Marengo Mining; First JORC Estimate by Year's End for 'Monster' Copper-Moly Project

Adelaide, Sept 21, 2006 (ABN Newswire) - The first JORC resource estimate for one of Australasia's largest potential copper-molybdenum projects is expected to be announced by the end of the year, according to its Australian developer.

ASX-listed Marengo Mining Limited said today the JORC estimate for the Yandera project in Papua New Guinea was on track for year's end and would immediately allow the Company to commence a pre-feasibility study on the processing and mining method.

Addressing the Paydirt Asia Pacific Downunder Conference in Perth today, Marengo Mining Managing Director, Mr Les Emery, said there was no doubt Yandera would emerge as a "monster" mine with an initial 10 year life and up to "50 to 60 years tacked on the back of that".

Due to list on the Port Moresby Stock Exchange next week, Marengo controls 100% of the project and in May launched a major resource drilling campaign across the mineralisation.

"We now have an improved understanding of the structure of the deposit and its metals distribution with core focus for first mining on three of the eight ore zones, particularly upgrading through drilling, Gremi and Omora," Mr Emery said.

"Between now and the end of the year, we are looking to identify the strongest near surface mineralisation for a potential starter pit, based around a 10 year plus operating life.

"Drilling to date has included intersections of 237m @ 0.83% Cu and 204 m @ 0.63% Cu.

"This may seem below the accepted 1% standard for commercialisation but we have very low strip ratios and the figures are well above the average 0.4% Cu grade behind one of the largest copper mines in Canada - Highlands Valley."

Mr Emery said Yandera was in all ways a giant deposit and "we expect it to be a world class mine for up to 60 years".

"The resource calculation due by the end of the year will provide us with a lot of guidance on now the best way forward," he said.

Marengo plans to mount an additional drilling program next year to target higher grade zones and known deep-seated targets within Yandera.

About Asia Pacific Downunder Conference

In September 2006, Paydirt Media will host the first Asia Pacific Downunder Conference in Perth, Western Australia. This conference intends to follow the successful formula set by the Africa Downunder Conference, which has become an internationally respected event. Africa Downunder has, for the past three years, brought together miners, explorers and financiers from Australia and Africa to network and share experiences – with some remarkable success stories emerging. The intention is to do the same with Asia Pacific Downunder: to develop the conference as the premier forum for Australians and South East Asians to explore ways to further unlock the business opportunities and mining potential just waiting to be exposed. The 2006 Conference is being held on 21-22 September 2006 at the Sheraton Perth Hotel.