MDM Engineering Group Limited : MDM awarded EPCM contract for Banro's Namoya project in DRC

MDM awarded EPCM contract for Banro's Namoya project in DRC     
27 January 2012

MDM Engineering Group Limited ("MDM" or "the Company") (AIM: MDM) the minerals process and project management company focused on the mining industry, has been awarded the Engineering, Procurement and Construction Management ("EPCM"), for Banro Corporation's ("Banro") Namoya Gold Project in the Democratic Republic of the Congo ("DRC").

Namoya Mining SARL, a wholly owned subsidiary of Banro, is developing the Namoya gold mine in the South Kivu and Maniema Provinces of the DRC, approximately 270km's south west of the town of Bukavu, the capital of South Kivu province.

This project will see the development of a mine and gravity heap leach processing facility to treat 2.0 million tonnes per annum and produce approximately 131,000 ounces per annum of gold bullion.  The bulk earthworks are expected to commence at the end of the rainy season in May 2012 and the commissioning is planned for March 2013. 

The total capital cost of the plant and associated infrastructure is based on the Control Budget Estimate ("CBE") value of US$ 148 million.  The CBE is within an accuracy level of ± 10%.

George Bennett, MDM Executive Director said:
"MDM is pleased to have been awarded Banro's Namoya project in the DRC.  MDM see Banro as a key client and look forward to building a strong ongoing relationship and developing the Twangiza - Namoya gold belt in conjunction with Banro.  Banro intends building another two gold mines in this belt and MDM are focussed on becoming their engineering company of choice."

Enquiries:

MDM Engineering Group Limited

Martin Smith (CEO)
George Bennett (Executive Director)
Dominique de la Roche (Finance Director)
Tel: [phone]

Collins Stewart Europe Limited

John Prior
Sebastian Jones
Tel: [phone]

Tavistock Communications

Paul Youens
Emily Fenton
Tel: [phone]

KEY INFORMATION:
MDM:
MDM Engineering Group Limited is a minerals process and project management company focused on 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 date, the Company's clients have largely been junior and mid-tier mining corporations with operations in Africa.

The MDM Engineering core technical team has a 23 year track record of completing a wide range of studies and execution projects across a variety of minerals, including precious metals, base metals, ferrous and non-ferrous metals, uranium and diamonds.

The Company has adopted an approach to project execution based on an open-book Engineering, Procurement, and Construction Management "EPCM" or "cost-plus" basis and on an Engineering, Procurement and Construct (EPC) basis. With a core focus on Africa, MDM Engineering is setting the benchmark standard for best practice in the mining services industry through its commitment to providing the highest quality services and actively engaging with clients to ensure maximum transparency.

BANRO:
Banro is a Canadian-based gold exploration and development company with four wholly-owned properties, each with mining licenses, along a major gold belt of the Democratic Republic of the Congo. The Company is constructing a "phase one" gold mine at its Twangiza project, which is designed to process 1.7 million tonnes of ore per year and is scheduled to begin operations in late 2011. Banro has to date identified 6.74 million ounces of Measured and Indicated Resources, plus Inferred Resources of 4.59 million ounces.