nov/dec 2009 exploring for our next gold mine funding a top tier nb/ta mine
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EXPLORING FOR OUR NEXT GOLD MINE FUNDING A TOP TIER Nb/Ta mine
2 TSX: MDN
Cautionary StatementCautionary StatementCautionary StatementCautionary Statement
This presentation contains certain “forward-looking statements”, including, but not limited to, the statements regarding the Company’s strategic plans, its anticipated benefits and the use of proceeds resulting thereof, in particular, future financial results, production targets and timetables, the evolution of mineral reserves and resources, mine operating costs, capital expenditures, work programs, development plans, exploration programs, objectives and budgets, the possible determination of additional reserves, and the Company's eventual success to execute its strategy to focus on building its portfolio of properties. Forward looking statements express, at this date, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in the Company’s Annual Information Form.
3 TSX: MDN
MDN at a glanceMDN at a glanceMDN at a glanceMDN at a glance
A Canadian exploration and development company based in Montreal, listed on the TSX under MDN
Gold producer since 2005 in Tanzania (MDN 30%, Barrick 70%)− 2009 cash flows from Tulawaka gold mine should be about
C$10 million (MDN’s share)
Working capital of C$25 million, profitable and no debt
Actively exploring for gold in Tanzanian world-class district and in Quebec
− 621 sq km in Tanzania around several world class gold mines
Technical exploration and management expertise in financing and building mines with partners
4 TSX: MDN
Strong Financial Position - 2009 ResultsStrong Financial Position - 2009 ResultsStrong Financial Position - 2009 ResultsStrong Financial Position - 2009 Results
Nine-month periodending September 30, 2009
Revenue $7,555,170
Net income $2,685,193
Book value per share $0.49
Cash and cash equivalents $20,412,805
Production (oz)
Tulawaka Production nine-month period (U/G)
74,543
MDN’s 30% share (oz) 22,363
U/G Average grade (g/t) 15.3
Recovery rate 94%
Cash costs/oz US $383
5 TSX: MDN
Recent DevelopmentsRecent DevelopmentsRecent DevelopmentsRecent Developments
Over 728,910 oz of gold produced at Tulawaka gold mine since 2005; going toward 1 Million oz over next few years
Drilling program ongoing in Tanzania since July and until the end of 2009 – preliminary results published on 100% owned Isambara and Ikungu high grade project is currently being drilled
Acquired 28.75 % interest in Anita, a large niobium (Nb) and tantalum (Ta) resource in Quebec
− Right to acquire control interest of up to 75% over next 3 years
− Scoping study started in June 2009 and drilling campaign of 5,500m was initiated
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The Anita projectThe Anita projectGenerate additional near term cash flows Generate additional near term cash flows
from Rare & Strategic Metalsfrom Rare & Strategic Metals
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ANITAPROJECT
Location of Niobium and Tantalum ResourceLocation of Niobium and Tantalum ResourceLocation of Niobium and Tantalum ResourceLocation of Niobium and Tantalum Resource
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A 25.75 million metric tonne resource
Open pit operation currently under study for at least 18 years
More exploration will be on the deposit’s southern and northern extensions to expand the resource
Proposed annual targeted output of the mine is:
− 1.2 million kg of Niobium oxide (Nb2O5) at US$ 45 per kg
− 115,000 kg of Tantalum oxide / K-salt (Ta2O5/TaK2F7) at US$ 150 per kg
Investment HighlightsInvestment Highlights
Resources Depth M tonnes Ta2O5 g/t Nb2O5 g/t Ta2O5 Kg Nb2O5 Kg
Indicated* 0-250 m 25.75 199 1,860 5,124,250 47,895,000
Inferred* 250-350 m 16.88 204 1,620 3,443,520 27,345,600
*Cut-off grade of 1,000 g/t Nb included as reported by SGS Geostat – April 6th 2009
9 TSX: MDN
The Demand for Niobium & TantalumThe Demand for Niobium & TantalumThe Demand for Niobium & TantalumThe Demand for Niobium & Tantalum
The unique properties of these rare and strategic metals are very useful in superalloys (Nb) and tantalum condensers (Ta)
Industrial applications include: − Aerospace− Aeronautics− Steel manufacturing− Nuclear plant processing − Equipment manufacturing such as turbine blades, engines etc.
