Mundo Minerals Limited (MUN) – Bringing its Engenho Gold Mine in Brazil into Production Initially at ~35,000ozpa from May 2008

• Mundo Minerals Ltd (MUN) currently has three gold mine project areas in Brazil and Peru, being its Engenho gold mine in eastern Brazil (about to start production), its Torrecillas mine in southern Peru (in which it is establishing resources), and the Tocantins area of central Brazil (has a range of opportunities).
• MUN is a growth story. Although its NPV is A$0.33 based on ~35,000ozpa from Engenho at US$900/oz, if US$950/oz, a higher throughput of 300,000tpa and a grade of 6g/t are achieved (~54,000ozpa), then the NPV is ~A$0.80 (assuming normal tax, if MUN qualifies for Presumed Tax, then add another ~20c). MUN’s target for Engenho is 50 to 60,000ozpa, which appears to be achievable especially with the geochem progress near Mazoca and other possible satellite sources.
• MUN also has mid-term production targets for Torrecillas of 50 to 70,000ozpa and ~110,000ozpa from Tocantins. And there is the new project of Jaquiera, (near Jacobina, Bahai) in NE Brazil which is currently under a new option and rapid evaluation, as it also displays the preferred characteristics of an old goldfield, proximity to infrastructure and towns, and a non-malarial prone area.
• MUN is currently driving a ramp and developing a cross-cut in the Torrecillas mine near Chala in southern Peru, to improve the production and access capability compared to the current climb-in incline. Historic average grades on small 1,500 to 2,000ozpa production were ~ 20g/t to 30g/t, although they range from 8g/t to 300g/t over different widths of 20cm to 2m both along strike, and up and down dip.
• The increase in the width of the Torrecillas footwall vein to ~2m with grades ~2oz/t (59g/t) on the lowest level (No 12, or 2580m above sea-level, only 120m below surface), offers encouragement in the stacked lode system to achieving a 150,000oz resource target before starting a PFS to re-commence mine production.
• At Tocantins in Central Brazil, MUN has a number of projects/prospects ranging from active and historic garimpeiro (artisan) workings, to greenfields exploration. Grades vary as do the opportunities for open-cut or underground operations.