MDN Inc.: Net Income of $1,153,330 or $0.012 Per Share
13 Agosto 2009 - 4:30PM
Marketwired Canada
MDN inc. ("MDN") (TSX:MDN) today filed its interim financial statements for the
three-month period ended June 30, 2009. The Management and Discussion Analysis
as well as the interim financial statements are available on the Company's web
site at www.mdn-mines.com and on SEDAR (www.sedar.com).
SECOND QUARTER 2009 HIGHLIGHTS
- Revenue of $2,849,265 compared with $8,385,228 for the same period in 2008.
- Net income of $1,153,330 or $0.012 per share compared to $6,645,689 or $0.073
per share for the same period in 2008.
- The Tulawaka gold mine in Tanzania produced 24,561 ounces of gold with an
average grade of 7.5 g/t at a recovery rate of 94.5%. MDN's 30% ownership
interest in the Tulawaka gold mine gives it a pro-rata share equal to 7,368
ounces of gold.
- The total cash costs to produce an ounce of gold in the quarter were US$363.
- The Tulawaka gold mine sold 22,536 ounces of gold on the spot market at an
average price of US$922 per ounce, generating gross income of US$20.8M. The MDN
share (30%) is equal to 6,760 ounces of gold sold, for a gross income equal to
US$6.2M.
- Closing of an investment transaction, on June 2, 2009, with the shareholders
of Les Mineraux Crevier Inc. ("MCI"), including its main shareholder IAMGOLD
Corporation ("IAMGOLD" or "IMG"), for the acquisition of 28.75% of the shares of
MCI as well as the entire $1.5 million in convertible debentures, for a total
amount of $2,325,000. The transaction provides to MDN the right to acquire up to
75% of the shares of MCI, over a maximum period of three years, in return for
funding the development and feasibility study of a 43-101 compliant niobium and
tantalum resource (the "Resource"), located in Quebec's Lac St-Jean Region.
- The MCI in situ Resource amounts to 47,895,000 kg of niobium oxide and
5,124,250 kg of tantalum oxide in the indicated category as well as 27,345,600
kg of niobium oxide and 3,443,520 kg of tantalum oxide in the inferred category
(see table below).
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Millions
de tonnes
43-101Values metriques Ta2O5 g/t Nb2O5 g/t Ta2O5 kg Nb2O5 kg
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Indicated(i) 25.75 199 1,860 5,124,250 47,895,000
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Inferred(i) 16.88 204 1,620 3,443,520 27,345,600
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(i) Cut-off grade of 1,000 g/t Nb2O5 included
- As of May 25, 2009, and in compliance with regulatory authorities, MDN has
posted on SEDAR (www.sedar.com) the 43-101 report on the Resource.
- Appointment on April 22, 2009, of Mr. Paul Gobeil on MDN'S Board of Directors.
Paul Gobeil, F.C.A. is a recognized member of both Quebec and the international
business communities. He is presently a Board member of the National Bank of
Canada and acts as President of the Auditing and Risk Management Committee. He
also serves on many other Boards including those of Metro, Diagnocure, Yellow
Pages Income Fund, Munich Reinsurance Company of Canada, as well as several
educational, cultural and charitable organizations.
- Following the notice of intent to proceed with a normal course issuer bid
filed on March 24, 2009, with the Toronto Stock Exchange, the Company has
purchased 116,500 shares at an average cost of $0.73 per share for a total
amount of $85,495 during the second quarter.
SUMMARY OF OPERATING RESULTS
For the three months ended June 30, 2009 2009 2008
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(In thousands of dollars, except for amounts per share)
Revenue $2,849 $8,385
Administrative expenses $871 $886
Gold price royalties $0 $950
Foreign exchange gain (loss) ($200) ($96)
Net income (loss) $1,153 $6,646
Basic and diluted net earnings (loss) per share $0.012 $0.073
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Weighted-average number of shares outstanding (in
thousands) 95,277 90,005
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SUMMARY OF THE OPERATIONAL RESULTS OF THE GOLD MINE TULAWAKA
For the three months ended June 30, 2009 100% 30%(MDN)
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Gold production (oz) 24,561 7,368
Gold sales (oz) 22,536 6,760
Average sale price / oz ($ US) 922 922
Total revenue (in millions of $ US) 20.8 6.2
Production cost / oz ($ US) 363 363
EXPLORATION ACTIVITIES
Tanzania
- A MMI (Mobil Metal Ion) soil sampling program, successfully conducted in April
2009, on the Isambara project, confirms the geological model previously advanced
(see March 19, 2009 press release) with respect to the geometry of the
gold-bearing structures, the apparent left-hand displacement of each of the
structures, and the presence of numerous parallel gold- bearing structures.
