Projects Overview
Projects location overview map
Mundo commenced production at its flagship asset, the Engenho Gold Project in Brazil, in June 2008, laying the foundations for its growth strategy as a mid-tier Australian-domiciled producer focused on small-to-medium sized high-grade ore bodies in South America.
The Engenho Project, which is located in the State of Minas Gerais in Brazil, was previously operated by AngloGold Ashanti Limited which closed it in 2004 after treating some 171,257 tonnes of ore from an open pit through a conventional Carbon-in-Pulp (CIP) treatment facility.
The ramp-up to full production is expected to be completed by early 2009, to a forecast level of 32,000 ounces per annum.
Mundo’s other assets in South America include the 100%-owned Torrecillas Gold Project in Peru and the Tocantins Joint Venture in Brazil, and an option to acquire the Jaqueira Gold Project in Brazil. These projects have the potential to yield multiple resources to underpin the Company’s long-term growth.
The Torrecillas Project is an advanced development project in south-eastern Peru with the potential to become a high-grade narrow vein mining project. The Project, which comprises some 9,000ha of tenements with a history of high-grade gold production, is currently being assessed by Mundo Minerals. Approximately 6.5km of high-grade vein structures have been identified on the tenements.
The Tocantins Gold Project is a large-scale gold exploration project covering an extensive under-explored greenstone belt in central Brazil which offers the potential for the discovery of multiple medium-sized gold deposits.
The Tocantins Project is a joint venture between Mundo (51% interest) and Gamaleira Prospeccao E Geologia Ltda (a Brazilian joint venture between AngloGold Ashanti and IAMGOLD Corporation) (49%). Mundo can increase this equity to 80% by taking any gold resource to a bankable feasibility study.
Mundo Minerals has an option to acquire 100% of the Jaqueira Project, which comprises a portfolio of tenements located 330km north of east of Salvador, the capital of Bahia State in north-eastern Brazil. The Jaqueira Project lies in the Jacobina Gold Belt, a prolific gold producing region.
Conceptual Exploration Targets
Mundo Minerals has established Conceptual Exploration Targets* for several of its more advanced assets, including the Engenho Gold Project, Jaqueira Project and the Torrecillas Project, as set out below:
| Exploration Target | Tonnage Range | Grade Range (g/t Au) | Prospective Ounces\(‘000/oz) |
|---|---|---|---|
| Engenho | |||
| Engenho – to 270m | 1.9-2.4M tonnes | 4-5 | 244-385 |
| Engenho – 270m to 500m | 1.3-1.7M tonnes | 4-5 | 167-273 |
| 167-273oz | 2.0-2.6M tonnes | 5-6.5 | 321-543 |
| Total – Engenho | 732-1,201 | ||
| Jaqueira | |||
| Jaqueira Tenement | 1.2-1.5M tonnes | 8-10 | 308-482 |
| Other Tenements | 0.8-1.0M tonnes | 8-10 | 205-321 |
| Total – Jaqueira | 513-803 | ||
| Torrecillas | |||
| Torrecillas | 270-300k tonnes | 18-20 | 156-192 |
| Ady/Oly Vein | 0.9-1.0M tonnes | 18-20 | 520-643 |
| 5 de Novembre Vein | 700k-900k tonnes | 12-15 | 270-434 |
| Total – Torrecillas | 946-1,269 | ||
| TOTAL – Exploration Targets | 2,191-3,273 |
*Projects associated with the Tocantins Joint Venture remain at a stage where it is inappropriate to establish an exploration target. While these are highly prospective, exploration work is not yet at a stage where appropriate estimates can be attributed to specific targets and the Tocantins Project has therefore been excluded from this table.
*In accordance with Clause 18 of the JORC Code, it is important to note that no JORC Mineral Resources or Ore Reserves have been established on these tenements and any current assessment remains subject to ongoing exploration work and drilling. The current interpretation remains preliminary and is based on surface indicators, assays from underground channel samples, geological modelling, historical production records (in the case of Jaqueira and Torrecillas) and an assessment of the strike and width assessed from surface expressions.
The development of these Exploration Targets, combined with an assessment of the future production potential of the projects within its portfolio, supports the Company’s medium term targeted potential production profile of approximately 200,000 ounces per annum.
