February 25, 2013 10:19 ET
Ikungu Project: MDN Signs an Option Agreement With Metalinvest
MONTREAL, QUEBEC–(Marketwire – Feb. 25, 2013) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to announce the signature of an agreement with Metalinvest Capital Corporation (“Metalinvest”), pursuant to which MDN is grantong an option tp Metalinvest to acquire a 55% undivided interest in its interest in the prospecting licences of the Ikungu property to Metalinvest. The Ikungu property covers 17.9 km2 and lies 17 km southwest of Musoma and 135 km northeast of Mwanza, Tanzania’s second largest city.
To acquire such 55% undivided interest in MDN’s interest in the Ikungu property, Metalinvest must incur $14 million in exploration expenditures over a four-year period, including at least $3 million by December 31, 2013. Metalinvest may accelerate exploration spending at its discretion. MDN will manage the exploration work.
A 2013 work program will be proposed to the management committee in March. Following the meeting, Metalinvest will have five days to deposit the funds required to cover the expenditures for the first half of 2013 in order to maintain its option.
This investment will enable MDN to set up drilling programs with two objectives, the first being to increase the contained of gold ounces by drilling the extensions and the second to delineate a resource.
The work done to date shows that the Ikungu gold mineralization occurs at the contact of two geological domains, with a series of pillow basalts with intercalated sediments to the north and a series of pillow basalts and gabbroic sills to the south. The gold mineralization is particularly associated with a grey-blue quartz vein network contained in a highly-silicified, sulphide-rich replacement zone.
This stratigraphic setting is similar to the geology of the Bulyanhulu mine in Tanzania. Among other things, the Bulyanhulu mine is characterized by its narrow structure, with an average width of 2 to 4 metres and vertical continuity to a depth of more than 2 km.
It should be recalled that a total of 53 holes have been drilled to date along the four kilometre-long Ikungu structure. These holes have identified a two kilometre-long by 300-metre deep mineralized zone. Drilling has delineated four higher-grade zones with a minimum horizontal thickness of two metres. These zones are formed around the gold intersections in the following holes: IKD-45 (8.6 g/t Au over 14.78 m) drilled on Section 2230mE, IKD-48 (3.11 g/t Au over 9.50 m) drilled on Section 2830mE, IKD-51 (3.39 g/t Au over 7.05 m) drilled on Section 3190mE and IKD-36 (13.22 g/t Au over 4.62m) drilled on Section 3610mE.
Metalinvest Capital Corporation is a private company that finances exploration and development by companies focused on gold, copper, iron, cobalt and coal in Africa. Metalinvest is currently working to develop exploration programs for its flagship exploration projects in Tanzania and Zambia. Metalinvest is also looking to grow its asset portfolio through the acquisition of strategic metals properties associated with African prospects led by a management team with strong mining industry experience.
MDN Inc. (TSX:MDN) is a mining exploration and development company with properties in Quebec and Tanzania. In Tanzania, MDN has a 30% working interest in the Tulawaka gold mine, as well as several gold exploration projects. In Quebec, MDN holds a 72.5% interest in Crevier Minerals Inc., which owns an NI 43-101 niobium-tantalum resource that is presently undergoing a feasibility study.
Marc Boisvert, President and Chief Executive Officer of MDN, is a qualified person as defined in National Instrument 43-101. He has reviewed the scientific and technical information in this news release.
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, including, but not limited to, investment by Metalinvest of the amounts required in exploration expenditures to acquire an interest in the Ikungu property, including the $3,000,000 planned for 2013. 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.
Follow us on Twitter: http://twitter.com/MDN_INC