Aug. 5, 2010 (TheNewswire.ca) --
Vancouver, BC - Medallion Resources Ltd. (TSXV:MDL) (the "Company" - TSX.V: MDL) announces that the TSX Venture Exchange (the "Exchange") has approved the Company's Eden REE Project acquisition agreement with Rare Element Resources Ltd (TSXV:RES) (the "Agreement"). The Exchange has also accepted for filing the Eden REE Project NI43-101-compliant Technical Report (the "Report"), which is posted on SEDAR and the Company's website.
The Agreement provides Medallion with the option to acquire up to an undivided 65% interest in the Eden Lake rare-earth property, located in Manitoba, Canada, as detailed in the Company's December 1, 2009 news release.
The Report, entitled The Eden Lake Rare Metal (REE, Y, U, Th, Phosphate) Carbonatite Complex, Manitoba, is authored by A H Mumin, PhD, PGeo, PEng. Dr Hamid Mumin, who serves Medallion as an arm's-length consultant, is a recognized expert on the Eden rare-earth-element (REE) occurrences and is a Qualified Person as the term is defined by NI43-101. Since his discovery of the Eden Lake REE-hosting carbonatite in 2002, he has written and published several geological studies on the Eden Lake area. Dr Mumin teaches economic geology, mineralogy and geochemistry at Brandon University in Manitoba, where he is a Professor and Director of the Laboratory for Applied Research in Resource Geology.
Dr Bill Bird, president of Medallion, states, "The potential of the Eden REE Project is an exceptional opportunity for Medallion. We are doubly fortunate to have Hamid Mumin as our Eden Project leader. Dr Mumin's report is an extremely thorough examination of all previous significant data, much of which he, himself, collected. It also is a well-thought-out plan for further exploration of the REE potential. The potential for this exceptional REE occurrence is clearly emphasized in Dr Mumin's references to similarities with other REE deposits, descriptions of the multiple styles of REE-mineralization found within the property, assay values and the overall size of the mineralized area. We share Dr Mumin's enthusiasm for the Eden REE Project."
In the Report, Dr Mumin states the following:
From section 10, Deposit Types -
The target deposit type at Eden Lake is a rare metal enriched carbonatite complex. Eden Lake is the site of the first recognized carbonatite in Manitoba. These rare and unusual igneous complexes originate in the upper mantle due to an extremely low degree of fractional melting, and subsequent fractional crystallization. Sometimes, as is the case with Eden Lake, Manitoba, Murun, Russia, and Mountain Pass, California, they are associated with alkaline syenite complexes. As a result, they contain a wide variety of
unusual economic minerals and metals, which varies significantly between carbonatite complexes worldwide. They are the principal source of apatites for phosphate (e.g. Khibiny, Russia; Kapuskasing, Ontario), niobium (Araxa, Brazil) and rare-earth metals (OOTC:RAREF) (TSXV:RA) (Bayan Obo, China; Mountain Pass, California).
From section 11, Mineralization -
Most of the carbonatite complex as presently delineated over the gridded and mapped region is enriched in rare-earth elements, phosphate, Y, Th, U, Sr, Ba and F. The enrichments vary according to rock type and/or degree of hydrothermal alteration. Hydrothermally altered material that is variably enriched in REEs includes quartz syenite, syenite, monzonite/melasyenite, mafic and ultramafic rocks, quartz-feldspar pegmatite and carbonatite dikes. Altered (carbonatized and fenitized) host rocks contain up to 7,700 ppm
REE's. Andradite-rich portions of quartz-feldspar pegmatite dikes contain up to 1,150 ppm total REEs as allanite-britholite intergrowths and Sr-REE-apatite, all occurring as tiny inclusions in or associated with andradite garnet. Ubiquitous hydrothermal fenite veins with pyroxene (aegerine-augite), pyroxene-pink alkali feldspar and pyroxene-amphibole-feldspar are also consistently enriched in REEs (values up to 2,550 ppm). Extreme REE enrichments were found in 3 rock types: 1) Apatite-rich bands in carbonatite dikes and veins, 2) Apatite-pyroxene veins, and 3) britholite-allanite bearing REE veins. The highest grades encountered are from britholite-allanite veins that range up to 50 cm in width and have undetermined lengths that can exceed 50 meters (Figure 14). Total rare-metal contents from samples taken from these veins ranged up to 148,742 ppm (sample #18053*), including HREE (Eu to Lu) contents up to 6851 ppm (sample # 15819 *).
From section 21, Interpretation and Conclusions -
The Eden Lake project is a property of significant merit that warrants detailed and comprehensive exploration. The Eden Lake carbonatite complex is a particularly interesting and robust igneous-hydrothermal system. It is comprised of alkaline (syenite) host rocks with widespread fenite-type hydrothermal alteration, and wide-spread REE, Y, phosphate, Th and U enrichments in several distinct, but related styles of mineralization. Where exposed at surface, the Eden Lake core complex comprises a shatter carapace of systematically superimposed igneous and hydrothermal stockworks, that as a whole constitute an igneous-hydrothermal mega-breccia complex of greater than 8 km2 in area.
The following are rare-earth oxide conversion values for samples reported above in elemental ppm (parts per million) by Dr Mumin (based on assays listed in the Report):
Sample # Total rare-earth oxides plus yttrium Neodymium oxide Heavy rare-earth oxides 18053 16.7% 4.3% 1.4% 15819 16.6% 3.3% 1.2%
Medallion Resources Ltd (TSX-V: MDL) explores for rare-earth elements (REE's), which are key components required by many new energy-saving technologies including wind turbines, electric and hybrid vehicles, super magnets and virtually all modern electronics. Medallion is well positioned to take part in potential breakthroughs in the exploration for these rare metals. Medallion has concluded an agreement with Rare Element Resources to option a 65% interest in a joint venture to explore the Eden Lake REE property in western Manitoba. The Eden Lake property is a recent discovery and one of North America's most promising REE prospects. Distribution studies indicate that the property has a potential for high neodymium values and significant heavy REE by-products. Medallion also has an agreement to option six southern Labrador mineral licences that cover 4225 hectares of the Red Wine peralkaline intrusion. The peralkaline rocks of the Red Wine intrusion are noted for REE occurrences and high concentrations of the mineral eudialyte, which often contains the heavy REE's. The agreement to option the Red Wine licences remains subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo,
President & CEO
For Further Information: check Medallion's web site www.medallionresources.com or contact
William H Bird (888) 827-6611 williambird@medallionresources.com
Erica C Bearss (604) 681-9558 ebearss@medallionresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future exploration and financing plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential acquisitions. Also, in order to proceed with the Company's exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate the Company's plans.
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