TSX-V: MDL
VANCOUVER, March 24 /CNW/ - Medallion Resources Ltd ("Medallion" or the
"Company" - TSX.V: MDL) announced today that it has filed on SEDAR
(www.sedar.com) a technical report (the "Technical Report") prepared in
accordance with National Instrument 43-101 ("NI43-101").(*) The Technical Report
recognizes the Romaine Iron-Titanium Project as one of significant merit and
recommends a core-hole drill program to advance the project and to add a third
dimension to the 2008 geological and sampling data.
The Technical Report fulfills one of the criteria required by the TSX
Venture Exchange for acceptance of the Company's Romaine Iron-Titanium Project
acquisition transaction, which grants Medallion an option to acquire 100% of
the 60 iron-titanium claims (covering 23.5 square kilometres) that lie 40
kilometres north of Havre-Saint-Pierre, Quebec.
The Technical Report concludes that fall 2008 mapping and sampling
program conducted as part of Medallion's due-diligence investigation, confirms
the location and expands the surface area of the mineralization that has been
historically estimated to contain a resource of 234 million tonnes grading
10.8% titanium oxide (TiO(2)) and 17.9% iron.(xx) The fall 2008 samples were
assayed at SGS Lakefield, which determined that the historical resource
estimate used an incorrect assay procedure. For Medallion's fall 2008 surface
samples, SGS Lakefield used the industry-standard assay procedure that
subsequently returned titanium-oxide grades approximately 25% higher than
those of the historical resource estimate. A similar iron trend is apparent
but cannot be confirmed without a more detailed analyses of the iron-titanium
minerals.
To address the financing requirement for, and meet the TSX Venture
Exchange's final criterion for approval of the property acquisition, the
Company has engaged Jordan Capital Markets Inc as an exclusive agent to raise
up to $2 million in equity capital as reported 27 February 2009. The use of
proceeds of the proposed financing include drilling to provide data required
for a NI43-101-compliant resource estimate, which the Company anticipates to
complete during the coming year.(*) Technical Report on the Romaine Iron-Titanium Project, Lac Puyjalon
Region, Quebec", dated 25 February 2009. The Technical Report was
prepared by Eric Hurtubise, PGeo (OGQ No.912), and an Independent
Qualified Person as defined by NI 43-101.
(xx) The historical resource estimate and the Romaine property reports
supporting the estimate were prepared before the introduction of
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H Bird", PhD, PGeo
President & CEOWilliam 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 NI 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.
For further information: check the website www.medallionresources.com or
contact David Fry, (888) 827-6611, e-mail: mdlcorpcom@shaw.ca
