MMC - Marengo Mining
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Re: MGO - Marengo Mining
Yes vanquish, I took up a small position in mgo recently and had put it in the bottom drawer for a while until they get things moving. Great resource deposit, feasability underway, it will take some cash from a raising or jv to get things moving, but looks like there has been some interest from the market in the last few weeks.
Yes vanquish, I took up a small position in mgo recently and had put it in the bottom drawer for a while until they get things moving. Great resource deposit, feasability underway, it will take some cash from a raising or jv to get things moving, but looks like there has been some interest from the market in the last few weeks.
Re: MGO - Marengo Mining
here's Tim Treadgold from last Monday in the Eureka Report:
MGO: Decision time nears for Marengo Mining, a small Australian explorer sitting atop one of the world?s great copper deposits. Later this year management will flick the switch from exploration to development at its Yandera project in Papua New Guinea, a time when a significant re-rating of the stock can be expected.
Standing at a whopping 6.5 billion pounds of copper, plus gold, silver and molybdenum credits, Yandera is set to become one of the world?s biggest copper mines. Whether it is a mined owned by a minnow such as Marengo is the interesting question.
Over the past two years there has been a gathering of professional investors on the Marengo share register, including the man who ?broke the Bank of England? back in 1992, George Soros, who is sitting on a 19.9% stake in the stock, picking up the bulk of his stake at 9.5? a share in September, 2009. Marengo last traded at 28.5?. Another big shareholder is Sentient Group, with 26.7%.
What attracts high-profile investors is demand for copper in China, which is on track to consume half the world?s supply by 2033. China?s appetite for copper, plus there being few major new mines on drawing boards anywhere in the world, is a major factor in the price of the metal doubling over the past two years from $US2 to $US4.30 a pound.
Critical development decisions about Yandera will be made over the next few months. A memorandum of understanding has been signed with a Chinese development partner (China Nonferrous), and Standard Bank mandated as financial adviser.
In the meantime, Marengo continues to expand its already massive ore resource with five drilling rigs of site. Broker tips on the stock are rare because Marengo is still an exploration story; but Canada?s Paradigm Capital, which is close to the company, is forecasting a 12-month price for the jointly listed stock (ASX and Toronto) of C65? (A63?)
here's Tim Treadgold from last Monday in the Eureka Report:
MGO: Decision time nears for Marengo Mining, a small Australian explorer sitting atop one of the world?s great copper deposits. Later this year management will flick the switch from exploration to development at its Yandera project in Papua New Guinea, a time when a significant re-rating of the stock can be expected.
Standing at a whopping 6.5 billion pounds of copper, plus gold, silver and molybdenum credits, Yandera is set to become one of the world?s biggest copper mines. Whether it is a mined owned by a minnow such as Marengo is the interesting question.
Over the past two years there has been a gathering of professional investors on the Marengo share register, including the man who ?broke the Bank of England? back in 1992, George Soros, who is sitting on a 19.9% stake in the stock, picking up the bulk of his stake at 9.5? a share in September, 2009. Marengo last traded at 28.5?. Another big shareholder is Sentient Group, with 26.7%.
What attracts high-profile investors is demand for copper in China, which is on track to consume half the world?s supply by 2033. China?s appetite for copper, plus there being few major new mines on drawing boards anywhere in the world, is a major factor in the price of the metal doubling over the past two years from $US2 to $US4.30 a pound.
Critical development decisions about Yandera will be made over the next few months. A memorandum of understanding has been signed with a Chinese development partner (China Nonferrous), and Standard Bank mandated as financial adviser.
In the meantime, Marengo continues to expand its already massive ore resource with five drilling rigs of site. Broker tips on the stock are rare because Marengo is still an exploration story; but Canada?s Paradigm Capital, which is close to the company, is forecasting a 12-month price for the jointly listed stock (ASX and Toronto) of C65? (A63?)
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Re: MGO - Marengo Mining
I'm amazed there's not more interest in this stock; it seems to be really slipping under the radar. For those of you unfamiliar with it, MGO is a large copper play based in PNG. Its resource estimate stands at 6.5 Billion pounds of copper plus gold and moly credits. Funding and off take looks likely due to the involvement of China Non Ferrous, and a buy-in by Petromin, a PNG government body. Currently trading in the low .20's,(MC around 230M) with still 2-3 years till first production. A spec play, definitely, but one with much better prospects than many I've looked at recently. I'd love to get some opinions on this as I'm by no means an expert - positive, negative, whatever, as long as they're informed.
