newsMDN Operations Update: Tulawaka Gold Mine Should Generate US$126M of Gross Revenue
14:35 EDT Wednesday, March 21, 2007
MONTREAL, QUEBEC--(CCNMatthews - March 21, 2007) - MDN NORTHERN MINING ("MDN") (TSX:MDN) is pleased to announce that for fiscal year 2007, the budgeted production at the Tulawaka Gold Mine is 210,000 ounces. Assuming an average sale price of US$600 per ounce, gross revenues should exceed US$126M. It is anticipated that production costs will be around US$220 per ounce and the average grade will be slightly over 15 g/t.
In 2006, Tulawaka gold production amounts to a total of 139,655 ounces, at an average total cash costs of US$279 per ounce. Average gold sales were US$606 per ounce, for gross revenues of US$88.7M. The average grade for 2006 was 9.18 g/t.
------------------------------------------------------------
Operating Summary 2006 Results 2007 Forecast
------------------------------------------------------------
Total Gold Sales 146,493 ounces 210,000 ounces
------------------------------------------------------------
Gold Price US$606 / oz US$600 / oz
------------------------------------------------------------
Total Revenue US$88.7 M US$126 M
------------------------------------------------------------
Net Income US$28.2 M US$58.3 M
------------------------------------------------------------
Tonnes Processed 500,181 438,742
------------------------------------------------------------
Average Head Grade 9.18 g/t 15.65 g/t
------------------------------------------------------------
Recovery 94.7% 94.5%
------------------------------------------------------------
Total Gold Produced 139,655 ounces 210,000 ounces
------------------------------------------------------------
Total Cash Cost US$279 / oz US$220 / oz
------------------------------------------------------------
Cdn$4.3M Investment in Exploration
MDN announces an investment of Cdn$4.3M for its exploration activities during fiscal year 2007, which amount could be increased at any time based on results. Most of the investment will be used for exploration programs in Tanzania (Eastern Africa) and Quebec.
In Tanzania, MDN plans to carry out programs involving at least 25,000 metres of drilling on the main gold discoveries announced previously: Isambara, Viyonza, Msasa, Mnezeki and Isozibi, all located near the Tulawaka Gold Mine. An approximately 2,000 metre drilling program will also define other recently identified targets.
Meanwhile, under the leadership of Dr. Dominique Fournier, MDN has expanded its team by hiring the following people: geologist Laurent Millo, with 15 years of international experience, is in charge of coordinating the work in Tanzania; Dr. Beatrice Angot-Fournier, with 25 years of international experience, is in charge of data and quality control in both Tanzania and Quebec; Tanzanian geologist Rajab Balama, assisted by Tanzanian geologist Hussein Hamis Mzee and geotechnicians George Mwarabu and Ismail Khalifa, will work directly on the field.
In Quebec, an exploration program of approximately $500,000 will be launched during the summer of 2007. Details of this program will be released at a later time,
Exercise of warrants
On March 9, 2007, MDN sent an official notice to the holders of 4,529,750 warrants (the warrants are not traded on the Toronto Stock Exchange), excercising its right to accelerate the expiry date of the warrants to April 10, 2007. The notice gives them 30 days to exercise their right to purchase one common share of MDN for $0.75. If the warrants are fully exercised, MDN will receive approximately $3.4M. So far, MDN has received almost $800,000.
These funds, combined with the strategic investment of GBS Gold International Inc. ("GBS Gold"), will allow MDN to maintain adequate working capital while accelerating its planned growth for the 2007 fiscal year.
MDN has a 30% participating interest in the Tulawaka Gold Mine and Pangea Goldfields, a subsidiary of Barrick Gold Corporation, has a 70% participating interest and is the operator, through its Tanzanian subsidiary, Pangea Minerals. The information disclosed on the Tulawaka Gold Mine was provided 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
NORTHERN MINING EXPLORATIONS LTD.
Paul-A. Girard, Executive Chairman
514-866-6500