VMS Ventures Inc.  updates various activities related to its extensive property package in Manitoba, Canada.

Sails Lake

Although optioned as a VMS project, the Sails Lake property is also well known to host gold mineralization. A soil geochemical survey was undertaken in late July to follow up on prospecting and historical exploration that discovered gold mineralization at Sails Lake. In this particular area, surface rock chip samples have returned assays of up to 30 grams per tonne gold, but they have never been drilled or surveyed by ground geophysics. An IP ground geophysical survey is planned to cover the gold targets later this month. It will also test adjacent areas prospective for copper-zinc.

This project has already produced over 50 discrete drill targets. They are now being evaluated to select the best prospects for drilling. Permitting for the planned mid-October drill program is now in process.

Morton Lake

The Company originally staked the Morton Lake project, located 25 km west of Snow Lake, in part, because of its geological similarity to the rocks hosting the past producing Dickstone copper-zinc mine, only 500 metres to the west. In addition, historic drill holes, some as early as 1956, intersected copper and zinc mineralization with typical VMS-type alteration, indicative of a strong hydrothermal mineralizing system, capable of hosting significant VMS deposits.

The project moved up the VMS Ventures priority list this summer after Dr. Alan Bailes visited the Reed Lake Deposit and used high precision rock geochemistry to assist with geological interpretations. He discovered that the host rocks at the Reed Lake Deposit are connected to the same rock package hosting the Dickstone Mine and Morton Lake approximately 30 km north of Reed Lake.

As a result, the Company has doubled its land position in the area, including the prospective rock package to the south towards Reed Lake. The Morton Lake Project now is over 23 km in length and approximately 90 sq km in area.

VMS has previously surveyed the northern half of the property with the VTEM airborne system. In late July, VMS geologists began a program of MMI soil geochemistry over the VTEM anomalies. These prioritized VTEM targets occur along strike from, and at greater depths than, the prospective mineralized zones identified from historical data. These anomalies comprise the preliminary list of drill targets. Additional targets will be established following completion of ongoing field work and final review of the historical data base. An initial drill program is planned for winter 2011.

Copper Project

Advances in exploration technology have created new opportunities in old areas. The VMS discovery at Reed Lake indicates the prospectivity of the “covered” areas of the Snow Lake belt, and how using old data sets with new methodologies and insights can help the Company locate drill targets in areas that in the past may have been ignored, left behind, or missed completely.

Most of the 250 sq km Copper Project, located to the east of Snow Lake, is covered with a 25 to 40 metre thick dolomite rock layer. With no outcropping of the prospective volcanic rock, the team is effectively blind to the property’s geology. To rectify this, the team has analyzed and integrated data from over 200 drill holes’ historical records into the Copper Project database over the summer. These historical drill records provide a description of the underlying geology at this large, prospective property.

Other sources of information assisting the team in drill targeting include the VTEM airborne conductivity and magnetic geophysical surveys and soil geochemical sample surveys.

VMS plans to drill at the Copper Project in winter 2011.

About VMS Ventures Inc.

VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc-gold-silver massive sulphide deposits in the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company’s VMS project property portfolio consists of the Reed Lake Project, Copper Project, McClarty Lake Project, Sails Lake Project, Puella Bay Project and Morton Lake Project. Outside of the Snow Lake camp, the Company holds massive sulphide prospective properties near the past producing Fox Lake and Ruttan copper-zinc mines, near the communities of Lynn Lake and Leaf Rapids in northern Manitoba. These properties are located in the mining friendly province of Manitoba, Canada. The Company also has optioned three properties in the Sudbury mining camp. They are Terra Incognita, Golden Pine and Black Creek.

Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico.

Dia Bras Exploration Inc. reports that a major geophysical survey has been completed on its 100% owned Bolivar Property which is not subject to any royalties, Chihuahua State, Mexico. Field checks have been conducted to examine anomalies detected during a recently completed Titan 24 Induced Polarization (IP)/resistivity survey contracted to Quantec Geoscience of Toronto, Ontario.  Two areas were covered during the survey, where eight lines totaling 9,000 metres were measured across the Banda Fault near the Bolivar Mine, and three lines totaling 2,700 metres were measured at the La Cascada high-sulfidation gold deposit. Condor Consulting of Lakewood, Colorado, has been retained by Dia Bras to assist in the planning of the IP/resistivity surveys and with the interpretation of the results.

