September 06, 2011 08:24 ET
Ongoing Investment in Exploration Increases MDN’s Interest in the Ikungu Project to 70%
IKD-57 intersects 1.31 g/t Au over 18.05 m
MONTREAL, QUEBEC–(Marketwire – Sept. 6, 2011) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to report that it has acquired a 70% interest in the Ikungu project. In accordance with the agreement dated March 10, 2008, between MDN and Lakota Resources Inc. (“Lakota”) for the Ikungu project in Tanzania, MDN has achieved the level of expenses required to earn its 70% interest, and has notified its partner, Lakota, of the creation of a 70/30 joint venture partnership. The management committee will meet in September to approve the planned work program and budget. Each company must contribute to expenses in accordance with its interest or agree to be diluted in proportion to the investment.
Drill results for four holes of its follow-up program are shown below. Earlier this year, drilling indicated that the Ikungu structure has now been traced over more than 4 km. The second portion of the drilling program will be aimed at testing certain areas along the 4-km structure to identify lenses that warrant definition drilling. In all, 10 holes totalling 3,564 metres have been drilled since work resumed on June 14, 2010. Assay results are now available for four holes, and results for the six other holes are still pending. All the holes drilled intercepted the rock unit favourable to mineralization, a silica-altered metasediment containing sulphides.
|IKD-58, 60, 61 and 62
IKBH-92 and 93
|Drilling completed, assaying currently underway|
IKD-57 (1.31 g/t Au over 18.05 m) intersected the mineralization over a long interval similar to the thickness seen in Hole IKD-45 (8.6 g/t Au over 15.06 m). The mineralized zone was intercepted at a vertical depth 170 m lower than Hole IKD-45. These results show that the thickness of the mineralization in this area is considerable.
IKD-59 (4.2 g/t Au over 1.55 m) intersected the mineralized zone 150 m west of Hole IKD-33 (2.66 g/t Au over 5.7 m) and confirmed the potential of the western part of the Ikungu structure. These results warrant follow-up drilling on this part of the structure.
The drilling also revealed a very interesting geological setting that led to the discovery of a graphitic zone at the edge of the mineralization. A graphitic unit was intersected at the contact of the pillowed volcanics and the metasediments. This unique geological setting strengthens the parallel with the geology of the Bulyanhulu mine in Tanzania (reserves of over 10 million ounces of gold). Like the Ikungu project, the Bulyanhulu mine is associated with a graphite zone at the contact of pillowed volcanics. One of the characteristics of the Bulyanhulu mine is that it is a narrow structure averaging 2 to 4 metres wide, with vertical continuity to a depth of over 2 km.
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. 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.
Serge Bureau, Ing.
President and Chief Executive Officer
514 866-6500, Ext. 221
Marc Boisvert, Ing.
Vice President, Exploration
514 866-6500, Ext. 227
Nicole Blanchard, Investor Relations
Sun International Communications