Mineral Deposits Limited

Mineral Deposits Limited

March 18, 2009 20:19 ET

Mineral Deposits Becomes a Gold Producer

MELBOURNE, AUSTRALIA--(Marketwire - March 18, 2009) - MDL (TSX:MDM)(ASX:MDL) is pleased to announce that during the week gold production commenced at the Sabodala plant with the pouring of the first gold dore bars.

The Sabodala plant has commissioned smoothly with no significant issues and is already operating above nameplate capacity. To date, lower grade material has been used during the commissioning phase but, with the satisfactory completion of commissioning now imminent, the plant will begin operating on the normal "run of mine ore" that is currently stockpiled on the ROM pad adjacent to the crusher.

Approximately one million tonnes of ore is stockpiled on the ROM pad and in excess of 80,000 ounces is contained in this material, including some of quite high grade. This ore is currently passing through the plant at rates in excess of the design capacity of two million tonnes per annum and plant performance is very pleasing. Mining of the ore body continues apace and in a routine manner. MDL continues to note significant tonnages of softer oxide ore are being mined over and above expectations.

The company expects to produce approximately 160,000 ounces of gold to 31 December 2009.

MDL has, in a little under four years, moved from the initial drill hole at Sabodala to production of the first gold at a major new production facility, an achievement of which it is very proud.

The board of MDL would like to take this opportunity to thank its dedicated employees who have worked tirelessly, often in very trying circumstances, these past four years to achieve this outstanding result.

It wishes also to extend its appreciation to the Government of Senegal which has worked closely with the company and its local personnel to ensure that this, the first new substantial mining operation in the country for many years, has been realised in a manner of which all Senegalese can be proud.

The company would also like to thank MDL's shareholders who have supported it by virtue of their patience and financial support over the term as it looks forward to a period of strong growth and financial performance to justify their faith in the management of MDL to bring the Sabodala project to fruition.

To view photographs of the gold production, please click on the following link:


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