October 12, 2010 08:45 ET
MDN and SOQUEM Start Drilling on the MCGold Project in Chibougamau, Quebec
MONTREAL, QUEBEC–(Marketwire – Oct. 12, 2010) – MDN Inc. (“MDN”) (TSX:MDN), in partnership with SOQUEM Inc., is pleased to announce that a diamond drilling program is underway at the MCGold project.
The drilling began on October 8, 2010 and consists of ten holes 125 to 400 metres long for a total of 2,600 linear metres. The holes will be drilled along four sections, two in the central part and two in the western part of the deposit.
“We have two goals for the initial program. The first is to confirm grade continuity and possibly increase grades, as the lack of sampling in historical drilling in the centre of the deposit may have led to an underestimation of the average grade. Our second goal is to increase the tonnage in the western part of the deposit,” stated Marc Boisvert, MDN’s Vice President, Exploration.
The property lies about five kilometres from the town of Chibougamau in northwestern Quebec. It consists of 56 claims covering a total surface area of about 878 hectares. MDN’s strategy of acquiring an interest of up to 50% in this property in June 2010 was based on the existence of a resource with Au-Cu porphyry-type deposit potential. This means that this project should be developed on the basis of a high-tonnage, low-grade deposit model.
The MCGold mineralization is associated with a large envelope of disseminated pyrite 200 m wide by 800 m long. The gold mineralization is hosted by a quartz-feldspar porphyry intrusive, and also occurs in the rocks immediately adjacent to the intrusive. The deposit remains open at depth and along strike.
Prior to SOQUEM’s involvement, only 48% of drill core had been sampled (13,537 m of the 27,924 m drilled), specifically those intervals with a high visible sulphide content as this earlier work was primarily aimed at testing for high-grade veins. In 2000, SOQUEM located the core from six earlier holes that had intersected the mineralized zone, and was thus able to sample all the mineralization, including the intervals with low sulphide content. Three of the six holes returned higher average grades than before.
Conditions of the Agreement
The agreement signed in June 2010 grants MDN the option to acquire a 50% interest in the project in consideration of a schedule of payments and exploration expenses totalling up to $5.25 million over five years. Investments for the first year (2010) total $350,000.
Marc Boisvert, geological engineer, Vice President, Exploration, and a qualified person under National Instrument 43-101 has reviewed the technical and scientific information in this news release.
SOQUEM INC. is a wholly owned subsidiary of the Société générale de financement du Québec (“SGF”). The mission of the SGF, an industrial and financial holding company, is to undertake economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and the economic development policies of the Quebec Government.
MDN Inc.(TSX:MDN) is a mining exploration and development company with exploration and development projects in Québec 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 in turn 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 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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