MDM Engineering Group Ltd. has received a Letter of Intent for the award of the detailed engineering and execution phase for a 2.4 million metric ton per year (mt/y) gold plant for African Barrick Gold’s Bulyanhulu process plant expansion project in Tanzania.

ABG is the largest gold producer in Tanzania with a portfolio of four operating mines, and is the operator and manager of the Bulyanhulu gold mine, which is wholly-owned by Bulyanhulu Gold Mine Ltd., a 100% owned subsidiary of ABG.

A concentrator plant has been in operation at Bulyanhulu since commissioning in 2001. During 2010, ABG completed a scoping study to determine the technical and economic viability of reclaiming and processing the stored tailings for recovery of gold and in August 2011 engaged MDM to undertake a bankable feasibility study into the project.

MDM successfully completed the bankable feasibility study in December 2011 followed by value engineering in March and April 2012. MDM will now execute the project that includes construction of a new 2.4 million mt/y CIL facility to process tailings reclaimed from the historical tailings concurrently with current flotation tailings. The detailed engineering has commenced to maintain the project’s completion schedule.