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Mineral Deposits Limited-Sabodala Gold Project-Underground Reserves Potential

Posted on: Friday, 18 January 2008, 09:00 CST

Mineral Deposits Limited (TSX: MDM)(ASX: MDL) -

The current open pit is designed to a vertical depth of 210 metres. It is estimated that the area beyond the present open pit design contains 1.7 million tonnes of undiluted Measured and Indicated resources averaging 4.7g/t gold above a 3.0g/t cut-off grade (see Figure 1). Collectively, the potential underground zones are estimated to contain about 265,000 ounces of gold. Most of this resource is immediately adjacent to the open pit in a sphere of some 0-200 metres from the pit perimeter, and most zones are still open for drilling (see Figure 2). This underground potential was included in the company's recent announcement of 2.74 million ounces of gold resources for the Sabodala Gold Project.

The structurally controlled mineralisation at the Sabodala deposit remains open at depth towards the northwest, down-dip to the west and southeast, and towards the east in the flat structure. The significant gold intercepts reported from the most recent step-out drilling continue to demonstrate the potential to extend the Sabodala mineable reserves.

 Current drilling is expanding the Sabodala resource (see Figure 3). ---------------------------------------------------------------------------           Underground Drill Results - Recent Significant                             Intercepts --------------------------------------------------------------------------- DHID        From     To Interval  True Width      Grade  Section     Target               (m)    (m)      (m)         (m) (g/t gold) --------------------------------------------------------------------------- SBRC895D  299.15    308     8.85           3        2.9    20810 --------------------------------------------------------------------------- and          391  402.6     11.6         9.3        3.5           Main Flat --------------------------------------------------------------------------- SBRC746D     329    337        8           4        6.0    20730        NWS --------------------------------------------------------------------------- and          359    367        8         6.4        3.9           Main Flat --------------------------------------------------------------------------- and          447    452        5           4        3.2 --------------------------------------------------------------------------- and          459    464        5           4        4.5 --------------------------------------------------------------------------- SBRC830D     239    247        8         6.4        6.3    20510  East Flat --------------------------------------------------------------------------- SBRC236D     383    392        9         7.8        5.4    20490   Steep Fg --------------------------------------------------------------------------- SBRC831D     155  159.3      4.3         2.2        4.7    20330 --------------------------------------------------------------------------- SBRC077D     100    114       14        11.2        4.3    20290  East Flat --------------------------------------------------------------------------- SBRC200D     246    253        7         6.1        5.5    20250   Steep Fg --------------------------------------------------------------------------- SBRC635D     229  232.4      3.4         2.7       14.6    20250  Main Flat --------------------------------------------------------------------------- SBRC199D     204  208.8      4.8         4.2       14.7    20210   Steep Fg --------------------------------------------------------------------------- SBRC495D   126.3    131      4.7         3.8        4.2    20170  East Flat --------------------------------------------------------------------------- SBRC737D      66     70        4           4        5.7    20170 --------------------------------------------------------------------------- 

As detailed in the December 2007 quarter drill programme, drilling targeted the Main Flat Zone to the west of the Sabodala ultimate open pit design, the Lower Flat Zone also to the west at depth, the Northwest Shear and the Main Flat Zone to the north and northwest and the steep Quartz-Feldspar Porphyry (Fg) related mineralisation at depth below 300 metres. All of these targets may be amenable to future underground mining (see Figures 3 and 4). The potential for extending the underground mineralisation - the East Flat Zone - was demonstrated by the new intersection outside of the current pit limit in SBRC830D on section 20510. This intercept was 8.0 metres (estimated true width of 6.4 metres) grading 6.3g/t from 239 metres downhole (hole is drilled vertical) and lies some 130 metres beyond the current pit limit.

Assays are undertaken by independent SGS Laboratory in Kayes, Mali.

MDL expects to spend some US$5 million on exploration/resource definition in the environs of the Sabodala Gold Project.

A scoping study will be commissioned in 2008 to define suitable underground mining methods, cost structures and cut-off grades for the deeper Sabodala mineralised zones presently being defined.

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.

 FIGURE 1: Mineral Resources Outside of the Pit Above 3.0g/t Cut-off                   DILUTED RESOURCE REPORT ----------------------------------------------------------- Class        Cut-off        Tonnage      Avg/G       Ounces ----------------------------------------------------------- Measured         3.0        710,419       4.59      104,792 ----------------------------------------------------------- Indicated        3.0        666,494       4.44       95,206 ----------------------------------------------------------- M+I              3.0      1,376,913       4.52      199,998 ----------------------------------------------------------- Inferred         3.0        365,313       5.24       61,591 -----------------------------------------------------------                  UNDILUTED RESOURCE REPORT ----------------------------------------------------------- Class        Cut-off        Tonnage      Avg/G       Ounces ----------------------------------------------------------- Measured         3.0        603,963       4.90       95,206 ----------------------------------------------------------- Indicated        3.0      1,137,150       4.64      169,786 ----------------------------------------------------------- M+I              3.0      1,741,113       4.73      264,991 ----------------------------------------------------------- Inferred         3.0        539,250       4.76       82,577 ----------------------------------------------------------- 

Diluted blocks are 10m x 10m x 5m in size. Resource figures do not reflect additional drilling results received after 1 September 2007.

NOTE: To view FIGURE 2: Mineralised Zones Outside of the Pit, please view the following link: http://www.ccnmatthews.com/docs/Figure2MineralizedZones.pdf.

NOTE: To view FIGURE 3: Recent Significant Intercepts and Figure 4: Q4 Drill Programme, please view the following link: http://www.ccnmatthews.com/docs/Figure3and4.pdf.

ABN 19 064 377 420

 Contacts: Mineral Deposits Limited Jeff Williams (03) 9909 7633 Email: jeff.williams@mineraldeposits.com.au Website: www.mineraldeposits.com.au

SOURCE: Mineral Deposits Limited

Source: MARKET WIRE

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