“The surveys just completed at La Cascada and the Banda Fault areas have shown very promising results that confirm important mineralization can occur in these areas,” stated Daniel Tellechea, President & CEO. “These very positive results focus our drilling on targets that have the potential to host very important mineralization. At La Cascada, our target is a multi-million ounce gold deposit, while at the Banda Fault area our target is a major, stratabound skarn or replacement deposit with copper-zinc grades equivalent to what we have been producing from the Bolivar Mine for the past five years.”

La Cascada

Three survey lines at La Cascada were completed in this area of rugged terrain: a 1,000-m-long N-S line and two E-W lines (800 and 900 m), which resulted in detection of three significant chargeability and resistivity anomalies – all of which are associated with anomalous grades of gold in outcrop, as evidenced by the results of chip-channel sampling over 2-metre widths. The southernmost anomaly on the N-S line starts at 50 m depth. Sampling of outcrops over an area of 50 x 85 m was conducted prior to the survey and the six samples assayed 0.6 – 1.1 g/t gold.

Sampling in the area of the central anomaly (also starting at 50 m depth), completed over a 40 x 50 m area (also prior to the survey) resulted in the eight samples assaying 0.5 – 2.1 g/t gold.

Sampling in the area of the northernmost anomaly, completed over a 10 x 20 m area (also prior to the survey) resulted in the three samples assaying 0.4 – 3.0 g/t gold.

The sampled areas between the anomalies yielded very low grades of gold, generally less than 0.1 g/t.

These survey results are very positive because of the strong correlation between elevated gold in outcrop and strong chargeability anomalies. This correlation indicates that the probability that the three chargeability anomalies are associated with gold mineralization at shallow depths is very high.

The truncation of the chargeability anomalies at an apparent constant 50 m depth is inferred to be the result of oxidation of the high-sulfide zones, remnants of which appear on the surface as 1-2% pyrite and abundant jarosite, hematite and goethite.

Drilling will target the near-surface, coincident strong chargeability (IP) and resistivity zones detected during the survey. Drilling is scheduled to commence during late August, when an access road is completed to the selected drill sites. At least ten holes of 200-300 m depth each are planned for this first phase of drilling.

The area surveyed is only about 10% of the area known to host strong gold anomalies, where sampling has returned values up to 15 g/t Au.

Banda Fault

Eight E-W lines 600 m to 1500 m in length at the Banda Fault area were measured across this major, NW-trending fault. The objective of the survey was to locate geophysical anomalies associated with NW-trending and NE-trending faults. Faults of these orientations control the location of high-grade copper-zinc mineralization in the Bolivar Mine. The anomalies can be separated into two general groups: near-surface anomalies and sub-surface anomalies.

Each of the near-surface anomalies occurs in andesite and is associated with elevated sulfide content, usually 1-3%, epidote and minor silicification. The anomalies are generally on low hills, reflecting their being underlain by the resistant silicified rock. The anomalies on lines 3, 5, 6 & 7 indicate a NW-trending structure (herein named the Nathalie Fault) parallel to the Banda Fault that passes near Increíble. There are significant geochemical anomalies associated with this structure, which may be a very important feeder of mineralizing fluids into the metasediments. This structure may be the main feeder of the mineralizing fluids, and not the Banda Fault as has been inferred prior to the survey.

The sub-surface anomalies are generally located west of the Banda Fault and are in a position to be the stratabound, large-tonnage replacement and/or skarn deposits that have been a major target for the Company.

The survey results are very encouraging. It has identified the Nathalie Fault, which is now inferred to be the major feeder for mineralization at the property. Drill hole 287, completed in March 2009, was drilled to a depth of 650 metres as a test of the Banda Fault and was placed between the Banda Fault and the Nathalie Fault. It was collared on what is now known to be the edges of a chargeability anomaly, a magnetic low and a moderate resistivity anomaly. The chargeability anomaly tops out at 100 m depth at the drill site, and at this depth, the hole entered increasingly skarnified andesite with disseminated sulfide mineralization. At 450 m depth, the hole entered the metasediments, which are present as marble and represent the upper portion of the metasedimentary section – above the Upper Skarn target. That is, the hole did not reach the target of the Upper Skarn horizon.

