ferrets stock to watch: marengo mining ltd

Ferrets Stock to Watch: MARENGO MINING LTD
09:16, Wednesday, 4 October 2006

LOCAL EXPLORER FOLLOWING IN BHP'S FOOTSTEPS IN PNG

Sydney - Wednesday - October 4: (RWE Aust Business News)
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OVERVIEW
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Marengo Mining Ltd (ASX:MGO) justified a trading halt yesterday
before reporting some highly significant results in the Madang province
of New Guinea.

The area attracted BHP during the 1970s when it successfully
carried out extensive drilling operations.

Marengo said it had received further "excellent" results from its
diamond drilling program at the Yandera project, with drilling
continuing to intersect broad zones of copper-molybdenum mineralisation
and confirming the extensive nature of the Yandera mineralised system.

Results of drillhole YD 111 have now been received and include
an intersection of 240m at 0.89pc copper equivalent (from 12m to 252m).

The intercept also contained individual 3m composite assays of
up to 1.15g/t gold and 14.7g/t silver but these metals were not included
in the copper equivalent calculation for this intercept.

The company announced a preliminary mineral resource statement
for the central portion of its wholly owned Yandera copper-molybdenum
project.

It highlighted the results in the following:

* Inferred resource of 127 million tonnes at 0.7pc copper
equivalent (at 0.5pc copper equivalent cut-off), which equates to 1.96
billion pounds of contained copper metal equivalent, or an

* Inferred resource of 371 million tonnes at 0.49pc copper
equivalent (at 0.3pc 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, it cannot be placed in a resource classification at this
stage.

Marengo intends to focus on establishing sufficient information
to enable the conversion of as much of this mineral inventory into a
resource category in subsequent resource estimations.

The preliminary resource statement was prepared by Golder
Associates Pty Ltd, which has extensive experience in all facets of the
mining and resources industry.

It was based on 98 diamond drillholes completed during the 1970s
by BHP and others, and the first seven diamond drillholes completed by
Marengo as part of its current resource drilling program.

Following the "excellent" results of the initial resource
estimate, Marengo also announced the start of a pre-feasibility study on
the Yandera project, as well as further results from its ongoing program
of resource drilling.

SHARE PRICE MOVEMENTS
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Shares of Marengo rose 6c to 31c yesterday. Rolling high for the
year has been 40c and low 18c. The company has 77.6 million shares on
issue with a market capital of $24 million. Two strategic share
placements to raise $7.2 million were completed during the year.

The company is also developing a strategy to expand its PNG
shareholder base, including an application for a secondary listing of its
shares on the Port Moresby Stock Exchange.

Chairman John Horan says "We have swung into the 2006-2007
reporting year with continuing confidence - and the necessary
determination and endeavour to reward our shareholders."

In a letter to shareholders he believes the past year has been
the most fulfilling in the brief history of Marengo Mining with
encouraging momentum-building progress, and some important achievements.

The company continued the substantial shift away from its
traditional exploration activity in Western Australia and is now firmly
focused on expanding its base in Papua New Guinea.

Its flagship is the Yandera Project in Madang province, which
contains, among other things, one of the largest undeveloped
copper-molybdenum porphyry systems of its type in the southwest Pacific.

Marengo took a significant step forward early in 2006.

Through its wholly owned subsidiary, Marengo Mining (PNG)
Ltd, it moved from 50 per cent to total ownership of the Yandera Project
by agreeing to acquire all the issued capital of its joint venturer in
the project, Belvedere Ltd, a privately owned PNG company.

A further milestone was reached in late May.

Following the successful digitising of the historical drilling
database, diamond drilling commenced with two drill rigs on a major
program that is expected to achieve up to 10,000 metres of drilling by
this month.

This should lead to the calculation of an initial JORC-compliant
resource for part of the Yandera Project.

Exploration activity has increased.

Peter Dendle has been appointed as Project Manager and there has
been a significant increase in geological and technical support at the
project.

A camp and operations base have been established along with the
recruitment of a significant number of PNG nationals in professional,
skilled and unskilled capacities.

Although the primary PNG focus has been on Yandera, field work
was directed to the Yomi gold prospect 20 kilometres northwest of
Yandera towards the end of June, while preliminary exploration at
Bolubolu has now commenced.

BACKGROUND
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Marengo Mining Ltd, was listed on the Australian Stock Exchange
on November 13, 2003.

It is a diversified metals company, has established a strong
position in Papua New Guinea with a portfolio of high-quality copper,
molybdenum and gold projects.

The company is a gold, platinum and base metals exploration and
development company with several projects located in Australia and Papua
New Guinea.

Marengo represents an excellent leveraged opportunity for these
commodities in a country with a demonstrated capacity to host world-class
mineral deposits.

As Australia's nearest neighbour, PNG has a long history of
mining, dating back to 1878 and has historically been amongst the world's
largest copper and gold producers.

Located on one of the world's most dynamic tectonic zones, PNG
has, and continues to produce, world-class ore deposits such as
Bougainville, Lihir, Misima, Ok Tedi and Porgera.

In addition, recent developments have seen the discovery of
medium-size ore deposits, including Tolukuma, Kainantu, Hidden Valley
and Simberi.

Marengo, through its subsidiary Marengo Mining (PNG) Ltd, is
concentrating its efforts on this richly endowed region.

ENDS