Exploration
Local rock samples
The Engenho gold resource is based on drilling to a depth of approximately 270 metres below the surface. The resource remains open at depth and expectations are that the resource will continue for some distance below this level based on the structure of ore bodies in the region.
In addition, a number of potential new ore sources have been discovered within limb structures discovered during mine development. These new limb structures have not been included in the reserve calculation but are expected to be mined, with the potential to increase annual production above 32,000 ounces.
The current Engenho resource is located on an area of 11 hectares, with a broader tenement owned by Mundo Minerals covering a total area of approximately 713 hectares. An assessment of the broader exploration potential of the tenement during has yielded a number of significant exploration targets requiring advanced exploration.
Engenho Project Mineralisation and Targets including Mazoca, Olhos and Crista
This has substantially upgraded the potential of the Engenho asset as both a production and priority exploration opportunity for the Company.
Soil sampling and mapping programs conducted has identified three strong gold anomalies, Mazoca, Crista and Olhos, all located within a 2 kilometre radius of the existing processing plant and mine infrastructure. These targets, together with newly discovered underground ore bodies adjacent to the existing resource, have the potential to yield further additional ore sources for the project and enhance the production profile of the project.
A systematic exploration program will be undertaken at Engenho during 2009 to test these priority targets with the objective of increasing the resource inventory and developing additional ore sources to enhance the project’s future production profile.