The new interpretation is that the Nathalie Fault, which is west of hole 287, will have on its west side the Upper Skarn target at a shallower depth, possibly 300-400 m. This area will be drilled by placing a NE-SW line of holes about 200 m NW of hole 287 and straddling the Nathalie Fault. This is an important target.

Copper Fox Metals Inc.  provides an update on the results and interpretation of the Quantec Geosciences Ltd. “State of the Art” Quantec Titan-24 DCIP and MT geophysical survey, on the Schaft Creek copper-gold-molybdenum-silver deposit located in Northwest British Columbia.

Highlights:

• the Induced Polarization/Resistivity (IP) anomalies outlined by the Survey strongly suggest that the Schaft Creek mineral deposit extends a significant distance to the east and at depth beyond the limits of the current diamond drilling,
• the Survey indicates that the IP anomalies that correspond to the Main, Paramount and Breccia Zones of the Schaft Creek mineral deposit are open to the north and south, and
• the Induced Polarization anomalies outlined in 2008 have been confirmed by the Survey but these responses are interpreted to represent a geological feature, not mineralization.

Mr. Elmer Stewart, President of Copper Fox stated that “Our primary objective is to complete the feasibility study by the end of 2010. If the IP anomalies are an indication of the size of the Schaft Creek deposit, then the deposit is substantially larger than what has been defined to date. A substantial amount of diamond drilling would be required to define the limits of the deposit. Our 2010 diamond drilling program; although not designed for exploration has been adjusted to test the large IP anomaly identified on Section 6361000 under Mount LaCasse”.

Schaft Creek Deposit:
The Schaft Creek mineral deposit consists of three mineralized zones, being the Main, West Breccia and Paramount (see About Copper Fox for resource estimate of the Schaft Creek deposit).

Quantec Titan-24 DCIP and MT Survey:
Quantec Geosciences Limited (Quantec) was retained to further define two Induced Polarization anomalies located in the area of the proposed mill site in 2008. In order to better interpret any anomalies located by the Survey, the scope of the Survey was extended to include the portions of the Schaft Creek deposit where diamond drilling had been completed. The lithologies, sulphide content and metal grades obtained from the diamond drilling completed on the geophysical Sections were used in the interpretation of the geophysical responses obtained by the Survey.

A comparison of the geophysical response for the Null referenced, DC referenced, Resistivity and MT pseudo-sections shows excellent correlation. To view a geophysical model of the Schaft Creek mineral deposit based on the Null reference chargeability click here. A brief discussion of the IP anomalies defined on each Section is presented below:

Section 6361000:
The survey on this line was completed as a west and east portion due to hazardous terrain conditions. On the west side of the line, the IP anomaly is approximately 1,200 m wide and extends to a depth of 750 m. The western 400 m wide portion of this anomaly corresponds to the Paramount/West Breccia Zone where significant copper-molybdenum-gold-silver mineralization has been defined to an average depth of 400 m below surface. The 800 m wide portion of the IP anomaly located east of the Paramount/West Breccia Zone dips to the east under Mount LaCasse, is open at depth and requires testing by diamond drilling.

The east side of Section 6361000 covers the area of the proposed mill site where the two IP anomalies were located in 2008. The Quantec Survey located the 2008 IP anomalies and based on the diamond drilling information and the strength of the geophysical response, these anomalies are interpreted to represent a geological feature, not sulphide mineralization.

Section 6360600:
The IP anomaly is 1,500 m wide and extends to a depth of at least 750 m below surface. The western 550 m wide portion of this anomaly corresponds to the Paramount/West Breccia Zone where copper-molybdenum-gold-silver mineralization has been drilled to an average depth of 500 m below surface. The 850 m wide portion of this IP anomaly located east of the Paramount/West Breccia Zone dips to the east under Mount LaCasse and requires testing by diamond drilling.

Section 6360200:
The IP anomaly is 1,600 m wide and extends to a depth of 800 m at the center of the anomaly. This anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization and has been intersected by drilling to an average depth of 500 metres below surface. The IP anomaly indicates that copper-molybdenum-gold-silver mineralization extend to a considerable depth below the 500 metre level. A 500 m wide portion of this anomaly located east of the Main Zone requires testing by diamond drilling.

