MDN Inc.
TSX : MDN

MDN Inc.

October 16, 2007 12:04 ET

MDN Inc.: Tulawaka Mine Produces 41,817 Ounces of Gold During the Third Quarter of 2007

Strong increase of the average selling price per ounce of gold

MONTREAL, QUEBEC--(Marketwire - Oct. 16, 2007) - MDN Inc. ("MDN")(TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in Tanzania produced 41,817 ounces of gold during the third quarter ended September 30, 2007. Tulawaka gold production now amounts to 124,367 ounces since January 1st, 2007, and a total of 389,632 ounces since the beginning of operations in March 2005.

For the third quarter, 40,729 ounces of gold were sold into the spot market at an average price of US$691 for total sales of US$28.14M. A total of 119,879 ounces of gold were sold since the beginning of the year, at an average price of US$671, for total sales of US$80.4M.

Although the quantities of gold ounces produced and sold were approximately 15% lower than the budget estimates for the first three quarters of 2007, the continued increase of the gold price on the international market has mitigated the effects of the production slowdown. Based on the current price of gold, MDN expects that the total income for 2007 should be in conformity with the initial income forecasts.

For the fourth quarter, Pangea Goldfields Inc. (the "Operator") expects that production should be 60,000 ounces of gold and incomes should be more than US$42M. The Operator has now completed cutback operations on the south wall failure zone, allowing access to high grade ore previously restricted by interim ramp. Finally, the Operator expects that the total annual production for 2007 will be 185,000 ounces of gold, while maintaining its sale forecasts for the year at more than US$125M.

During the third quarter, the plant facilities processed 118,894 tons of ore at an average grade of 12.6 g/t gold and at a gold recovery rate of 95.1%. For the first three quarters of the year, 360,231 tons of ore were processed at the mill at an average grade of 12.6 g/t gold and a gold recovery rate of 93.5%.

Distribution of US$15M to the JV Participants

The Tulawaka Gold Mine distributed US$15M to the joint-venture participants MDN (30%) and the Operator (70%) for the third quarter, equal to the amount distributed in the previous quarter; MDN's share of these distributions (US$4.5M) has been entirely applied to the reduction of its debt.

After this cash distribution, the Tulawaka Gold Mine has a cash balance of US$17.3M, which is expected to be used for the development of the underground mine.

Underground development and major exploration efforts

Underground working began during the quarter with the opening of a decline. The underground mining and drilling equipment is now on site and the infrastructures specific to the underground operation are in construction. Small quantities of ore have been already extracted and treated at the mill.

Exploration drilling continued during the quarter and more than 15,000 meters of drilling are planned in 2007. Drilling on two targets, the T7 and NW Zones, is completed and the drill rig is now active on the West Zone.

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. Certain information contained in this press release is based on factual information that was provided to MDN 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 and Tanzania. In addition to its 30% participation interest in the Tulawaka Gold Mine, MDN holds a controlling interest in 20 mineral licenses around Tulawaka, including four gold projects which are currently undergoing a significant drilling program.

Contact Information

  • MDN
    Paul-A. Girard
    President & CEO
    +1-514-866-6500
    or
    MDN
    Dominique Fournier, Ph.D.
    Vice-President, Exploration
    +1-514-866-6500
    or
    MDN
    Richard Corbo
    Corporate Development
    +1-514-866-6500
    www.mdn-mines.com
    or
    Evolution Group
    Sylvain Archambault
    President & CEO
    +1-514-448-4887 or Toll free: +1-866-703-4887
    s.archambault@evolutiongrp.com
    www.evolutiongrp.com