MONTEZUMA MINING COMPANY LTD - ASX: MZM

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Description

Montezuma holds tenements in the Murchison, Pilbara and Yilgarn regions of Western Australia.

Pilgangoora Project, Pilbara

The Palaeo- to Mesoarchaean North Pilbara Terrane of the Pilbara Craton in Western Australia has produced significant amounts of gold in recent years, with the Bamboo Creek deposit (7.05 t Au), the Golden Spec deposit (2.06 t Au to 1987) and the Lynas Find district (3.8 t) being major contributors. The discovery of additional significant Au resources have included the Golden Eagle deposit (6.67Mt @ 1.96 g/t Au for 10.1 t Au), the Klondyke deposit (9.95 Mt @ 1.0 g/t Au for 10.0 t Au) and the Indee area (4.96 Mt @ 2.08 g/t Au for 10.3 t Au), confirming the regional gold prospectivity of the Pilbara alongside established potential for base metals mineralisation (Nifty, Whim Creek, Copper Hills). Montezuma's current interests in the Pilbara region comprise a 10% free carried interest in one gold project at Pilgangoora.

Weebo Project, Eastern Goldfields

The Weebo Project is located approximately 80 km north of Leonora within the Yilgarn+ Craton of Western Australia and comprises 3 exploration leases 1 prospecting lease and one pending exploration lease. The project is approximately 10 km southeast of the Thunderbox gold deposit (2.2M ounces) and north of a gold mineralised region containing the Wonder North and Celtic gold deposits. A programme of aircore (AC) and rotary air blast (RAB) drilling was carried out early 2007. The programme was designed to follow up a geochemical anomaly highlighted by historic auger sampling beneath Tertiary transported cover sequences. Sixty-three AC and five RAB holes were drilled for a total of 3,664m.

Peak Hill Project, Murchison

At the Harmony/Baxter lease, production has yielded 221,000 ounces at 3.24 g/t from a shallow open-cut operation that mined down to approximately 100m. At Enigma North, previously defined resources of approximately 67,000 ounces are open down plunge and at depth and will be further tested to build on the existing mineralised corridor.

In addition to these clear target areas, historically the project area has had only limited exploration outside the immediate production areas. While some areas have been drill tested, it has generally been very shallow and there are large prospective areas that have had no drilling to date.

Montezuma is the 100% beneficial owner of the +million ounce Peak Hill gold province. Montezuma acquired Peak Hill from Rio Tinto. Peak Hill was last mined in 1997 and closed due to the low gold price. When the gold price rose again, the majors considered it too small to re-open.

Durack Project, Murchison

Previous workers have identified an Indicated and Inferred gold Resource at Durack of 567,679t @ 2.34 (1.0g/t cutoff, and top-cut of 25 g/t) for a total of 42,659 oz Au. Uncut, the resource grade increases to 3.33 g/t with an increase in total ounces to 60,836.

Several exploration targets have been identified within the lease which provide opportunities to add to this additional resource. Montezuma will undertake a detailed internal assessment of these and other target areas before planning the first phase of work to progress the project.

The acquisition adds to Montezuma’s existing gold Resources at Peak Hill and is an important step to achieving the Company’s stated strategic goal of an initial target gold Resource of 500,000 ounces to underpin it’s plans to recommence production from the gold field.he Robinson Range Project is located approximately 125 km north of Meekatharra in Western Australia.

The gold mineralisation at Durack is associated with pyrite alteration on the margins of steeply dipping quartz veins within a package of intercalated mafic volcanics and sedimentary rocks. The main mineralised zone is broadly concordant with stratigraphy, trending at 130°, dipping sub-vertically to the north-east.

Mt Padbury Project, Murchison

The project (100% Montezuma) lies approximately 100km north of Meekatharra and 30km west of the Peak Hill gold mine in Western Australia. The Mt Padbury Project comprises one exploration license E52/1529 covering approximately 214 km2. Previous work over the project has included comprehensive surface geochemical sampling and RAB testing of the resulting gold anomalies at Rudd’s Ridge, Rudd’s Ridge East, Bare Flat and Wood Creek.

Butcher Bird Project, Murchison

Manganese - A total of 50 surface rock chip samples have now been collected by Montezuma over two site visits. All samples were analysed by Ultra Trace Pty Ltd using XRF glass beads. The results to date continue to provide a very strong case for the project to be a priority project for drill testing of key target areas.

Copper - The Butcher Bird Project contains the historic Butcher Bird mine, a high grade near surface copper mine which targeted supergene copper mineralisation. The mine has recorded production of 8.46t of copper at an average grade of 22.6%. The main 3 shafts lay in the south-eastern portion of the tenement at 775750m E and 7297200m N GDA zone 50.

Mine For

gold, iron ore, copper, manganese, silver, nickel

Location of operation(s)

Western Australia

Address

31 Ventnor Ave
WEST PERTH, WA, AUSTRALIA

Phone

(61 8) 6315 1400

Email

Website

http://www.montezumamining.com.au/

Last Updated

3/8/2011