Section 6350800:
Two IP anomalies have been located on this Section. The first anomaly is approximately 250 m wide, has a depth of 300 m and requires testing by diamond drilling. The second IP anomaly is 1,450 m wide; has a depth of approximately 600 m on the western side and a depth of 450 m on the east side. The IP anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization has been drilled to a depth of 250 m. The portion of the IP anomaly below the 250 m level requires testing by diamond drilling.

Section 6350400:
The IP anomaly is 1,500 m wide and has an average thickness of 400 m. The western portion of this anomaly measures 300 m wide by 450 m deep and is located at a depth of 200 m below surface (interpreted to be faulted downward). The remaining 1,200 m wide portion of the anomaly is relatively flat lying and has an average depth of approximately 400 m. This anomaly corresponds to the Main and West Breccia Zones where significant copper-molybdenum-gold-silver mineralization has been drilled to a depth of 250 m below surface. A 250 m wide section on the east side of this anomaly requires testing by diamond drilling. The IP anomaly is open along strike to the south.

Quantec Titan-24 Survey Parameters:
The Quantec Titan-24 DCIP and MT system is a State of the Art geophysical tool used to explore forcopper mineralization. The Survey was completed on five lines surveyed by differential GPS instrumentation over the area of the proposed mill site and further to the west over the Schaft Creek deposit where a substantial amount of diamond drilling had been completed. Survey Sections were completed at 100 m station intervals and 400 metre line spacing. A total of 28.2 kms of DC/IP survey line (plus current extensions) and 22 kms of MT data were collected. Magnetotelluric, Resistivity and Chargeability data were collected at 50 metres stations along each Section. The Titan-24 survey typically images DC resistivity to depths of 500-750 m and the IP typically images to 500-750 m, in sub-vertical tabular geologic settings and up to 50% more for sub-horizontal settings. The interpretation of the data was completed by Quantec utilizing the lithology, estimated sulphide content and analytical results from the diamond drill holes completed on or near the geophysical Sections. The 3D inversion of the DC and IP data was completed using the UBC3D inversion code and is shown as Null referenced and DC referenced chargeability. In several cases, not all of the line could be surveyed due to hazardous terrain conditions. The 14 mRad contour on the UBC smoothed, Null Referenced pseudo-section was used to determine anomalous chargeability.

Several radio transmitters operate throughout the world in the VLF range, 15-30 kHz, and are used mainly for marine navigation, communication with submersed submarines, and other purposes.  The principle of VLF subsurface exploration is simple.  At large distances from the transmitter, the EM field is effectively planar and horizontal.  A conductor that strikes in the direction of the transmitter is cut by the magnetic vector, and these primary magnetic fields cause electric currents to flow in subsurface conductors.  In another, more recent, theory, the subsurface currents flow along interfaces between bodies of differing conductivity.

The Very Low Frequency (VLF) radio spectrum extends from 3 to 30 kHz. Standard communications receivers do not receive signals that low in frequency. Furthermore, most antennas used with standard communications receivers are optimized for higher frequencies and perform poorly in the VLF spectrum. Because of that, few Radio Amateurs or shortwave listeners have ever heard VLF signals and most know very little about the large number of stations in that part of the spectrum, what those stations are used for, or the nature of VLF radio signal propagation.

However, because VLF receivers and receiving antennas are easy to construct, the VLF spectrum attracts a small number of curious and sometimes very dedicated VLF listeners who want to learn more about this little-known and somewhat secretive part of the radio spectrum.

Signals from powerful VLF stations can be received worldwide. They penetrate deep into the earth and deep into the sea (especially in the lower portion of the VLF spectrum) and therefore can be received by submerged submarines. Though some VLF stations have other purposes, the primary function of most VLF stations is to communicate with submerged military submarines or help them navigate underwater.

http://www.smeter.net/stations/vlf-stations.php

http://sidstation.lionelloudet.homedns.org/stations-list-en.xhtml

Indonesian-focussed Robust Resources has revealed that a 3D IP-Resistivity survey over the flagship Lakuwahi target, as well as new drilling results, have significantly extended the discovery target zones and therefore the gold and base metal resource potential on Romang Island.

The IP-Resistivity geophysical survey commenced on 24 March 2010, and field data collection is 50% complete, with 20% of information processed and modelled.

The geophysics and drilling has confirmed a well-defined geophysical (resistivity) anomaly area that is 20-times larger than current Batu Mas drilled prospect and remains open.  Importantly, there appears to be continuity of precious and base metal mineralisation structure confirmed between main drilled prospects of Batu Mas and Batu Hitam (over 2 kilometre strike length).

