MDN Inc.

November 16, 2010 08:46 ET

MDN Demonstrates Continuity at Depth and Increasing Thickness to the West of the Ikungu Structure

IKD-48 intersects 5.92 g/t Au over 3.06 m at 380 m, including 10.83 g/t Au over 1.53 m

IKD-47 returns 2.72 g/t Au over 8.42 m, and in combination with an earlier hole, indicates that the structure thickens widens toward the west

MONTREAL, QUEBEC–(Marketwire – Nov. 16, 2010) – MDN Inc. (TSX:MDN) (“MDN”) reports the assay results for four holes (IKD-44, 46, 47 and 48) of its drilling program currently underway on the Ikungu gold property in Tanzania. All widths mentioned in this press release are true widths.

Holes IKD-47, IKD-48 and IKD-44, drilled to a depth of approximately 300 metres, returned higher grades and increased MDN’s confidence in the continuity and direction of plunge of the zones and their indications of high grade.

Combined with earlier holes, these deeper holes outline areas where many of the intersections are greater than 10 g/t -m (see attached longitudinal section).

Drill results released today:

  • IKD-48 intercepted two zones that returned 5.92 g/t Au over 3.06 metres and 3.11 g/t Au over 9.5 metres, including values of 10.83 g/t Au and 8.04 g/t Au.┬áThis intersection was at 380 m vertical depth in the axis of the southeast plunge of intersections from holes IKD-45 (8.60 g/t Au/14.7m), IKD-4 (6.74 g/t Au/2.4 m) and IKD-39 (19.26 g/t Au/1.5 m).
  • IKD-44 intercepted 2.53 g/t over 6.1 metres at a vertical depth of 340 metres in the southeast plunge of IKD-35 (2.79 g/t Au / 6.5 m) and IKD-32 (8.02 g/t Au / 2.4 m) hole intersections.
  • IKD-47 intersected 2.72 g/t Au over 8.42 metres. This intersection is interpreted as being in the southeast plunge of Hole IKD-33 (2.66 g/t Au / 5.36). These two most-westerly holes of the drilling program indicate that the structure widens to the west, and suggest the possibility of a more important area farther west that will be tested in the near future.
  • The 2009 soil sampling results revealed two geochemical anomalies located 160 m and 440 m west of Hole IKD-33 respectively (sections 1570 E and 1210 E). These gold soil anomalies could be the surface signature of mineralized zones in the near-surface extensions of holes IKD-33 and 47.

Holes IKD-49, IKD-50 and IKD-51 are now being sampled. RC-type holes have been added to the initial program and are presently being drilled to test one of the more westerly gold soil anomalies.

“We have now identified zones with continuity at depth along the southeast plunge, and will be proceeding with definition drilling with the intent of announcing a resource estimate in 2011. The structure also remains open along strike in both directions, which means good potential for the discovery of new zones,” said Marc Boisvert, Ing, MDN’s Vice President of Exploration.

Results for holes IKD-44,46,47 and 48:

Hole ID Section
(m)
From
(m)
To
(m)
Length(1)
(m)
True Width
(m)
Au
(g/t)
IKD-44 401.0 409.0 8.00 6.13 2.53
including 404.5 406.5 2.00 7.86
IKD-46 245.0 250.0 5.0 3.83 1.81
IKD-47 383.0 394.0 11.0 8.42 2.72
including 385.0 386.0 1.0 7.79
392.0 393.0 1.0 5.12
IKD-48 392.3 396.3 4.0 3.06 5.92
including 392.3 394.3 2.0 10.83
413.45 425.85 12.4 9.5 3.11
including 413.45 414.5 1.0 8.04

(1) Note: Core length

Central Sector

Note: the distance between holes SIK5 (near surface) and IKD 48 (the deepest to date, with a vertical depth of about 400 m) indicates that the central sector zone has a southeast plunge of over 740 m. There is a horizontal distance of 700 m between holes SIK5 and IKD-35. Five of the 12 holes drilled in this 740 by 700-m area returned intersections of at least 6 g/t Au over 2 metres.

Hole g/t Au True Width
SIK5 10.95 1.99m
IKD-45 8.60 14.67m
IKD-4 6.74 2.42m
IKD-39 19.26 1.53m
IKD-48 3.11 9.5m
IKD-32 8.02 2.41m
IKD-35 2.79 6.51m
IKD-44 2.53 6.13m

East Sector

Note: The structure has not been tested by drilling between Hole IKD-36 (13.22 g/t Au over 4.1 m) eastward to the contact with the granite, a distance of over 400m. Eight of the 11 holes drilled in this area returned intersections averaging more than 3 g/t Au.

Hole g/t Au True Width
IKD-34 6.63 1.99m
IKD-26 3.67 4.60m
IKD-36 13.22 4.09m
SIK-1 24.54 1.91m
SIK-8 11.5 2.94m
IKD-37 5.39 3.98m
IKD-6 3.77 2.30m
IKD-2 3.63 2.20m

The samples were analysed by fire assay at the SGS Laboratory of Mwanza, Tanzania, which is certified according to international standards. A rigorous quality analysis 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.

About MDN

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 703 km2 in the vicinity of the Tulawaka mine. MDN Inc. also owns a 67.5% 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.

CONTACT INFORMATION

  • MDN Inc.
    Serge Bureau, Ing.
    President and Chief Executive Officer
    514-866-6500, Ext. 221
    or
    MDN Inc.
    Marc Boisvert, Ing.
    Vice President, Exploration
    514-866-6500, Ext. 227
    or
    Sun International Communications
    Nicole Blanchard, Investor Relations
    450-973-6600
    nicole.blanchard@isuncomm.com