What does everyone think?
I'm amazed there's not more interest in this stock; it seems to be really slipping under the radar. For those of you unfamiliar with it, MGO is a large copper play based in PNG. Its resource estimate stands at 6.5 Billion pounds of copper plus gold and moly credits. Funding and off take looks likely due to the involvement of China Non Ferrous, and a buy-in by Petromin, a PNG government body. Currently trading in the low .20's,(MC around 230M) with still 2-3 years till first production. A spec play, definitely, but one with much better prospects than many I've looked at recently. I'd love to get some opinions on this as I'm by no means an expert - positive, negative, whatever, as long as they're informed.
What does everyone think?
Re: MGO - Marengo Mining
February 15, 2012
Marengo Gets Set To Boost Both Resource And Grade At The Huge Yandera Copper Project In Papua New Guinea
By Our Man in Oz
For an exploration company, a year is a long time between resource estimates, which is possibly why some investors have taken their eye off Papua New Guinea-focussed Marengo Mining. All will be forgiven next month though, when the results of a massive 40,000 metres of diamond drilling are incorporated into the overdue upgrade of the Australian-based company’s world-class Yandera copper project. Minesite’s Man in Oz was not given a sneak preview of what the new number will be when making a house-call at the company’s office in Perth. But it doesn’t take too much experience in the mining business to know that the flow of drilling results from Yandera over the past year is pointing to a big increase in what’s an already monster resource. The current, soon-to-be-adjusted, total is 6.5 billion pounds of copper and 204 million pounds of molybdenum.
Recent infill drilling results at the three main orebodies which make up the current understanding of Yandera include an eye-popping 732 metres at 0.53% copper, and 81 metres at 1.22% copper. The enormous thickness of that almost half-a-mile of drill core illustrates the vast depth of the Yandera structures. But the thinner result contains news which is perhaps even more important, because any result above the 1% copper mark will boost the economics of Yandera, and materially affect the definitive feasibility study (DFS) that Marengo is currently undertaking, and which is due for completion around the middle of the year.
Five diamond drills are currently active at Yandera, so the first question for Marengo chief executive Les Emery is: why the 12-month gap between resource estimates? A shorthand interpretation of his answer: too much drill core for the assay laboratories to handle. “We had planned to release a fresh resource estimate late last year”, Les said. “But when we looked at the huge amount of drilling we did over 2011 we realised that we would have to use an August cut-off, and not include all results.” That decision to roll the updated resource numbers into the first quarter of 2012 means that the market will get all of the 2011 drilling into the calculation, which is likely to surface just before or after Canada’s peak mining conference, PDAC, in early March.
Interesting as it might be to try and guess the updated Yandera numbers, it would probably be a futile exercise because there is no doubt that Marengo already has more than enough copper and molybdenum in the resource category to push ahead with the design of a mine and associated processing plant. A more important number, and the one which will not be released until the DFS is finalised, is the reserve number, because that’s what financiers and equity investors will look for as the main point of comfort in supporting what will be a US$1.8 billion development.
“We want to see a reserve number which will underwrite a 20 year mine life”, Les said. In fact, 20 years will be just the start for Yandera, which is being designed to process 25 million tonnes of ore a year to yield around 100,000 tonnes of copper, plus 15,000 tonnes of molybdenum. Over time, the mine could double in size as reserves grow as a result of the hectic drilling program underway on the company’s leases which are dramatically under-explored. Just five per cent of the tenement area has been tested so far.
And infill and exploration drilling could continue at Yandera for decades, given the targets identified by geophysical surveys. But in the more immediate term, the clock is ticking towards next month’s reserve upgrade and the mid-year DFS finalisation, both of which could include a few positive surprises. One of those surprises will be the inclusion of gold in the copper-equivalent estimate for the project. Until now gold, which grades around 0.09 of a gram per tonne at Yandera, has been sidelined as a by-product alongside silver and rhenium. But while the gold grade looks tiny, it should be seen in the context of the 776 million tonnes of ore, a volume of material which means Yandera is currently estimated to contain 2.2 million ounces of gold. And that number should also rise with the fresh resource estimate.
