Nov 30 2010
MDN Inc. (TSX:MDN) has announced that it has the option to acquire the 50.71 km2 Nikonga property, located 40 km southeast of the Tulawaka mine, in Tanzania.
After entering into an agreement with Mbogo Resources Mining for the PL 4727 prospecting licence, MDN succeeded in negotiating agreements for the three artisanal primary mining licences (PML) on the property. Together, these agreements grant MDN an option to acquire a 100% interest in all the permits in exchange for a schedule of payments totalling $615,000 over five years.
"This agreement is similar to the exploration opportunity MDN obtained when it acquired the Ikungu project in 2008. Nikonga is a property which has been mined by small-scale miners, and which has lateral extensions characterized by gold enrichment of the soil, like at Ikungu," said Marc Boisvert, Ing., MDN's Vice President of Exploration.
Regional data indicate a west-northwest striking lineament that connects the Nikonga property to the Tulawaka mine. The property hosts two soil anomalies lying one kilometre apart and parallel to the regional lineament. Multiple gold values varying from 50 to 580 ppb Au have been detected. These gold anomalies coincide with and represent the extensions of sites where artisanal mining has taken place in strongly silicified, gold-rich volcanic rock.
The 2011 exploration program includes drilling to test the artisanal mining sites and the gold-enriched soil anomalies in the lateral extensions.
Source: MDN Inc.