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May 2010 - Mundo Minerals

Mundo Minerals Limited (MUN) – Aiming to Increase Production to 100,000ozpa by 2012/13

  • Mundo Minerals Ltd (MUN) currently has two operating gold mines in South America, being Engenho near Belo Horizonte in SE Brazil and Torrecillas near Chala in Southern Peru. There are also two advanced exploration properties in Brazil being Jacqueira and Tocantins in northern and central Brazil respectively.
  • Engenho has settled down to produce ~25,000ozpa from its ~22,000tpm plant based on recovered underground grades ~ 3g/t from its namesake Engenho orebody, and has established 3 other orebodies which it intends to bring into production, being Crista, Olhos and Mazoca, stepping up to ~50,000ozpa.
  • The Engenho plant capacity is being almost doubled through adding a duplicate ball mill and two tanks, for treating the higher grade ~ 4g/t to 5g/t apparently simpler Crista mineralisation, initially as an open-cut in late 2010 and later underground. The current plan is to bring in Olhos as Crista goes underground.
  • Torrecillas has increased production to ~8,000oz to 9,000ozpa from toll treatment of its namesake Torrecillas underground mine’s vein being ~ 12,000tpa at ~20g/t. Two other veins (5th November and Torrechico) are under evaluation to establish their strike lengths and average grades, for completion of a BFS and possible plant construction near Chala, which may be delayed by cashflows to ~2012.
  • Depending on lode thicknesses, strike length continuity and better ground conditions than the Torrecillas orebody, Torrecillas’ production could gradually increase to 30,000ozpa and later 50,000ozpa with a conceptual eventual target of 100,000ozpa. When combined with Engenho, this takes MUN’s potential production up to >100,000ozpa by 2012/2013.
  • MUN is also progressing with exploration at Jacqueira to establish a minimum specified resource during 2010, while also making progress at Ampar in its Tocantins tenements.
  • Written by: Keith Goode
  • Wednesday, 26 May 2010