MONTREAL, QUEBEC, Apr. 29, 2010 (Marketwire) -- 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.
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.