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The current shareholders
28.75% MDN Inc
37.5% IAMGOLD Inc
33.75% private investors
The asset
100% of Nb-Ta deposit
No Royalty
Very good location in Québec, Canada
Road, water, power, and labour access
The funding: a total of $13.5 million over the next few years
− to develop the feasibility study of the resource and to give MDN rights to acquire up to 75% of equity in the project
Corporate Profile of AnitaCorporate Profile of AnitaCorporate Profile of AnitaCorporate Profile of Anita
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We have the team in place to complete the feasibility of the project
− Feasibility and technical studies underway with a completion target of 2011
− Roskill confirms advantages of the project and the high probability of success
We have an off-take agreement with IAMGOLD, the 3rd largest producer of ferro-niobium in the world
− All of our niobium oxide production could be, if needed, purchased by IAMGOLD for the life of the mine, for the production of ferro-niobium
Anita – The next Nb / Ta ProducerAnita – The next Nb / Ta Producer
12 TSX: MDN
MDNMDN in Tanzaniain Tanzania
13 TSX: MDN
Tanzania is Africa’s 3rd largest gold producer Tanzania is Africa’s 3rd largest gold producer hosting World-Class Gold Depositshosting World-Class Gold DepositsTanzania is Africa’s 3rd largest gold producer Tanzania is Africa’s 3rd largest gold producer hosting World-Class Gold Depositshosting World-Class Gold Deposits
Tanzania produced more than one million ounces from Geita, Bulyanhulu & other mines in 2008
In May 2009 Barrick started the Buzwagi Mine (3.3 million ounces reserves)
Geita Mine>10 M oz Au
Bulyanhulu Mine> 10 M oz Au
Tulawaka Mine> 0.7M oz Au
Buzwagi Mine3.3 M oz Au reserves
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MDN controls 621 km2 area around the MDN controls 621 km2 area around the Tulawaka Gold Mine Tulawaka Gold Mine MDN controls 621 km2 area around the MDN controls 621 km2 area around the Tulawaka Gold Mine Tulawaka Gold Mine
Geita Mine>10 M oz. Au
Bulyanhulu > 10 M oz Au
Tulawaka> 0.7M oz Au
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Tulawaka Longitudinal MapTulawaka Longitudinal Map
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Focusing in Tulawaka Gold Mine districtFocusing in Tulawaka Gold Mine districtAn area barely explored due to sand coverAn area barely explored due to sand coverFocusing in Tulawaka Gold Mine districtFocusing in Tulawaka Gold Mine districtAn area barely explored due to sand coverAn area barely explored due to sand cover
Tulawaka Mine> 0.7 M oz Au
Buck Reef1.8 M oz Au
Geita Mine> 10 M oz Au
Bulyanhulu mine>10 M oz Au
Isambara
50 km
Viyonza
Mnekezi
Msasa
Isozibi
Lake Victoria GeologyBarth 1990Volcanics Granites
Bukoban Sediments& sand cover
Gold Showings
17 TSX: MDN
Exploring western extension of 2 volcanic belts Exploring western extension of 2 volcanic belts hosting World-Class Gold Mineshosting World-Class Gold MinesExploring western extension of 2 volcanic belts Exploring western extension of 2 volcanic belts hosting World-Class Gold Mineshosting World-Class Gold Mines
Isambara
Viyonza
Mnekezi
Isozibi
Tulawaka Mine> 0.7M oz Au
Buck Reef1.8 M oz Au
Geita Mine> 10 M oz Au
Msasa
Bulyanhulu Mine>10 M oz Au
Lake Victoria GeologyBarth 1990
Airborne Calculated Resistivity (2004)
High Resistivity
Low Resistivity
Granite
Volcanics
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Isambara 5 km strike length gold soil anomalyIsambara 5 km strike length gold soil anomaly70 km west of Geita Mine (>10 M ounces gold)70 km west of Geita Mine (>10 M ounces gold)Isambara 5 km strike length gold soil anomalyIsambara 5 km strike length gold soil anomaly70 km west of Geita Mine (>10 M ounces gold)70 km west of Geita Mine (>10 M ounces gold)
North Zone
Central Zone
South Zone
Exploration Program (2009-2010)
1.Drilling Phase 1 testing South zone2.Soil Detail survey over Central & North Zone3.Drilling phase 2 testing Central & North Zone4.Drilling Phase 3 follow-up on best drill results
Soil SurveyPercentile Contour
Gold
>70%
> 90%
