May 17, 2011 08:47 ET
MDN Confirms the Extension of the Ikungu Structure to the East
IKBH-71 intersects 13.43 g/t Au over 2m and 1.83 g/t Au over 5m
MONTREAL, QUEBEC–(Marketwire – May 17, 2011) –
Editors Note: There is a map associated with this Press Release.
A total of 21 reverse circulation holes 70 to 125 m deep were drilled systematically, forming two drill fences on sections 4180E and 4590E. The two drill fences were designed to locate the eastern extension of the Ikungu zone between the last intersection (the most easterly gold value for the Ikungu structure), in Hole IKD-43 (1.21g/t over 3.73 m), and the granite intrusive at the edge of the property.
The results indicate that the eastern extension of the mineralization has been substantially displaced southward. Most of the holes drilled in the direct extension intersected granite, which is not favourable to mineralization. The eastern extension of the structure favourable to mineralization was located by Hole IKBH-71 (13.43 g/t over 2.0 m and 1.83 g/t over 5.0 m), the most southerly hole of the drill fence.
The hole intersected the structure 860 m southeast of the mineralization in Hole IKD-43 (see map below). This displacement to the southeast has the positive consequence of opening up more space for exploration to the east than anticipated prior to the program.
Interpretation of the results of this drilling and mapping program and earlier geochemical and geophysical surveys show that the mineralized structure could extend about 1,400 m to the southeast, with Hole IKBH-71 lying in the middle of this area. The Ikungu structure has now been traced over a distance of more than 4 km.
The work done to date indicates that the Ikungu mineralization occurs at the contact of two geological domains. To the north is a series of pillow basalts with intercalated sediments, while the southern part is a series of pillow basalts and gabbroic sills. Gold mineralization occurs at the contact of these two geological domains, and is particularly associated with a metasediment altered in sericite and silica.
“The geological setting and the size of the Ikungu structure show certain similarities with the geology of the Bulyanhulu mine (more than 10 million ounces of gold) located in Tanzania, in the Lower Nyanzian geological formation,” noted Marc Boisvert, Ing., MDN’s Vice President of Exploration.
The drilling program got off to a slower start than planned due to contractor difficulties. With almost 40% of the original program completed, a change in contractor has allowed certain adjustments to be made, and the program will resume at the end of the month with an additional 4,000 metres of drilling. The goal is to complete exploration at the east and west ends of the structure, and then begin defining the most promising areas.
The samples were analysed by fire assay at the SGS Laboratory of Mwanza, Tanzania, which is certified according to international standards. A stringent assay quality verification program implemented by MDN included 10% control samples. The technical and scientific information contained in this press release has been reviewed by Marc Boisvert, engineering geologist and Vice President, Exploration, who acts as a qualified person in accordance with National Instrument 43-101.
MDN Inc. (TSX:MDN) is a mining exploration and development company exploring and developing projects in Quebec and Tanzania. The Company is also actively in search of 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.
To view the map associated with this press release, please visit the following link:http://media3.marketwire.com/docs/ikungu_IKBH-71_1.pdf
Serge Bureau, Ing.
President and Chief Executive Officer
514 866-6500, Ext. 221
Marc Boisvert, Ing.
Vice President, Exploration
514 866-6500, Ext. 227
Nicole Blanchard, Investor Relations
Sun International Communications