About MDN
A portfolio of gold assets
With the strength of a new team and a clear mission, MDN focused its efforts on adding value to its gold portfolio. MDN`s management reviewed numerous gold projects in Tanzania, Africa and in Quebec in order to broaden the scope of its assets and strengthen its position through joint ventures or acquisitions.
Once again this year, the Tulawaka mine partially renewed its gold reserves and substantially increased its mineral resources. We remain confident that the Tulawaka property has the potential for the discovery of additional ounces of gold, and that its importance can only be determined by further underground workings and drilling, now underway.
MDN continued to explore in Tanzania throughout 2010, on theproperties we control around the Tulawaka mine and at Ikungu. In 2010, we carried out two drilling programs on the Ikungu property that enabled us to better define the potential of this property. We plan to continue this exploration in the first half of 2011, while assessing the possibilities of a strategic partnership to share the exploration expenses and outline an initial gold resource in the area. We already view the Ikungu property development as a success story for our exploration team, and a major gold discovery.
Over the past few years, MDN has acquired properties that have placed us in an enviable strategic position in Tanzania. Our goal is to continue to enhance the value of these properties for our shareholders.
An advanced development project in Quebec
MDN remains first and foremost a gold exploration company. However, 2010 marked a new stage in our development, with increased investment in the Crevier project, an advanced niobiumtantalum project in the Lac-Saint-Jean region of Quebec.
Following the completion of a Preliminary Economic Assessment for the Crevier project in January 2010, MDN boosted its ownership to 67.5%. We still share the joint venture project with IAMGOLD, which owns 32.5%. The feasibility study currently underway continues to demonstrate the project’s strong economics. The results of drilling in 2009, which were not included in the Preliminary Economic Assessment, showed a significant increase in niobium and tantalum grades for the Crevier deposit, thus improving the economic value of the mineralization. Furthermore, in the current economic climate, the project is the beneficiary of a substantial increase in tantalum and niobium demand and value on world markets.
This feasibility study conducted throughout 2010 culminated in March 2011 with pilot plant testing of a significant quantity of mineralization from the Crevier orebody. This pilot plant work was needed to finalize the metallurgy tests, the design of the niobium and tantalum recovery circuit and to complete the economic assessment for the project in the coming months.
The Crevier project will require major injections of capital for its development and construction. We expect this to be achieved in collaboration with strategic partners who will help us develop the property and mine the deposit.
A new organizational structure that will enable MDN to spin out the Crevier project from its other gold assets is currently being developed. We believe this new structure will once again make MDN a company fully devoted to the development of its gold assets, as well as improving its position in the financial markets and facilitating the
development of the Crevier project. This new organizational structure is being developed in parallel with the search for new gold assets to enhance the total value of MDN’s portfolio.
Following the completion, in January 2011, of the second tranche of investment in exploration at the Crevier project for an amount of $2 million, the Company signified during the quarter to IAMGOLD their intention to exercise their option to acquire an additional 5% interest in Crevier Minerals Inc. for an amount of $615,000 in exchange of MDN’s treasury common shares. Following this investment, MDN’s equity stake in the project is now 72.5% and IAMGOLD’s share is now 27.5%.
With over $10 million in its treasury, its development status in Tanzania and the rising value of the Crevier project, MDN is well placed to pursue the strategic development of its mining assets.
Serge Bureau, P.Eng.
President and Chief Executive Officer
March 22, 2011