres and which has been in production for more than 50 years. Sitec produces approximately 250,000 tonnes of silica a year and has an estimated future mine life of over 20 years. Silica from the Sitec Mine is shipped to plants in Bécancour, Chicoutimi and the United States. Silica produced at Sitec is used at foundries and glass factories as well as in the production of solar panels and high-tech components.
The mineral horizons on the Sitec Mine strike SW NE towards Rogue’s Silicon Ridge Project and the Charlevoix Silica Claims. Moreover, the Silicon Ridge Project’s high purity quartzite horizons host a measured and indicated resource of 9.7 Mt at 98.6% SiO2 and an inferred resource of 1.6 Mt at 98.56% SiO2 (NI 43-101 Technical report on the Silicon Ridge Mineral Resources Quebec – Canada, June 7, 2016). MacDonald Mines believes that the Charlevoix Silica Claims, underlain by the same quartzite sequences with multiple quartzite outcroppings may host an extension of Rogue’s high-purity quartzite horizons2.
Quartzite commonly contains a high silica content with minimal impurities, typically less than 1%. Commonly referred to as high-purity quartz, the silica produced from this type of quartz is highly sought after as a component for the production of semiconductors, LCD displays, fuse quartz tubing, microelectronics, solar silicon applications and Silicon-Anode Lithium batteries.
CRU’s, Silicon Metal Report, published on December 30, 2015, reports “the rise in global silicon demand is expected to be considerably higher, as consumption will continue to benefit from favourable developments in all of the major end-use sectors, most importantly the solar industry. The resumption of double-digit growth in solar-related consumption, together with continued solid gains in demand from the silicone industry, will be instrumental in fuelling a projected increase in total silicon consumption over the next five years at a rate that will be nearly double that of the world economy as a whole.”
Project Acquisition Terms
The consideration for the acquisition is the issuance of 10,000,000 shares (post consolidation) of the Company and the grant of a 2% net sales returns (“NSR”) royalty to the property vendor, 9019-5504 Quebec Inc. 100% of the NSR may be bought back for $1,000,000. The vendor is at arm’s length to the Company. Closing is subject to TSX Venture Exchange approval and certain other customary closing conditions.
Qualified Person
Quentin Yarie, P Geo. is the qualified person responsible for preparing, supervising and approving the scientific and technical content of this news release.
About MacDonald Mines Exploration Ltd.
MacDonald Mines Exploration Ltd is a mineral exploration company headquartered in Toronto, Ontario, Canada. Previously focused on Copper and Zinc (VMS), and Nickel exploration in the Ring of Fire area of the James Bay Lowlands of Northern Ontario, the company is now focusing its efforts and finances on projects that demonstrate the greatest market potential for return. The Charlevoix Silica Claims – adjacent to Rogue’s Silicon Ridge, only 15 kilometres from the Sitec Silica mine, and close to roads and infrastructure, represent a great potential to increase shareholder value.
The Company’s common shares trade on the TSX Venture Exchange under the symbol “BMK”.
To learn more about MacDonald Mines, please visit www.macdonaldmines.com
1, 2 Readers are cautioned there is no guarantee that mineralization, resources and/or reserves hosted on the adjacent properties will be identified on the Charlevoix Silica Property.
This News Release contains forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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Quentin Yarie
President & COO
(416) 364-4986
qyarie@macdonaldmines.com
MacDonald Mines Exploration Ltd.
Mia Boiridy
Investor Relations
(416) 364-4986
mboiridy@macdonaldmines.com