Mineral Deposits announces three tonnes of gold produced at Sabodala

Wednesday, Aug 26, 2009

Mineral Deposits Limited is pleased to announce that the third tonne of gold, or 96,450 ounces, has been produced from its newly-commissioned Sabodala Gold Mine in Senegal. MDL remains on track to produce 160,000 ounces of gold in calendar 2009.

Equally significant, the treatment plant has processed its one millionth dry tonne of mineralised material at Sabodala. This milestone is equivalent to 2.3 Mtpa and exceeds the nameplate capacity of 2 Mtpa. The management team is to be congratulated on exceeding budget since the commencement of operations in March 2009.

To complement the operating performance, MDL's Lost Time Injury Frequency Rate since start-up remains at zero. This excellent achievement demonstrates that site management has established a very safe operating environment. It reflects the team spirit on site and the company's focus on operational safety and the well being of its local communities.

The Sabodala Gold Mine is operated through Sabodala Gold Operations SA ("SGO") which is 10%-owned by the Government of the Republic of Senegal and 90%-owned by MDL. The Mine is located some 650 kilometres east of the capital Dakar within the Birimian belt and about 90 kilometres from major gold mines and discoveries in Mali. The Sabodala and Niakafiri deposits lie within SGO's 33 square kilometre mining concession.

The information in this report that relates to Exploration Results is based on information compiled by MDL's Mining Operations Manager, Bruce Van Brunt MSc Mining Engineering, who is a member of The Australasian Institute of Mining and Metallurgy and is also a registered professional geologist in the State of Washington, USA. Mr Van Brunt has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken. He is qualified as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and as defined in NI43-101. Mr Van Brunt has consented to the inclusion of this information in the form and context in which it appears in this report.

Source: Marketwire