Mundo
Minerals Limited (ASX: MUN)
ASX
RELEASE 4
August 2008
Crista
Anomaly Channel Sample Assays and Widths
Further to the release of rock
chip and channel sample assays last week, Mundo Minerals is pleased to provide
details of assays from Channel samples including widths received over the
weekend. These results further support the emerging Crista anomaly located to
the north of the Engenho Gold Mine in Brazil
as a significant exploration target. The mining tenements are emerging as a
major exploration asset for Mundo Minerals as well as a current production
asset. These targets, subject to future exploration support the potential for
the tenements to provide additional ore sources for the Engenho treatment
facility.
Results are as follows.
Channel
QCC-08-037
3.1 metres
at 4.82 g/t including 1 metre at 9.79 g/t
Channel QCC-08-039
0.55 metres at 4.77 g/t
Channel QCC-08-041
1.0 metre at
6.12 g/t
Channel QCC-08-042
5.3 metres at 5.91 g/t
Channel QCC-08-044
3.0 metres
at 18.86 g/t
The attached map shows the
location of these channels.
John Langford
Chief Executive Officer
Competent Persons 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. Mr. Lopez consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears.
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. The Engenho Project is
forecast to produce at an initial annualised rate of 34,000 ounces at a
forecast cash operating cost of A$325/ounce. This will generate forecast
earnings before interest, tax, depreciation and amortisation (EBITDA) of A$17
million per annum, based on a US750/ounce gold price.
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.
READ
CORPORATE
Public Relations Corporate Communications
T: (+61-8) 9388-1474 | F: (+61-8)
9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
PLEASE NOTE:
This e-mail and any attachments
may contain confidential and/or privileged material and is for the intended
addressee(s) only. If you are not an intended addressee, you must not use,
copy, retain, disclose or distribute this information. Please notify the sender
immediately by return e-mail and delete the message from your system. If you
believe that this message constitutes a Commercial Electronic Message (CEM)
under the Spam Act 2003 and you wish to unsubscribe please contact the
originator of this message with the subject line of unsubscribe.
Note: Virus scanning is carried
out on all incoming and outgoing email, but cannot be guaranteed to be timely,
secure, error or virus-free. To protect against computer viruses, e-mail
programs may prevent sending or receiving certain types of file attachments. If
you are having problems please check your e-mail security settings to determine
how attachments are handled.