US$150m spent on Yandera By Gynnie Kero | The National
Marengo Mining Ltd has spent more than US$150 million on the Yandera project with a large proportion of those funds being invested in major drilling programmes since 2005, managing director and chief executive officer Les Emery said.
He announced this at the company’s annual meeting last week, adding that Yandera has more than 500 diamond drill holes for more than 150km of drill core.
“Marengo is very fortunate to have the Yandera project as its key asset and this has been the principal focus of the company since we first entered the project in 2005.
“Rarely does a small-cap company have an opportunity to gain access to a project which has the potential to become a world scale, long-term copper producer and even more rare for that company to be in the position to retain control of the project into development,” Emery said.
“For the year to June 30, 2012 Marengo drilled a total of 26,947m and drilling has continued since.
“A focus of this drilling, in addition to completing geotechnical and hydro geological drilling for the feasibility study, has been on in-fill drilling, within the Yandera Central deposit, particularly focusing on identifying zones of higher grade mineralisation.
Emery said external global factors such as continuous instability in equity markets had been a challenge.
“In spite of this challenge, we have been successful in moving this project forward under our own steam to a point where the completion of a feasibility study on the Yandera Project is imminent.
“Marengo has continued to build on the scale of the Yandera project in deposit size, resource classification and metal inventory.
“Our aims are fully aligned with all of the stakeholders in wanting to see the development of a long life, profitable, world-scale mining project, which will provide economic and social benefits to all”.
“We are proud of the reputation that the company has developed over the past seven years, as that of a caring, socially and environmentally responsible company, and this is something that Marengo values highly.
Emery said the past year saw a high level of site activities, which in turn provided a significant amount of local employment and economic benefit to the local communities and the Madang province.
“I am pleased to advise that this activity was carried out without any serious injuries being sustained by our employees, contractors or consultants and that no environmental incidents occurred.
He added that Marengo continues to maintain dialogue with Petromin PNG Holdings Ltd, whereby Petromin will take up a 30% contributing interest in the development of the Yandera project.
MGO Price at posting:
15.0¢ Sentiment: LT Buy Disclosure: Held
