Marengo Mining Limited
TSX : MRN
ASX : MMC
POMSoX : MMC

Marengo Mining Limited

March 09, 2015 08:20 ET

Marengo Releases Results for Recent Sampling and Exploration Drilling at Rima Prospect

TORONTO, ONTARIO--(Marketwired - March 9, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Marengo Mining Limited (TSX:MRN) (ASX:MMC) (POMSoX:MMC) ("Marengo") is pleased to announce the results of a recent sampling and drilling program at its Rima Prospect ("Rima"), as it continues to advance its Yandera copper project ("Project") in Papua New Guinea.

Rima is located approximately 700 metres to the northwest of the western edge of the Imbruminda resource area that forms part of the Yandera copper project (Figure 1). Rima was discovered in 2014 while geologists - following up on work completed in 2008 and 2009 - were mapping and sampling in creeks west of the Imbrum river. Surface sampling of some creeks in the Rima area revealed elevated copper content in grab and channel samples (Figure 2 and Table 1).

In late 2014, Marengo completed four drill holes (totalling 1004.6 metres) at Rima in search of higher grade copper mineralization to complement the current Yandera resource. The results (Tables 2-5) confirm the presence of higher grade mineralization, and one of the next phases of work is to constrain its limits.

Higher grade mineralization at Rima appears to be hosted in a phyllically altered structural domain within a broader zone of potassically altered porphyritic quartz diorite and granodiorite. Sheeted veins within these structural zones of phyllic alteration have a north-northwesterly strike and dip steeply to the west-southwest. Domains of these sheeted veins appear to occur in a northwesterly trending corridor (Figure 3).

"The results at Rima are encouraging and suggest the presence of additional domains of near-surface higher grade copper mineralization that collectively, may enhance the current Yandera resource," said Chief Executive Officer Pieter Britz.

"Given these encouraging results, we are not proceeding with the remainder of the previously announced 10-hole drill program. Rather, we are working towards completion of a more extensive field program during 2015, leading to a more comprehensive drill program in 2016. We remain enthusiastic about the potential of Rima and other similar prospects."

Drilling results:

Table 1. Results from Surface Samples at Rima. Coordinates are UTM in AGD 1966, Zone 55.

Sample Type Width (m) Northing Easting Gold ("Au") ppm(1) Copper ("Cu") ppm Molybdenum ("Mo") ppm
YE03907 Channel Chip 3.00 9367265 291250 0.048 2270 21
YE03908 Channel Chip 3.00 9367266 291247 0.045 1280 10
YE03909 Channel Chip 3.00 9367271 291246 0.032 1490 20
YE03910 Channel Chip 3.00 9367273 291244 0.022 734 11
YE03911 Channel Chip 3.00 9367275 291242 0.045 1800 21
YE03912 Channel Chip 3.00 9367277 291235 0.039 1940 21
YE03913 Channel Chip 3.00 9367281 291234 0.037 1430 32
YE03914 Channel Chip 3.00 9367283 291231 0.047 2590 42
YE03915 Channel Chip 3.00 9367286 291234 0.027 1650 23
YE03916 Channel Chip 3.00 9367289 291234 0.019 1410 11
YE03917 Channel Chip 3.00 9366272 291059 0.042 2580 112
YE03918 Channel Chip 3.00 9366241 291018 0.1 1450 5
YE03919 Channel Chip 1.50 9366237 290962 0.193 4620 12
YE03941 Channel Chip 10 9367331 291221 0.029 1166 23
YE03942 Channel Chip 10 9367340 291219 0.029 889 13
YE03943 Channel Chip 10 9367350 291221 0.015 591 7
YE03944 Channel Chip 10 9367359 291216 0.013 456 7
YE03945 Channel Chip 10 9367366 291208 0.028 1229 8
YE03947 Channel Chip 10 9367372 291200 0.019 815 7
YE03950 Channel Chip 10 9367377 291191 0.013 1616 26
YE03937 Rock Chip NA 9366727 290562 0.01 1146 4
YE03938 Rock Chip NA 9366726 290580 0.071 2459 10
YE03939 Rock Chip NA 9366379 290837 0.037 1988 16
YE03940 Rock Chip NA 9366354 290863 0.198 6200 41
YE03948 Rock Chip NA 9366310 290880 0.107 3330 24
YE03949 Rock Chip NA 9366320 290870 0.052 2238 32
YE03951 Rock Chip NA 9367385 291151 0.037 623 <1
YE3921 Rock Chip NA 9366258 290951 2.45 61600 174
YE3922 Rock Chip NA 9366268 290969 0.174 1911 3
YE3923 Rock Chip NA 9366284 291016 0.286 5483 55
YE3924 Rock Chip NA 9366295 291036 0.024 487 9
YE3925 Rock Chip NA 9366348 291150 0.097 10500 26
YE3926 Rock Chip NA 9366310 291091 0.015 309 3
YE3927 Rock Chip NA 9367007 290962 0.053 2235 43
YE3928 Rock Chip NA 9367020 290868 0.014 342 9
YE3929 Rock Chip NA 9367041 291116 0.022 591 19
YE3931 Rock Chip NA 9367144 290809 0.079 2926 10
YE3932 Rock Chip NA 9367101 291013 0.044 1590 334
YE3933 Rock Chip NA 9367294 291230 0.063 1561 89
YE3934 Rock Chip NA 9367340 291225 0.11 8337 106
YE3935 Rock Chip NA 9367284 291271 0.044 3700 80
YE3936 Rock Chip NA 9367132 290884 0.047 3153 430

(1) "ppm" means parts per million.