Recent drilling at Batu Mas and Batu Hitam continue the strong track record of results with thick intersections of precious metals and base metals on both prospects. In total, results for fourteen holes have been received, eleven of which intersected mineralisation of potential economic significance.

Contours of magnetic susceptibility from 3D modelling showing the large 13 km 2 alteration system within the Lakuwahi Caldera. Billiton drilling (in black) and Robust drilling (in red) has tested less than 0.2% of this system.

Managing director Gary Lewis said, “In this latest stage of our exploration program, Robust has done the reverse of most companies in that we have drilled prior to embarking on the geophysical studies which puts us in the now fortunate position of being able to calibrate the geophysics with drilling data.”

“Based on the excellent correlation of geophysical anomalism with the drilling data, the results have not only extended the Batu Mas target zone by around 20-times its current size, but also demonstrated that the geophysical anomaly clearly links the Batu Mas and Batu Hitam prospects, he said.”

“Whilst the Company had long suspected that this was the case, these latest results provide us with more confidence to move towards defining a maiden JORC resource from these two prospects alone. In addition, the IP has also identified a number of new drill targets, in particular those hidden under limestone cover, which we will shortly begin to target with our four owner-operated rigs.”

Batu Mas

Results for nine diamond drill holes have been recently received, with seven of the holes with coincident geophysical anomalism intersecting precious and / or base metals of potential economic significance. The very close fit between the drilling results at Batu Mas and the resistivity anomalism is especially significant, both in relation to validating the geophysical methodology and for demonstrating the extent of the potential resource at Batu Mas. The positive drilling results (both gold/silver and base metals) are all contained within the geophysically defined 50 Ohm-m contour, which concurs closely with the grade-thickness.

Gary Lewis continued, “The correlation of the positive drilling results and the resistivity represents a valuable enhancement of our understanding of the Lakuwahi mineralisation. We now have confidence that the extensions to the Batu Mas mineralisation and the new targets indicated by the resistivity, which so far is indicated to be in the order of 20-times the size of the Batu Mas area itself, are indeed likely to contain significant precious metal and base metal mineralisation.
Robust’s current drilling plan has been modified in light of the new results and testing of the Batu Mas
North target has already commenced.”

Linear Metals Corporation announces that it has initiated a two-stage exploration program on its LaMorena Copper-Silver Gold project in Coahuilla State, Northern Mexico. The project is located approximately 250 kilometres southeast of Chihuahua, and 40 kilometres north of the Hercules iron mine (skarn), within a known belt of deformed sediments that host Carbonate Replacement Deposits (“CRD”s) such as MAG Silver’s recent Cinco de Mayo discovery, and at least in part, Goldcorp’s Penasquito deposit. Within this overall belt, LaMorena is located at the intersection of prominent regional northeast and northwest trending faults.

Schematic model showing the mineralization style and targets at the La Morena Property.

Previous drilling by Linear Metals and Linear Gold Corp., as well as earlier historic drill holes were focused on outcropping, sub-vertical vein structures and not the potential for deeper, sub-horizontal CRD (“Manto”) and skarn mineralization. Even so, previous drilling intersected significant copper and silver mineralization with intervals of up to 1,245 g/t silver and based on re-examination of drill logs, the better mineralized intervals in drill-holes M-1, M-2, and LM-4, may be from sub-horizontal CRD horizons.

Exploration at LaMorena has commenced this week and will include an initial geophysics program followed by diamond drilling. The exploration program will begin with ground truthing of the near-surface induced polarization (“IP”) chargeability-resistivity targets interpreted from the historic IP survey. This will be followed by “confirmation” re-surveying of most targets, especially the deep targets, using modern, deeper-penetrating IP equipment.

Area of high resistivity at the La Morena Property showing the drill-hole location and a circular topographic depression in the area.

As phase two of the exploration program, approximately 1,500 metres of diamond drilling will test the highest priority IP targets.

Re-interpretation of historic IP survey data (1970′s), recently recovered from the JICA archives, has confirmed that most of the originally interpreted near surface targets remain untested, while also defining six new untested deeper chargeability targets identified at 75 to 175 metres vertical depth.

