MDN: Tulawaka Mine Produces 62,085 Ounces of Gold During the First Quarter of 2008
10:00 EDT Tuesday, April 22, 2008
MONTREAL, QUEBEC--(Marketwire - April 22, 2008) - MDN Inc. ("MDN") (TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in Tanzania produced 62,085 ounces of gold during the first quarter ended March 31, 2008. Tulawaka gold production now amounts to 505,065 ounces since the beginning of operations in March 2005.
For the first quarter, 51,763 ounces of gold were sold into the spot market at an average price of US$920 for total sales of US$47.6M. Since the beginning of operations in March 2005, a total of 484,927 ounces of gold were sold.
In the very short term, the threshold of 500,000 ounces of gold will be reached, which will enable MDN to attain a key objective, being the final payment of the royalty payable on the gold price.
During the first quarter, the plant facilities processed 87,598 tons of ore at an average grade of 23.3 g/t gold and at a gold recovery rate of 94.48%. Total cash costs averaged US$181 to produce an ounce of gold during this quarter.
"We are very pleased with the results of the first quarter, said Paul-A. Girard, President and CEO of MDN. It is an important step in our growth strategy and the realization of our financial goals."
For the first quarter, its participation in the Tulawaka Gold Mine generated US$8.4M; this amount was entirely applied to the payment of the gold price participation royalty and to the reimbursement of the loan. After the cash distribution to the JV participants (MDN 30% - Pangea Goldfields 70%), the Tulawaka Gold Mine has a cash balance of US$28.8M.
"We are now completing the financial statements for the first quarter of 2008, said Yves Therrien, CMA, Vice-President Finance of MDN. The publication of our results in mid-May will provide an update on the financial situation of MDN with regards to the debt and the royalty on the price of gold."
The Tulawaka project is a joint-venture between MDN (30%) and Pangea Goldfields Inc. (70%), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator through its Tanzanian subsidiary Pangea Minerals Ltd. The information disclosed on the Tulawaka Gold Mine is based on information provided by the Operator.
MDN is a mining exploration company with its head office in Montreal, Quebec (Canada). Its main exploration activities are carried out in Quebec through gold and base metal interests and in Tanzania through a majority interest in 28 adjacent mineral licenses in addition to a 30% participation interest in the Tulawaka Gold Mine and the new acquisition in Ikungu area.
FOR FURTHER INFORMATION PLEASE CONTACT:
MDN
Paul-A. Girard
President & CEO
514-866-6500 |