Table 2. Significant Drill Results for YD560 (AZIM 134°, INCL -60°, TD 200.7 m)

From (m) To (m) DH Thickness (m) Cu % Au g/t(1) Mo % CuEQ %*
4 24 20 0.1050 0.053 0.0016 0.145
120 144 24 0.1879 0.088 0.0127 0.284
Including
134 144 10 0.3547 0.183 0.0297 0.563
With
142 144 2 0.9810 0.664 0.1350 1.817

(1) "g/t" means grams per tonne.

Table 3. Significant Drill Results for YD561 (AZIM 065°, INCL -65°, TD 263.4 m)

From (m) To (m) DH Thickness (m) Cu % Au g/t Mo % CuEQ %*
0 263.4 263.4 0.2373 0.109 0.0021 0.317
Including
8 22 14 0.2549 0.124 0.0034 0.348
Also including
38 132 94 0.5011 0.234 0.0043 0.671
With
94 120 26 1.0054 0.455 0.0110 1.343

Table 4. Significant Drill Results for YD562 (AZIM 245°, INCL -65°, TD 300.6 m)

From (m) To (m) DH Thickness (m) Cu % Au g/t Mo % CuEQ %*
0 300.6 300.6 0.1084 0.051 0.0004 0.144
Including
70 80 10 0.2696 0.092 0.0007 0.334
Also including
146 238 92 0.1552 0.062 0.0003 0.198
With
190 218 28 0.2019 0.084 0.0002 0.259
Also including
264 280 16 0.1402 0.089 0.0004 0.201

Table 5. Significant Drill Results for YD563 (AZIM 58°, INCL -65°, TD 239.9 m)

From (m) To (m) DH Thickness (m) Cu % Au g/t Mo % CuEQ %*
0 239.9 239.9 0.1181 0.067 0.0004 0.164
Including
74 92 18 0.2114 0.087 0.0003 0.271
Also including
106 126 20 0.1715 0.090 0.0003 0.233
Also including
150 164 14 0.3167 0.207 0.0003 0.457
With
162 164 2 0.8900 0.509 0.0003 1.233

*CuEQ% means copper equivalent percentage and is calculated using spot prices of $1200/oz Au, $2.60/lb Cu, and $7.50/lb Mo, which results in in equation CuEQ% = Cu% + Au g/t*0.6731 + Mo%*2.885; and Marengo makes no assumptions about future metal prices.

Full drill results are available on our website.

To view Figure 1. Map of Yandera Project Area with Rima Prospect Area, visit the following link: http://media3.marketwire.com/docs/mar_fig1.jpg

To view Figure 2. Map of Recent Sampling at Rima, visit the following link: http://media3.marketwire.com/docs/mar_fig2.jpg

To view Figure 3. Vertical cross section through holes YD560, YD 561, YD 562, and YD 563. Copper results shown on the side of the drill trace. Legend: HGR: granodiorite; POD: porphyritic quartz diorite; BXi: breccia; PAN: porphyritic andesite, visit the following link: http://media3.marketwire.com/docs/mar_fig3.jpg

This news release does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares within the United States. The ordinary shares have not been offered and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws. Accordingly, the ordinary shares may not be offered or sold in the United States or to U.S. persons (as such terms are defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws or an exemption from such registration are granted.

Cautionary Statement Regarding Forward-Looking Information

This news release contains forward looking information. Such forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could", or "might" occur or to be achieved and any other similar expressions. In providing the forward-looking information in this news release, the Company has made numerous assumptions regarding: (i) the accuracy of exploration results received to date; (ii) anticipated costs and expenses; (iii) that the results of the feasibility study continue to be positive; and (iv) that future exploration results are as anticipated. Management believes that these assumptions are reasonable. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contained in the forward-looking information, including a actual results of exploration. Some of these risks, uncertainties and other factors are described under the heading "Risks Factors" in the Company's annual information form available on the SEDAR website. Forward-looking information is based on estimates and opinions of management at the date the statements are made. Except as required by law, Marengo does not undertake any obligation to update forward-looking information even if circumstances or management's estimates or opinions should change. Readers should not place undue reliance on forward-looking information.

Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include the actual results of exploration activities, changes in market conditions, risks relating to international operations, fluctuating metal prices and currency exchange rates, and other risks of the mining industry. Although Marengo has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Marengo undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Reference is made to the most recent annual information form of Marengo filed with Canadian securities regulators which includes further discussion of the risk factors which may impact the business and operations of Marengo.

Scientific and technical information in this report including that relating to drilling intercepts and mineralization were prepared by Mr. John Mears. Mr. Mears, P. Geo is a Member of the Australasian Institute of Mining and Metallurgy and a full-time consultant of Marengo Mining Limited. Mr. Mears has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition). Mr. Mears consents in writing to the issue of this report, to the extent of matters based on his information in the form and context in which it appears.

Except to the extent not set out herein, for a (i) summary description of rock types, geological controls and dimensions of mineralized zones, and the identification of any significantly higher grade intervals within a lower grade intersection; (ii) a summary of the relevant analytical values, widths and, to the extent known, the true widths of the mineralized zones; (iii) a summary description of the geology, mineral occurrences and nature of the mineralization found; and (iv) a summary description of the type of analytical or testing procedures utilized, sampled, sample size, the name and location of each analytical or testing laboratory used and any relationship of the laboratory to the issuer please refer to the Company's technical report filed on SEDAR and dated November 9, 2007. There is no drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

For further information on the Project and the resources contained therein, please refer to the Company's Canadian NI 43-101 and Australian JORC technical report "Yandera Copper Project, Madang Province, Papua New Guinea" (dated April 2012) which is available on the Company's website and at the (Canadian) SEDAR website.

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