Gora deposit in Senegal returns high-grade for Mineral Deposits

Drilling at Mineral Deposits‘ (mdm-t, mdl-a) Gora deposit in Senegal has yielded the best intercept to date — 7 metres grading 32 grams gold from 110 metres depth, including 1 metre of 181 grams gold from 114 metres in hole 44.

The results come from the last ten holes of the first phase, 51-hole reverse circulation drill program. Other highlights include 2 metres grading 9 grams gold from 77 metres in hole 42; 1 metre of 9.8 grams gold from 96 metres in hole 43; and 1 metre averaging 4.2 grams gold from 82 metres in hole 50.

Drilling in Phase 1 reached an average depth of 123 metres down hole or about 90 metres vertically, and deeper drilling will be necessary to test the down dip extensions, all of which remain open.

Now the company is embarking on geological modeling and preliminary engineering to outline the next phase of drilling with the aim of extending the resource as well as determining the potential for near-term open-pit mineable mill feed for Sabodala.

Gora is about 25 km northeast of the Sabodala processing plant and the Sabodala gold operation, which poured its first gold in March 2009. At current reserves, the mine is expected to have a lifespan of about ten years and this year Mineral Deposits forecasts the mine will produce 170,000-180,000 oz. gold.

Sabodala lies within the Sounkounkoun exploration permit in which Mineral Deposits and Axmin (xxxx) are joint venture partners. MDL is earning a majority interest and manages the exploration. The Sabodala deposit will be mined over three phases by conventional open-pit methods.

The operation is 650 km east of the capital Dakar within the West African Birimian geological belt in Senegal, and about 90 km from major
gold mines and discoveries in Mali.

The area has recently been opened for mining and exploration and is emerging as a significant new gold camp, with more than 10 million ounces of resources already discovered.

In addition to the Sabodala gold operation, Mineral Deposits is developing a mineral sands project . The Grande Cote mineral sands project is on the coast of Senegal, starting about 50 km north of Dakar and extending northwards for more than 100 km. The mineralized dune system averages 2 km in width. The company estimates the project will have a mine life of “several decades.”

The government of Senegal is a partner and holds a 10% free carried interest in both projects. Dividends will be paid as soon as Mineral Deposits recovers its invested capital.

Senegal gained independence in 1960 and is one of Africa’s most successful democracies.

In early afternoon trading in Toronto, Mineral Deposits was trading up 2¢ or 2.6% at 80¢ per share. The junior has a 52-week trading range of 53¢-$1.10 per share and has 573.6 million shares outstanding.