MDN Inc.
TSX : MDN

MDN Inc.

September 28, 2011 07:45 ET

MDN Reports High Gold Grades on Nikonga

Sampling results of up to 33 g/t gold

MONTREAL, QUEBEC--(Marketwire - Sept. 28, 2011) -

Editors Note: There is a map associated with this press release.

MDN Inc. ("MDN") (TSX:MDN) is pleased to report early results for its exploration program at its wholly-owned Nikonga project in Tanzania. MDN geologists carried out initial sampling during a mapping program. The results are very encouraging, with the eastern sector returning grades ranging from 4 g/t gold to a maximum value of 33 g/t gold.

In all, 29 rock grab samples were collected in the vicinity of two artisanal mining sites.

The first site sampled was the main structure, Kezeria, which strikes at 290° and where the highest value of 33 g/t gold was obtained. The second site is a subparallel structure striking at 306°, about 500 m to the north of Kezeria. This site returned a maximum grade of 23.7 g/t gold.

Kezeria site

UTM
(E)
UTM
(N)
Elevation (m) Sample # Description Au g/t
369641 9621301 1235 109407 Rusty white quartz with disseminated pyrite 4.32
369680 9621295 1231 109408 Grey quartz with black chlorite and/or tourmaline veinlets (1cm) 4.8
369682 9621300 1233 109409 Sheared granite 0.21
369695 9621296 1236 109410 Saprolite of sheared mafic rock 1.21
369731 9621274 1232 109411 Grey quartz with black chlorite and /or tourmaline veinlets (1.5 cm) 33.05
369786 9621278 1235 109413 Grey quartz with pink alteration (granite nearby?) 0.54
369827 9621275 1233 109414 Grey quartz with disseminated pyrite 0.045

Site to the north of Kezeria

UTM
(E)
UTM
(N)
Elevation (m) Sample # Description Au g/t
369528 9621749 1231 109415 Grey quartz with pink alteration (granite nearby?) 6.48
369527 9621754 1231 109416 Rusty grey quartz with pyrite 2.78
369510 9621767 1228 109417 Light grey, sugary rusty quartz and pyrite 1.51
369513 9621765 1229 109418 Very rusty light grey quartz and pyrite 0.45
369514 9621760 1236 109419 Rusty light grey quartz 7.18
369513 9621762 1239 109420 Saprolite 23.7
369511 9621763 1238 109421 Grey quartz 0.50
369420 9621823 1236 109422 Saprolite 6.97

The gold grades from the artisanal mine sites coincide with two sub parallel trends of soil geochemistry anomalies with gold values from 50 to 580 ppb. These two trends are 500 metres apart and strike northwest in the same direction as the regional northwest lineament that connects the Nikonga property to the Tulawaka mine, 40 km to the northwest. The lineament can be seen on topographic maps and regional satellite images.

Mapping revealed that the outcropping rocks generally lie above an elevation of 1,230 m where they have been exposed by soil erosion. The bedrock can also be seen in the pits dug by the artisanal miners. The lithologies are clay, sandstone, gravelly sandstone and arkosic sediments to the north, in contact with volcanics or granite to the south. These sedimentary and volcanic rock units have been injected by the gold-bearing quartz veins. The veins are generally grey to black quartz. Gold mineralization has been confirmed in the Kezeria sector and 500 metres to the north in sub parallel structures.

"The high grades of over 20 g/t gold and the geological environment allow us to draw a parallel with the situation at the time of the Ikungu project acquisition by MDN in 2008. Nikonga is a property where artisanal mining has taken place and where lateral extensions characterized by gold soil anomalies similar to those at Ikungu are found. Moreover, we are located on a NW structural lineament connected to the Tulawaka Mine" said Marc Boisvert, MDN's Vice President of Exploration.

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 20% 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 acts as a qualified person in accordance with National Instrument 43-101.

About MDN

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.mdn-mines.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.

To view the map associated with this press release, please visit the following link: http://www.marketwire.com/library/20110927-MDN_Map_800.jpg

Contact Information

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

    Marc Boisvert, Ing.
    Vice President, Exploration
    MDN Inc.
    514 866-6500, Ext. 227

    Nicole Blanchard, Investor Relations
    Sun International Communications
    450-973-6600
    nicole.blanchard@isuncomm.com

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