January 18, 2011 09:14 ET
MDN Inc.: Fourth Quarter Results at the Tulawaka Gold Mine
MONTREAL, QUEBEC–(Marketwire – Jan. 18, 2011) – MDN Inc. (“MDN”) (TSX:MDN) notifies its shareholders that African Barrick Gold plc (ABG), the project operator of the Tulawaka gold mine in Tanzania in which MDN has a 30% participating interest, announced fourth quarter and twelve months operational results.
Tulawaka Exploration Update
East Zone Underground Extensions
During the quarter, at the Tulawaka East Zone Underground, diamond drilling continued from the Level 7 Access drill drive. Drilling continued to focus on extensions to high grade shoots with Zones 250-500 below Levels 9 and 10. Quartz veining encountered in a number of the drill holes showed visible gold.
Diamond drilling continues to test depth, plunge and strike extensions to the mineralised lodes throughout the East Zone and is focused on increasing reserves and resources. The underground diamond drill programme is expected to continue throughout 2011 with the aim of extending known high grade zones and delineating additional resources below the current drilling.
ABG will provide a more detailed update on the future of Tulawaka at the time of our preliminary results next month.
Operating update for the three months ended 31 December 2010
Production at Tulawaka was 14% lower than the prior year period due to lower grade from both underground as well as stockpiled material.
Total gold production at Tulawaka for the quarter was 16,973 ounces compared with the 2009 equivalent period of 19,637 ounces. For the twelve-month period, gold production was 60,134 ounces compared with 94,180 ounces in the prior year period. The total production since commencement of operations in March 2005 was 808,678 ounces. The lower gold production during the quarter compared to the prior-year period was the result of mining lower grade ore from the underground and processing lower grade material from the stockpiles than in Q4 2009. A key focus of mine management has been on exploration and definition drilling to expand the existing reserve and resource base in order to extend the mine life beyond July 2011. Our plan is to provide further detail on the progress of this at the time of our preliminary results.
Total gold ounces sold amounted to 19,296 for the quarter, slightly ahead of production and down 11% compared to Q4 2009, reflecting the decline in production. For the year , 63,908 ounces were produced, again slightly ahead of production and down on the prior- year period in line with the decrease in production.
“A comparison between Q2, Q3 and Q4 2010 shows that the underground mine hoisted more tonnage quarter after quarter, indicating that the program put in place during the first half of 2010 by ABG to improve production from underground is progressively giving positive results”, said Serge Bureau, President and CEO of MDN Inc.
Tulawaka production results (reflected as 100%)
|Three months ended
|Twelve months ended
|Underground ore tonnes hoisted||Kt||56||16||147||118|
MDN Inc. (TSX:MDN) is a mining exploration and development company with exploration and development projects in Québec and Tanzania. MDN also remains active in the search for new business opportunities that can increase 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 767km2 in the vicinity of the Tulawaka mine. MDN Inc. also owns a 67.5% interest in Crevier Minerals Inc. which in turn 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.
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.
Serge Bureau, P.Eng.
President and CEO
514-866-6500, ext. 221
Marc Boisvert, P.Eng.
Vice President, Exploration
514-866-6500, ext. 227
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