April 12, 2011 07:34 ET
MDN Provides an Update on Ikungu and Assesses the Mineral Potential of the 3-km Long Gold-Bearing Structure
MONTREAL, QUEBEC–(Marketwire – April 12, 2011) –
Editor’s note: A map for this release is available on Marketwire’s website.
MDN Inc. (“MDN”) (TSX:MDN) is pleased to provide a progress report on drilling at its goldIkungu property in Tanzania, as well as an assessment of the mineral potential of this 3-km long gold-bearing structure.
Drilling to test gold soil anomalies in the extensions at both ends of the mineralized zone began on January 20, 2011. Because of logistical difficulties encountered by the contractor, only one drill, an RC drill, was mobilized instead of two. The second drill, a diamond drill, arrived on site at the end of March, and is now drilling the western sector, an unexplored 1-km-wide area between sections IKD-33 and IKBH-42.
In the western area, drilling on sections 970E and 1195E is complete, and assay results show that Section 970E cuts through the mineralized structure, with an intersection of 2.87 g/t Au over 2 metres in Hole IKBH-48 (true thickness unknown). Combined with the earlier results of Hole IKBH-42 on Section 1195E, this means that the mineralized zone has now been traced by drilling over an additional kilometre to the west (see attached longitudinal).
To the east, drilling intersected rocks that are favourable to mineralization 770 metres farther east than the last intersection in IKD-43 (1.21 g/t Au over 3.73 m, true thickness). Assays are pending.
Preliminary Assessment of Gold Potential
The 2010 results have identified a mineralized zone more than 3 km long, including a 2-km section with enough information to assess the mineralized material. Based on 42 holes and surface mapping, MDN has outlined and modeled a continuous, conceptual mineralized zone. The intersections indicate that the zone is continuous and has good grade and volume potential. Thirty of the 42 holes, or 71%, intersected more than 2 g/t Au over a 2 m horizontal width (1.88 m true thickness). A preliminary assessment also allows optimal planning of future drilling aimed at outlining a gold resource on the 2-km section.
The volume of the model was quantified using two block methods: cross-section and longitudinal section. The conceptual scenarios indicate that, at a cut-off grade of 3 g/t Au, the mineralized zone would contain 1.9 to 3.8 million tonnes grading between 6.07 and 8.92 g/t Au, equivalent to 550,000 to 757,000 ounces of gold.
“We are extremely pleased with the preliminary assessment on this gold property, which was discovered by MDN’s exploration team and points to a promising future for us in Tanzania,” stated Serge Bureau, President and Chief Executive Officer of MDN.
|≥ 1 g/t||8,536,160||1,085,262||3.95|
|≥ 2 g/t||6,882,516||1,008,295||4.56|
|≥ 3 g/t||3,882,350||757,869||6.07|
|≥ 5 g/t||1,920,418||550,733||8.92|
The mineralized zone is made up of intervals averaging 2 to 15 m horizontal width (1.88 m to 14.1 m true thickness) with grades of 1.21 to 24.5 g/t Au. Drilling has outlined a zone 2.0-km long, extending to a vertical depth of 325 m. The geological model developed by MDN shows a zone striking 110°and dipping southward at a constant 70°.
It should be noted that volume and grade are hypothetical and estimates are conceptual. Furthermore, the exploration done to date is insufficient to delineate mineral resources, and it is uncertain whether more detailed exploration would establish the presence of resources.
Based on the consistency of intersections in the mineralized zone and the results obtained one kilometre farther west, MDN believes that the gold mineralization extends laterally and at depth outside the assessment area, in the direction of the strike and dip.
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.
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 757 km2 in the vicinity of the Tulawaka mine. MDN also has 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 atwww.niobaymetals.com.
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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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
Nicole Blanchard, Investor Relations