November 29, 2010 07:00 ET
MDN Has the Option to Acquire 100% of the Nikonga Gold Exploration Project in Tanzania
MONTREAL, QUEBEC–(Marketwire – Nov. 29, 2010) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to announce that it has the option to acquire the 50.71 km2 Nikonga property, located 40 km southeast of the Tulawaka mine, in Tanzania. After entering into an agreement with Mbogo Resources Mining for the PL 4727 prospecting licence, MDN succeeded in negotiating agreements for the three artisanal primary mining licences (PML) on the property. Together, these agreements grant MDN an option to acquire a 100% interest in all the permits in exchange for a schedule of payments totalling $615,000 over five years.
“This agreement is similar to the exploration opportunity MDN obtained when it acquired the Ikungu project in 2008. Nikonga is a property which has been mined by small-scale miners, and which has lateral extensions characterized by gold enrichment of the soil, like at Ikungu,” said Marc Boisvert, Ing., MDN’s Vice President of Exploration.
Regional data indicate a west-northwest striking lineament that connects the Nikonga property to the Tulawaka mine. The property hosts two soil anomalies lying one kilometre apart and parallel to the regional lineament. Multiple gold values varying from 50 to 580 ppb Au have been detected. These gold anomalies coincide with and represent the extensions of sites where artisanal mining has taken place in strongly silicified, gold-rich volcanic rock.
The 2011 exploration program includes drilling to test the artisanal mining sites and the gold-enriched soil anomalies in the lateral extensions.
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.
- MDN Inc.
Serge Bureau, Ing.
President and Chief Executive Officer
514-866-6500, Ext. 221
Marc Boisvert, Ing.
Vice President, Exploration
514-866-6500, Ext. 227
Sun International Communications