Medallion gets TSX-V approval for Eden Lake option

2010-08-05 10:49 ET - News Release


Dr. William Bird reports

MEDALLION FILES EDEN LAKE NI43 101 TECHNICAL REPORT, EXCHANGE APPROVES AGREEMENT

The TSX Venture Exchange has approved Medallion Resources Ltd.'s Eden REE Project acquisition agreement with Rare Element Resources Ltd (the "Agreement"). The Exchange has also accepted for filing the Eden REE Project NI43-101-compliant Technical Report (the "Report"), which is posted on SEDAR and the Company's website.

The Agreement provides Medallion with the option to acquire up to an undivided 65% interest in the Eden Lake rare-earth property, located in Manitoba, Canada, as detailed in the Company's December 1, 2009 news release.

The Report, entitled The Eden Lake Rare Metal (REE, Y, U, Th, Phosphate) Carbonatite Complex, Manitoba, is authored by A H Mumin, PhD, PGeo, PEng. Dr Hamid Mumin, who serves Medallion as an arm's-length consultant, is a recognized expert on the Eden rare-earth-element (REE) occurrences and is a Qualified Person as the term is defined by NI43-101. Since his discovery of the Eden Lake REE-hosting carbonatite in 2002, he has written and published several geological studies on the Eden Lake area. Dr Mumin teaches economic geology, mineralogy and geochemistry at Brandon University in Manitoba, where he is a Professor and Director of the Laboratory for Applied Research in Resource Geology.

Dr Bill Bird, president of Medallion, states, "The potential of the Eden REE Project is an exceptional opportunity for Medallion. We are doubly fortunate to have Hamid Mumin as our Eden Project leader. Dr Mumin's report is an extremely thorough examination of all previous significant data, much of which he, himself, collected. It also is a well-thought-out plan for further exploration of the REE potential. The potential for this exceptional REE occurrence is clearly emphasized in Dr Mumin's references to similarities with other REE deposits, descriptions of the multiple styles of REE-mineralization found within the property, assay values and the overall size of the mineralized area. We share Dr Mumin's enthusiasm for the Eden REE Project."

In the Report, Dr Mumin states the following:

From section 10, Deposit Types -

The target deposit type at Eden Lake is a rare metal enriched carbonatite complex. Eden Lake is the site of the first recognized carbonatite in Manitoba. These rare and unusual igneous complexes originate in the upper mantle due to an extremely low degree of fractional melting, and subsequent fractional crystallization. Sometimes, as is the case with Eden Lake, Manitoba, Murun, Russia, and Mountain Pass, California, they are associated with alkaline syenite complexes. As a result, they contain a wide variety of unusual economic minerals and metals, which varies significantly between carbonatite complexes worldwide. They are the principal source of apatites for phosphate (e.g. Khibiny, Russia; Kapuskasing, Ontario), niobium (Araxa, Brazil) and rare-earth metals (Bayan Obo, China; Mountain Pass, California).

From section 11, Mineralization -

Most of the carbonatite complex as presently delineated over the gridded and mapped region is enriched in rare-earth elements, phosphate, Y, Th, U, Sr, Ba and F. The enrichments vary according to rock type and/or degree of hydrothermal alteration. Hydrothermally altered material that is variably enriched in REEs includes quartz syenite, syenite, monzonite/melasyenite, mafic and ultramafic rocks, quartz-feldspar pegmatite and carbonatite dikes. Altered (carbonatized and fenitized) host rocks contain up to 7,700 ppm

REE's. Andradite-rich portions of quartz-feldspar pegmatite dikes contain up to 1,150 ppm total REEs as allanite-britholite intergrowths and Sr-REE-apatite, all occurring as tiny inclusions in or associated with andradite garnet. Ubiquitous hydrothermal fenite veins with pyroxene (aegerine-augite), pyroxene-pink alkali feldspar and pyroxene-amphibole-feldspar are also consistently enriched in REEs (values up to 2,550 ppm). Extreme REE enrichments were found in 3 rock types: 1) Apatite-rich bands in carbonatite dikes and veins, 2) Apatite-pyroxene veins, and 3) britholite-allanite bearing REE veins. The highest grades encountered are from britholite-allanite veins that range up to 50 cm in width and have undetermined lengths that can exceed 50 meters (Figure 14). Total rare-metal contents from samples taken from these veins ranged up to 148,742 ppm (sample #18053*), including HREE (Eu to Lu) contents up to 6851 ppm (sample # 15819 *).

From section 21, Interpretation and Conclusions -

The Eden Lake project is a property of significant merit that warrants detailed and comprehensive exploration. The Eden Lake carbonatite complex is a particularly interesting and robust igneous-hydrothermal system. It is comprised of alkaline (syenite) host rocks with widespread fenite-type hydrothermal alteration, and wide-spread REE, Y, phosphate, Th and U enrichments in several distinct, but related styles of mineralization. Where exposed at surface, the Eden Lake core complex comprises a shatter carapace of systematically superimposed igneous and hydrothermal stockworks, that as a whole constitute an igneous-hydrothermal mega-breccia complex of greater than 8 km2 in area.

The following are rare-earth oxide conversion values for samples reported above in elemental ppm (parts per million) by Dr Mumin (based on assays listed in the Report):


Sample # Total rare-earth oxides plus yttrium Neodymium oxide Heavy rare-earth oxides
18053 16.7% 4.3% 1.4%
15819 16.6% 3.3% 1.2%


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