What could potentially happen with the inclusion of gold in the copper-product stream is that the average copper-equivalent for the entire Yandera orebody could rise from 0.4% copper to 0.5% copper. Once again, that looks to be a tiny movement in the numbers, until converted to a percentage. Because a 25 per cent increase in the amount of metal contained in each tonne of ore does wonders for the economics of any copper project.
Institutional investors with their more professional eye on value have outgunned retail investors to the point where they dominate the Marengo share register. Sentient Group, Quantum partners and Omers (Ontario Municipal Employees Retirement System) have built their combined stake in the company to almost 50 per cent. Sentient is sitting on 22.2 per cent, Quantum 18.9 per cent, and Omers 7.4 per cent. Other North American investors speak for 14.2 per cent, leaving the rest, including Australian foundation shareholders, with 37.3 per cent.
What the institutions are now waiting for is the start of news flow for 2012. Because this should change the nature of Marengo. First event of the year will be the release of the delayed resource upgrade, a point at which Marengo’s share price should accelerate the modest gains already seen this year. Next comes the DFS in mid-year, followed by a formal decision from the PNG Government, which has the right to buy a 30 per cent stake in Yandera. Then comes a formal construction agreement with China Non-Ferrous which will build the project, as well as help source 70 per cent of the funding, and which will also take most of the copper.
While all that is happening above the surface the drilling will continue deep into the ground at Yandera, and observers will be keeping a sharp eye on whether the grade at the project really does increase with depth, as appears to be the case. It should be a year of much progress.
Source >> www.minesite.com
*****
February 15, 2012
Marengo Gets Set To Boost Both Resource And Grade At The Huge Yandera Copper Project In Papua New Guinea
By Our Man in Oz
For an exploration company, a year is a long time between resource estimates, which is possibly why some investors have taken their eye off Papua New Guinea-focussed Marengo Mining. All will be forgiven next month though, when the results of a massive 40,000 metres of diamond drilling are incorporated into the overdue upgrade of the Australian-based company’s world-class Yandera copper project. Minesite’s Man in Oz was not given a sneak preview of what the new number will be when making a house-call at the company’s office in Perth. But it doesn’t take too much experience in the mining business to know that the flow of drilling results from Yandera over the past year is pointing to a big increase in what’s an already monster resource. The current, soon-to-be-adjusted, total is 6.5 billion pounds of copper and 204 million pounds of molybdenum.
Recent infill drilling results at the three main orebodies which make up the current understanding of Yandera include an eye-popping 732 metres at 0.53% copper, and 81 metres at 1.22% copper. The enormous thickness of that almost half-a-mile of drill core illustrates the vast depth of the Yandera structures. But the thinner result contains news which is perhaps even more important, because any result above the 1% copper mark will boost the economics of Yandera, and materially affect the definitive feasibility study (DFS) that Marengo is currently undertaking, and which is due for completion around the middle of the year.
Five diamond drills are currently active at Yandera, so the first question for Marengo chief executive Les Emery is: why the 12-month gap between resource estimates? A shorthand interpretation of his answer: too much drill core for the assay laboratories to handle. “We had planned to release a fresh resource estimate late last year”, Les said. “But when we looked at the huge amount of drilling we did over 2011 we realised that we would have to use an August cut-off, and not include all results.” That decision to roll the updated resource numbers into the first quarter of 2012 means that the market will get all of the 2011 drilling into the calculation, which is likely to surface just before or after Canada’s peak mining conference, PDAC, in early March.
Interesting as it might be to try and guess the updated Yandera numbers, it would probably be a futile exercise because there is no doubt that Marengo already has more than enough copper and molybdenum in the resource category to push ahead with the design of a mine and associated processing plant. A more important number, and the one which will not be released until the DFS is finalised, is the reserve number, because that’s what financiers and equity investors will look for as the main point of comfort in supporting what will be a US$1.8 billion development.
