MDN Inc.
TSX : MDN

MDN Inc.

August 23, 2012 08:00 ET

MDN Confirms Discovery on Nikonga

- 9.9 g/t Au on 4.2 metres

- 1.7 g/t Au on 12.3 metres including 17.3 g/t Au on 1.1 metre

MONTRÉAL, QUÉBEC--(Marketwire - Aug. 23, 2012) - MDN Inc. (TSX:MDN) announces the results of its second drilling campaign completed at the beginning of August 2012 on the Nikonga gold project in Tanzania. MDN owns 100% of this property located 40 km to the southeast of the Tulawaka gold mine. The drilling results from holes NKD-05 (9.88 g/t Au / 4.2 m) and NKD-04 (1.73 g/t Au / 12.35 m including 17.35 g/t Au / 1 m) confirm MDN's drilling discovery of NKD-02 with 12.3 g/t Au / 4.2 m and 10.9 g/t Au / 4.9 m (press release dated March 27, 2012) on the Kezeria Main zone. In addition, drilling hole IKD-07 (1.39 g/t Au /2.6m and 2.6 g/t Au / 3.0m) adjacent to NKRC-14 (14.5 g/t Au on 2.00 m and 9.34 g/t Au on 1.0 m) confirms the Kezeria North structure located 500 meters further north of Kezeria Main.

Marc Boisvert, Vice President Exploration at MDN, stated "We are very satisfied with the drilling results obtained as of today on this property, which until our involvement in 2011 had not been the object of any drilling programs. Additional exploration works could indicate that the Kezeria Main and Kezeria North zones may be part of the same corridor of deformation measuring 900 to 1000 m in width, which makes it an important structure able to contain several gold bearing shear zones adjacent of one another. We believe that this property offers good potential justifying the pursuit of further exploration works."

The interpretation of the results of the exploration works done so far indicates a deformation corridor with several shear zones containing gold. The Kezeria Main zone characterizes itself with a high grade of gold, comparable to that of Tulawaka located 40 km to the northwest. Currently, the results of the magnetic survey show that this potential gold corridor would be more than 5 km on the property. (See drills location and magnetic survey maps by clicking on this PDF link).

http://www.mdn-mines.com/pdf/cartes/Nikonga_Resultats_de_forages_et_interpretation_EN_aout2012.pdf

Future Works

Future works will concentrate on geophysical surveys; interpretation and mapping in order to better understand the geological structures of the property and to target future drilling programs.

Results for Kezeria Main

Drilling East North From To Grade Interval*
# (m) (m) [m] [m] [g/t Au] (m)
NKRC-01 369823 9621322 55.0 65.0 1.86 10.0
NKD-04 369845 9621358 105.1 118.3 1.73 12.4
including 111.3 112.4 17.35 1.1
NKD-02 369 751 9 621 340 92.3 96.5 12.27 4.2
including 92.3 93.0 11.20 0.7
93.0 93.9 39.05 0.9
93.9 94.5 1.15 0.6
94.5 95.0 0.80 0.5
95.0 95.5 8.57 0.5
95.5 96.0 5.06 0.5
96.0 96.5 1.30 0.5
NKD-02 107.1 112.0 10.87 4.9
including 107.1 108.0 2.22 0.9
108.0 109.0 6.92 1.0
109.0 110.0 26.45 1.0
110.0 111.0 4.81 1.0
111.0 112.0 13.10 1.0
NKD-03 369750 9621380 144.9 145.6 0.65 0.7
151.8 152.8 0.88 1.0
NKD-05 369682 9621347 97.8 102.0 9.88 4.2
including 97.8 98.5 7.69 0.7
98.5 99.0 19.15 0.5
99.0 99.5 14.25 0.5
99.5 100.0 0.15 0.5
100.0 100.5 0.05 0.5
100.5 101.0 36.05 0.5
101.0 101.5 0.04 0.5
101.5 102.0 2.52 0.5
NKD-12 369599 9621388 119.8 120.5 0.70 0.7
181.0 182.0 0.91 1.0
188.0 188.6 3.50 0.6
NKD-06 369499 9621374 117.1 118.1 1.89 1.0
NKD-11 368600 9621560 108.3 108.9 1.63 0.6

Results for Kezeria North

Drilling East North From (m) To Grade Interval*
# (m) (m) [m] [m] [g/t Au] (m)
NKD-07 107.5 110.7 1.39 2.6
117.1 120.1 2.60 3.0
NKRC-14 369 000 9 621 799 53.0 59.0 5.51 6.0
Including 53.0 55.0 14.50 2.0
55.0 59.0 1.16 4.0
63.0 64.0 9.34 1.0
NKRC-05 369 200 9 622 153 39.0 44.0 3.20 5.0
NKRC-06 369200 9 622 093 42.0 43.0 5.60 1.0

* Note: Intervals are core length; true widths are not yet known.

The samples were analysed by fire assay at the SGS Laboratory of Mwanza, Tanzania, which is certified according to international standards. A stringent assay quality verification program implemented by MDN included 10% control samples. The technical and scientific information in this press release has been reviewed by Marc Boisvert, P.Eng. and MDN's Vice President, Exploration, who is a qualified person as defined by National Instrument 43-101.

About MDN

MDN Inc. (TSX:MDN) is a mining exploration and development company with properties in Quebec and Tanzania. In Tanzania, MDN has a 30% participating interest in the Tulawaka gold mine, which produced over 84,000 ounces of gold in 2011, as well as two promising gold projects, Ikungu and Nikonga. In Quebec, MDN owns a 72.5% interest in Crevier Minerals Inc., which owns an NI 43-101 niobium-tantalum resource that is presently at the feasibility study stage.

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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

Contact Information

  • Serge Bureau, Ing.
    President and Chief Executive Officer
    MDN Inc.
    514 866-6500, Ext 221

    Robert LaValliere
    Vice-President, Corporate Development
    MDN Inc.
    514 866-6500, Ext 222
    rlavalliere@mdn-mines.com

    Vincent Janelle
    Investor Relations
    MDN Inc.
    514 866-6500, Ext 228
    vjanelle@mdn-mines.com