Mundo Minerals Limited (ASX: MUN)
Mundo Completes First Engenho
Gold Pour
Mundo Minerals
Limited (ASX: MUN - "Mundo") is pleased to advise that it has
completed the maiden gold pour at its 100%-owned Engenho Gold Mine in Brazil.
The gold pour (see photo below) was completed yesterday evening,
representing effective completion of all commissioning processes.
The Engenho Gold Mine is now assessed as being fully operational,
completing Mundo's transition to full production and cash flow.
This gold has now been sent for
refining prior to delivery to the bank.
Plant availability continues to be excellent and mine development is
approximately 9 months ahead of actual mining, ensuring that maximum
flexibility of access to the ore body is maintained. Decline development has
progressed to enable the main Engenho ore body to be accessed under the
existing open pit, with the second level from this access currently being
developed. This will enable current production from the existing open pit wall
to be supplemented by production from the primary underground orebody over the
next two months.
The successful commissioning of the Engenho Project and maiden gold pour
represent significant milestones for Mundo Minerals, establishing the Company's
first production asset and providing a strong foundation for its growth
strategy in South America.
John
Langford
Chief
Executive Officer
Competent Person's Statement
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-domiciled international gold
company focused on the exploration and development of a portfolio of advanced,
high-quality gold assets in South America.
Mundo is aiming to commence initial production at its flagship asset,
the Engenho Gold Project in Brazil,
by April 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 A$13 million 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 assets in South America include the 100%-owned 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.
The Torrecillas Project comprises 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. An exploration decline is currently
being developed to assess the high-grade, narrow vein gold mineralization at
Torrecillas.
The Tocantins Project is a joint venture between Mundo (51% interest)
and Gamaleira Prospeccao E Geologia Ltda (a Brazilian joint venture between
AngloGold Ashanti
and IAMGOLD Corporation) (49%). 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.
Exploration to date has identified significant zones of gold
mineralization at Concei??o, within the Tocantins Joint Venture. Mundo Minerals
has also secured a strategic new gold exploration project at Nova Prata as part
of the Tocantins Joint Venture, and is assessing an advanced gold production
opportunity at the Jaqueira Project in Bahia
State, Brazil.
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