MDN Announces Tulawaka Year-End 2012 Operational Results

MDN Announces Tulawaka Year-End 2012 Operational Results 
MONTREAL, QUEBEC -- (Marketwire) -- 02/13/13 -- MDN Inc. ("MDN")
(TSX:MDN) notifies its shareholders that African Barrick Gold plc
(ABG), the project operator of the Tulawaka gold mine in Tanzania in
which MDN has a 30% participating interest, announced fourth quarter
and annual operational results.  
ABG have successfully extended the life of this operation
consistently in the last three years; however as part of ABG
Operational Review, ABG have taken the decision not to further extend
the mine life beyond the middle of 2013. ABG are currently starting
to implement a closure plan for the operation. Therefore in 2013, ABG
will focus on the progression of closure planning. Options for
divestment will also be considered.  
"In spite of the closing of Tulawaka Mine, MDN with $3.5 million
working capital, plus its valuable Crevier Nb - Ta deposit and
quality projects in Tanzania, MDN have a good base to continue to
persist and to develop the value of the company in the following
years compared to several peers in the current condition market" said
Marc Boisvert President & CEO of MDN. 
Tulawaka is becoming a historical successful story for a junior
mining company as MDN. MDN succeeded to finance the Tulawaka
construction during an era of low gold price and kept going at the
rapid building pace by a major gold producer to succeed the opening
in March 2005. In less than 3 years, MDN succeeded to reduce its debt
obligation and started to accumulate profit from the production at
Tulawaka mine. Funds permitted MDN to increase it land package in
Tanzania and to develop quality exploration projects. Today, Ikungu
is an advance drill project with a mineral gold zone. It is one of
the most advance project in Tanzania with blue sky potential not
under control of a major company. At Ikungu East, MDN acquired the
control over 15 km strike length of a volcanic belt not observed
until this day. At Nikonga, MDN did a drill discovery with NKD-02
drill hole intersecting 12.3 g/t Au over 4.26 m (PR March 27, 2012)
and finally the Isambara project with the potential for bulk mining
mineralization style.  
In parallel, it permitted a strategic investment in 2009 where MDN
acquired control in a Niobium - tantalum deposit located in Quebec
Canada which is taking value with the feasibility in progress and
increasing price and demand of Tantalum metal. This strategic
investment was implemented as an alternative and anticipation of the
Tulawaka mine aging. Crevier deposit is expected to bring future
revenue to MDN. Progress are made to become one of the most secure
and reliable supply of Tantalum in a near future.  
Operating performance (reflected as 100 %)  
The total mine gold production for the year was 44,338 ounces
compared to the 84,101 ounces achieved in 2011. The decreased gold
production level resulted from lower mined grade from underground
stopes and the application of batch milling in order to drive plant
efficiencies. Gold ounces sold were broadly in line with production.  
Cash costs for the year were US$1,269 per ounce sold compared to
US$727 in the prior year. This cost increase was mainly due to the
lower production base and the impact of lower capitalised mining.
These were slightly offset by lower sales related costs due to lower
sales ounces. 
Cash costs per tonne milled increased to US$219 in 2012 from US$146
in 2011, primarily as a result of a lower mill throughput due to the
batch milling campaign.  
Capital expenditure for the year of US$24.6 million was 22% lower
than the prior year of US$31.7 million. Key capital expenditure
included capitalised exploration drilling and underground development
costs (US$10.2 million) as we tested the potential to extend the mine
life and infrastructure investments into the tailings storage
facility, security and accommodation (US$4.2 million) which will form
part of the closure plan. Included in capital expenditure is a
non-cash reclamation adjustment which amounted to US$1.3 million. 
Impairment charges  
During Q4 2012, impairment charges of US$44.5 million were recorded
against Tulawaka by ABG. This impairment for ABG will not affect
MDN's financial reporting. The agreement between MDN and ABG is
related only to the liquidity available at end of the periods.  
Reserves and Resources 


 
                                  2012                       2011           
                      ------------------------------------------------------
                                   Grade                      Grade         
                         Tonnes       Au   Ounces   Tonnes       Au   Ounces
                        (000's)    (g/t)  (000's)  (000's)    (g/t)  (000's)
                                                                            
Reserve - Proven and                                                        
 probable                    41    16.81       22      237    12.02       91
                                                                            
Resources Indicated         947     6.58      200      876     5.46      154
Resources Inferred          184     4.67       27      166     5.72       30

 
ABG Qualification 
Mineral reserves and mineral resources estimates contained in this
report have been calculated as at 31 December 2012 in accordance with
National Instrument 43-101 as required by Canadian securities
regulatory authorities, unless otherwise stated. Canadian Institute
of Mining, Metallurgy and Petroleum (CIM) definitions were followed
for mineral reserves and resources. Calculations have been reviewed,
verified (including estimation methodology, sampling, analytical and
test data) and compiled by ABG personnel under the supervision of ABG
Qualified Persons: Nic Schoeman, Director Operations Support, Eric
Acheampong, Corporate Manager, Geology and Samuel Eshun, Corporate
Manager, Mine Planning. However, the figures stated are estimates and
no assurances can be given that the indicated quantities of metal
will be produced. In addition, totals stated may not add up due to
rounding. 
The Tulawaka project is a contractual joint-venture between MDN (30%
participating interest) and Pangea Goldfields Inc. (70% participating
interest), a wholly owned indirect subsidiary of African Barrick Gold
plc and project operator and owner through its subsidiary Pangea
Minerals Ltd. The information disclosed on the Tulawaka Gold Mine is
based on information provided by the Operator.  
Marc Boisvert, President & CEO is a Qualified Person under NI 43-101
and has reviewed the technical and scientific information in this
press release. 
About MDN 
MDN Inc. (TSX:MDN) is mining exploration and development company with
properties in Quebec and Tanzania. MDN has a 30% working interest in
the Tulawaka producing gold mine in Tanzania, along with many other
promising gold exploration projects. In Quebec, MDN has a 72.5%
interest in Crevier Minerals Inc., which owns an NI 43-101
niobium-tantalum resource that is presently the subject of a
feasibility study. 
Website: http://www.mdn-mines.com/en/ 
Forward-Looking Statements 
Other than statements of historical fact, all statements in this
release that address events or developments that the Company expects
to occur are forward-looking statements. Although the Company
believes that 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 the 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 as such, the forward-looking statements
in this press release should not be unduly relied upon. These
statements speak only as of the date of this press release. 
Follow us on Twitter: http://twitter.com/MDN_INC 
RSS: http://www.mdn-mines.com/en/rss/
Contacts:
Marc Boisvert, P. Eng.
President and Chief Executive Officer
MDN Inc.
514 866-6500, Ext 221
mboisvert@mdn-mines.com
 
 
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