MUNDO MINERALS LTD (ASX: MUN)
ASX/Media
Release 10
April 2007
Significant Underground Sampling Assays at Torrecillas
KEY
POINTS
- High-grade assays received from
final underground channel sampling at Torrecillas, including:
- 1.1 m @ 26.5 g/t
- 0.8 m @ 75.77 g/t
- 0.3 m @ 23.29 g/t
- 0.3 m @ 141.45 g/t
- 0.3 m @ 95.66 g/t
- Board decision on acquisition of
Torrecillas due by exercise date of option (15 April).
Mundo Minerals Limited
(ASX: MUN) advises that it has
received further significant results from underground channel sampling from
within the existing small-scale underground mining operations at the Torrecillas Gold Project in Peru. The
channel sampling was undertaken from the recently developed levels 10 and 12 of
the mine as part of the final stage of geological assessment of Torrecillas
Project prior to a final Board decision on whether to exercise the option to
acquire the Project. These levels were only developed and access available to
Mundo to conduct the sampling in the last couple of weeks.
This area, from which
sampling returned significant widths for the style of mineralisation and
substantial grades as detailed above, has not previously been subject to any
sampling by Mundo Minerals.
The widths are consistent
with those generally experienced in the region and the grades confirm the
significant nature of the mineralisation where it occurs along the vein system.
The depth of the 12 level is approximately 120 metres below the surface.
Regional research
indicates that the veins in the region where Torrecillas is located are
mesothermal, indicating that the mineralisation tends to continue at depth with
some mines in the region being developed on a small production basis to depths
in excess of 400 metres. Previous underground channel sampling within the main
Torrecillas vein returned encouraging results including grades up to 37.71g/t
Au and 33.65g/t Au over 3m intervals.
Mundo Minerals has an option
to acquire 100% of the Torrecillas project by paying US$2m over two years in
six monthly instalments.
It should be noted that
the board of Mundo Minerals will be making a decision on the acquisition of the
Torrecillas Project by the due date of the option, which is 15 April 2007. An
appropriate stock market update will be made once a decision has been made.
John Langford
Chief Executive Officer
The
information in this report that relates to Exploration Results and Mineral
Resources is based on information compiled by Mr Jean-Marc Lopez who is a
Member of the Australasian Institute of Mining and Metallurgy. Mr Lopez is
employed by Mundo Minerals Limited and is the Company Exploration Manager. Mr
Lopez has sufficient experience which is relevant to the style of
mineralisation and the type of deposits under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.”
Background
Information
Mundo Minerals
Limited is an Australian gold company focused on the exploration and
development of a portfolio of advanced, high-quality gold assets in South America with the potential to position the Company
as a substantial mid-tier Australian-domiciled gold production house.
Mundo is
aiming to commence initial production at its flagship asset, the Engenho Gold Project in Brazil in 2008, laying the foundations for its
growth strategy as a mid-tier Australian-domiciled producer focused on
small-to-medium sized high-grade ore bodies in South
America.
The Engenho
Project, which is located in the State of Minas Gerais
in Brazil,
was previously operated by AngloGold Ashanti Limited which closed it in 2004 after
treating some 171,257 tonnes of ore from an open pit through a conventional
Carbon-in-Pulp (CIP) treatment facility.
Mundo’s
other two exploration assets in South America are the Torrecillas Gold Project in Peru and the Tocantins
Gold Project in Brazil.
These projects have the potential to yield multiple resources to underpin the
Company’s long-term growth.
At
Torrecillas, Mundo has negotiated an option to explore some 9,000ha of
tenements with a history of high-grade gold production in south-eastern Peru, a
region which hosts a number of small-to-medium sized gold mines, including the
Area, Capitana, Arirahua, Alcapay and Laytaruma operations – each of
which have a production range of 25,000 – 80,000oz per annum.
The Tocantins
Project is a joint venture where the Company has agreed to spend US$1.3M to
earn a 51% interest in tenements controlled by Gamaleira Prospeccao E Geologia
Ltda (a Brazilian joint venture between AngloGold Ashanti and IAMGOLD Corporation).
Mundo can increase this equity to 80% by taking any gold resource to a bankable
feasibility study. The Tocantins tenements are
located in a highly prospective region which includes three greenstone belts
with the potential to contain multiple mid-size gold deposits.
Mundo’s senior
management comprises one of the most accomplished and high profile teams
assembled in the Australian resource sector in recent times. Chief Executive
Officer, Mr John Langford, who headed up the corporate finance division for
Deloitte in Western Australia
for 10 years, has extensive experience in the Australian resource sector and is
well-known as a Director of Palace Securities Pty Ltd, the company that owns
the Diggers & Dealers Mining Forum.
Joining him on
the Mundo Minerals Board is a high-profile group of resource industry leaders
including non-executive Chairman, Mr George Jones, Brazilian-based Executive
Director, Mr Michael Schmulian, Australian mining
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Jan Hope
& Partners
Telephone +61 8 9388
1474
Facsimile +61 8 9388 1472
E-mail janhopeandpartners@janhope.com.au