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Isambara - South zoneIsambara - South zonePhase 1 drillingPhase 1 drillingIsambara - South zoneIsambara - South zonePhase 1 drillingPhase 1 drilling
300 m
Drill section
Sect
ion
1015
NW
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140 m
8.35 g/t Au / 0.5m
9,13 g/t Au / 1.0m
3.85 g/t Au / 1.0m
7.66 g/t Au / 1,0m
1 200m
1 100m
ISSDD 32ISDD 33
ISDD-33: 153 m @ 0,31 g/t AuISDD-32: 84 m @ 0,33 g/t Au
> 5.0 g/t Au
0.2 to 0.5/t Au
0.5 to 2.0 g/t Au
2.0 to 5.0 g/t Au
0.1 to 0.2/t Au
Isambara - Drill section 1015 NWIsambara - Drill section 1015 NWIsambara - Drill section 1015 NWIsambara - Drill section 1015 NW
21 TSX: MDNRobert et Al. 2007, Exploration 07
Robert et Al. 2007, Exploration 07
Isambara - Proposed ModelIsambara - Proposed ModelIsambara - Proposed ModelIsambara - Proposed Model
22 TSX: MDN
Ikungu Ikungu Same geo environment as Kiabakari - Same geo environment as Kiabakari - BuhembaBuhemba
Ikungu Ikungu Same geo environment as Kiabakari - Same geo environment as Kiabakari - BuhembaBuhemba
100 km
Au-Cu
Ikungu
Musoma
Mwanza
KiabakariBuhemba
Au - Cu
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1 km
Background Map 1st derivative Airborne Mag
70.1 g/t Au
56.8 g/t Au
35.9 g/t Au
12.0 g/t Au
Grab Sample Location
High grade gold values confirmed by MDN
Extensions of high grade indicated by gold soil anomalies
2 parallel gold reefs HW & FW at contact of volcanic and sediments
HW
FW
FW
HW
NW
Stru
cture
Drill Phase 1 Testing high grade extensions of 2 Reefs
Drill Phase 2Testing other soil anomalies along NW Structure
Soil Detail of SW structure
Drill Phase 3Drill Follow-up on best zones
Proposed Drill Holes
Ikungu Drilling Program (Q3/Q4 2009 - 2010)Ikungu Drilling Program (Q3/Q4 2009 - 2010)Ikungu Drilling Program (Q3/Q4 2009 - 2010)Ikungu Drilling Program (Q3/Q4 2009 - 2010)
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Exploration Program in TanzaniaExploration Program in Tanzania$1.5 to 3 million in Q3/Q4 2009$1.5 to 3 million in Q3/Q4 2009Exploration Program in TanzaniaExploration Program in Tanzania$1.5 to 3 million in Q3/Q4 2009$1.5 to 3 million in Q3/Q4 2009
Isambara: A 5 km anomaly on extension of the same volcanic belt as Geita (>10 million oz Au) − Phase 1 drilling of 2,500 m started in July to confirm
grade and thickness of South zone− Soil sampling program extensions on Central and
North zones− News flow from drilling results to be released by
December 2009
Ikungu: Quartz veins with sulphides− Phase I drilling following up on high grade values
obtained from grab samples (35 to 70 g/t Au)
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Msasa: 2nd largest gold soil anomaly in a 50 km radius around Tulawaka mine− 1.5 km strike length− Project preparation to advance to Phase I drilling in
2010
Viyonza: Part of the volcanic belt hosting Bulyanhulu (>10 million oz Au)− 600 m strike length area where drill results have intervals
with > 10g/t Au− Project preparation to advance to Phase I drilling in 2010
Exploration Program in TanzaniaExploration Program in Tanzania$1.5 to 3 million in Q3/Q4 2009 (cont’d)$1.5 to 3 million in Q3/Q4 2009 (cont’d)Exploration Program in TanzaniaExploration Program in Tanzania$1.5 to 3 million in Q3/Q4 2009 (cont’d)$1.5 to 3 million in Q3/Q4 2009 (cont’d)
26 TSX: MDN
Key FactsKey FactsKey FactsKey Facts
Shares outstanding (fully diluted) 98.9M
52 week trading range $0.42-0.85
Recent trading price $0.60
Market capitalization $60M
2008 Net income $22.1M
Cash position* $20.4M
*As of September 30, 2009
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ContactsContacts
Paul-A. Girard, President & CEOPaul-A. Girard, President & [email protected]@mdn-mines.com
Marc Boisvert, VP ExplorationMarc Boisvert, VP [email protected]@mdn-mines.com
Nicole Blanchard, Investor relationsNicole Blanchard, Investor relations450.973.6600 450.973.6600 [email protected]@isuncomm.com
Suite 680 – Place du CanadaSuite 680 – Place du Canada1010 de la Gauchetière West1010 de la Gauchetière WestMontreal, QuebecMontreal, Quebec
(514) 866-6500(514) 866-6500
www.mdn-mines.comwww.mdn-mines.com
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