February 28, 2012 08:15 ET
MDN and SOQUEM Demonstrate That Gold Mineralization at the MCGold Deposit Continues Towards the West
1206-11-44: 1.10 g/t Au over 18 meters
1206-11-45: 0.87 g/t Au over
12.25 meters 0.51 g/t Au over 28.6 meters
MONTREAL, QUEBEC–(Marketwire – Feb. 28, 2012) – MDN Inc. (“MDN”) (TSX:MDN) would like to report the recent diamond drill program on the MCGold property near Chibougamau, Quebec. MDN Inc. has an option to acquire a 50% interest in the MCGold property held by SOQUEM Inc.
Encouraged by the results of the 2010 drill program (see press release dated March 24th, 2011), a 12 hole, 3061 m drilling campaign was designed to discover SW extensions of mineralization within a 1-km-long undrilled area that had been identified between historic hole 1206-00-03 (1.0 g/t Au over 27 m) on section 540350mE and the western edge of the deposit located at 541470mE. Historical drill results had shown that the potential for a high-tonnage, low-grade type mineralization extended westward from the deposit. The current drill program was completed at the end of November 2011, and all analytical results were finalized by the middle of February 2012.
The 2011 results demonstrate that gold mineralization continues towards the west. The following represent significant intersections:
|Hole number||UTM Nad 83
|UTM Nad 83
|Section (m)||From (m)||To (m)||Length (m)||Au g/t|
The following intervals are higher grade material:
|Hole number||UTM Nad83 East||UTM Nad83
|Section (m)||From (m)||To (m)||Length (m)||Au g/t|
It appears that the host rock, a porphyritic tonalite, thins out towards the west where a thick zone of unmineralized sedimentary rock was unexpectedly encountered. This geometry may be due to the presence of NW-SE faults that would have disrupted the tonalite intrusion. The gold zones to the west, albeit present, are thinner than those of the Main zone.
These results will be incorporated into the existing deposit model in order to orient future exploration work.
The samples were analyzed by fire assay at the Techni-lab Laboratory in Sainte-Germaine-de-Boulé, Quebec, which is certified according to international standards. A rigorous quality controls program implemented by SOQUEM included the insertion of blank or standard control samples every 50 samples, and systematic requests for resampling of the first pulp as well as of a second pulp prepared with the rejects for gold values higher than 0.5 g/t. The technical and scientific information contained in this press release has been reviewed by Marc Boisvert, geologist engineer and Vice President, Exploration, who acts as the qualified person in accordance with National Instrument 43-101.
About SOQUEM and Investissement Québec
SOQUEM is a wholly-owned subsidiary of Investissement Québec. Investissement Québec’s mission is to foster the growth of investment in Québec, thereby contributing to economic development and job creation in every region. The Corporation offers businesses a full range of financial solutions, including loans, loan guarantees and equity investments, to support them at all stages of their development. It is also responsible for administering tax measures and prospecting for foreign investment
MDN Inc. (TSX:MDN) is a mining exploration and development company exploring and developing projects in Quebec and Tanzania. MDN is also active in the search for new business opportunities that can increase shareholder value. In addition to its 30% participating interest in the Tulawaka gold mine, MDN is the operator and owner of a majority interest in mineral licenses totalling 757 km2 in the vicinity of the Tulawaka mine. MDN Inc. also owns a 72.5% interest in Crevier Minerals Inc. which owns an NI 43-101 niobium-tantalum resource in the Lac-Saint-Jean area of Quebec. MDN has an option to increase its equity participation in Crevier Minerals Inc. to a maximum of 87.5%. Additional information is available on MDN’s website at: www.niobaymetals.com.
Forward-Looking Statements Other than statements of historical fact, all statements in this release that address events or developments that the Company expects to occur are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company’s most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and as such, the forward-looking statements in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Serge Bureau, Ing.
President and Chief Executive Officer
514 866-6500, Ext. 221
Marc Boisvert, Ing.
Vice President, Exploration
514 866-6500, Ext. 227
514 866-6500, Ext. 228