MDN Inc.
TSX : MDN

MDN Inc.

October 03, 2007 09:59 ET

MDN: Discovery of a New Mineralized Zone on Isambara

Similarities with the Ferderber-Belmoral gold deposit

MONTREAL, QUEBEC--(Marketwire - Oct. 3, 2007) - MDN Inc. ('MDN') (TSX:MDN) is pleased to announce the latest results of the second phase of drilling on Isambara in the area surrounding the Tulawaka Gold Mine.

With a total of 3,974 meters of reversed circulation (RC) drilling and 2,012 meters of diamond drilling, this second phase of exploration on Isambara in 2007 has allowed to specify the gold mineralization context of the East Target and to discover a new mineralized zone (see Grid A) located at 2 km north of the East and West Targets. The position of the mineralized zones within the ground anomaly of 5 km by 2 km is presented on the attached figure.

Diamond drilling specified the geological context and highlighted similarities with the gold deposits of the Bourlamaque batholith located in the mining camp of Val d'Or (Abitibi) and in particular with the Ferderber gold deposit (Belmoral Gold Mine) which produced more than 355,000 ounces of gold with an average grade of 6.46 g/t in the years 1980. Just like the old Belmoral mine, the mineralization of the East Target and of Grid A is contained in shear zones through the intrusive granodiorite. Mineralization in the Western Target is rather hosted by volcanics at contact with the batholith as it is the case for various other gold deposits also exploited on the edges of the batholith of Bourlamaque.

The results of the second phase of drilling are very similar to the results of the preceding phases and show that the shear zones seem outlined by an alternation of high grade gold lenses and zones with low gold content. The shear zones are characterized by multiple quartz injections, strong alterations and two generations of sulphides dominated by pyrite.

On the East Target, where the exploration effort has been concentrated, the new results indicate 17.40 g/t of gold over 1m (drill hole ISRC-143) or 9.13 g/t of gold over 1m (drill hole ISRC-145) and 2.40 g/t of gold over 4m (drill hole ISDD-03). In total, 8 diamond drill holes and 7 RC drill holes have produced 26 gold intersections with gold grades higher than 1 g/t and a thickness varying between 0.5 and 4 meters (see table attached).

In addition, RC drilling adding up 600 meters was carried out in the sector of Grid A located at approximately 2 km to the north of the East Target. Drill hole ISRC-130 returned 1.66 g/t gold over 1m to a depth of 2m whereas 60 meters south, drill hole ISRC-133 returned 7 gold intersections with grades greater than 1 g/t of gold, in particular: 5.54 g/t gold over 2m at a depth of 64m; and 2.84 g/t of gold over 5m at a depth of 119m.

Location of drill targets within the soil anomaly (A map is available at the following adress: http://www.ccnmatthews.com/docs/mdn_map1003.doc)



Composites greater than 1 g/t Au
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Drill hole From (m) To Length Grade Target
(m) (m) (g/t Au)
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ISRC-130 2 3 1 1.66 Quartz vein - Grid A
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ISRC-133 52 57 5 1.75 Grid A
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and 64 66 2 5.54 Grid A
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and 80 81 1 1.07 Grid A
--------------- -----------------------------------------------------------
and 96 97 1 1.10 Grid A
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and 113 114 1 1.50 Grid A
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and 119 124 5 2.84 Grid A
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ISRC-141 23 24 1 1.57 East Target
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and 28 29 1 1.27 East Target
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and 53 54 1 2.28 East Target
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ISRC-142 10 11 1 1.33 East Target
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and 14 15 1 1.71 East Target
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and 24 25 1 3.50 East Target
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ISRC-143 78 79 1 3.62 East Target
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and 86 87 1 17.40 East Target
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ISRC-144 15 16 1 1.24 East Target
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and 87 88 1 1.03 East Target
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and 98 99 1 1.15 East Target
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ISRC-145 139 140 1 9.13 East Target
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ISRC-147 40 41 1 7.06 East Target
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ISDD-03 46 50 4 2.40 East Target
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ISDD-03 60 61 1 1.45 East Target
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ISDD-05 97 98 1 1.16 East Target
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ISDD-07 175.05 176.1 1.05 4.29 East Target
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ISDD-07 191 192 1 1.04 East Target
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ISDD-08 82 82.5 0.5 2.45 East Target
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ISDD-10 13.55 15 1.45 1.30 East Target
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ISDD-10 131.6 132.8 1.2 1.25 East Target
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ISDD-12 1 2 1 1.12 East Target
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ISDD-12 3 4 1 1.65 East Target
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ISDD-12 26 27 1 1.02 East Target
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ISDD-12 129 130 1 1.52 East Target
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ISDD-12 177 178 1 1.50 East Target
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Drilling of phases 1 and 2 confirmed the presence of gold mineralization within distant zones of the ground anomaly and at more important depths than those previously tested by RC drill holes. The results of phase 1 and the first results of phase 2 were previously released in May and August.

A third phase of drilling will start early October to confirm the presence of gold mineralization within the unexplored zones of the anomaly, in addition of establishing with precision geological controls of the richest and most consistent sectors.

All samples were analyzed by fire assay at the SGS laboratories in Tanzania, certified under international standards. A rigorous program of analytical grade verification implemented by MDN included 12% control samples. Technical information in this release was reviewed by geologist Dominique Fournier, Ph.D., who acted as a qualified person in accordance with NI 43-101.

The Isambara licence is part of the Simba project, a partnership between MDN (70%) which is the operator, Lakota Resources (15%) of Toronto, and Jope Business Associates (15%) of Dares-Salaam. Isambara covers a territory of 40 km and is located 28 km north of the Tulawaka Gold Mine.

MDN Inc. is a Montreal-based Canadian exploration company that holds a 30% participation in the Tulawaka Gold Mine (Tanzania). Its main exploration activities are carried out in Quebec through gold and base metal interests and in Tanzania through a majority interest in 20 adjacent mineral licenses.

Contact Information

  • MDN
    Paul-A. Girard
    President & CEO
    1-514-866-6500
    or
    MDN
    Dominique Fournier, Ph.D.
    Vice-President, Exploration
    1-514-866-6500
    or
    MDN
    Richard Corbo
    Corporate Development
    1-514-866-6500
    www.mdn-mines.com
    or
    Investors and Media relations
    Evolution Group
    Sylvain Archambault
    President & CEO
    1-514-448-4887/Toll free :+1-866-703-4887
    s.archambault@evolutiongrp.com / www.evolutiongrp.com