Sabodala Exploration

The company holds a large ground position on the extension into Senegal of the West African Birimian gold belt and, more specifically, within the Kenieba Inlier which has already yielded a number of large-scale gold mines and more than 40M ounces of gold resources despite being only lightly explored terrain.

The ground position is in the Sabodala district of Senegal and comprises a Mining Concession and seven Exploration Permits in various joint ventures, totalling approximately 1,600km2. Over 75% of the landholding lies within a 35km radius of MDL’s Sabodala mining operation.

Now that the Sabodala gold mine is producing, the Company is refocusing on its regional and mine lease exploration programs. A major RC and diamond drill campaign has commenced on the mine lease with a budgeted expenditure of approximately US$4 million to June 2010.   A large RAB drilling program commenced in late 2009 on the Company's regional exploration program and to date approximately 20,000 metres of drilling has been completed on a number of projects.  The RAB program will continue throughout 2010 and beyond with at least two rigs in operation at all times.