MARENGO MINING LIMITED - ASX: MGO

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Description

Marengo Mining Limited, a diversified metals company, has established a strong position in Papua New Guinea (PNG) with the rapidly-developing Yandera Copper-Molybdenum-Gold Project.

Marengo represents an excellent leveraged opportunity for these commodities in a country with a demonstrated capacity to host world class mineral deposits.

YANDERA PROJECT (MARENGO 100% INTEREST), PNG

Target - Porphyry Cu-Mo-Au, Epithermal Au

Marengo Mining Limited has focused its attention on the highly significant Yandera Project, located 95 kilometres southwest of the northern seaport of Madang and situated within the highly prospective New Guinea Copper-Gold Belt.

The Yandera Project, which comprises granted exploration licences, covers some 1,900 square kilometres and was the subject of intensive, drill based exploration programs during the 1970's by a number of companies, including Kennecott Copper and BHP.

This activity, which included the completion of 102 diamond drill holes totalling 33,000 metres, culminated in the preparation of a mining study by BHP. This study identified the Yandera Porphyry System as containing one of the largest undeveloped porphyry copper-molybdenum systems in the south west Pacific.

Although a number of resource estimates were generated, these estimates pre-date the JORC Code and were never publicly reported.

On 28 February 2011, Marengo announced an upgraded JORC and Canadian National Instrument 43-101 compliant resource estimate. This estimate was prepared by international mining consultancy group, Golder Associates Pty Ltd.

The upgraded resource estimate, comprises a Measured Resource of 113 million tonnes (Mt) @ 0.57% copper equivalent (CuEq), an Indicated Resource of 245 Mt @ 0.46% CuEq and an Inferred Resource of 417 Mt @ 0.45% CuEq, based on a 0.3% CuEq cut-off.

The resource estimate incorporates all diamond drilling results including the 2010 field season totalling 345 drill holes for 113,716 metres of drilling.

Additionally, Marengo is pleased to report an Inferred Resource Estimate of 776 million tonnes containing the by-product metals of gold (Au), silver (Ag) and rhenium (Re). Rhenium is an important metal in the manufacture of jet aircraft turbines and has increased tenfold in price over the past five years to US$11,500/kg (US$350/oz). The by-product metals have not been included in the copper equivalent values.

BOWGAN PROJECT, NORTHERN TERRITORY

Target - Uranium & Gold

The Project consists of three exploration licences located approximately 200 kilometres south of Booraloola in the Northern Territory, where the target is unconformity hosted uranium - gold mineralization (Coronation Hill style) along the Fish River Fault.

The main target, a 6 kilometre long linear magnetic anomaly, was partially tested during a reverse circulation drilling program in September 2005. This program failed to indicate any visible alteration or mineralisation.

Marengo previously farmed out its Bowgan Project to a subsidiary of Mega Uranium Ltd ("Mega"). Mega has further farmed out the project to Bowgan Minerals Limited ("Bowgan") whereby Bowgan can earn up to an 80% interest in the project, by expending $1.28M, within five years. Upon completion of Bowgan's expenditure, Marengo will retain a 10% interest.

Mine For

copper, molybdenum, gold

Location of operation(s)

Papua New Guinea, Northern Territory

Address

Level 2 , 9 Havelock Street
WEST PERTH, WA, AUSTRALIA

Phone

(08) 9429 0000

Email

Website

http://www.marengomining.com/

Last Updated

14/09/2011