April 21, 2011 10:01 ET
CORRECTION/MDN Announces First Quarter Production of 19,606 Ounces of Gold at Tulawaka
A correction is being issued with respect to the release sent out this morning at 9:29 AM EDT by Marketwire. A paragraph about ‘The samples were analyzed by fire assay at the Tulawaka Mine Laboratory and SGS Laboratory of Mwanza, Tanzania, which both are certified according to international standards. (…)’ has been added. The corrected version follows.
MONTREAL, QUEBEC–(Marketwire – April 21, 2011) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to report to its shareholders that African Barrick Gold plc (ABG), the project operator at the Tulawaka gold mine in Tanzania, in which MDN has a 30% participating interest, reported first quarter operational results.
- The Tulawaka mine production is in line with expectations for the quarter, at 19,606 ounces of gold
- Ongoing drilling at Tulawaka is targeting further mine life extension following the initial mine life extension announced in February
- Tulawaka has renewed momentum following the mine life extension
The Tulawaka mine production was in line with expectations for the quarter. There was an 106% increase in tonnes hoisted to surface in Q1 2011 compared to the same period in 2010, Gold production at Tulawaka for the quarter was 19,606, an increase of 34% compared to the prior period of 14,588 ounces. The increase in production was driven by higher grade underground zones being mined over the quarter, as well as a greater proportion of the ore milled in the process plant coming from underground compared to the previous year. The mining performance underground was significantly better than in the prior year period due to the problems with equipment availability in the first part of last year. Cash costs per ounce for the first quarter 2011 increased compared to the prior year period (US$ 738/ounce compared to US$ 558/ounce as at March 31, 2010).
Capital expenditure for the quarter totaled $3.9 million compared to $2.3 million in the prior year period. During the quarter Tulawaka continued to focus on an aggressive exploration drilling program for both the underground and open pit resources in order to extend its mine life beyond 2012. This program was supported by investment in additional mining equipment to increase exploration development and to support further mine life extension. During the quarter, capitalized exploration drilling, expansion capital and sustaining capital each represented $1.3 million of expenditure.
East Zone Underground Extensions
During the quarter, at the Tulawaka East Zone underground, diamond core drilling continued with 4,993 meters drilled out of the planned 12,200 meter program. A second underground rig is being commissioned to increase drilling rates in order to establish the potential for further resource and reserve definition leading to additional mine life extension. The current program is targeting high grade mineralized shoots within Zones 250-500 between Levels 10 and 12, below the current reserves. The initial drill results returned from this program indicate that the mineralization is exhibiting the same characteristics as in the upper levels. The first results returned in March include the following:
- TUGD00305 – 1.5m @ 14.69g/t from 103.5m
- TUGD00306 – 3.0m @ 5.62g/t from 105m
- TUGD00315 – 1.6m @ 7.81g/t from 74.4m
- TUGD00317 – 3.2m @ 23.63g/t from 64.85m
- TUGD00322 – 2.5m @ 11.29g/t from 71.0m
Further information with respect to the potential mine life extension at Tulawaka will be released once an updated model and reserve optimization is completed.
The samples were analyzed by fire assay at the Tulawaka Mine Laboratory and SGS Laboratory of Mwanza, Tanzania, which both are certified according to international standards. Supervision of the drill program and of the quality analysis verification program are done by ABG Tulawaka Mine Geologists. Marc Boisvert, geological engineer, Vice President, Exploration, and a qualified person under National Instrument 43-101 has reviewed the technical and scientific information in this news release.
The Tulawaka project is a contractual joint-venture between MDN (30% participating interest) and Pangea Goldfields Inc. (70% participating interest), a wholly owned indirect subsidiary of African Barrick Gold plc and project operator and owner through its subsidiary Pangea Minerals Ltd. The information disclosed on the Tulawaka Gold Mine is based on information provided by the Operator.
MDN Inc. (TSX:MDN) is a mining exploration and development company exploring and developing projects in Quebec and Tanzania. The Company is also active in the search for new business opportunities that can increase shareholder value. In addition to its 30% interest in the Tulawaka gold mine, MDN is the operator and owner of a majority interest in mineral licenses totalling 757 km2 in the vicinity of the Tulawaka mine. MDN also has a 72.5% interest in Crevier Minerals Inc., which owns an NI 43-101 niobium-tantalum resource in the Lac-Saint-Jean area of Quebec. MDN has an option to increase its equity participation in Crevier Minerals Inc. to a maximum of 87.5%. Additional information is available on MDN’s website at www.niobaymetals.com.
All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company’s most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Serge Bureau, P.Eng.
President and CEO
514-866-6500, ext. 221
Marc Boisvert, P.Eng.
Vice President, Exploration
514-866-6500, ext. 227
Sun International Communications