“We want to see a reserve number which will underwrite a 20 year mine life”, Les said. In fact, 20 years will be just the start for Yandera, which is being designed to process 25 million tonnes of ore a year to yield around 100,000 tonnes of copper, plus 15,000 tonnes of molybdenum. Over time, the mine could double in size as reserves grow as a result of the hectic drilling program underway on the company’s leases which are dramatically under-explored. Just five per cent of the tenement area has been tested so far.
And infill and exploration drilling could continue at Yandera for decades, given the targets identified by geophysical surveys. But in the more immediate term, the clock is ticking towards next month’s reserve upgrade and the mid-year DFS finalisation, both of which could include a few positive surprises. One of those surprises will be the inclusion of gold in the copper-equivalent estimate for the project. Until now gold, which grades around 0.09 of a gram per tonne at Yandera, has been sidelined as a by-product alongside silver and rhenium. But while the gold grade looks tiny, it should be seen in the context of the 776 million tonnes of ore, a volume of material which means Yandera is currently estimated to contain 2.2 million ounces of gold. And that number should also rise with the fresh resource estimate.
What could potentially happen with the inclusion of gold in the copper-product stream is that the average copper-equivalent for the entire Yandera orebody could rise from 0.4% copper to 0.5% copper. Once again, that looks to be a tiny movement in the numbers, until converted to a percentage. Because a 25 per cent increase in the amount of metal contained in each tonne of ore does wonders for the economics of any copper project.
Institutional investors with their more professional eye on value have outgunned retail investors to the point where they dominate the Marengo share register. Sentient Group, Quantum partners and Omers (Ontario Municipal Employees Retirement System) have built their combined stake in the company to almost 50 per cent. Sentient is sitting on 22.2 per cent, Quantum 18.9 per cent, and Omers 7.4 per cent. Other North American investors speak for 14.2 per cent, leaving the rest, including Australian foundation shareholders, with 37.3 per cent.
What the institutions are now waiting for is the start of news flow for 2012. Because this should change the nature of Marengo. First event of the year will be the release of the delayed resource upgrade, a point at which Marengo’s share price should accelerate the modest gains already seen this year. Next comes the DFS in mid-year, followed by a formal decision from the PNG Government, which has the right to buy a 30 per cent stake in Yandera. Then comes a formal construction agreement with China Non-Ferrous which will build the project, as well as help source 70 per cent of the funding, and which will also take most of the copper.
While all that is happening above the surface the drilling will continue deep into the ground at Yandera, and observers will be keeping a sharp eye on whether the grade at the project really does increase with depth, as appears to be the case. It should be a year of much progress.
Source >> www.minesite.com
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Re: MGO - Marengo Mining
Very interesting post, thanks for putting that up. I had no idea the ground they are sitting on. They would have to be attractive to larger players with a 20 year mine life.
May be a great time to have a look, particularly as the copper price is depressed.
Will keep an eye on this but the chart already appears to be anticipating this announcement, lets see where this goes....
Very interesting post, thanks for putting that up. I had no idea the ground they are sitting on. They would have to be attractive to larger players with a 20 year mine life.
May be a great time to have a look, particularly as the copper price is depressed.
Will keep an eye on this but the chart already appears to be anticipating this announcement, lets see where this goes....
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Re: MGO - Marengo Mining
George Soros has had a large stake in this for a while via his Quantum fund along with a few other big players... The recent 25c capital raising will most likely be re-priced given management's inability to place the stock within Canadian legislative guidelines.. and with the stock at 15c this will unfortunately dilute existing shareholders a lot more than expected unless they are able to run the price in the near future. The key drivers in the short term will be whether Soros and the other cornerstone investors participate in the re-priced raising...and the market is also expecting the yanderra feasibility study in the 2nd half of this year.
George Soros has had a large stake in this for a while via his Quantum fund along with a few other big players... The recent 25c capital raising will most likely be re-priced given management's inability to place the stock within Canadian legislative guidelines.. and with the stock at 15c this will unfortunately dilute existing shareholders a lot more than expected unless they are able to run the price in the near future. The key drivers in the short term will be whether Soros and the other cornerstone investors participate in the re-priced raising...and the market is also expecting the yanderra feasibility study in the 2nd half of this year.
