YANDERA PROJECT

(MARENGO 100% INTEREST)
MADANG PROVINCE, PNG
Target - Porphyry Cu-Mo-Au, Epithermal Au

Project Overview & Resources

Yandera Project
Link to enlargement (73 kb PDF)

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 1,500 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 23 October 2008, 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 an Indicated Resource of 527 million tonnes (Mt) at 0.38% copper equivalent (CuEq) and an Inferred Resource of 766 Mt at 0.33% CuEq, based on a 0.2% CuEq cut-off.

This compares with the previously announced mineral resource estimate comprised of an Indicated Resource of 163 Mt at 0.49% CuEq and an Inferred Resource of 497 Mt at 0.48% CuEq, based on a cut-off grade of 0.3% CuEq. It also represents a 92% increase on the previously reported Indicated Resource based on a cut-off grade of 0.3% CuEq.

The revised resource estimate incorporates all diamond drilling results including the 2008 field season (to July) totalling 175 drill holes for 56,969 metres of drilling.

Additionally, Marengo is pleased to report an Inferred Resource Estimate of 1.29 billion 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.

The upgraded mineral resource estimates for the Yandera Project appear below. Alternatively you may download the Yandera Project Resource Estimate in printer-friendly PDF format.

YANDERA PROJECT
RESOURCE ESTIMATE

Table 1 Copper-Molybdenum

Cut-off	Tonnes	CuEq	Cu	Mo
(% CuEq)*	(million)	(%)	(ppm)	(ppm)
INDICATED RESOURCE
0.2	527.1	0.38	2,793	104
0.25	410.5	0.43	3,109	118
0.3	314.5	0.48	3,413	135
INFERRED RESOURCE
0.2	766.4	0.33	2,488	82
0.25	519.3	0.38	2,879	94
0.3	351.9	0.43	3,275	106

*CuEq. calculated as [Cu + (10 x Mo)]

Table 2 By Products**

The Copper-Molybdenum resource includes the following by-product metals:

Cut-off	Tonnes	Au	Ag	Re
(% CuEq)	(million)	(g/t)	(g/t)	(ppm)
INFERRED RESOURCE
0.2	1,293.5	0.08	1.35	0.07
0.25	929.8	0.08	1.46	0.08
0.30	666.4	0.09	1.56	0.08

**Not included in CuEq.

Note: The by-product resource is contained within the Indicated and Inferred resource in Table 1. Au and Ag grades have been estimated from a smaller set of data than the Cu and Mo grades. Re has been calculated by regression against Mo based on a limited amount of sampling. Uncertainty in the characterisation of the Au, Ag and Re metal content of the resource has resulted in no part of the by product resource being classified as Indicated.

The mineralised system is large, at least 2 by 7 kilometres and extends well beyond the resource estimates.