MUNDO MINERALS LIMITED (ASX: MUN)
ASX RELEASE
14 JUNE 2007
UPDATE
ON TORRECILLAS PROJECT, PERU AND KEY APPOINTMENT
Highlights
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Country Manager
appointed to manage Mundo’s operations in Peru.
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Planning well advanced
for next phase of assessment of Torrecillas Gold Project following recent
acquisition of this asset.
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Mundo develops
strategy to conduct exploratory underground development along known vein
systems at Torrecillas to determine the extent of mineralization.
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Contractors have
visited site to tender on decline development.
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Decline development
expected to commence within two months (subject to environmental approvals).
Mundo Minerals Limited (ASX: MUN –
“Mundo”) is pleased to announce that it has secured a
highly experienced senior mining executive to take up the position of Country Manager – Peru, with
responsibility for managing its emerging operations in the region. Mundo also
today announced an update on its 100%-owned Torrecillas
Gold Project, located in south-eastern Peru.
Mundo has appointed Mr Sergio
Zuniga, a mining engineer with extensive experience in Peru, to the newly created
position. Mr Zuniga has had significant experience with a number of mining
projects in Peru
and, consistent with Mundo Minerals’ strategy of engaging senior mining
personnel within the executive team, he has more than 30 years professional
experience.
Mr Zuniga will commence with Mundo
on 2 July 2007. Consistent with the Company’s policy of incentivising its
key executive team, it is proposed to issue Mr Zuniga with 400,000 options on
similar performance terms to the other senior executives. These options will be
exercisable over a four year period (100,000 options exercisable each year)
subject to Mr Zuniga meeting his key performance indicators. The exercise price
of the options will be 45 cents.
Torrecillas Update
Since the acquisition of the
Torrecillas Gold Project in April, senior technical executives from Mundo
including Jean-Marc Lopez (Exploration Manager – South America) and Jos�
Antonio Kurcewicz (Mining Manager – South America) have spent a
considerable period of time on location at Torrecillas planning the next phase
of technical assessment of this project.
As previously advised, this will include
the proposed development of a decline and trial mining along the known
high-grade vein systems to determine the location and extent of the
mineralization within the veins.
This will enable Mundo to establish
a resource estimate for the Torrecillas Project, prior to committing to
production. This exercise, which is expected to take between 18 months and 2
years to complete, will also provide bulk samples for metallurgical test work.
Two contractors have visited
Torrecillas to review the planned development and submit tenders for the
decline development. It is expected that the decline development will commence
within two months subject to environmental approvals being obtained.
Applications are well in progress.
Mundo has retained the services of
the key mining personnel with extensive experience in mining the Torrecillas
veins, including the mine geologist who has worked on the vein structures for
several years as part of the small-scale mining operation conducted by the
private vendors of the project. A mining engineer has also been recruited as
mine manager for the Torrecillas project to manage the day to day development.
This will enable Mundo to progress
the continued assessment of the Torrecillas Project supported by a substantial
bank of practical mining and geological experience with respect to the existing
geological vein system built up over many years.
The Torrecillas Project contains
multiple narrow-veined, high-grade mineralised zones extending over the
tenements. There has been low-level production over the past 20 years from one
of the veins, which has yielded an average production grade for the majority of
the production period of approximately 30g/t.
To support Mundo’s emerging
operations in Peru, an
administrator has been retained and an office established in the town of Chala, near Torrecillas.
It is expected that an office will be established in the capital Lima within the next month
to support development of the Torrecillas Project and Mundo’s longer-term
growth objectives in the region.
Yours sincerely
John Langford
Chief Executive Officer
Background
Information
Mundo Minerals Limited is an
Australian gold company focused on the exploration and development of a
portfolio of advanced, high-quality gold assets in South
America with the potential to position the Company as a
substantial mid-tier Australian-domiciled gold production house.
Mundo is aiming to commence initial
production at its flagship asset, the Engenho
Gold Project in Brazil,
by March 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 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 two exploration
assets in South America are 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.
The Tocantins Project is a joint
venture where the Company has agreed to spend US$1.3M to earn a 51% interest in
tenements controlled by Gamaleira Prospeccao E Geologia Ltda (a Brazilian joint
venture between AngloGold Ashanti
and IAMGOLD Corporation). 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.