Medallion's survey confirms historical mapping,

2010-08-19 09:19 ET - News Release


Mr. William Bird reports

NEW GEOPHYSICAL DATA EXPANDS MEDALLIONS RED WINE RARE EARTH POTENTIAL

Medallion Resources Ltd. has received data from its recently completed airborne geophysical survey on the company's heavy rare-earth project in the Red Wine district of Labrador. The new data both expands and supports previous estimates on the area for rare-earth mineralization. Strong magnetic and radiometric anomalies correspond to a large area on Medallion's 22-square-kilometre A block that is known to cover the eudialyte-bearing south Red Wine intrusion. Eudialyte is recognized as a mineral rich in the more valuable heavy rare-earth elements and is also responding well to modern metallurgy techniques. Some experts believe that eudialyte deposits may well be the world's main source of heavy rare-earth elements.

The positive geophysical responses also aided in determining new, potentially mineralized targets on the company's B, C and D blocks to the east and north of the A block.

"This geophysical data adds significant support to the recognized rare-earth potential of Medallion's Red Wine property, stated, Dr. Bill Bird, president of Medallion. Dr. Bird added, "We now have two bodies of evidence, geophysical and historical mapping, to guide this month's on-the-ground field work on the company's four Red Wine property blocks."

Aeroquest Limited of Mississauga, Ont., provided the fixed-wing magnetic gradiometry and radiometrics airborne geophysical survey. Flight lines were 100 metres apart and elevation above ground was nominally 50 metres. Aeroquest flew 668 line kilometres covering all four of the company's Red Wine property blocks.

Geological mapping carried out by the Geological Survey of Canada first identified the south intrusion as one of the few large areas of the Red Wine to commonly contain concentrations of the mineral eudialyte, which, with mosandrite, is the main carrier of the rare-earth elements at Red Wine. (Curtis, L W, and K L Currie, 1981, Geology and petrology of the Red Wine alkaline complex, Central Labrador: Geological Survey of Canada, bulletin 294, 61 pages.)