Jul 28, 2009 14:03 ETMDN's Operational Update: Drilling Program has Begun at IsambaraMONTREAL, QUEBEC--(Marketwire - July 28, 2009) - MDN Inc. ("MDN")(TSX:MDN) is pleased to provide an operation update on the exploration activities and mining development in Tanzania for the rest of the year.
Highlights
- MDN announces a $1.5M minimum budget for its business development and exploration activities in Tanzania for the 6 month period from July to December 2009. This amount could be increased up to $3M based on results. Most of the investment will be used for drilling at Isambara and Ikungu.
- In the Tulawaka area, a drilling program (Phase 1) of approximately 2,500 meters (12 to 15 drill holes) is already in progress on the Isambara project. Other gold targets located near the Tulawaka Gold Mine namely, Viyonza and Msasa, will also be explored.
- Supported by encouraging results of detailed soil sampling programs, conducted in April and May 2009, on the Southern Area of the Isambara project, two new Mobil Metal Ion ("MMI") soil sampling programs will now be conducted on the Central and Northern Areas to identify additional targets for the drilling planned for September.
- Concerning the Ikungu project, geochemical soil surveys with 800 meters space lines have been completed in order to cover the entire property and the results will be announced shortly. MMI detailed soil sampling will also be undertaken in order to better define the extension of the drilling targets already identified. A first phase of drilling will begin following the drilling works on Isambara for the targets previously selected and a second phase will follow once the MMI detailed soil sampling is completed.
- In order to support the mining development activities, the board of directors has approved a substantial budget aiming at evaluating new acquisition projects. MDN's management team can be, if needed, assisted by a multidisciplinary team of industry experts qualified for the evaluation and analysis of such projects.
- At the Tulawaka Gold Mine, a partnership between MDN (30%) and Pangea Goldfields (70%), 6,500 meters of drilling have been completed since the beginning of 2009, mainly for the underground mine development. Additional investments and activities have been planned by the operator following the good results of the initial drilling programs.
- As of this date, MDN has over 20 million dollars in cash, no debt and expects to remain profitable in fiscal 2009. MDN's cash reserves are sufficient to ensure its ongoing operations and announced investment plans without requiring additional financing in the medium term.
- Drilling activities' in Quebec, as well as the development of the Anita project (previously MCI and its niobium and tantalum resource), will be the subject of an update in the upcoming weeks.
All technical information in this release has been reviewed by Marc Boisvert, Engineer and Vice President, Exploration of MDN, serving as a qualified person in compliance with National Instrument 43-101.
MDN is a mining exploration and development company having adequate financial resources to develop its very promising projects in Quebec and in Tanzania and to search for new business opportunities that can raise shareholder value. In addition to its 30% participation in the Tulawaka Gold Mine, MDN is the operator and owner of a majority interest in 35 mineral licenses adjacent to the Tulawaka gold mine in Tanzania, and owns a 28.75% interest in a property with a NI 43-101 niobium and tantalum resource located in the Lac St-Jean area of Quebec.
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.
For more information, please contact
MDN Inc.
Paul-A. Girard, President and Chief Executive Officer
Marc Boisvert, P.Eng., Vice President - Exploration
Richard Corbo, Vice President - Business Development
1-514-866-6500
www.mdn-mines.com
or |
