Press releases

MDM purchases own shares

MDM awarded CBE for Chemwes Phase 2

1 April 2009

MDM Engineering (AIM: MDM), the minerals process and project management group is pleased to announce that it has been awarded the Cost Budget Estimate (CBE) for phase 2 of First Uranium Corporation’s (First Uranium) Chemwes Gold and Uranium Project (the “Project), located in Stilfontein in South Africa. Phase 2 of the Project has an estimated value of US$70 million.

MDM Engineering was previously awarded the full EPCM management role for the Project with work on Phase 1B having commenced.  Once complete Phase 1B will almost double the throughput of the project from 650,000tpm to 1.283Mtpm and will treat the reclaimed tailings for the recovery of both gold and uranium.

The CBE for Phase 2 of the Project is an extension on Phase 1B and will include a further 650,000tpm stream circuit from the reclaim station for further gold and uranium extraction. Following completion of Phase 2 the projects overall production is expected to reach 1.933Mtpm

Grant Lowman, MDM Engineering CEO commented:
“We are extremely pleased with the progress we are making at Chemwes on Phase 1B of the Project.  We continue to enjoy a strong working relationship with First Uranium. This has been a significant execution project for MDM Engineering and we look forward to progressing to Phase 2 following the CBE and further increasing the capacity at Chemwes.”

Key Information:

MDM Engineering Group Limited is a minerals process and project management company that provides services to the mining industry. The Company provides a wide range of services from preliminary and final feasibility studies, through to plant design, construction and commissioning, to mining companies. To date, the Company’s clients have largely been junior and mid-tier mining corporations with operations in Africa.
The Company was established in November 2006. In February 2007 the Group purchased out of liquidation certain of the intellectual property and fixed assets of MDM Ferroman (Pty) Limited (“MDMF”), a mining services company with an established track record of providing services to the African mining industry. In May 2008, the Company successfully listed on the AIM market of the London Stock Exchange. The Company now has what the directors consider to be a strong portfolio of current studies and execution projects and a strong outlook of prospective work, which the directors believe provides the Company with an attractive and visible revenue stream to drive the Company’s growth in the future.

Enquiries:

MDM Engineering Group Limited

Grant Lowman (Chief Executive)
Tel: +27 (0) 11 993 4300

George Bennett (Executive Director)
Tel: +27 (0) 11 993 4300

Dominique de la Roche (Finance Director)
Tel: +27 (0) 11 993 4300

Numis Securities Limited

John Harrison (Nominated Adviser)
Tel: +44 (0) 207 260 1000

James Black (Corporate Broker)
Tel: +44 (0) 207 260 1000

Pelham PR

Candice Sgroi
Tel: +44 (0) 207 337 1533

James MacFarlane
Tel : +44 (0) 20 7337 1527

 

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