Medallion to shift Eden Lake exploration focus to Rare-Earth Bearing Carbonatite
Vancouver, BC – Medallion Resources Ltd (TSX-V: MDL — “Medallion” or the “Company”) announces that the rare-earth-element (REE) assays for samples collected at the Eden REE Project in Manitoba, during its 2010 detailed sampling program, have been returned and all contain elevated levels of REEs. Based on the results, the Company will turn its focus to the large carbonatite potential, one of the four major styles of REE mineralization that occur on the Eden property.
“With multi-million tonnes at the surface and significant REE values, the Eden fenite zone was our first target for the large-tonnage, low-production-cost project that we believe will shape the rare-earth industry future; however, our detailed channel sampling did not find the necessary level of consistent REE grades,” explained Dr Bill Bird, Medallion’s Chairman and CEO. “We are refocusing our exploration on the REE-bearing carbonatite that occurs throughout the Eden Lake claims. There is potential for a large-tonnage carbonatite, which, as is the case at Molycorp’s Mountain Pass mine, is a common host for REE deposits.”
The 2010 sampling program focused on the large surface areas of mineralized and fenitized (alkali metasomatism) syenite and related rare-earth-bearing rocks, which showed potential of a large-surface-tonnage, low-production-cost REE deposit. The average REE grade along the 174 diamond-sawed rock samples taken from continuous channels in the targeted fenite, and 47 surface cores of rock, also taken from the fenite but collected with a portable concrete drill, currently does not support further exploration of this type of material. The remaining 133 samples, of the total 354 samples collected, were grab samples of special-interest rocks from other areas of the property. These also showed elevated REE levels.
Medallion intends to provide details on the 2011 plans for the Eden property as those plans are formulated over the next few months. The company will also provide a property update on its Red Wine 2011 project when all of the completed data is received.
About Medallion Resources
Medallion Resources Ltd (TSX-V: MDL) is exploring for large, low-production-cost, heavy-rare-earth-element (REE) deposits with straightforward metallurgy and cost-effective infrastructure. Headed by Dr. Bill Bird and supported by a technical team second to none, the company is well-positioned to efficiently evaluate the best prospective REE projects, incorporating new discovery methods and short-cuts to production. REEs are essential for many products and applications including wind turbines, electric and hybrid vehicles, super magnets, and all modern electronics.
Medallion is exploring the Eden Lake REE property in western Manitoba under an option agreement with Rare Element Resources Ltd (AMEX: REE, TSX-V: RES) that gives the right to earn a 65% interest in the exploration joint venture. A recent discovery, Eden Lake is one of North America’s most prospective REE projects, with potential for high values of neodymium and significant levels of the high-value heavy REEs. The company is also exploring 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 covered by the licenses host the mineral eudialyte, known to contain elevated values of the heavy REEs.
ON BEHALF OF THE BOARD OF DIRECTORS
“William H Bird”, PhD, PGeo,
Chairman & CEO
For further information visit www.medallionresources.com or contact:
Donald Lay
President
Tel (604) 681-9558 or Email don.lay@medallionresources.com
Medallion Management 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 medallion’s future exploration and financing plans, objectives or goals, including words to the effect that Medallion 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 Medallion’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 Medallion’s plans.
