MDN Reports its Financial Results for the First Quarter of 2012
MONTREAL, QUEBEC--(Marketwire - May 11, 2012) - MDN Inc. ("MDN") (TSX:MDN) is pleased to announce its financial results for the first quarter ended March 31st, 2012. The interim financial report and management discussion and analysis can be found on Monday May 14th, on the Company's website (www.mdn-mines.com) and on SEDAR (www.sedar.com).
A net loss of $ 1,6 million or $ 0.016 per share was registered for the first quarter of 2012, compared to a net loss of $ 640 000 or 0.006 $ per share for the same period in 2011. The first quarter's net loss is attributable to the write-off of the Msasa exploration asset of $947,000 and no royalties was declared from the Tulawaka mine. As at March 31, 2012, the Company's working capital was $ 8.85 million.
Summary of operating results
For the period ended March 31 2012 2011
(In thousands of dollars, except for
amounts per share)
Total revenues net of financial charges ($ 51) ($ 18)
Administrative expensesWrite-off of $ 894 $ 807
evaluation and exploration assets $ 947 -
Net loss attributable to the
shareholders of the company ($ 1 637) ($ 640)
Basic and diluted net loss per share ($ 0.016) ($ 0.006)
Number of shares outstanding (in
thousands) 101,527 98,444
Total gold production at Tulawaka for the first quarter was 15,963 ounces, compared to 19,616 ounces produced in the same quarter of 2011. Cash costs for the quarter were US$ 902 per ounce sold compared to US$ 738 for the same period in 2011. This unit cash cost increase was mainly due to the increase in open pit mining activity which resulted in increased labour, maintenance and contracted services.
Capital expenditures for the quarter totaled US$ 5.1 million compared to US$ 3.9 million for the same period in 2011. Key capital expenditure items included:
i. Capitalized underground development (US$ 2.4 million); and exploration
expenses (US$ 0.8 million).
ii. Expenditures incurred on the extension of the mine life (US$ 1.7
African Barrick Gold ("ABG") continued its underground exploration program and started the preparation work and development of a second underground portal with the objective, during the fourth quarter, to possibly announce an extension of the mine life beyond 2012.
The current program is targeting high grade mineralized shoots within Zones 500-850 between levels 11 and 15, situated under the current reserves to the east side of the mine. The drill results to date indicate that the mineralization is exhibiting similar characteristics as in the upper levels of the mine.
REF : April 19th 2012 press release
Exploration in Tanzania
A drilling program of 1,431 meters was completed during the first quarter of 2012 and aimed to test two sub parallel trends where high gold values were obtained in grab samples. Assay results confirm the presence of high grade gold mineralization (12,27 g/t Au /4,2 m et 10,87 g/t Au / 4.9m) on the Kezeria Main structure and Kezeria North structure, 500 meters apart and located adjacent or parallel to a quartz feldspath porphyry intrusive with gold-enriched quartz-tourmaline veinlets.
The geological setting enables to trace a certain parallel with the Hollinger, Dome and Pamour gold mines of the Timmins mining camp. REF : March 27th 2012 press release
A descriptive report NI 43-101 on the Ikungu property provides a summary of exploration activities from 2008 to 2012 was filed on SEDAR (www.sedar.com) last March 31.
MDN also acquired ground to the east of its Ikungu property covering a surface area of 133.33 km2 and is wholly-controlled by MDN. A mapping and prospecting program is currently underway. REF : March 14th 2012 press release
Crevier project development
The final report of the pilot plan has been received during the first quarter 2012. As announced previously, the report recommends proceeding with a second pilot test to consolidate the results obtained during the first test. A bidding is currently submitted to two laboratories and we foresee starting the pilot test as soon as the laboratory selection is completed and accordingly to the laboratory schedule.
The leaching program, underway since November 2011, continued for the entire first quarter 2012 to develop the process of recovering the niobium and tantalum oxides contained in a concentrate. To date, test results appear to confirm the assumptions used in the preparation of the Preliminary Economic Assessment and show that there could be an improvement in the parameters used. REF : February 9th 2012 press release
Marc Boisvert, geological engineer, Vice President, Exploration, and a qualified person under National Instrument 43-101 has reviewed the technical and scientific information in this news release.
MDN Inc. (TSX:MDN) is a mining exploration and development company with projects in Quebec and Tanzania. The Tulawaka gold mine is an agreement between MDN (30% participating interest) and Pangea Goldfiels inc. (70%), a subsidiary wholly owned by ABG, whom manages projects through its subsidiary Pangea Minerals Ltd. All information concerning Tulwaka is based on the information provided by ABG. MDN Inc. also owns a 72.5% interest in Crevier Minerals Inc., which possesses a compliant to Canadian standard, NI 43-101 niobium-tantalum resource in the Lac-Saint-Jean area of Quebec.
Web Site: www.mdn-mines.com
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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.