Significant exploration target for Mundo

Recent exploration and development activities on Mundo Minerals’ Engenho....

  Recent exploration and development activities on Mundo Minerals’ Engenho Gold Project in Brazil have confirmed a significant exploration target located 2km from the existing Engenho orebody.Mundo’s review of exploration data inherited from the previous owner of the Engenho Project, AngloGold Ashanti, identified a significant geochemical anomaly at Mazoca, located approximately 2km north of Engenho. This anomaly was generated from soil and rock chip sampling in the surrounding area, which includes a number of small shafts previously operated by private miners. Mundo has since prepared a comparison between the newly identified geochemical anomaly and the initial geochemical anomaly that generated the discovery of the Engenho resource, demonstrating that the anomalies have very similar characteristics. However, at Mazoca the boundaries of the anomaly remain open to the east and west, with highly anomalous gold and arsenic values extending to both the eastern and western limits of the sampled area, reinforcing its potential as an exploration target. While drilling will be required to confirm the significance and potential of this target, the work completed by Mundo to date provides significant support for the concept of repeat ore bodies that could emerge as future additional ore production sources for the project. It is anticipated that Mundo will commence drilling to test the Mazoca anomaly later this year. The company said its immediate focus continues to be on the development of mine infrastructure to enable the existing Engenho ore body to deliver initial production by the second quarter of 2008. Once the Engenho Project has been commissioned, Mundo will step up exploration to test the potential for additional ore sources within its tenements, with the longer-term objective of increasing production above the initial 28-30,000oz per annum production profile.