MDN Inc.
TSX : MDN

MDN Inc.

October 25, 2006 12:17 ET

Northern Mining: Tulawaka Mine Produces 40,642 Ounces of Gold in the Third Quarter of 2006

The total cash cost averaged US$235 to produce an ounce of gold

MONTREAL, QUEBEC--(CCNMatthews - Oct. 25, 2006) - MDN Northern Mining (TSX:MDN) (Minieres du Nord) is pleased to announce that the Tulawaka Mine in Tanzania produced 40,642 ounces of gold during the third quarter ended September 30, 2006. Tulawaka gold production now amounts to 102,699 ounces since January 1st, 2006, and a total of 227,418 ounces since the start of production in March 2005.

During this quarter, the plant facilities processed 138,175 tonnes of ore at an average grade of 9.71 g/t gold at a gold recovery of 94.2%. The total cash costs averaged US$235 to produce an ounce of gold, a significant improvement in comparison with the budgeted amount of US$322.

For the third quarter, 39,299 ounces of gold were sold into the spot market, making a total of 104,587 ounces of gold since the beginning of this year. The average price of the gold sales for this quarter was US$615.31. For the first nine months of 2006, the operating profit was US$26.5 M compared to a budgeted profit of US$6.6 M.

With these excellent results, the Tulawaka Mine distributed an amount of US$10M to the joint-venture participants MDN (30%) and Pangea Goldfields (70%) in the third quarter; MDN's share has been entirely applied to the reduction of its debt. After this cash distribution, the Tulawaka Mine is maintaining cash provisions of US$15.1M, of which US$10M for further development of the Tulawaka project.

The Tulawaka project is a joint-venture between MDN Northern Mining (30%) and Pangea Goldfields (70%), a wholly owned indirect subsidiary of Barrick Gold Corporation and project operator through its Tanzanian subsidiary Pangea Minerals Ltd. The information contained in this press release was provided by the project operator.

Contact Information

  • MDN Northern Mining
    Paul-A. Girard, Chairman of the Board
    514-866-6500
    or
    MDN Northern Mining
    Dominique Moreau, Treasurer
    514-866-6500
    or
    MDN Northern Mining
    Dominique Fournier, Ph.D., VP Exploration
    514-866-6500
    info@xnord.com
    www.xnord.com