Results: Tulawaka
Underground Exploration
The results of 2010 drilling at Tulawaka East confirmed the lateral and depth extensions of the high-grade mineralized zones and resulted in renewal of reserves mined in 2010 and a significant increase in the mineral resource below the 7th level (185 metres below surface). Reserves stood at 96,000 ounces compared to 134,000 ounces for a 72% renewal rate, and the resource grew by 180% from 46,000 to 129,000 ounces. On the strength of these exploration results, the operator announced the extension of the Tulawaka mine life and the transition to development in 2011. For 2011, efforts will continue to focus on resource development at depth, between levels 10 and 15.
MDN considers that, as of 2011, the mine has the potential to supply 250,000 tonnes of ore per year to the mill at a grade of 6.5 g/t, similar to the current grade (assuming conversion of the current resource into reserves).
Surface Exploration
The Tulawaka West zone appears to consist of mineralization 1 to 8 metres thick made up of a network of quartz and carbonate schist veins. This stockwork occurs in a mafic sediment, in a moderately to strongly foliated metagabbro and an arsenopyrite-rich pegmatite.
At Tulawaka West, the results of 69 diamond drill holes and 817 RC holes have outlined an indicated resource of 213,000 tonnes grading 4.24 g/t Au, for a total of 29,000 ounces of gold (Edison Investment Research, March 2011). The resource model remains open to the east and at depth.
There is also exploration potential between the Tulawaka West zone and the mine-out Tulawaka East pit. This area remains structurally complex due to the presence of faults and late dolerite dykes.
The technical and scientific information contained in this document has been reviewed by Marc Boisvert, engineering geologist and Vice President, Exploration, who is a qualified person under National Instrument 43-101.