- The Southern Area can now be described as a series of parallel gold-bearing
structures extending over a strike length of 1.3 km and having significant
lateral extensions. To date, these numerous structures have only been partially
drill tested.
- The circumstances leading to a systematic drilling approach are the following:
- the high gold-bearing values obtained in the soil sampling coincide
with the surface projected mineralization transected by the drilling;
- the north-west orientation of the gold-bearing structures is
confirmed;
- the eastern and western sides of the Southern Area form part of the
same gold-bearing horizon, but are displaced by north-east oriented
faults or dykes;
- several extensions of the gold-bearing structures have apparently
undergone little or no drill testing;
- the strike length of the Southern Area has been extended from 800
meters to 1.3 kilometers;
- several of the gold-bearing structures appear in a parallel formation;
- a new structure has been discovered at the north end of the Southern
Area, where two drill tests previously yielded values of 10.51 g/t of
gold over 2 meters (RC233) and 9.45 g/t of gold over 1 meter (RC234).
- With these new encouraging data, a drill program has been undertaken at the
beginning of July in the Southern Area, while two other MMI soil sampling
programs are conducted in the Central and Northern Areas with a view to defining
additional drilling targets.
- The Isambara Project is characterized by a soil anomaly with a strike length
of 5 kilometers divided into three areas (South, Central and North). To date,
the main focus has been on the Southern Area in terms of drilling and analysis
due to the ease of conducting all the preliminary work for the next drilling.
- At the heart of the Southern Area are two structures which have been shown to
contain the highest gold-bearing values, although they have barely been tested
below a vertical depth of 40 meters. In fact, based on all the drilling data
obtained to date for the Isambara Project, the highest gold-bearing values
actually appear to be located below the vertical depth of 40 meters.
- In the MMI survey, 528 soil samples were obtained, including 26 blank samples
to check field and laboratory procedures. Samples were taken every 25 meters
along 12 lines spaced 100 to 800 meters apart across the gold-bearing structures
of the Southern Area. The samples were prepared in the SGS laboratories in
Mwanza, Tanzania, and shipped to the SGS Laboratory in Toronto, Canada, for
analysis of the gold and 45 other elements using the MMI procedure.
- Concerning the Ikungu project, geochemical soil surveys with 800 meters space
lines have been completed in order to cover the entire property and the results
will be announced shortly. MMI detailed soil sampling will also be undertaken in
order to better define the extension of the drilling targets already identified.
A first phase of drilling will begin following the drilling works on Isambara
for the targets previously selected and a second phase will follow once the MMI
detailed soil sampling is completed.
Quebec
- The mining exploration properties held in Quebec have been the subject of
detailed analysis over the last few months. A strategy involving analysis and
establishing the goals that are to be met was instituted aiming at maximising
the value of the portfolio.
- The acquisition of the niobium and tantalum project, will now be on is
promoted under the name of Anita Project, will be MDN's priority in the upcoming
months for the geology and metallurgy aspects, as well as its positioning
towards the markets.
"The second quarter's achievements are encouraging, especially the compilation
of the Isambara and Ikungu geological results in Tanzania" said Paul-A. Girard,
MDN's President and Chief Executive Officer. "Furthermore, as the underground
development at the Tulawaka Mine advances, the likelihood of further gold
production and continued profitability at the mine becomes enhanced. Also, in
Quebec, our recent investment in the niobium and tantalum project is quickly
becoming an integral part of core assets, and an additional source of revenue
for MDN."
The technical and scientific information in this press release was reviewed by
Marc Boisvert, geological engineer and Vice-President Exploration, acting as the
qualified person pursuant to National Instrument 43-101.
Forward Looking Statements
All statements in this release, other than statements of historical fact, that
address events or developments that the Company expects to occur, are forward
looking statements. Although the Company believes 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 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 such forward-looking statements included in this press release should not be
unduly relied upon. These statements speak only as of the date of this press
release.
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