Oct. 6, 2010 (TheNewswire.ca) --
Vancouver, BC - Medallion Resources (TSXV:MDL) Ltd (TSX-V : MDL - "Medallion" or the "Company") announces that rare-earth-element (REE) assays have been returned for the samples collected during the Company's reconnaissance sampling program at its Red Wine heavy REE project in Labrador. The sampling is part of the 2010 exploration program, which Medallion is conducting as part of its requirements for acquiring a 100% interest in the six mineral licenses that comprise the Red Wine Property (the "Property").
The field crew collected 35 grab samples during a one-week reconnaissance trip to the property. Nineteen of these samples contain the mineral eudialyte in estimates ranging from minor amounts to as much as 20%. Eudialyte, known to contain the heavy REE's, commonly occurs at Red Wine and has been historically reported as a significant constituent in three distinct Red Wine rock types (Curtis, L W, and K L Currie, 1981, Geology and petrology of the Red Wine alkaline complex, Central Labrador: Geological Survey of Canada, Bulletin 294, 61 pages). Medallion's field crew collected eudialyte-bearing samples from each of these three rock types.
"We have confirmed that Medallion's Red Wine Property holds significant promise as a REE prospect," reports Dr. Bill Bird, President of Medallion. "Significant quantities of eudialyte and a higher-grade REE mineralization were discovered. We also observed that these Red Wine rocks contain two or more distinct styles of REE mineralization. Mineralogical studies to sort out these different styles of REE occurrences are underway at Dr. Tony Mariano's lab. Because mineralogical observations do not match assay results for certain samples and elements, the samples have been resubmitted for assay, as a precautionary measure, to ensure that we have correct analyses and to determine if any additional analytical procedures are required."
"Our initial results are encouraging; but, we have yet to locate the areas containing the very high eudialyte content that was reported historically by the Geological Survey of Canada," added Dr. Bird. "Consequently, we are launching immediately an additional sampling program focused on locating the higher-grade eudialyte areas and providing more detailed samples for the study of the additional REE mineralization styles."
All 35 samples returned anomalous assay values of REE's. Twenty-nine ranged in value from 0.1% to 1% total rare-earth oxides. The higher-grade REE assays were of rocks that apparently did not contain eudialyte. The grade of one of these samples, which returned the highest total REE assay at over 4%, was too high for the assay method as it was employed. It will be re-assayed using a technique reserved for high-grade samples. The complete table of assays is available with this news release on the Company's web site.
Medallion Resources Ltd (TSX-V: MDL) explores for low-production-cost, large-tonnage heavy rare-earth-element (REE) deposits with a clear metallurgical path and cost-effective infrastructure. REE's are key components required by many new energy-saving technologies including wind turbines, electric and hybrid vehicles, super magnets and all modern electronics. Medallion is headed by REE veteran Dr. Bill Bird with support from an expert technical team that can meet the challenges of evaluating and cost-effectively exploring the best REE projects.
The Company explores over 42 square kilometres of the Red Wine peralkaline intrusion in southern Labrador under an agreement to option a 100% interest in six mineral licenses (subject to a 3% royalty). The portions of the Red Wine intrusion that are covered by the six licenses are known to host the mineral eudialyte, which contains elevated values of the heavy REE's.
Medallion also explores the Eden Lake REE property in western Manitoba, under an option agreement with Rare Element Resources (NYSE:REE) (TSXV:RES) (TSX-V: RES, NYSE AMEX: REE) that gives Medallion the right to earn a 65% interest in the exploration joint venture. Eden Lake is a recent REE discovery with potential for high neodymium values and significant heavy REE by-products.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo
President & CEO
For further information visit www.medallionresources.com or contact:
William H Bird (604) 681-9558 williambird@medallionresources.com
Erica C Bearss MBA (604) 681-9558 ebearss@medallionresources.com
Company Management, which takes full responsibility for content, prepared this news release. The TSX Venture Exchange has not reviewed and does not accept 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 or exploration plans. 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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