Re: MGO - Marengo Mining
October 10, 2012
Marengo Gets A Canadian Lift As The Feasibility Study At Yandera Nears Completion
By Our Man in Oz
When the share price of a company jumps by 60 per cent in three days it’s a reasonable assumption that something significant has happened and that the daily media will report the event.
Not so in the case of Marengo Mining, shares in which rocketed from A10 cents to A16 cents between Monday 3rd October and Wednesday 5th, earning a “speeding” ticket from the Australian stock exchange.
Even so, barely a word reached the outside world, leaving observers of the sharp price rise wondering what really happened.
One possibility is that Canadian investment funds, governed by covenants which limit them to home-grown companies, discovered that Marengo has now obtained new citizenship, having swapped its Australian nationality for Canadian.
Another is that investors suddenly recognised that Marengo will finalise its long-running feasibility study at its flagship Yandera copper project in Papua New Guinea by the end of the month.
A third reason is that Marengo’s chief executive, Les Emery, fired up a room full of geriatric speculators at a conference on the Gold Coast in Queensland.
That final point seems to be the least plausible. Having said that, it was also the most interesting and one which Minesite’s Man in Oz observed first hand, as Les worked his audience of 600 wealthy, self-funded retirees, in Australia’s beachside equivalent of God’s Waiting Room.
What the conference hall at the Royal Pines Resort heard was largely a summary of recent events at Yandera, including the potential effect of the “re-domiciling” of Marengo to Canada, a move Les freely admitted was about widening the company’s investor base.
Whether it was members of the audience (average age 70+) who drove the Marengo share price sharply higher is unknown. The Canadian connection is the more likely explanation, especially as the number of Marengo shares traded in the week in question appears to indicate institutional buying. For five consecutive days the volume exceeded two million shares. Sales on Monday and Tuesday set fresh 12-month records at more than seven million on each day, with another five million changing hands on Wednesday.
What investors, of all ages, are warming to is the “tipping point” that Marengo is fast approaching- the stage at which it’ll cease to be an interesting exploration story and will switch instead to a development and copper demand story.
On that score Les is acquiring more listeners every day because he is able to point to several points in Marengo’s favour. These include the rising price of copper, excellent recent drilling results with improving grades, the finalisation of feasibility studies, the latter of which will trigger receipt of a fixed-price engineering and construction contract from the big Chinese company, China Nonferrous.
Regular Minesite readers will be familiar with basic numbers behind Yandera, but for newcomers here is a snapshot. Discovered more than 40 years ago by BHP, the resource was abandoned after being rated too remote, too difficult and not supported by the then prevailing low copper price.
BHP also had the luxury of other copper projects, including the giant Escondida mine in Chile. Enter Marengo which acquired the asset in 2005 and set about spending A$100 million drilling 150 kilometres of diamond core in 500 holes to prove that just one central part of its tenement contains a world class 500 billion (yes, billion) pounds of copper, plus more than useful quantities of molybdenum, gold, silver and rhenium.
The development plan, which will be fine-tuned in the feasibility study, calls for a mine costing up to A$2 billion, that will process 25 million tonnes of ore a year for the production of around 100,000 tonnes of copper, plus 15,000 tonnes of molybdenum and other metals in two separate product streams.
Mining in the first 20 years will involve lowering a hill rather than digging a hole. The ore will then be concentrated on site, and then sent via a slurry pipeline to an export facility in the port of Madang, where Marengo has recently acquired a berth, complete with a ship-loader previously used by a wood-chip company.
Sometimes criticised as a project which is a long way into the future, Les now has the perfect answer. “The future is almost here,” he said, a comment which points to the start of a period of accelerating news flow. “We’re targeting financing and approvals on this project in 2013,” Les said. “That will see us in full production in 2016, entering the world copper market at just the right time.”
Long before first exports, Marengo is likely to have its backroom team working on an expansion phase which could result in a doubling of the current annual target of 100,000 tonnes of copper. “The feasibility study is coming to an end, but that’s not the end of the drilling,” Les said. “While I’m on watch at this company we will keep on drilling because every hole we drill we just get better and better.
