MDN Inc.: Tulawaka Mine Produces 67,032 Ounces of Gold During the Second Quarter of 2008
MONTREAL, QUEBEC–(Marketwire – July 16, 2008) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to announce that the Tulawaka Gold Mine in Tanzania produced 67,032 ounces of gold during the second quarter ended June 30, 2008, compared to 62,085 ounces for the previous quarter. Tulawaka gold production now amounts to 572,103 ounces since the beginning of operations in March 2005.
For the second quarter, 70,053 ounces of gold were sold into the spot market at an average price of US$898 for total sales of US$62.9M. Since the beginning of operations in March 2005, a total of 554,980 ounces of gold were sold.
During the second quarter, the plant facilities processed 93,988 tonnes of ore at an average grade of 23.0 g/t gold and at a gold recovery rate of 96.5%. Total cash costs averaged US$180 to produce an ounce of gold during this quarter.
Paul-A. Girard, the President and CEO of MDN stated: “We are pleased with the production results of the quarter, as the production surplus achieved in the first half of the year will allow the Tulawaka Gold Mine to offset expected lower output over the next six months, while the transfer of operations from an open pit to an underground mine operation are in progress and thereby meet the planned production guidance for the year”.
2008 year to date production results
For the first six months of the year 2008, the plant facilities processed 181,586 tonnes of ore at an average grade of 23,1 g/t gold and at an average recovery rate of 95,5%, for a production of 129,113 ounces of gold. Total cash costs averaged US$180 to produce an ounce of gold during this period.
For the six months period, a total of 121,816 ounces of gold were sold at the spot market at an average price of US$907 for total incomes of US$110.5M.
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. The information disclosed on the Tulawaka Gold Mine is based on information provided 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 through gold and base metal interests and in Tanzania through a majority interest in 28 adjacent mineral licenses in addition to a 30% participation interest in the Tulawaka Gold Mine.
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