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Thursday, 01/29/2009 9:04:30 PM

Thursday, January 29, 2009 9:04:30 PM

Post# of 2138
Mineral Deposits (MDM.T, ASX:MDL) to produce in Senegal

Thursday, January 29, 2009
Mineral Deposits ramping up to gold production at Sabodala in Senegal
Mineral Deposits (ASX:MDL/TSX:MDM) has announced the construction of the new two million tonne pe annum carbon-in-leach (CIL) treatment plant at Sabodala in Senegal, west Africa is complete

MDL is pleased to announce that the primary crushing circuit commenced crushing of ore on Tuesday, 27 January 2009 as the first stage of production ramp-up. At present, there is in excess of 600,000 tonnes of predominantly oxide ore containing over 45,000 ounces of gold on the run-of-mine (ROM) pad directly adjacent to the main crushing circuit.

Commissioning of plant equipment is well advanced and on schedule for the first gold pour planned for March 2009. In addition to the above, water systems are 80% commissioned through the plant and the low pressure air system is complete. The SAG and ball mill interlock testing is 100% complete. All nine CIL tank agitators have been run successfully and CIL tanks are being hydraulically tested, prior to leach commissioning.

The power station is providing commissioning power. Within the 30MW power station, there are six engines of which each unit has an operational rating of 5MW. To date, four of the 5MW units have been commissioned. The final unit is likely to be available within a week.

Under normal conditions, Sabodala will require three operating units to provide sufficient power to operate at the nominal throughput of two million tonnes per annum. The plant has been designed to allow for significant capacity increases if required.

Mineral Deposits (ASX:MDL/TSX:MDM)
is a mineral resources company with two mining projects under development in Senegal, as well as a portfolio of quality exploration projects. It is listed on the Australian Securities Exchange and Toronto Stock Exchange.

MDL is building a substantial open pit mining operation at the Sabodala Gold Project. The major engineering program is nearing completion with construction at 87% complete, as at October 2008.

At the Grande Côte Mineral Sands Project, the mining concession was granted in November 2007 and construction planning and detailed engineering has predominantly been completed. Long lead time equipment items, such as the dredge pump, have been fabricated ready for installation in 2009.

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