Name and Location
Yandera copper/molybdenum/gold project, Madang, Papua New Guinea (PNG).

Client
Marengo Mining and The Sentient Group.

Project Description
The Yandera deposit comprises a measured and indicated resource of 362-million tonnes at a grade of 0.43% copper and an inferred resource of 218-million tonnes at a grade of 0.37% copper. The project includes a measured and indicated 199-million tonnes of gold at 0.17 g/t and measured and indicated resources of 532-million tonnes of molybdenum at 0.01%.

Early indications point to the Yanderra project being able to sustain a throughput rate of 30-million tonnes a year.

The project is based on an opencut mining operation and processing facility to be located at Yandera, with copper/gold concentrate being delivered to the Port of Madan through a pipeline. Molybdenum concentrate will be delivered by road, owing to the smaller volumes.

An integrated rock-waste and process-tailings management facility is being designed to be located in the vicinity of the deposit, under stringent criteria, to ensure that the highest levels of environmental integrity are maintained.

A harbourside area at the Port of Madang is being planned to centralise infrastructure. This includes power, to be reticulated to site, close to existing roads and along a planned road that will extend up to the Yandera site.

Value
Capital costs have been estimated at between $1.7-billion and $1.85-billion.

Duration
Not stated.

Latest Developments
Following a review of the progress of recent technical work, in support of a feasibility study for the Yanderra project, the company has decided that additional work is required in several specific areas before a final feasibility study can be prepared.

This includes identifying an alternative cost-competitive source of power for the project, after Marengo’s preferred third-party power provider decided to withdraw from the proposed power supply arrangements. Marengo has already begun high-level discussions with the PNG government regarding other potential power supply options for the project.

Also, further opportunities exist to enhance the project, including a review of optimised ore throughput rates and the deep-sea tailings placement, rather than a land-based tailings management facility; and further optimisation of the mine plan.

In addition, a review of administration, consultant and corporate overheads has been initiated to ensure that costs are controlled and maintained at an appropriate level for this next phase.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Marengo Mining, tel +675 422 3768, fax +675 422 1723 or email balinaa@marengomining.com.