MONTREAL,
QUEBEC--(Marketwire - Oct. 22, 2010) - 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 third quarter and nine months operational results and
positive exploration drilling results in the underground mine and at
nearby West Zone and Mojamoja prospects.
Exploration and
Corporate Development Update
At Tulawaka East
Zone Underground, exploration drilling continued to extend the known
high-grade mineralised shoots below the previously defined Level 7
resource, indicating potential to further extend the mine life beyond
2011. At the same time, updated resource modelling on the Main West
Zone and Mojamoja prospects is being completed to assess the near
surface and open pit potential of resources within trucking distance to
the Tulawaka plant.
East Zone
Underground Extensions
During Q3 2010 at
the Tulawaka East Zone Underground 4,630m was achieved in 25 diamond
drilled (DD) holes 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. Significant intersections
included:
-- TUDG00236 cut 3m @ 62.2g/t Au and 5m @ 42.1g/t Au -- TUDG00245 cut 5.3m @ 69.7g/t Au -- TUDG00246 cut 2m @ 15.7g/t Au and 3m @ 20.2g/t Au
It is anticipated
that there will be an increase in resources between 20250E and 20500E
within Zone 250, Zone 400 and Zone 550. Diamond drilling continues to
test depth, plunge and strike extensions to the mineralised lodes
throughout the East Zone and is currently focused on increasing
reserves and resources for the year-end update. The underground diamond
drill programme is expected to continue throughout the rest of the year
and into next year.
West Zone and
Mojamoja prospects
West Zone
extension and infill drilling was completed during Q3 2010, in which
eight holes were drilled for 1,027m. Significant intercepts include :
-- 3m @ 19.59g/t Au from 134m, -- 5m @ 1.93g/t Au from 68m and -- 5m @ 1.84g/t Au from 130m
Open pit
optimisation studies are underway on West Zone and Mojamoja resource
areas to delineate potential mineable ore within trucking distance of
the Tulawaka plant.
Production
summary
Total gold
production at Tulawaka for the quarter was 15,642 ounces compared with
the prior period of 29,489 ounces. For the nine-month period gold
production was 43,156 ounces compared with 74,538 ounces in the prior
year period. The lower gold production during the quarter compared to
the prior year period was a result of mining very high grade ore in the
2009 quarter compared to the current quarter.
Cash costs for
the quarter were $749 per ounce sold compared to $397 in the prior year
period. For the nine month period they were $678 per ounce sold
compared to $385 in 2009. During the quarter, the increase was mainly
due to the lower production base compared to the corresponding quarter
in 2009.
Gold ounces sold
were in line with production for both the quarter as well as the
nine-month period.
"A
comparison between Q2 2010 and Q3 2010 shows that production indicators
are improving. The underground mine had hoisted more tonnage, resulting
in a general better processing grade and more ounces produced,
indicating that the program put in place during the first half of 2010
by ABG is starting to give positive results", said Serge Bureau,
President and CEO of MDN Inc.
Capital
expenditure for the quarter totalled $5.3 million compared to $1.4
million in the prior year period. For the nine-month period the amount
was $10.7 million compared to $2.8 million in the corresponding period
of 2009. The increase of capital during the quarter was due to the
Tulawaka mine life extension program. During the quarter, the mine crew
at Tulawaka continued to focus on an aggressive exploration drilling
programmes for both the underground and open pit resources in order to
extend the mine life beyond 2011. This programme has been supported by
the re-investment of additional mining equipment to increase
exploration development and to support mine life extension.
The samples were
analysed 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.
About MDN
MDN Inc.(TSX:MDN)
is a mining exploration and development company with exploration and
development projects in Quebec 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 703 km(2) 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.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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