Marengo proud of active ops in PNG

By SINCLAIRE SOLOMON, The National

Marengo Mining is proud to be an international corporation with an active presence in Papua New Guinea, its chairman John Horan said in the company’s 2010 annual report.
“We are operating in a country which has a thriving mining and exploration industry and a pro-mining environment,” he said of the Western Australian company which is developing the Yandera copper-molybdenum-gold project in the Bundi region of Madang.
Horan said the company was committed to providing a safe and healthy working environment.
“It is also committed to maintaining the excellent relationships established with the communities at and around Yandera, with other communities and with government authorities.
“At all times we aim to continue to operate in accordance with world class environmental standards, both on the broad scale and in regard to the environmental well-being of the local communities.”
In the critical area of funding, an equity raising of A$21.7 million was completed in September last year in Canada and Australia.
This saw George Soros’ Quantum Partners LDC join the share register with 19.9% holding.
Marengo’s major shareholder, Sentient Global Fund, also contributed to maintain its 26.65% holding.
Another substantial capital raising, undertaken since the end of the financial year, saw a further A$21.4 million raised.
The company has the ongoing support of Sentient Global Fund and Quantum Partners LDC who have both maintained their percentage holdings, as well as additional support from North American institutional investors.
The funds raised are being directed to the completion of the DFS, and to providing general corporate and working capital.
Since early 2005, Marengo had focused all of its efforts on the Yandera project, Horan said.

Marengo inks financing deal with China

By PATRICK TALU, The National

MARENGO Mining (MGO), the operator of the Yandera gold, copper and molybdenum project in Madang, has signed a landmark financing and off-take deal with a Chinese construction and engineering group for its 100% owned Yandera project.
In a statement released yesterday, MGO said the memorandum of understanding (MOU) with China’s Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC) was facilitated by Perth-based Arccon WA Pty Ltd (Arccon).
Under the MOU, Marengo has agreed to work exclusively with NFC and Arccon to establish the cost and programme for delivery of the Yandera project in parallel with the completion of the current definitive feasibility study (DFS).
Marengo’s managing director Les Emery said: “This potentially paves the way for formal agreements which will underpin the development of one of the world’s significant new copper projects.”
“While the foundation of the MOU is the construction and engineering contract for the Yandera project, it is important to note that the deal also contemplates NFC facilitating project finance and concentrate off-take for the project, together with potentially investing either in Marengo or the project, or both,” he said.
NFC president Wang Hongqian added: “NFC looks forward to a close and co-operative relationship with Marengo Mining as we work together to lay the foundations for one of the world’s biggest new copper mines in PNG.”
They said the discussions would be conducted to enter into a formal construction agreement (engineering, procurement and construction or EPC contract).
Here, Marengo will appoint NFC as the principal contractor, under a lump-sum turnkey contract, following a detailed evaluation of the project construction costs to be undertaken by NFC as part of the final stage of the DFS.

Marengo pleased with drillings

MARENGO Mining has announced significant intersections of copper and molybdenum from its drilling at Yandera, Madang.
Marengo managing director Les Emery announced last Thursday the strong results from within existing resources and extensions to key deposits.
He said in a media statement that they were pleased to report further positive drilling results from their 100%-owned Yandera copper-molybdenum-gold project in the foothills of Bismarck Range.
Emery said drilling within the Yandera central deposit indicated significant intersections of copper and molybdenum sulphides both within the current resource envelops and the extensions of Imbruminda and Dimbi-Gamagu zones (see illustration).
He said in addition, Meringo Mining’s initial four-hole, deep drilling programme continued to produce “positive results”.
Emery said recent drukkubg activities at Yandera had focused on better definition of the mineralised zones at Imbruminda, in addition to a concerted drilling programme to expand the Dimbi-Gamagu zone by following up on the excellent results of a hole (YD245) drilled at the end of the 2009 season.
In addition, the miner was completing an infill drilling programme in the Gremi zone, to elevate a portion of the current resource from an indicated resource to a measured resource category.
He said one hole drilled in Dimbi, as was expected, encountered good grades, including significant molybdenum values.
Emery said: “One of the interesting characteristics of this Dimbi hole is the role played by molybdenum, dominating in most cases over copper. In addition, broad gold intersections are common with grades of up to 0.4g/t Au over a 15mm intersection.”
He said drilling would continue for the rest of the year in this zone, to better define the extent of the Dimbi structure and its control on mineralisation.

Marengo eyes expansion

By SINCLAIRE SOLOMON, The National

MARENGO Mining Ltd has lodged a new exploration application north-east of its Yandera project site in the Finisterre Ranges, Madang (see map), to follow up on stream sediment gold anomalies identified in the recent mining sector support programme funded by the European Union.
Company managing director Les Emery said in a statement yesterday the new application (ELA1851) was  a particularly exciting development for the company as there had been almost no prospecting or geographical mapping work carried out in Finisterre Ranges and accordingly, the mineral potential of this area was unknown.
He said that geologically, it represented a possible strike extension to the Torricelli Mountains between Wewak in East Sepik and Vanimo in West Sepik.
Perth-based Emery, who visited the Yandera copper-molybdenum-gold prospect two weeks ago, also said the Yandera regional activities had progressed well.
He said  that this year’s dry season had allowed Marengo Mining to instigate a reconnaissance stream sediment and geographical mapping survey in EL1665 Koinambe, located northwest of the Yandera central deposit.
Emery said two principal drainages were investigated over a one-month period by a small team comprising one geologist, two field assistants and a community relations officer.
“The local people were very pleased to see the company expanding into their area where various alluvial gold workings are currently exploited by the landowners.
“The results from this work will be available in the first quarter of 2011,” he said.
Marengo Mining is an Australian-based metals company whose core focus is exploring and developing the world-class Yandera project in the highlands of Madang.