MDN eyes Eritrean targets (August 31, 2005)

Channel sampling on the contiguous Seroa and Seroa Hill exploration licenses in Eritrea have turned up two new mineralized targets for MDN Northern Mining (MDN-T).

Two 2-metre channel samples on the Dangish occurrence yielded 4.2 grams gold and 11.9 grams gold per tonne, respectively. The outcrop has been the site of artisanal workings on a steeply dipping quartz vein.

At the Injahai prospect, channel sampling was highlighted by 20 metres running 6.6 grams gold, 15 grams silver, 0.6% copper 0.3% lead, and 1% zinc. Injahai comprises an 800-sq.-metre quartz outcrop atop a hill of predominantly granitic composition.

In all, channel sampling targeted ten outcrops. Follow-up work on Dangish and Injahai is planned for the third quarter.

The 192-sq.-km Seroa and Seroa Hill licenses are situated north of the Eritrean capital of Asmara, along the north-northwest striking Anseba River fault structure. They host several areas of intense hydrothermal alteration, breccia formation, and quartz veining.

MDN recently privately placed 517,250 shares at 45 apiece for proceeds of $232,762. Each share is accompanied by one warrant good for another share at 75 per share for five years.

The company will apply the proceeds toward exploration in Tanzania and in Eritrea. The company holds majority interest in 25 adjacent mineral licenses in Tanzania, and majority interest in four licenses in Eritrea.