MDN Inc.

January 11, 2011 08:31 ET

MDN Extends the Ikungu Structure 600 m to the West

IKBH-42 intersects two zones of 2.15 g/t Au over 6.12 m and 1.54 g/t Au over 21.45 m

MONTREAL, QUEBEC–(Marketwire – Jan. 11, 2011) – MDN Inc. (TSX:MDN) (“MDN”) is pleased to report the last assay results for reverse circulation (RC) drilling (IKBH-42 to IKBH-45). The four RC holes are extra holes drilled at the end of the 2010 program to test a geochemical anomaly directly in the western extension of the known mineralized structure. The widths in this press release refer to true widths.

The assay results received at the end of December are very encouraging:

  • IKBH-42 intersected two mineralized zones, the first grading 2.15 g/t Au over 6.12 metres at a depth of 19 metres and the second grading 1.54 g/t Au over 21.45 metres at a depth of 38 metres, including 2.34 g/t Au over 11.47 m at a depth of 45 metres.
  • IKBH-45 intersected one mineralized zone of 1.72 g/t Au over 3.06 metres at 56 metres depth.

These results confirm both the extension of the mineralized structure 600 metres further westward, and the theory that the mineralization thickens to the west, as suggested in the last press release, dated December 9, 2010.

The anomaly lies 600 metres west of the last intersection from the mineralized structure, obtained in Hole IKD-33 (2.66 g/t Au/ 5.36m).

The gold mineralization intersected in Hole IKBH-42 and the IKD-47 mineralization (2.72 g/t Au / 8.42m) are interpreted as lying in the same southeast plunge axis. The distance between the two intersections is 852 metres along the southeast plunge of the mineralization.

Holes IKBH-42 (2.34 g/t Au/11.47m), IKD-47 (2.72 g/t Au/8.42 m) and IKD-33 (2.66 g/t Au/5.36m) thus demonstrate significant gold potential for this new zone lying to the west (see longitudinal section).

The Ikungu structure has now been outlined by drilling over a distance of 2.6 km, from Hole IKD-43 on Section 3850 E to Hole IKBH-42 on Section 1195 E.

A drilling program of about 8,000 metres is set to begin on January 20, 2011, with the primary objective of testing the extensions of the structure along strike.

“To date, the 2009 and 2010 drilling programs have enabled us to identify a large gold-bearing structure that occurs over the entire property.┬áMany holes also indicate potential for the development of mineralized zones subparallel to the main structure. The 2011 program is aimed at completing exploration at the east and west ends of the structure, then starting to define the most promising areas. Depending on the results of the first phase of drilling, we may approve an additional budget to speed up the definition work” said Marc Boisvert, Ing., MDN’s Vice President of Exploration.

Samples were analysed by fire assay at the SGS Laboratory of Mwanza, Tanzania, which is certified according to international standards. A stringent analysis 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 is a qualified person under National Instrument 43-101.

Hole # Section
(m)
From
(m)
To
(m)
Length(1)
(m)
True
Width
(m)
Au
(g/t)
IKBH-42 1195E 19.0 27.0 8.00 6.12 2.15
19.00 20.00 1.00 2.08
20.00 21.00 1.00 2.63
21.00 22.00 1.00 2.36
22.00 23.00 1.00 2.86
23.00 24.00 1.00 2.39
24.00 25.00 1.00 2.63
IKBH-42 1195E 38.0 66.0 28.00 21.45 1.54
45.0 60.0 15.00 11.47 2.34
38.00 39.00 1.00 1.44
39.00 40.00 1.00 0.84
40.00 41.00 1.00 0.76
41.00 42.00 1.00 0.41
42.00 43.00 1.00 0.91
43.00 44.00 1.00 0.33
44.00 45.00 1.00 0.31
45.00 46.00 1.00 1.06
46.00 47.00 1.00 0.91
47.00 48.00 1.00 1.17
48.00 49.00 1.00 1.76
49.00 50.00 1.00 5.95
50.00 51.00 1.00 3.27
51.00 52.00 1.00 1.48
52.00 53.00 1.00 1.80
53.00 54.00 1.00 0.96
54.00 55.00 1.00 4.80
55.00 56.00 1.00 0.73
56.00 57.00 1.00 1.13
57.00 58.00 1.00 4.45
58.00 59.00 1.00 4.27
59.00 60.00 1.00 1.46
60.00 61.00 1.00 0.41
61.00 62.00 1.00 0.86
62.00 63.00 1.00 0.36
63.00 64.00 1.00 0.27
64.00 65.00 1.00 0.58
65.00 66.00 1.00 0.60
Note 1: core length

About MDN

MDN Inc. (TSX:MDN) is a mining exploration and development company exploring and developing projects in Quebec and Tanzania. The Company is also active in the search for new business opportunities that can increase shareholder value. In addition to its 30% 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 also has 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 atwww.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