“Recently we did some infill drilling within the resource zones and we had some amazing success. When you look at the average mine grade we’re predicting around 0.45% copper, which is the average of 25 copper mines globally. But the results we achieved in some of the latest drill holes are more than double our predicted mine grade. They were a surprise to us, and showed the advantage of continuing to infill drill. An increase in grade in this deposit creates an exponential increase in value.”
If the domicile shift to Canada, the imminent completion of the Yandera feasibility study and the high-grade infill drill hits are still insufficient to grab the attention of investors, then what lies ahead in regional exploration should, because Marengo really has only just scratched the surface of its tenements.
“On the exploration front we have a set of licences which straddle a structure called the Bundi Fault,” Les said. “It’s around 100 kilometres long. We’ve done very little exploration outside Yandera Central.”
For investors with time horizons longer than a few years the exploration potential of the Yandera region looks more exciting than Marengo’s mine development plan. “We’ve completed two low level aeromagnetic, radiometric surveys in recent years. They have identified a number of what we call Yandera look-alikes. Any of those could be equal, or bigger than the Yandera deposit.
“I remind people that the Grasberg mine in Indonesia started life as the Ertsberg deposit. Once they started construction, exploration discovered Grasberg just along strike. We went to Yandera and started drilling where BHP left off, and for all we know Yandera Central may be the baby and a Grasberg maybe sitting right next door, and that’s where we’re starting to focus.”
Source >> www.minesite.com
October 10, 2012
Marengo Gets A Canadian Lift As The Feasibility Study At Yandera Nears Completion
By Our Man in Oz
When the share price of a company jumps by 60 per cent in three days it’s a reasonable assumption that something significant has happened and that the daily media will report the event.
Not so in the case of Marengo Mining, shares in which rocketed from A10 cents to A16 cents between Monday 3rd October and Wednesday 5th, earning a “speeding” ticket from the Australian stock exchange.
Even so, barely a word reached the outside world, leaving observers of the sharp price rise wondering what really happened.
One possibility is that Canadian investment funds, governed by covenants which limit them to home-grown companies, discovered that Marengo has now obtained new citizenship, having swapped its Australian nationality for Canadian.
Another is that investors suddenly recognised that Marengo will finalise its long-running feasibility study at its flagship Yandera copper project in Papua New Guinea by the end of the month.
A third reason is that Marengo’s chief executive, Les Emery, fired up a room full of geriatric speculators at a conference on the Gold Coast in Queensland.
That final point seems to be the least plausible. Having said that, it was also the most interesting and one which Minesite’s Man in Oz observed first hand, as Les worked his audience of 600 wealthy, self-funded retirees, in Australia’s beachside equivalent of God’s Waiting Room.
What the conference hall at the Royal Pines Resort heard was largely a summary of recent events at Yandera, including the potential effect of the “re-domiciling” of Marengo to Canada, a move Les freely admitted was about widening the company’s investor base.
Whether it was members of the audience (average age 70+) who drove the Marengo share price sharply higher is unknown. The Canadian connection is the more likely explanation, especially as the number of Marengo shares traded in the week in question appears to indicate institutional buying. For five consecutive days the volume exceeded two million shares. Sales on Monday and Tuesday set fresh 12-month records at more than seven million on each day, with another five million changing hands on Wednesday.
What investors, of all ages, are warming to is the “tipping point” that Marengo is fast approaching- the stage at which it’ll cease to be an interesting exploration story and will switch instead to a development and copper demand story.
On that score Les is acquiring more listeners every day because he is able to point to several points in Marengo’s favour. These include the rising price of copper, excellent recent drilling results with improving grades, the finalisation of feasibility studies, the latter of which will trigger receipt of a fixed-price engineering and construction contract from the big Chinese company, China Nonferrous.
Regular Minesite readers will be familiar with basic numbers behind Yandera, but for newcomers here is a snapshot. Discovered more than 40 years ago by BHP, the resource was abandoned after being rated too remote, too difficult and not supported by the then prevailing low copper price.
BHP also had the luxury of other copper projects, including the giant Escondida mine in Chile. Enter Marengo which acquired the asset in 2005 and set about spending A$100 million drilling 150 kilometres of diamond core in 500 holes to prove that just one central part of its tenement contains a world class 500 billion (yes, billion) pounds of copper, plus more than useful quantities of molybdenum, gold, silver and rhenium.
