Mineral Deposits Limited

Mineral Deposits Limited

June 22, 2010 21:20 ET

Mineral Deposits Limited: High Grade Intercepts Continue at Gora, Including 7 Metres @ 32 g/t

MELBOURNE, AUSTRALIA--(Marketwire - June 22, 2010) - Mineral Deposits Limited (TSX:MDM)(ASX:MDL) is pleased to announce that the last 10 holes in the Phase 1 51-hole reverse circulation (RC) drilling program at the Gora deposit has continued to yield high-grade intercepts, including the best intercept to date of 7 metres @ 32.0 g/t Au from 110 metres depth (including 1 metre @ 181 g/t Au from 114 metres) in hole SKRC044.

Attached is a plan map locating the drill holes SKRC042 to SKRC051 (refer Figure 1) and a table showing the drill results for each hole (refer Table 1). The results of the first 41 holes drilled were previously referred to in the third quarter report released on 30 April 2010 and subsequent announcements on 7 May 2010 and 27 May 2010.

As shown in the attached cross section (refer Figure 2), the results from hole SKRC044 indicate a significant widening of the vein system at depth. With the depth of the drill holes in the Phase 1 program averaging only 123 metres down hole (approximately 90 metres vertically), deeper drilling will be required to test the down dip extensions, all of which remain open.

Other drill results from the final 10 holes include:

  • 2 metres @ 9.0 g/t Au from 77 metres depth (SKRC042);

  • 1 metre @ 9.8 g/t Au from 96 metres (SKRC043); and

  • 1 metre @ 4.2 g/t Au from 82 metres (SKRC050).

Following the conclusion of the highly encouraging Phase 1 drill program, geological modelling and preliminary engineering analysis is being undertaken to better define the next phase of drilling, the purpose of which will be to both extend the resource and determine the potential for near-term open pit mineable mill feed for Sabodala.

The Gora deposit is located approximately 25 kilometres northeast of the Sabodala processing plant within the Sounkounkoun exploration permit in which MDL and AXMIN Inc. are joint venture partners whereby MDL is earning a majority interest and manages the exploration.

About MDL

Mineral Deposits Limited is an ASX and TSX listed mining company with a current focus in Senegal, West Africa through a producing gold mine, the Sabodala Gold Operation, and a to be developed mineral sands project, the Grande Côte Mineral Sands Project.

The Sabodala Gold Operation, which poured its first gold in March 2009, is located 650 kilometres east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 kilometres from major gold mines and discoveries in Mali. The area has only recently been opened for mining and exploration and is emerging as a significant new gold camp, with more than 10M ounces of resources already discovered.

The Grande Côte Mineral Sands Project is located on the coast of Senegal starting approximately 50 kilometres north of Dakar and extending northwards for more than 100 kilometres. The large scale of the ore body and the high quality of the zircon provides the potential to establish an operation of international significance.

Senegal is one of Africa's most successful democracies, having gained independence in 1960. It enjoys a stable and investor friendly political and social environment. The government of the Republic of Senegal is MDL's valued partner and holds a 10% free carried interest in both projects, which will accrue dividends once MDL has recovered its capital invested.

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mineral Deposit Limited's Chief Geologist, Chris Young BSc, who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Young 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 Young has consented to the inclusion of this information in the form and context in which it appears in this announcement.

To view Figure 1: Gora Prospect RC Drill Hole Plan Map, please visit the following link: http://media3.marketwire.com/docs/Im1MDM.pdf.

To view Figure 2: Gora Prospect Cross Section, please visit the following link: http://media3.marketwire.com/docs/MDMfig2.jpg.

Table 1: Gora Prospect RC Drill Hole Details

HOLEID DEPTH Azimuth Dip EAST NORTH Elevation (m)   Intercepts
SKRC042 123 313.8 -51.3 182675 1472126 133   2m @ 9.0 g/t Au from 77 m
SKRC043 123 313.8 -51.3 182668 1472087 135   1m @ 9.8 g/t Au from 96 m
SKRC044 123 312.5 -49.7 182673 1472054 137   7m @ 32 g/t Au from 110 m 
                including 1m @ 181 g/t Au from 114 m
SKRC045 123 312.5 -49.7 182495 1471767 139   No significant results
SKRC046 123 314.9 -49.7 182535 1471938 136   4m @ 0.5 g/t Au from 39 m 
                3m @ 1.9 g/t Au from 82m
SKRC047 123 314.9 -49.7 182254 1471617 138   1m @ 0.9 g/t Au from 46m
SKRC048 123 310 -50 182321 1471653 138   No significant results
SKRC049 123 317.4 -50.9 182376 1471636 138   1m @ 3.7 g/t Au from 53m
SKRC050 123 317.4 -50.9 182458 1471698 139   1m @ 4.2 g/t Au from 82
SKRC051 123 308.7 -50.7 182539 1471800 137   No significant results
Note: Assays are undertaken at the Sabodala SGS laboratory by AAS utilising acid digest. Outside laboratory checks are undertaken by fire assay.

ABN 19 064 377 420

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