The historic IP targets are located within the halo of a large, 1.5 kilometres x 3.5 kilometres, ovoid area of re-crystallized and lesser skarn-altered limestones of the Aurora, La Pena and El Cupido formations. The latter two formations are particularly prospective regionally, as they host numerous known CRD deposits such as Providencia-Concepcion Del Oro. The altered area is presumably underlain at depth by an intrusive stock and/or dyke swarm, indicating a potential for skarn and perhaps porphyry-style mineralization.

Job offer – Technical Writer

Abitibi Geophysics has been providing geophysical services to the mineral exploration industry for over 25 years. Our expertise ranges from detecting precious and base metal deposits to exploring for diamonds and uranium. Val-d’Or-based Abitibi Geophysics mainly conducts surveys in Canada, but we also provide exploration services to the international market.

Val-d’Or is a young and dynamic bilingual community with a population of 30 000 people. Open on the world and known for its world wide mining an exploration expertise, it is located in the beautiful Abitibi region. Rich of 4 seasons it’s the perfect place for activities such as fishing, golf, cross country skiing, snowmobile and hockey including a major junior hockey team.

We are currently recruiting for a Technical Writer with a good knowledge of geology or geophysics. The Technical Writer will play a strategic role in our team and

Main functions:

- Gather information from clients and project geophysicists on the application of geophysical methods to create promotional/technical case-studies;
- Gather information from the product specialists to create advertising brochures explaining the advantages of our products and services;
- Design presentation figures, charts or graphs to improve the communication of technical messages;
- Gather information externally on developments, trends, and research in mining exploration geophysics
- Ensure the website is up to date and verify the quality of the information posted;
- Review documents pre-publications ensure a consistent coherent message in both official languages.

Humain Ressources
ABITIBI GÉOPHYSIQUE INC., 1746 CH. SULLIVAN, VAL-D’OR, QC, J9P 7H1
TÉL. : (819) 874-8800 202 FAX : (819) 874-8801
GDESFOSSES@AGEOPHYSICS.COM

Rodney Koch, P. Geo, Vice-President Exploration Canada for Titan and geophysicist with rich experience in Athabasca basin has announced the new drill program on the Border Block project which is located in the southwest area of the Athabasca Basin, near the Alberta border.

The planned program consists of approximately 1,500 metres of diamond drilling to test prospective targets identified by recently completed (Spring 2010) SQUID Time Domain ElectroMagnetic (TDEM) and D.C. Resistivity surveys. D.C. Resistivity is the geophysical technique of choice in the Athabasca Basin due to its ability to image hydrothermal alteration systems, which form resistivity “chimneys”, often associated with fault zones and unconformity-type uranium deposits. The project (76,354 hectares/188,675 acres) covers an area where historic exploration data identified favourable basement rocks capable of hosting uranium mineralization.

MacDonald Mines Exploration Ltd. anounces that it has recommenced its 2010 exploration drilling program in the Ring of Fire, James Bay Lowlands.

The Company will be utilizing two drills for this phase of drilling and will focus on the results from its successful spring 2010 drilling program.

The spring 2010 drill program on its McNugget Property identified new volcanogenic massive sulfide (VMS) mineralization on four fold limbs.

Targeting Nickel and VMS on McNugget Property

“The McNugget Property has moderate to high potential for both Cu-Zn volcanogenic massive sulfide and Ni-Cu-PGE sulfide deposits.” – Dr. Tucker Barrie, P. Geo.
This phase of drilling will focus on five principal base metal occurrence areas: 1) Campbell (Cu-Zn, to northeast); 2) Campbell West (Cu-Zn, north central); the 3) Fold Nose (Cu-Zn, to northeast); 4) Southern (Cu-Zn and Ni-Cu, to south); and 5) Area 39 (Ni-Cu-PGE, to southeast. (Figures are available on MacDonald’s website at www.macdonaldmines.com). Initial drilling will be concentrated on the four VMS horizons identified through the previous drilling and geophysical investigations.

East Portion of McNugget Property on Same Stratigraphy as Noront’s Eagles Nest

Unlike Noront’s discovery, the EM conductors (2) in the vicinity of MN07-39 are greater than 300m in strike length (based on both VTEM and Crone PEM – surface and borehole) compared to the Eagles Nest 100-200m strike length.  Six DDH holes are targeted in this area to explain the EM anomalies during the current drill program.

