June 14, 2010 09:01 ET
MDN Reports an Update of the Crevier Project Resource
Higher niobium and tantalum grades; 50% of the original indicated resource now categorized as measured
MONTREAL, QUEBEC–(Marketwire – June 14, 2010) – MDN Inc. (TSX:MDN) (“MDN”) is pleased to announce an update of the Crevier project resource and a new NI 43-101 technical report by SGS Geostat, an independent firm. The Crevier property is owned at 100% by Crevier Minerals Inc, a private company jointly held by MDN (67.5%) and IAMGOLD Corporation (“IAMGOLD”) (32.5%) and hosts a large niobium and tantalum deposit. The resource update follows a 6,480-metre drilling program conducted on the property in the second half of 2009. Drilling was carried out in conjunction with the preparation of a Preliminary Economic Study tabled in early January, but was not included in the study economic parameters. The highlights of the new resource estimate include a 5.38% increase in niobium grade and a 17.6% increase in tantalum grade. Despite a 1.48% drop in measured and indicated tonnage, the new indicated and measured resource contains 3.8% more niobium oxide and 15.8% more tantalum oxide. In addition, 50% of the original indicated mineral resource is now classified as measured.
The following table shows the updated resource in comparison to the April 2009 resource estimate:
|New 2010 Mineral Resource (43-101)||2009 Mineral Resource (43-101)|
|Mineral resource within the geological deposit, 0.1% Nb2O5 cutoff grade
Niobium: High grades cut to 0.5% Nb2O5
Tantalum: High grades cut to 550 ppm Ta2O5
In 2009, based on the available data, a down grade correction was applied on the niobium and tantalum SOQUEM grade values. In 2010, the new drilling confirmed that we need to keep this grade correction for niobium but results show that the tantalum correction was not necessary and it has been removed.
The goals of the 2009 drilling program were to:
- Better define the estimate of the niobium and tantalum grades of the Crevier deposit with definition drilling at 50 meters spacing sections;
- Convert a portion of the indicated resource to a measured resource, thus improving the reliability of the economic parameters used for the feasibility study currently underway;
- Explore the possible extensions of the deposit;
- Test and validate the anomalies located in the northern part of the Crevier property.
The program met its goals in that it outlined a resource with higher quantities of niobium and tantalum, and converted a portion of the indicated resource to a measured resource. This new NI 43-101 resource will be used as a basis for the feasibility study.
Four holes drilled on two sections spaced 100 metres apart showed that the deposit extends another 200 metres and more to the south. Additional drilling will commence in early July 2010 to continue delineating the deposit to the south.
Exploration to the North
Two holes drilled north of Lac à la Truite confirmed the occurrence of niobium and tantalum in this area, which lies more than three kilometres north of the main deposit. These holes confirm the Crevier property’s strong potential.
The inferred resource, located primarily to the north and under the measured and indicated resources, represents a total resource of 15.42 million tonnes grading 0.17% Nb2O5 and 252 ppm Ta2O5. The new estimate shows a significant 23.5% increase in the Ta2O5 grade for this category.
Feasibility Study Underway
The feasibility study initiated in early 2010 is proceeding in accordance with the Crevier property development plan.
The metallurgical testing program on ore flotation is being conducted by SGS Lakefield, and will be followed by a pilot plant program in the coming months, as well as the development of the lixiviation processing parameters which will be used for the final production of niobium and tantalum oxides.
The environmental baseline study, a geotechnical program for optimization of the open pit and work on the siting of the tailings pond are underway, and are being carried out by Golder Associates.
All these programs will be completed in the coming months, and will provide data for the feasibility study, scheduled for completion in the first half of 2011.
The data on the new 43-101 resource estimate was prepared by SGS Geostat and will be available on SEDAR and MDN websites within 45 days of the issuance of this press release. The technical and scientific information contained in this press release has been reviewed by Serge Bureau, P.Eng. MDN’s President, who acts as a qualified person in accordance with National Instrument 43-101. Claude Duplessis, SGS-Geostat qualified person reviewed the press release before publication.
MDN Inc.(TSX:MDN) is a mining exploration and development company with adequate financial resources to develop its exploration projects in Quebec and Tanzania. MDN also remains 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 Québec. 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.
All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Although the Company believes 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 such forward-looking statements included 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
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