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MONTREAL,
QUEBEC--(Marketwire - April 29, 2010) - MDN Inc. ("MDN")
(TSX:MDN) is pleased to report to its shareholders that African Barrick
Gold plc (ABG) and project operator at the Tulawaka gold mine in
Tanzania, in which MDN has a 30% participating interest, announced
positive exploration drilling results on near mine targets at Tulawaka
and of first quarter 2010 production results.
At Tulawaka, reverse circulation drilling at the Mojamoja target,
approximately 4km northwest of the Tulawaka plant has identified a new
zone of gold mineralisation. "Tulawaka style" quartz veining
was encountered in several drill holes, with visible gold observed in
RC chips associated with higher grade gold assays. Significant
intercepts included better results of 12m @11.5g/t Au from 89m
(including 2m @ 57.1g/t Au), 5m @ 36.4g/t Au from 76m (including 2m
@77.5g/t Au), and 1m @ 67.3g/t Au from 48m. Additional step-out and
infill drilling will be required prior to resource estimation work.
In addition, the underground exploration drill program at Tulawaka East
Zone continued to identify extensions to the known high grade shoots in
the AZM-124 Zone. Better results included, 4m @ 18.45g/t Au and 4.6m @
34.5g/t Au (down-hole intersected width represents approximate true
width) between Level 9 and Level 10. These high-grade intersections
indicate the potential to identify extensions of the underground
reserves and resources beyond currently defined levels, and further
extend the Tulawaka mine life beyond 2010.
Serge Bureau, President and CEO of MDN, who is currently at the
Tulawaka mine with the operator, reviewing the exploration program in
which MDN is participating at 30% commented: "The underground
exploration results are encouraging in terms of potentially extending
the underground life of mine and the Mojamoja results show us that
there is potential to continue discovering new ore zones inside the
limit of the Tulawaka joint venture property."
Tulawaka Operational results
African Barrick Gold also reported that:
Tulawaka underground operations experienced a 21% decline in tonnes
hoisted to surface in Q1 2010 compared to the same period in 2009. This
was mainly driven by lower equipment availability and the processing of
lower grade stock pile ore to offset the mine production shortfall
driving down the head grade milled, resulting in a 29 % reduction of
ounces produced compared to the previous year (14,590 ounces as at
March 31, 2010 compared with 20,492 ounces as at March 31 2009 for 100%
of the mine). The operator has mobilized additional haulage trucks from
its other operations and expects the mine to make its original budgeted
production. Cash costs per ounce for the first quarter 2010 increased
compared to the prior year period (US$ 558/ounce compared to
US$413/ounce as at December 31, 2009 and US$ 379 /ounce as at March 31,
2009) as a result of the lower production base. Additional funding has
been approved for an aggressive exploration drilling program for both
the underground and open pit resources. Additional equipment for mine
development has been mobilized for delivery to site.
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.
About MDN
MDN Inc.(TSX:MDN) is a mining exploration and development company
having adequate financial resources to develop its promising projects
in Quebec 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 Mineraux Crevier, which owns
a property with a NI 43-101 niobium and tantalum resource located in
the Lac St-Jean area of Quebec. MDN has an option to increase its
equity participation in Mineraux Crevier up to 87.5%. Additional
information is available on MDN's website at www.mdn-mines.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.
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