MDN Inc.
TSX : MDN

MDN Inc.

April 04, 2007 08:31 ET

Northern Mining: Tulawaka Gold Mine Operating Update

Underground mining development expected to commence during Q2 2007

MONTREAL, QUEBEC--(CCNMatthews - April 4, 2007) - MDN NORTHERN MINING ("MDN")(TSX:MDN) is pleased to announce that underground mining development at the Tulawaka Gold Mine (Tanzania) is expected to commence during the second quarter of 2007, with the construction of the access ramp located in the western part of the East Zone open pit.

The mining operations will continue during the development phase in the eastern part of the pit. Gold mineralization from the underground mine development is expected to be extracted and processed well before full underground mining operation begins.

Capital expenditures of over US$16M have been budgeted by the JV Operator for the underground mining development and equipment, with operational cash flow being used for the development phase. As at December 31, 2006, after a distribution of US$10M to the joint-venture participants MDN (30%) and Pangea Goldfields Inc. (70%), mine site cash balance on hand was US$21M.

Ongoing exploration and definition

Initial results of a feasibility study being conducted by the JV Operator for the planning of the underground development have been positive. Additional exploration programs are planned in the upcoming months in order to continue testing the vein at depth and optimize the underground mine plan accordingly.

Additional work is also planned to examine the potential of the West Zone deposit located 5 km west of the current East Zone pit. A development strategy for potentially extending reserves beyond the known East Zone pit is also underway.

In addition to the JV exploration programs at the Tulawaka Gold Mine, MDN has recently started a major exploration program involving over 25,000 metres of drilling within the next twelve months around the Tulawaka Gold Mine, in order to define additional gold mineralization.

Reserves and Resources

Results of the exploration drilling program below the open pit as reported by MDN on January 31, 2007, and initial results of the ongoing feasibility study provided to MDN by the JV Operator for the period ending December 31, 2006, have been used by MDN to present the following revised figures of reserves and resources as at December 31, 2006, on a 100% basis.



-------------------------------------------------------------
Gold
Category Area Tonnes Grade content
(g/t Au) (oz. Au)
-------------------------------------------------------------
Proven reserves Stockpiles 370,644 3.6 43,102
-------------------------------------------------------------
Probable reserves Open pit 589,452 17.3 329,194
-------------------------------------------------------------
Probable Underground
reserves (Ug) 274,928 11.3 99,870
-------------------------------------------------------------
Total reserves 1,235,024 11.9 472,166
-------------------------------------------------------------
Indicated
resources Underground 246,946 17.2 146,788
-------------------------------------------------------------
Grand Total Open pit + Ug 1,481,970 12.99 618,954
-------------------------------------------------------------


From the opening of the Tulawaka Gold Mine in March 2005 and up to December 31, 2006, 917,592 tonnes have been processed at an average grade of 9.4 g/t Au, for a total production of 264,362 ounces of gold. By adding these numbers to the above figure presenting the reserves and resources that have not been produced, the initial forecast of Proven and Probable Mineral Reserves for the East Zone pit (1.4 million tonnes at a grade of 12.19 g/t Au containing 546,000 ounces of gold) will be significantly surpassed.

In addition and as previously mentioned, the JV Operator is currently engaged in a number of ongoing activities to further optimise the mine plan, which may result in a change to the estimated reserves and indicated resources.

MDN has a 30% participating interest in the Tulawaka Gold Mine and Pangea Goldfields Inc., a subsidiary of Barrick Gold Corporation, has a 70% participating interest and is the operator, through its Tanzanian subsidiary, Pangea Minerals Limited. Certain information disclosed in this press release on the Tulawaka Gold Mine is based on factual information provided to MDN by the operator.

MDN is a mining exploration company with its head office in Montreal, Quebec. Its main exploration activities are carried out in Tanzania through its participation in the Tulawaka Gold Mine and a controlling interest in 20 mining permits around Tulawaka.

Contact Information

  • Northern Mining
    Paul-A. Girard
    Executive Chairman
    514-866-6500
    or
    Northern Mining
    Richard Corbo
    Corporate Development
    514-866-6500
    or
    Northern Mining
    Dominique Fournier, Ph.D.
    Vice-President Exploration
    514-866-6500
    info@xnord.com
    www.xnord.com