Adelaide, Sep 21, 2006 AEST (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.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
| ||
|
