Print   



1 April 2009

MDM Engineering Group Limited

('MDM Engineering' or the 'Company')

Project Update: Award of CBE for Chemwes Phase 2

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.'

Enquiries: 

MDM Engineering Group Limited

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

George Bennett 

 

Numis Securities Limited

John Harrison (Nominated Adviser)      Tel: + 44 (0) 20 7260 1000 

James Black (Corporate Broker) 

Pelham Public Relations

Candice Sgroi                                       Tel: + 44 (0) 20 7337 1533

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

ENDNRAMGGFFLMRGLZM