MacDonald Mines Acquires 100% Interest in Nickel, PGM & Base Metal Property in the LaRonge District of Saskatchewan

    TORONTO, April 9 /CNW/ - MacDonald Mines Exploration Ltd. (TSX
VENTURE:BMK) ("MacDonald" or the "Company") announces it has signed an amended
Letter of Agreement with the Canadian Corporation "210829 Ontario Limited"
(the "Optionor") to acquire a 100% undivided right, title and interest in the
Nielsen-Chisholm Property, a land package that bears strong similarity to the
Company's land holdings in the James Bay Lowlands area of Ontario.
    MacDonald originally entered into a Letter of Agreement with the Optionor
to acquire 75% of the Nielsen-Chisholm Property, as detailed in the Company's
December 18, 2008 press release. Further geological/geophysical study and
realized potential of the Property fueled the acquisition of the remaining
    Kirk McKinnon, President & CEO of MacDonald Mines stated, "After further
assessment of all the available data, and based on the strong recommendation
from our collective group of exploration consultants vis-à-vis the Property's
potential, we decided to acquire the full 100% interest. The infrastructure is
excellent with easy access, which will allow our crews to work out of LaRonge,
providing major cost savings versus helicopter exploration. We are moving
forward with the first phase of what we believe to be an extensive exploration
program this summer, and once "break up" has concluded and crews are able to
access the site, we will commence exploration work and prepare targets for
drilling. We remain cognizant that we must continue to ensure the Company's
ability to operate during these most difficult times, but we are also aware
that there will be a turn in this economy and we need to position MacDonald
with properties of qualified substance."

    Compelling Geology Amplifies the Potential of the Property

    The Nielsen-Chisholm area is surrounded by a number of important Ni-Cu
deposits within the southern portion of the LaRonge Belt. Dr. Larry Hulbert,
D.Sc., P. Geo., a consulting geologist who has extensive knowledge of the
LaRonge district stated, "Compelling geophysical and geological attributes
along with anomalous nickel and chrome lake sediment geochemistry suggest that
the this is a highly prospective area for nickel-copper sulphide
mineralization. It is part of the much more extensive Proterozoic LaRonge -
Lynn Lake Greenstone Belt. The Lynn Lake Greenstone Belt hosted the prolific
Lynn Lake nickel-copper deposits which were mined continuously for 24 years by
Sherritt Gordon Mines Ltd. The proximity of the area to the town of LaRonge,
and the road and rail access to copper and nickel smelters at Flin Flon and
Thompson make this a very attractive property to explore for nickel-copper
sulphide deposits."

    Property is Surrounded by Other Deposits

    Nickel-copper deposits including the Clam Lake, Gochager-MAL Lakes, and
Nemeiben Lake deposits surround the Nielsen-Chisholm area while the prolific
Lynn-Lake nickel-copper mining camp occurs in the northern portion of the
belt. The former producing Anglo Rouyn copper-gold mine is also situated in
close proximity to the Property.
    Nickel-copper deposits to the north (Gochager Lake, MAL Lake), and
southwest (Clam Lake) of the Bob Lake area have massive sulphide intersections
with nickel grades in the 2.6% to 3.4% range, and with unusually high
nickel:copper ratios (6:1 to 8:1). The nickel:copper ratios of the sulphides
are uncharacteristically high for the associated host rock and suggest the
sulphides could be related to a more primitive coeval part of the magmatic
system yet to be recognized. The Lynn Lake nickel-copper deposits were in
continuous production for 24 years (1953-1976). Eleven discrete ore bodies
were mined for a total mine grade and tonnage of 20,151,146 tonnes of 1.02 %
nickel, 0.53% copper. This was Canada's third largest nickel producing area
after Sudbury and Thompson.

    The Anglo Rouyn Mine

    The Anglo Rouyn Mine is located approximately 10 km to the southeast of
the Property and produced copper and gold from 1966 until 1972 (1.7Mt grading
1.7% copper, 1.2 g/t gold and 5.5 g/t silver). This deposit has affinities to
a volcanogenic massive sulphide (VMS) deposit and it is believed that the
Nielsen-Chisholm area is underlain by similar geology to that which hosts the
Anglo Rouyn deposit.
    Previous geological mapping in the area covered by the recently completed
airborne VTEM survey indicate that ultramafic rocks are present. It appears
that they have distinct geophysical signatures and consequently it is
envisaged that favorable environments for nickel, copper and PGE deposits will
be defined.

    About the Nielsen-Chisholm Property

    The Property comes with the compelling added features of geological
knowledge, proximal mines, mineral showings and a new helicopter-borne VTEM
    The Property is proximal to a number of mineral occurrences with
historical resources which include, on trend, both magmatic nickel and VMS
base metal deposits. MacDonald considered the merits of this joint-venture as
it manages its exploration activities and expenditures in these very
challenging economic times.
    The Nielsen-Chisholm Property is located in the LaRonge District of
Saskatchewan, and covers an area of 201 km(2). The Property is largely covered
in outwash sand with somewhat limited outcrop exposure. This physical feature
offered very limited prospecting opportunity in the past. Apart from
geological mapping carried out by the Saskatchewan Government, there appears
to be limited historical exploration work conducted in the area.
    MacDonald's consultants Bill Nielsen, P. Geo. and Robin Chisholm, P.
Geol. have conducted a preliminary review of available data and received an
in-depth geophysical review and interpretation from Geotech's three key
geophysicists in order to validate the property's exploration potential as
reflected in the VTEM data.

    Amended Terms of the December 2008 Option Agreement

    Subject to Exchange approval, in order to acquire a 100% undivided right,
title and interest in and to the property, the terms of the Amendment
Agreement call for MacDonald to make the following payments to the Optionor:
$25,000 cash, 1,250,000 common shares and 150,000 purchase share warrants
which are exercisable at $0.40 per share for a period of 24 months from date
of issuance.
    All securities issued in connection with this transaction are subject to
a 4 month hold period.

    WARNING: The statements made in this news release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially from
expectations and projections set out herein.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

    %SEDAR: 00004560E

For further information:

For further information: MacDonald Mines Exploration Ltd.: Email:, Website:, (800) 818-5442,
(416) 364-4986, (416) 364-2753 (FAX), Brent Nykoliation, Vice President,
Business Development; J. A. Kirk McKinnon, President & CEO; Richard Schler,
Chief Operating Officer & CFO

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