Marengo has positioned itself in Papua New Guinea (PNG) with a...

Marengo has positioned itself in Papua New Guinea (PNG) with a project which has the potential to grow into a world class base metal mine. The Yandera Project and funds on hand give shareholders excellent leverage to the future success of Marengo.

As Australia's nearest neighbour (some 150km from Cape York Peninsula) 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.

Since gaining independence in 1975, PNG has, along with other nations, suffered periods of downturn in mineral exploration investment. However, in recent years there has been a strengthening of investment back into PNG. This has occurred as a result of increasing world demand for commodities (with resultant price increases), together with a change to a more favourable fiscal regime for investment.

PNG operates a parliamentary democracy, based on the Westminster model, where all major parties support private enterprise and foreign investment. Marengo is pleased to join many existing Australian and international companies who successfully operate both exploration and mining projects in PNG, a trend which is seen gaining momentum.

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



Current Operations
Marengo has positioned itself in Papua New Guinea (PNG) and has the potential to grow into a world class metal miner.

Yandera Copper-Molybdenum Project (Madang, Province, PNG)
(100% INTEREST)
Target - Porphyry Cu-Mo-Au, Epithermal Au

Marengo Mining Limited has focused its attention on the highly significant Yandera Project, located 95 kilometres southwest of the northern seaport of Madang and situated within the highly prospective New Guinea Copper-Gold Belt.

The Yandera Project, which comprises granted exploration licences, covers some 1,500 square kilometres and was the subject of intensive, drill based exploration programs during the 1970's by a number of companies, including Kennecott Copper and BHP.

This activity, which included the completion of 102 diamond drill holes totalling 33,000 metres, culminated in the preparation of a mining study by BHP. This study identified the Yandera Porphyry System as containing one of the largest undeveloped porphyry copper-molybdenum systems in the south west Pacific.

Although a number of resource estimates were generated, these estimates pre-date the JORC Code and were never publicly reported.

On 23 October 2008, Marengo announced an upgraded JORC and Canadian National Instrument 43-101 compliant resource estimate. This estimate was prepared by international mining consultancy group, Golder Associates Pty Ltd.

The upgraded resource estimate, comprises an Indicated Resource of 527 million tonnes (Mt) at 0.38% copper equivalent (CuEq) and an Inferred Resource of 766 Mt at 0.33% CuEq, based on a 0.2% CuEq cut-off.

This compares with the previously announced mineral resource estimate comprised of an Indicated Resource of 163 Mt at 0.49% CuEq and an Inferred Resource of 497 Mt at 0.48% CuEq, based on a cut-off grade of 0.3% CuEq. It also represents a 92% increase on the previously reported Indicated Resource based on a cut-off grade of 0.3% CuEq.

The revised resource estimate incorporates all diamond drilling results including the 2008 field season (to July) totalling 175 drill holes for 56,969 metres of drilling.

Additionally, Marengo is pleased to report an Inferred Resource Estimate of 1.29 billion tonnes containing the by-product metals of gold (Au), silver (Ag) and rhenium (Re). Rhenium is an important metal in the manufacture of jet aircraft turbines and has increased tenfold in price over the past five years to US$11,500/kg (US$350/oz). The by-product metals have not been included in the copper equivalent values.

Australian Project
Bowgan Project (MARENGO DILUTING TO 25%)
Target - Uranium & Gold

Marengo holds three exploration licences located approximately 200 kilometres south of Booraloola in the Northern Territory, where the target is unconformity hosted uranium - gold mineralization (Coronation Hill style) along the Fish River Fault.

The main target, a 6 kilometre long linear magnetic anomaly, was partially tested during a reverse circulation drilling program in September 2005. This program failed to indicate any visible alteration or mineralisation.

Marengo has entered into a joint venture with Mega Hindmarsh Pty Ltd (formerly Hindmarsh Resources Limited) whereby Mega Hindmarsh has earned a 51% interest in the project, by expending $200,000 on exploration. Mega Hindmarsh is increasing its equity to 75% for a further $400,000 of expenditure.



Geographical Spread
Papua New Guinea and Australia



Board of Directors and Key Management

John Horan Chairman
Leslie Emery Managing Director
Douglas Dunnet Non-Executive Director
Sir Rabbie Namaliu Non-Executive Director
Susanne Sesselmann Non-Executive Director
John Hick Non-Executive Director
Elizabeth Martin Non-Executive Director
Samuel Akoitai Director (Marengo Mining (PNG) Limited)
John Ribbons Company Secretary/Chief Financial Officer
Peter Dendle Project Manager - Yandera
Grant Calderwood Operations Manager
Malcolm Roberts Principal Geologist


Company Address
Level 2, 9 Havelock St
West Perth, Western Australia, Australia 6005




Telephone: +61 8 9429 0000
Facsimile: +61 8 9429 0099
Email: marengo[at]marengomining.com
Website: http://www.marengomining.com


Additional Address/Key Contact
Postal Address
Post Office Box 289
West Perth
Western Australia 6872

Capital
As at 20 August 2009 Listed Shares on Issue – 268,016,975

Annual General Meeting
November
Year End
30 June



Major Shareholders

Sentient Global Resources Fund 23.42%
Mr Bernard Stephens 7.18%
The Royal Bank of Scotland Group plc (Sempra Metals) 6.00%


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