3 October 2006
INITIAL 371 MILLION TONNE RESOURCE FOR
YANDERA COPPER-MOLYBDENUM PROJECT (PNG)
Marengo Mining Limited (ASX Code: MGO) is pleased to announce a
preliminary mineral resource statement for the central portion of its 100%
owned Yandera Copper - Molybdenum Project, located in Madang Province,
in Papua New Guinea (see Figure 3).
Inferred Resource of 127 Million Tonnes @ 0.7% Copper Equivalent
(at 0.5% Copper Equivalent cut-off), which equates to 1.96 billion
pounds of contained copper metal equivalent, or an
Inferred Resource of 371 Million Tonnes @ 0.49% Copper
Equivalent (at 0.3% Copper Equivalent cut-off), which equates to 4.01
billion pounds of contained copper metal equivalent.
A similar tonnage of mineral inventory has been established for each cut-off.
However this cannot be placed in a resource classification at this stage. It is
Marengo's intention to focus its efforts on establishing sufficient information, to
enable for the conversion of as much of this mineral inventory into a resource
category as possible, in subsequent resource estimations.
This preliminary resource statement has been prepared by respected
international mining consultancy group, Golder Associates Pty Ltd, which has
extensive experience in all facets of the mining and resources industry. It is
based on 98 diamond drill holes completed during the 1970's by BHP Limited
and others, and the first 7 diamond drill holes completed by Marengo as part
of its current resource drilling program. The full text of the Golder Associates
preliminary resource statement is attached as Appendix 1.
Following the excellent results of the initial resource estimate, Marengo also
today announces the commencement of a pre-feasibility study on the Yandera
Project, as well as further results from its ongoing program of resource drilling,
which have not been included in the current resource estimate.