Medallion Resources Ltd fka MDL

[sumisu]

Average Titanium Grade of Romaine River Check Samples is 38% Higher than Grade of Historical Resource Estimate(x)

Wednesday November 5, 9:30 am ET

http://biz.yahoo.com/cnw/081105/medallion_initl_sampl.html?.v=1

TSX-V: MDL
VANCOUVER, Nov. 5 /CNW/ - Medallion Resources Ltd ("Medallion" or the "Company" - TSX.V: MDL) announces that the initial check grab samples, taken during the initial Romaine River property visit, have returned iron oxide (Fe (2)O(3)) and titanium oxide (TiO(2)) assays that are significantly higher than the average grades of the historical resource estimate(x). The average grade of the seven check samples, as compared to the historical resource estimate, is 38% and 29.5% higher, respectively, for titanium oxide and iron oxide.

These samples were collected recently as part of Medallion's due-diligence examination for the pending acquisition of an Option-to-Purchase the Romaine River iron-titanium property, 40 kilometres north of Havre St Pierre, Quebec. The purpose of the visit and the sampling was to check the extent and character of the iron-titanium mineralization, assess variations in grade in different parts of the property, and test and compare iron and titanium analytical methods. Results exceeded expectations. Assayed grades for the mineralized check rock samples are as follows:

   Sample ID         % Fe(2)O(3)(XRF)       % TiO(2)(XRF) 
  
 	       5996 10            30.9            12.6 
 	       5996 11            30.2            12.5 
 	       5996 12            39.3            18.0 
           5996 13            32.3            14.7 
 	      5996 14            40.2            17.7 
 	  5996 15            37.1            16.3 
 	  5996 17            30.3            12.5 
 	  Average            34.3            14.9 
 

By comparison, the Romaine River property's historical-resource estimate is 234 million tonnes grading 10.8% titanium oxide and 17.9% iron (17.9% iron is estimated to approximate a calculated 26.5% iron oxide or Fe(2)O(3))(x).

The original historical-resource-estimate samples were assayed using an acid-digestion-ICP method (ICP). These assays were performed by Lakefield Research in Lakefield, Ontario, which is now SGS Lakefield Research Limited (Lakefield). In September 2008, Lakefield advised Medallion that, for iron and titanium, the ICP method potentially could have provided artificially low results, due to incomplete digestion of the sample. Lakefield recommended the current industry-standard assay method for iron and titanium, which is a whole-rock digestion by borate fusion with an X-ray fluorescence spectrometry analytical finish (XRF).

To test this potential for low assays, Medallion had Lakefield assay the check rock samples using both XRF and ICP-OES (inductively coupled plasma- optical emission spectrometry) methods. From this test, it appears that there is a marked difference between the two methods. This could explain the significant difference between the check-rock-sample grades and the historical-resource-estimate grades; therefore, a modern NI43-101-compliant resource estimate, based on properly assayed samples, has the potential to provide a higher-grade resource than that of the historical estimate. Medallion will continue to test for this potential and, in the future, it will rely on the current industry-standard XRF assay method to avoid any possibility of artificially low assay results.

Medallion's due-diligence examination of the Romaine River Iron-Titanium property is near completion. The definitive Option-to-Purchase agreement is expected to be completed on schedule before the end of the year. In addition to the due diligence examination, the fall field program at the property includes an extensive and systematic mapping and sampling program, for which results are pending. The due-diligence, mapping and sampling data will be compiled, with all past information on the property, to prepare an NI 43-101 technical report to accompany Medallion's application for TSX-V final approval of the acquisition of the Romaine River property.


(x) The historical resource estimate and the Romaine River property
reports supporting the estimate were prepared before the introduction of
National Instrument 43-101 - Standards of Disclosure for Mineral Projects
("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 River 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, 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 estimates in accordance with the requirements of
NI 43-101.

About Medallion

Medallion is headquartered in Vancouver and listed on the TSX Venture
Exchange. The current property portfolio includes the Romaine River
Iron-Titanium Project in Quebec and gold projects in British Columbia and
Nevada

ON BEHALF OF THE BOARD OF DIRECTORS

"William H Bird", PhD, PGeo, President & CEO

William 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 National Instrument 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

visit http://www.medallionresources.com
David Fry, [phone], [e-mail]

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Source: Medallion Resources Ltd.