Exploration & Evaluation
Torrecillas conceptual mine development
In order to properly assess the economic potential of the Torrecillas Project, during 2008 Mundo Minerals initiated development of an exploration decline that is being used to access the high-grade vein structures.
Part of the project assessment will be to undertake exploratory mine development along the veins and expose the mineralization to enable a proper assessment of a resource to be undertaken.
Mundo Minerals is targeting an initial production base at the Torrecillas Project of approximately 50,000 ounces per annum with an average mill head grade of approximately 15g/t Au. While the veins are narrow, this production target requires only a relatively small mining operation to be developed. The logistics associated with this level of production are expected to be commercial subject to the development work proving the continuity of the mineralization.
Mundo Minerals has upgraded the existing infrastructure at the Torrecillas mine site including employee accommodation, mess facilities, the introduction of solar water heating as well as mine infrastructure upgrades such as the installation of a new haulage system and introduction of a small haulage locomotive for underground haulage.
Towards the end of the 2008 financial year, the decline development intersected the existing mine development on the Torrecillas vein structures. Mine development will initially occur along the 12 level from the existing developed vein structure.
A cross-cut is also being developed to access the Ady and Ady West vein structures, located to the north west of the Torrecillas Mine, where surface sampling and initial diamond drilling have intersected strong gold mineralization.
The focus of future activity will be development along the mineralized veins, assessing the extent of the mineralization and developing an initial JORC-Code compliant resource base as the basis for a Feasibility Study prior to commencing commercial gold production.
Ongoing development and project assessment work is expected to continue through the 2009 calendar year.
