 Molybdenum Factsheet |
Projects: PNG
PNG Overview
Bolubolu Project
Australian Projects
YANDERA PROJECT,
MADANG PROVINCE, PNG
(MARENGO 100% INTEREST)
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.
The Yandera Project, which comprises two granted exploration licences, covers some 1,200 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.
In May 2007, Marengo announced an updated JORC compliant resource estimate. This estimate was prepared by international mining consultancy group, Golder Associates Pty Ltd.
The estimate has been reported as an:
Indicated Resource of 163 million tonnes @0.49% Copper Equivalent
(at a 0.3% CuEq cut-off), and
Inferred Resource of 497 million tonnes @ 0.48% Copper Equivalent
(at a 0.3% CuEq cut-off).
The mineralised system is large, at least 2 by 7 kilometres and extends well beyond the area of the inferred resource. This envelope has previously been tested with some widespread drilling, which identifies a "mineral inventory" with tonnages similar and fully additional to the current inferred resource. These tonnages and grades cannot be placed in the resource classification at this stage.
Conceptual Mining Study
In October 2006 Marengo commenced a Conceptual Mining Study ("CMS") on the Yandera Central Porphyry zones (Gremi, Omora and Imbruminda). The study was completed in July 2007.
The CMS has confirmed that the Yandera Project has the potential to become a significant open pit copper-molybdenum mine. On the basis of the positive outcomes of the CMS, Marengo's Board has committed to proceed with a Definitive Feasibility Study ("DFS") on the Yandera Project, due for completion by 2009.
Key outcomes of the Yandera Project CMS include:
- a conceptual open pit encompassing 406Mt to underpin an initial 10-year mine life;
- initial mining rate of 25Mtpa for the first two years increasing to 40Mtpa.
- production of 112,000t and 88,000t of contained copper for the first two years, increasing to an average of 124,000tpa from the third year onwards.
- production of 4,200t of contained molybdenum for the first two years, increasing to an average of 6,700tpa from year three onwards.
- initial US$942M capital cost estimate with additional US$198M to complete the ramp-up to 40Mtpa;
- forecast cash operating costs of US$10.09/tonne (US$0.75/lb) for the first two years, and US$9.09/tonne (US$0.86/lb) at 40Mtpa;
- strong economic parameters using a copper price of US$1.50/lb and molybdenum price of US$15.00/lb.
The CMS has confirmed the potential of the Yandera Project to become a very significant strategic source of copper and molybdenum production in global terms, with a successful development expected to generate substantial value for Marengo shareholders and the nation of PNG.
For further details please refer to Marengo's ASX Release dated 27 July 2007.
Definitive Feasibility Study
In October 2007 Marengo commenced a Definitive Feasibility Study ("DFS") on the Yandera Project. The DFS is divided into two phases, with Phase 1 having been completed in April 2008. For further details please download the Definitive Feasibility Study as a printer-friendly PDF.
Regional Base Metal Targets
As part of a program to investigate previously reported satellite prospects surrounding the Yandera Central Resource, a program of stream sediment, rock chip and float sampling continues to be carried out within the project area.
Recent rock chip results from the Gogobangu Prospect returned assays of up to 3.76% zinc, 0.78% lead, 19.1 g/t gold and 75 g/t silver.
The nearby North and South Bononi Prospects returned rock chip results up to 12.1% copper, 0.833% molybdenum and 19.1 g/t gold.
Assays from rock chips taken from the Queen Bee area, between 4 and 8 km north-west of the Yandera Central Resource returned results of up to 9.89% copper. 9.75% zinc, 13.7 % molybdenum and 118 g/t silver.
Follow-up field mapping and sampling will be undertaken, prior to drill testing of the more prospective targets.
Epithermal Gold
There is some small scale alluvial gold mining carried out by local villagers in the Yandera region.
In addition, regional exploration of the Yandera Project area by previous operators has demonstrated extensive gold anomalism throughout the project area.
Recent exploration by Marengo has encountered gold values of up to 5 g/t Au from stream sediment sampling at the Yomi Prospect, some 20 km north west of the Yandera Central Porphyry.
The main target is Kainantu-style high grade epithermal quartz-gold veins (>1Mt at 30g/t Au). The geological setting of the exploration licence is favourable with major fracture systems developed peripheral to the numerous late-stage intrusive rocks.
Yandera Project Bolubolu Project
PNG Projects Australian Projects