MDN Inc.
TSX : MDN

MDN Inc.

November 05, 2009 16:56 ET

MDN Inc./Isambara Project Update: Drill Hole Intersects an Alteration Zone 153 Metres in Thickness Grading 0.31 g/t Gold

MONTREAL, QUEBEC--(Marketwire - Nov. 5, 2009) -

- The drillings indicate the possibility of a large gold mineralization zone

- The best results indicate grades of up to 7.66 g/t over 1 m

- A second drilling phase is planned over the next few months

MDN Inc. ("MDN") (TSX:MDN) announces that a second drilling program will be initiated over the next few months on the Isambara project (Tanzania) to investigate north-western extensions of the South Zone, particularly towards the Central Zone, in relation with the technical information obtained during the first program, which was completed in October.

The South Zone of the Isambara project hosts a large alteration system of epidote-chlorite-sericite and reddish alkaline-hematite which acts as a north-west trending envelope 150 to 200 metres thickness. The results demonstrate similarities with so-called peripheral and marginal alteration haloes, which are generally associated with large gold mineralizations.

The first drilling program, which included 13 holes over 2,837 metres, tested part of the South Zone and delineated an alteration envelope 500 metres long and 200 metres wide over a depth of up to 200 metres. Inside, decametre-scale zones 10 to 20 metre thick yielded results varying between 0.4 and 1.4 g/t gold, and in some instances in excess of 4 g/t gold and up to 7.66 g/t gold over 1 metre. Holes ISDD32 and ISDD33 intersected the whole alteration envelope, making section 1015NW the most representative geological section (see the results table for more details).

"Our understanding of the geology is that we have drilled into a gold halo associated to a granodiorite, which may result in a significant gold mineralization commonly called gold porphyry. This type of deposit is generally known for its low-grade mineralization compensated by an impressive volume with peripheral quartz veins containing high grades of gold" said Marc Boisvert, P.Eng. and Vice President, Exploration of MDN.

The best grades are associated with quartz veins measuring a centimetre-to meter-wide erratically dispersed with pyrite sulphide and chalcopyrite traces. This mostly explains the high gold grades associated with short widths which have been obtained in the previous drilling programs, namely: 20.1 g/t gold over 1 m; 17.4 g/t gold over 1 m; 14.9 g/t gold over 1 m; 11.3 g/t gold over 1 m; 9.13 g/t gold over 1 m; 108.0 g/t gold over 0.9 m; etc.

"Understanding the geometry of the deposit enables us to progress systematically in the identification of an economically feasible gold mineralization and justifies the second drilling phase" adds Marc Boisvert. The geometric model of the South Z, oriented north-west with a south-west dip, has been confirmed by the recently completed exploration program.

Located 28 km north of the Tulawaka gold mine, the Isambara project is wholly owned by MDN and covers an area of 40 km2.

The samples were analysed by fire assay at the SGS Laboratory of Mwanza, Tanzania, which is certified according to international standards. A rigorous quality analysis verification program implemented by MDN included 20% control samples. The technical and scientific information contained in this press release have been reviewed by Marc Boisvert, P.Eng. and Vice President, Exploration, who acts as a qualified person in accordance with National Instrument 43-101.

MDN is a mining exploration and development company with adequate financial resources to develop its very promising projects in Quebec and Tanzania. It remains active in the search for new business opportunities with a view to increasing shareholders' equity. In addition to its 30% interest in the Tulawaka project, MDN holds a majority interest in exploration licenses totalling 621 square kilometres around the Tulawaka gold mine in Tanzania, and holds a 28.75% interest in a niobium and tantalum resource, in accordance with the provisions of NI 43-101, located in the Lac St-Jean area, Quebec.

Forward-looking statements

All statements in this release, other than statements of historical facts, 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 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.

A table is available at the following address: http://media3.marketwire.com/docs/tfff.pdf

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