MDN Inc.

March 01, 2012 08:15 ET

MDN Intersects 14.5 g/t Au Over 2.0 Meters at Nikonga

MONTREAL, QUEBEC–(Marketwire – March 1, 2012) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to report that it has received analytical results for 5 holes from its 2012 drill program at the Nikonga project. These results confirm that high-grade gold mineralization is present in the Kezeria North structure, and that the structure has significant lateral extension. The Kezeria North structure is one of two drill targets of this program. Results from the other target, the Kezeria Main structure, are pending.

A new drill discovery located at only 40 km southeast of the Tulawaka mine in Tanzania.

NKRC-14 (14.5 g/t Au over 2.00 m and 9.34 g/t Au over 1.0 m) was the first hole to test the gold-bearing Kezeria North structure where previous grab samples graded from 6.48 g/t to 23.7 g/t Au (Press release of September 28th 2011) At 53.0 m the hole intersected a 2 meter wide quartz vein averaging 14.5 g/t Au over 2.0 m, followed by a 4 meter zone of quartz veinlets within an argillite grading 1.16 g/t Au over 4.0 meters. A second quartz vein was cut at 63.0 meters grading 9.8 g/t Au over 1.0 meter. This hole confirms the high-grade nature of the structure.

NKRC-06 (5.60 g/t Au over 1.00 m) tested the western extension of a soil anomaly associated with the Kezeria North structure. This drill hole, located 450 meters northwest of NKRC-14, intersected a 2 meter wide quartz vein associated with fault gouge material. This indicates that the Kezeria North structure has significant lateral extension.

NKRC-05 (5.27 g/t Au over 1.0 m and 8.01 g/t Au over 1.0 m) was drilled on the same section as NKRC-06 to test the north part of the soil anomalies. The hole intersected a 5 meter zone of argillite with quartz veinlets averaging 3.2 g/t Au over 5 meters including two intervals of 1.0 meter grading 5.27 and 8.01 g/t Au respectively. These results indicate that there is another gold-bearing zone in the hanging wall of Kezeria North.

The high-grade gold intersections associated with quartz veins are similar to intersections at the Tulawaka mine. Furthermore, the presence of argillite with quartz veinlets and gold values in the hanging wall indicate that parallel gold-bearing structures could exist, suggesting that there is potential for multiple quartz vein targets thereby increasing the possibility for more tonnage. “This project is becoming another important gold play for MDN along with the Ikungu advanced drill project” said Marc Boisvert, MDN’s Vice President of Exploration.

Kezeria North is a structure striking at 306┬░ subparallel to and 500 m to the north of the Kezeria Main structure. These structures coincide with two subparallel trends of gold-in-soil geochemical anomalies with gold values from 50 to 580 ppb. These two trends are 500 metres apart and are oriented northwest for 2 km along strike. This is the same direction as the regional lineament that connects the Nikonga property to the Tulawaka mine located 40 km northwest. This major lineament is visible on topographic maps and regional satellite images. MDN controls 7 km of ground along this favorable structure.

Assay results on the Kezeria Main structure are pending.

Partial Drill Results

Hole
#
Easting
(m)
Northing
(m)
From
(m)
To
(m)
Grade
(g/t Au)
Interval*
(m)
NKRC-14 369 000 9 621 799 53.0 55.0 14.5 2.0
including 53.00 54.00 17.900 1.00
54.00 55.00 11.050 1.00
55.00 59.00 1.16 4.0
including 55.00 56.00 1.800 1.00
56.00 57.00 0.720 1.00
57.00 58.00 1.125 1.00
58.00 59.00 0.990 1.00
63.00 64.00 9.34 1.00
NKRC-05 369 200 9 622 153 39.0 44.0 3.2 5.0
including 39.00 40.00 5.270 1.00
40.00 41.00 1.340 1.00
41.00 42.00 0.500 1.00
42.00 43.00 8.015 1.00
43.00 44.00 1.110 1.00
96.00 97.00 0.620 1.00
97.00 98.00 1.49 1.00
NKRC-06 369 200 9 622 093 41.00 42.00 0.55 1.00
42.00 43.00 5.60 1.00
Note: Intervals are along hole. True width is unknown at this stage

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 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 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.

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CONTACT INFORMATION

  • Serge Bureau. Ing.
    President and Chief Executive Officer
    MDN Inc.
    514 866-6500. Ext. 221

    Marc Boisvert. Ing.
    Vice President, Exploration
    MDN Inc.
    514 866-6500. Ext. 227

    Vincent Janelle
    Investor Relations
    MDN Inc.
    514 866-6500. Ext. 228
    vjanelle@niobaymetals.com