Company Provides  Detailed Outline of  Voisey’s Bay-type Target on Hulbert-Salo Property

The Company has staked 14 mining claims covering an area of 3,140 hectares with magnetic and EM (VTEM survey) characteristics of an intact ultramafic-gabbroic intrusion.  Modelling of these data results in a spoon-shaped intrusion with multiple internal structures, similar in size and shape of the Voisey’s Bay complex which hosts numerous Ni-Cu deposits.

The VTEM/Mag conducted over the Property has identified an anomaly approximately 10.9 km long by greater than 3.3km wide at its widest.   Historical prospecting over the area identified both gabbroic and ultramafic rocks. An interpreted “feeder zone/dyke” exists to the west of the main intrusive.  The most prospective EM conductor - the primary nickel target – is located just above the throat of the feeder dyke, similar in position to the Ovoid at Voisey’s Bay. A 3D model of the magnetic data is available on our website.

“It is both unusual and highly prospective to find a system that appears to be so intact with EM anomalies identified in groups within the magnetic network/structures (cycles or influxes)”,  comments Quentin Yarie, P.Geo. Vice President of Exploration.   “The Voisey’s Bay mineralization has been explained in terms of a model calling for repeated influxes of magma and these characteristics are obvious in the Hulbert-Salo data.”

Current short term work plans include a Crone PEM ground survey over the most prospective Nickel targets (identified from the VTEM inversion).  Upon review of this data, a drill program will be defined.  Because the Hulbert-Salo property is in a  new area MacDonald will engage in consultation with both Webequie and Kasabonica First Nations and outline the proposed first phase of drilling.  This is in keeping with MacDonald Mines established protocols regarding exploration on historical lands used by First Nation communities.

The ground geophysical program has been used by MacDonald Mines on its McNugget Property resulting in significant success in identifying targets of interest for drilling.  Based on previous experience, the Company is confident that this process can be completed quickly and with minimal impact on the ground as it requires no line cutting (GPS positioning would be utilized).

MacDonald Mines in presenting this target of opportunity cautions that drilling will be required to confirm the sources of the EM conductors.

Creso Exploration intersects 65.7 meters of 18.2 g/t g and 79.6 meters of 4.61 g/t Gold in Hole #2 on the Minto Project.

The Minto showing consists of a pod of carbonate sulphide breccias containing an estimated tonnage of 225,000 tons (204,000 t) grading 0.2 oz per t (6.8 g/t) Au to a vertical depth of 225m as determined and reported in 1984.  Gold is related to pyrite and quartz veining trending north south and northeast southwest.

From surface geology the upper zone presents a true width of 30 meters. The bottom zone is new and no true width has been determined yet. According to JVX Ltd, the down‐hole geophysical interpretation completed on the Minto property, indicates that the mineralized body extends in a north‐west/south‐east direction at a depth of 50 to 170 meters and is open at depth. The Corporation will drill a step‐out hole for the purpose of further defining the location of the body using more down‐hole geophysics.

In May 2010, Borehole Induced Polarization (BHIP) surveys were done on the Tyranite and Minto properties. Results from the Tyranite hole are not yet available. 3D conductivity and chargeability models from boreholes gradient IP data have been calculated for holes M‐0901 and M‐0902 on the Minto property.

The Corporation has completed down‐hole geophysical testing on the MacMurchy property and intersected 7.4% nickel and 2 g/t platinum and palladium over one meter in hole D6‐07 confirming the nickel potential of the area. The MacMurchy property is located in the southwest corner of the MacMurchy Township some 10 km SSW of the Minto property.

The Corporation is currently evaluating bids for an agreement for a 200‐kilometer low level airborne (Mag, VLFEM, and radiometric) geophysical survey to cover the Minto, Tyranite and Duggan zone on a 30‐metre spacing in order to define geological structures and mineralized zones. Upon completion of the geophysical survey, the Corporation will undertake a 5000‐meter drill program on the Minto, Tyranite and Duggan properties.

Conductivity Model

The 3D conductivity model represented by an iso-surface value of 0.005 S/m shows three conductive features. The first conductive feature is at shallow depth and is strong in the west direction as well as in the east direction. The second conductive feature is disseminated in the middle while the third conductive feature is at depth and to the southeast. 

Chargeability Model

The 3D chageability model shows three chargeable features. The third chargeable feature (northwest – southeast) at depth is strongest. The second and third inversion shells correlate with the gold mineralization.