MUN 0.00% 4.8¢ mundo minerals limited

shareholder update

  1. 1,866 Posts.
    Out at 1.49PM.(See below) I wish other companies would be so good as to issue such updates! AAR could learn a bit from Mundo.
    Cherry good luck this is a good share/company/story!




    Recent exploration has continued to focus on this zone to develop a better understanding of the region, the distribution of the
    gold mineralisation and the geometry of the structures.
    Recent analysis has confirmed a strong correlation between soil sampling and
    RAB drilling, which demonstrates the importance of this exploration technique
    as a pathfinder for gold mineralisation in the region. The most recent assay
    result received from diamond drilling the central zone has yielded further
    encouraging results of 0.6m at 16.7 g/t Au between 3.00 metres and 3.60
    metres and 1 metre grading 6.8 g/t Au from 16.70 metres to 17.70 metres
    from TCD 07-16 located in the central anomaly.
    As part of our original joint venture agreement, we were required to reduce
    our tenement area after completing the initial earn-in from 180,000 hectares to
    60,000 hectares. We have now selected this initial joint venture area, which
    includes the tenements covering the Conceição discovery. Significantly, we
    have also recently entered into a second joint venture with Gamaleira Ltda on
    the remaining 120,000 hectares of tenements not included in the initial joint
    venture.
    This second joint venture has been concluded on similar terms, giving us the
    right to earn an initial 51% interest for US$2 million and then increasing our
    equity to 80% by taking any resource discovered through to bank feasibility
    stage. This will enable us to retain exposure to the broader Tocantins
    tenement portfolio, which we believe is extremely prospective for additional
    discoveries. In addition, we have negotiated the right to explore for base
    metals on any of the tenements included within both joint ventures.
    Our exploration team at Tocantins, which has recently been expanded with
    the establishment of the second joint venture, has the significant advantage of
    having access to a newly established assay laboratory at the Engenho Project. The establishment of this facility gives us a
    significant strategic advantage in terms of turnaround of assay results – which is currently one of the most significant challenges
    facing exploration companies.
    SUMMARY
    In the context of our broader corporate plan, Mundo Minerals has a medium term strategy of developing a sustainable annual
    production base of around 250,000 ounces of gold. We expect to generate 50-60,000 ounces per annum from Engenho (which
    will be driven largely from the existing mine and anticipated exploration potential from the tenements); 50-70,000 ounces per
    annum from Torrecillas, subject to completion of a positive Feasibility Study, and and we hope to deliver about 110,000 ounces
    per annum from Tocantins in Brazil, which is a major greenstone belt.
    We need to undertake a strong exploration program and achieve further success, but the early results from all of our assets
    suggest that we can achieve these targets. I am pleased to report that we have so far either met or exceeded all of our goals
    and I firmly believe that this approach will continue to yield positive results for shareholders, and that the targets we have set
    have very solid foundations based on the exploration results we are seeing.
    The Board has approved an exploration budget for calendar 2008 of approximately A$7.8 million. This includes 10,200 metres
    of diamond drilling and 8,150 metres of RAB drilling to be undertaken in Brazil and 3,750 metres of diamond drilling to be
    undertaken in Peru. The focus on drilling in Peru is less than Brazil due to the fact that most of the exploration focus on Peru
    during 2008 will be undertaken via development of exploration declines.
    With gold production commencing next month, no debt and no hedging, we are in a very strong position to fund this aggressive
    exploration and development. At the end of the December 2007 Quarter, we had cash reserves of just over A$19 million; we
    anticipate that our cash position will be approximately A$8.0 million following plant commissioning at Engenho in April. With the
    mine budgeted to generate EBITDA of A$12.8 million for 2008, we are exceptionally well placed to achieve our growth
    objectives.
    I am confident that the future for Mundo Minerals is extremely bright, and I look forward to keeping you informed of our
    progress, which can also be monitored by visiting our web site at www.mundominerals.com.
    John Langford
    Chief Executive Officer
    Diamond Drilling, Tocantins
 
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