TSX-V: MDL
VANCOUVER, Nov. 19 /CNW/ - Medallion Resources Ltd ("Medallion" or the "Company" - TSX.V: MDL) announces the completion of a very successful fall field exploration program at the Romaine Iron-Titanium Project. Sample and data production nearly doubled the program's expectations. Geological mapping indicates that the iron-titanium-mineralized outcrops continue along strike for more than three kilometers, a significant distance beyond the north end of the previously known main area of mineralization. Seventy-four surface core samples, collected during the program, await analysis at SGS Lakefield Research Limited. Assay results are expected by year end.
The fall 2008 program is part of Medallion's due-diligence review of the Romaine iron-titanium property, which includes a historical resource estimate of 234 million tonnes grading 10.8% titanium oxide (TiO(2)) and 17.9% iron.(x) During the 120-day due-diligence period, Medallion, together with the property owner, Romaine River Titanium Inc, are finalizing and will execute a definitive agreement that reflects the terms of the Letter of Intent signed by the parties (the "LOI"), which grants an Option to Medallion to acquire a 100% interest in the Romaine property (the "Option"). Medallion's due diligence is nearing completion and the definitive agreement is expected to be executed prior to the end of the due-diligence period (see Medallion news release of 2 September 2008 for terms of the LOI).
The fall program goals are to conduct legal and technical due diligence, to construct a detailed geological map, to confirm the surface extent of the iron-titanium mineralization, and to systematically collect samples for assay and metallurgical tests. The fall program results, along with an analysis of historical drilling and sampling, will be compiled into an NI43-101-compliant technical report, which is required to obtain regulatory approval of Medallion's acquisition of the Option. The technical report will recommend drill targets and a work program for an NI43-101-compliant resource estimate. The data analysis and technical report are in progress.
Medallion uses a surface-sampling technique designed to produce suitable material for metallurgical testing, as well as mineralogical and chemical analyses. A concrete drill is used to extract, from each sample site, two closely spaced 30- to 35-centimetre cores. Each of these is four centimetres in diameter and weighs 1.8 to 2.0 kilograms. This method is more reliable than channel sampling; however, it is not to be confused with diamond core drilling. It provides a reliable sample of the surface mineralization, which is free of most weathering effects and of the potential high- or low-grading problems that are often associated with the usual surface-sampling techniques.
About the Romaine Iron-Titanium Project
The Romaine Iron-Titanium Project, 40 kilometres north of Havre St Pierre, Quebec, includes a historical resource estimate of 234 million tonnes grading 10.8% titanium oxide (TiO(2)) and 17.9% iron.(x) The body of iron-titanium mineralization crops out along a known length of over three kilometres and a width that ranges from 200 metres to 460 metres. It is open along strike and down dip. Recent check sampling and mapping, along with information from the 1960's and 1970's, suggests that there is a significant potential for increasing both the size and grade of the historical resource.(x)
The Romaine Project minerals are hematite (Fe(2)O(3)) and ilmenite (FeTiO(3)), which also are the minerals mined at the nearby QIT mine. Rio Tinto's QIT mine, with a 50-million- tonne reserve (as of 2006) three kilometres to the west, is a leading producer of high-quality titanium and steel products and it is presently the largest iron-titanium mine of its type in the world.
(x) The historical resource estimate and the Romaine property reports
supporting the estimate were prepared before the introduction of
National Instrument 43-101- Standards of Disclosure for Mineral Projects
("NI 43-101"). They may not be relied upon until they are confirmed using
methods and standards that comply with those required by NI 43-101. The
potential for the Romaine property mineralization to replicate the
historical resource estimate, or for new data to expand its tonnage and
grade, is conceptual and is based on historical reports and field
observations, which cite approximate lengths, widths, depths, grades,
metallurgical test work and projections of the historical resource.
Investors are cautioned that a qualified person has not yet completed
sufficient exploration, test work or examination of past work to define a
resource that is currently compliant with NI 43 -101. The Company further
cautions that there is a risk that exploration and test work will not
result in the delineation of such a currently compliant resource. Neither
the Company nor its personnel treat the historical resource estimate or
the historical data as defining a current mineral resource, as defined
under NI 43-101, nor do they rely upon the estimate or the data for
evaluation purposes; however, these data are considered relevant and will
be used to guide exploration as the Company develops new data to support
a current mineral-resource estimate in accordance with the requirements
of NI 43-101.
About Medallion
Medallion also holds mineral rights and interests in gold exploration
projects in British Columbia and Nevada. Medallion's strategy is to create a
portfolio of high-impact world-class mineral projects. The Company's immediate
focus is to explore and advance the Romaine Iron-Titanium Project.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Bird and prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. 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 mine types and by comparing the Company's projects to other projects. Also, in order to proceed with the Company's exploration and acquisition 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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