February 18, 2010 08:00 ET
MDN: Tulawaka Mine Produced 94,180 Ounces of Gold in 2009
MONTREAL, QUEBEC–(Marketwire – Feb. 18, 2010) – MDN Inc. (“MDN”) (TSX:MDN) announces that the Tulawaka gold mine in Tanzania produced 94,180 ounces of gold for the year ending December 31, 2009. Since the beginning of operations in March 2005, the Tulawaka mine has produced 748,549 ounces of gold.
For the year 2009, the plant processed a total of 445,398 tonnes at an average grade of 7 g/t gold at a gold recovery rate of 93.9%. The ore processed comes from the underground mine and from accumulated stockpile of low grade ore at surface. The underground mine operations provided 27.2% of the ore processed or 121,114 tonnes at an average grade of 16.1 g/t gold, for a total production of 58,874 ounces, or 62.5% of the 2009 annual production. The balance in tonnage of annual production comes from 324,284 tonnes of stockpiles at an average grade of 3.6 g/t gold, for a total production of 35,306 ounces.
For 2009, a total of 93,355 ounces of gold was sold on the spot market at an average price of US$966 for total sales of US$90.2M. Total cash costs averaged US$407 per ounce of gold. A total of 739,433 ounces of gold has been sold since the beginning of operations in March 2005.
For the 2010 fiscal year, the mine operator is forecasting a production of 76,736 ounces of gold after 93% recovery (419,078 tonnes @ 6.12 g/t Au) at a total cash cost of US$549 per ounce. Higher total cash cost is mainly due to the increase in production coming from the underground mine.
The underground operations should yield 210,066 tonnes at an average grade of 8.93 g/t Au, or 45.5% of treated ore (27.2% in 2009). This will provide 56,090 ounces of gold or 73.1% of total forecasted production. The balance of treated ore and annual production will come from the accumulated stockpiles on surface.
Extensive exploration and underground development work will be carried out in 2010 and 2011 to define more reserves and to extend the mine life of Tulawaka.
The Tulawaka project is a joint-venture between MDN (30% participating interest) and Pangea Goldfields Inc. (70% participating interest), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator and owner through its Tanzanian 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 having adequate financial resources to develop its promising projects in Québec and in Tanzania. MDN also remains active in the search for new business opportunities that can raise shareholder value. In addition to its 30% participating interest in the Tulawaka Gold Mine, MDN is the operator and owner of a majority interest in mineral licenses totalling 621 sq km around the Tulawaka gold mine in Tanzania. The company also owns a 67.5% interest in Minéraux Crevier, which owns a property with a NI 43-101 niobium and tantalum resource located in the Lac St-Jean area of Québec. MDN has an option to increase its equity participation in Minéraux Crevier up to 87.5%. Additional information is available on MDN’s website at www.niobaymetals.com.
Forward looking statements
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.
- MDN Inc.
M. Jacques Bonneau
Interim President and CEO
514-866-6500, ext. 221
Marc Boisvert, P.Eng.
Vice President, Exploration
514-866-6500, ext. 227
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