The development plan, which will be fine-tuned in the feasibility study, calls for a mine costing up to A$2 billion, that will process 25 million tonnes of ore a year for the production of around 100,000 tonnes of copper, plus 15,000 tonnes of molybdenum and other metals in two separate product streams.
Mining in the first 20 years will involve lowering a hill rather than digging a hole. The ore will then be concentrated on site, and then sent via a slurry pipeline to an export facility in the port of Madang, where Marengo has recently acquired a berth, complete with a ship-loader previously used by a wood-chip company.
Sometimes criticised as a project which is a long way into the future, Les now has the perfect answer. “The future is almost here,” he said, a comment which points to the start of a period of accelerating news flow. “We’re targeting financing and approvals on this project in 2013,” Les said. “That will see us in full production in 2016, entering the world copper market at just the right time.”
Long before first exports, Marengo is likely to have its backroom team working on an expansion phase which could result in a doubling of the current annual target of 100,000 tonnes of copper. “The feasibility study is coming to an end, but that’s not the end of the drilling,” Les said. “While I’m on watch at this company we will keep on drilling because every hole we drill we just get better and better.
“Recently we did some infill drilling within the resource zones and we had some amazing success. When you look at the average mine grade we’re predicting around 0.45% copper, which is the average of 25 copper mines globally. But the results we achieved in some of the latest drill holes are more than double our predicted mine grade. They were a surprise to us, and showed the advantage of continuing to infill drill. An increase in grade in this deposit creates an exponential increase in value.”
If the domicile shift to Canada, the imminent completion of the Yandera feasibility study and the high-grade infill drill hits are still insufficient to grab the attention of investors, then what lies ahead in regional exploration should, because Marengo really has only just scratched the surface of its tenements.
“On the exploration front we have a set of licences which straddle a structure called the Bundi Fault,” Les said. “It’s around 100 kilometres long. We’ve done very little exploration outside Yandera Central.”
For investors with time horizons longer than a few years the exploration potential of the Yandera region looks more exciting than Marengo’s mine development plan. “We’ve completed two low level aeromagnetic, radiometric surveys in recent years. They have identified a number of what we call Yandera look-alikes. Any of those could be equal, or bigger than the Yandera deposit.
“I remind people that the Grasberg mine in Indonesia started life as the Ertsberg deposit. Once they started construction, exploration discovered Grasberg just along strike. We went to Yandera and started drilling where BHP left off, and for all we know Yandera Central may be the baby and a Grasberg maybe sitting right next door, and that’s where we’re starting to focus.”
Source >> www.minesite.com
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Re: MGO - Marengo Mining
Further High Grade Copper-Moly-Gold Results at Yandera
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01344278
Further High Grade Copper-Moly-Gold Results at Yandera
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01344278
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MMC - Marengo Mining Canada
More: http://www.proactiveinvestors.com.a...mining-canada-to-grace-asx-boards--37891.html
http://www.marengomining.com
More: http://www.proactiveinvestors.com.a...mining-canada-to-grace-asx-boards--37891.html
http://www.marengomining.com
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My real name is King Julian ;)
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- 26 March 2006
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Re: MGO - Marengo Mining
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01373227
Basically we will be able to trade our (ex MGO) shares from the 17th January, hopefully the Canadian connection will give a deserved boost to interest in the co. (& the sp)
& no, it's not about extra funds just extra coverage/ change of "domocile".
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01373227
Basically we will be able to trade our (ex MGO) shares from the 17th January, hopefully the Canadian connection will give a deserved boost to interest in the co. (& the sp)
& no, it's not about extra funds just extra coverage/ change of "domocile".
- Joined
- 27 June 2010
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On June 2nd, 2015, Marengo Mining Limited (MMC) was removed from the ASX's official list at the request of the Company, in accordance with listing rule 17.11.
Wysiwyg
Everyone wants money
- Joined
- 8 August 2006
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Oh I remember trading this stock years ago. Never quite managed to get the Yandera project up and running and have now domiciled in Canada apparently to access equity markets. Remaining listed on the TSX and working toward one day, some day extracting copper from the remote location.
