MUNDO MINERALS LIMITED (ASX: MUN)
ASX/MEDIA RELEASE 18
APRIL 2007
ADDITIONAL SIGNIFICANT ASSAY RESULTS –
TORRECILLAS GOLD PROJECT, PERU
§
Channel
sampling confirms continuity of mineralisation within two previously untested
veins.
§
Significant
high-grade assay results received including 0.3m @ 70.19g/t Au, 0.3m @
35.32g/t, 0.6m @ 10.32g/t, 0.3m @ 19.24g/t and 0.3m @ 17.93g/t.
§
Mundo
Minerals technical team to arrive in Peru in early May to complete
project acquisition and commence the next phase of project assessment.
Subsequent to its announcement
of 16 April 2007 regarding Board approval to exercise the option to acquire the
Torrecillas Gold Project in Peru, Mundo
Minerals Limited (ASX: MUN)
advises that it has received additional significant
assay results from recently completed underground channel sampling at
Torrecillas.
The samples
– from two previously untested veins – were taken from adits that
were previously developed by informal miners. The high-grade channel sample
results announced earlier this month were taken from within the existing
small-scale underground mining operations at Torrecillas.
The significance
of the latest sampling results is that they have confirmed the continuity of
mineralisation over numerous veins at Torrecillas and further enhanced the Company’s
confidence that, where the mineralisation occurs, the grade remains robust. This
will enhance the potential economics of a future commercial mining operation
exploiting the narrow vein, high-grade systems. This is consistent with all
available regional data, including that from other operating mines in the area.
The new channel sample
assays received include the following:
Vein
|
Width (m)
|
Assay (g/t)
|
ADY EAST 0.60
|
4.50
|
ADY EAST 0.30
|
35.32
|
ADY EAST 0.30
|
70.19
|
ADY EAST 0.30
|
11.39
|
ADY EAST 0.30
|
19.24
|
ADY
|
0.30
|
14.01
|
ADY
|
0.30
|
5.25
|
ADY
|
0.60
|
10.32
|
ADY
|
0.33
|
5.49
|
ADY
|
0.34
|
8.60
|
ADY
|
0.30
|
4.07
|
ADY
|
0.30
|
17.93
|
ADY
|
0.43
|
3.56
|
|
|
|
A technical team
from Mundo Minerals will be in Peru
in early May to complete the acquisition of the Torrecillas Project and to
finalise the strategy for the next phase of project assessment. This will
include development work along the vein systems to more effectively delineate
the mineralised zones. The next phase prior to moving to production is expected
to take between 18 and 24 months.
As announced
earlier this week, Mundo Minerals intends to appoint a Country Manager for Peru to
manage the exploration and development of this project. A search has commenced
for an appropriate person with experience in the mining industry in Peru.
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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