Yandera Project - Yandera Central

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

Project Overview & Resources

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 1,790 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-gold 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 30 May 2012, Marengo announced an updated JORC and Canadian National Instrument 43-101 compliant resource estimate. This estimate was prepared by Minerals Industry Consultants, Ravensgate.

The upgraded resource estimate, comprises a Measured Resource of 248 million tonnes (Mt) @ 0.43% copper  (Cu), an Indicated Resource of 114Mt @ 0.42% Cu and an Inferred Resource of 218 Mt @ 0.37% Cu, based on a 0.25% Cu cut-off.

The resource estimate incorporates all diamond drilling results including the 2011 field season totalling 465 drill holes for 145,335 metres of drilling.

Additionally, Marengo is pleased to report a Measured & Indicated 199Mt of Gold (Au) at 0.17 g/t for an estimated 1.1M troy ounces and 532Mt of Measured & Indicated Molybdenum (Mo) at 0.01% for an estimated 140M lb. Additional metal inventories for by- product minerals such as Silver (Ag) and Rhenium (Ro) have not been calculated at this time.

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 upgraded mineral resource estimates for the Yandera Project appear below. Alternatively you may download the 30/05/2012  Resource Estimate Update for Yandera Project ASX Announcement in printer-friendly PDF format.

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