Mundo Minerals

Mundo Minerals operates several highly prospective exploration projects in Brazil which have the potential to deliver resources in the medium term and provide a future pipeline of production growth for the Company.
The primary exploration asset that Mundo will be focusing on in the near term apart from near-mine exploration at Torrecillas and Engenho is the Tocantins Joint Venture located in central Brazil.

Tocantins Joint Venture (Mundo: 51% with the right to earn 80%)

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, potentially providing a pipeline of new exploration and production opportunities for Mundo Minerals for many years to come.

The Tocantins Joint Venture controls a major tenement holding covering an area of more than 200,000 hectares with a strike legnth of approximately 200km.

Mundo Minerals has completed its earn-in requirements for a 51% interest in the  joint venture, Under the joint venture arrangements, Mundo Minerals can increase its equity in any gold resource discovered to 80% by taking the resource through bank feasibility stage. For the purposes of exercising this right, a resource must be in excess of 350,000 ounces.

Significantly, Mundo Minerals retains the right to explore for base metals in addition to gold on any of the tenements subject to both joint ventures.

There are a number of well-developed exploration targets that have been identified on the joint venture tenements which will be systematically explored to assess the potential for commercial mines.

Jaqueira Project, Brazil

The Jaqueira Gold Project comprises a portfolio of tenements located 330 kilometres north east of Salvador, the capital of Bahia State in north-eastern Brazil.

Mundo Minerals has negotiated an option to acquire three mineral rights, including a farm, comprising the Jaqueira block and five mineral rights known as the Pindobaçu block. Previous mining activities have been conducted on both tenement blocks.

The Jaqueira Project lies in the Jacobina Gold Belt, where mining activities were first initiated by the Bandeirantes in the late 17th century and Garimpeiros have been actively mining since the 1930s. Canadian gold producer Yamana Gold Inc. currently controls most of the mineral rights in the belt after acquiring them from Desert Sun in 2003. Yamana’s portfolio includes the Jacobina mine, which produces approximately 100,000oz per year.

The Jacobina Gold Belt extends for approximately 155 kilometres with the regional stratigraphy comprising quartzites, met conglomerates and schists of the Paleoproterozoic Jacobina Group which form a series of north-south elongated mountain ranges. The gold deposits of the belt are predominantly conglomerate-hosted, encompassing the pyritic, gold-bearing, quartz-pebble conglomerates and quartzites of the Serra do Corrego Formation.

Infrastructure in the region is excellent, including ready availability of power and water, and access to the project site is also very good via the BR-324 highway. The region has an active mining industry supporting engineering and associated skills and a skilled local workforce.

Other

Mundo Minerals is assessing other project opportunities in South America and will provide updates regarding progress of these when appropriate through normal ASX disclosures.