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Phoenix Matachewan Mines/Drill Rig Secured for Bottle Creek, Nevada Gold-Silver Project: Drilling to Begin in March

Posted on: Wednesday, 22 February 2006, 09:00 CST

Phoenix Matachewan Mines Inc.(TSX VENTURE:PMM)("PMM") announces that it has secured a contract with EMM Core Drilling Services for a diamond drill rig for its Bottle Creek epithermal gold-silver project in northern Nevada. An aggressive, CD$1,000,000 exploration program was conducted in 2005 and produced three distinctly anomalous drilling target areas. Diamond drilling will begin as soon as a permit is secured from the Bureau of Land Management ("BLM"). Receipt of the permit is anticipated at the end of February. Bottle Creek is under option from Golden Gryphon Explorations Inc. ("GGE", a private company incorporated in British Columbia) whereby the Company has the option to earn 60% of the Bottle Creek property in Humboldt County, Nevada.

An application to permit fourteen drill sites has been submitted to the BLM. An initial program of five holes totalling some 2500m is anticipated. The drill holes will target mineralization and alteration on three target areas defined from geological, geochemical and geophysical surveys conducted by Phoenix over the past year. The three areas are designated South Halberg, Canyon Dome and Bluebird. The targets are closely associated with past producing, high-grade mercury mines that are interpreted to be the surface manifestation of a deeper mineralizing system capable of depositing gold and silver as well.

The property is located in the Bottle Creek mercury district of north-western Nevada, approximately 250km northeast of Reno, and displays many features in common with past and present producing low-sulphidation, epithermal gold deposits.

Gold and silver exploration dates from 1982 when the area was explored for shallow epithermal precious metal mineralization. Results of historical and current work indicate that the region displays widespread anomalous gold, silver, selenium, antimony, arsenic and mercury and low molybdenum, copper lead and zinc content - this coupled with altered rhyolite and basalt host rocks suggests that Bottle Creek fits into a distinct class of epithermal gold mineralization that includes the Ken Snyder (2.39 M oz gold), Mule Canyon (1.43 M oz gold) and Sleeper (1.68 M oz gold) deposits.

The Sleeper Deposit, located 21km east of the Bottle Creek district, exhibits similar host stratigraphy, displays similar geochemical anomalies, structural controls, vein, breccia and stockwork mineralization as encountered at Bottle Creek. Sleeper contained bonanza veins grading up to 160opt Au as well as stockwork ore generally grading less than 0.1opt Au.

Paul L. Jones, P. Geo., is the qualified person for PMM.

"The statements in this Press Release may contain forward looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. The TSX Venture Exchange has not approved or disapproved of the information contained in this Press Release."

Phoenix Matachewan Mines Inc. (TSX VENTURE:PMM)

Source: Business Wire

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