Mundoro Mining Inc.

Mundoro Mining Inc.

September 06, 2005 08:25 ET

Mundoro Forms Integrated Engineering Team for Final Feasibility Study and Mine Permitting of the Maoling Gold Project, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 6, 2005) - Mundoro Mining Inc. ("Mundoro" or "the Company") (TSX:MUN) is pleased to announce that it has assembled a core group of consultants to conduct the final feasibility study and to assist in the mine permitting process for the Maoling Gold Project in China. The development team, which includes Ausenco Limited, Golder Associates Pty Limited, Sinosphere Corporation and Intercedent Limited, has the extensive technical capability and country-specific experience to assist Mundoro to transform what is currently China's largest undeveloped gold resource into China's largest operating gold mine.

Ausenco Limited: Process Design and Management of Feasibility Study

Process design for the Maoling Project as well as overall project-management of the final feasibility study will be undertaken by Ausenco Limited. An international engineering firm, Ausenco has recently completed major mining project developments around the world such as Placer Dome's Mara mine in Tanzania, Oxiana's Sepon copper/gold mine in Laos and the feasibility work (process plant and infrastructure) for Ivanhoe Mines' Oyu Tolgoi project in Mongolia. Ausenco has developed specific mining expertise within China, and is currently carrying out the engineering contract for Sino Gold's Jinfeng gold mine in Guizhou, China. Carrying out engineering contracts in China requires the ability to work closely with the Chinese engineering design institutes and an in-depth knowledge of Chinese construction standards and regulations. Mundoro is confident that Ausenco is the most capable and experienced firm to guide this process for the Maoling project.

Ausenco has appointed Mr. Ivor Whitefield as Project Manager for Maoling. Mr. Whitefield has more than 30 years experience in construction and project management. He was most recently Newcrest's site development project manager for the Telfer gold-copper project in Western Australia. At Telfer he managed the majority of the total AUS$1.4 billion re-development program that includes a 17 million tonne per year mine and mill with associated infrastructure, expanding the project to rank among the world's ten largest gold mines. Mr. Whitefield's experience will be invaluable in both the design and development stages of Maoling.

Maoling's pre-feasibility study, completed in June 2005 by AMEC Americas Ltd., sees the development of a large-scale, open pit mine/milling operation producing an average of approximately 328,000 ounces of gold per year over 8 years at a cash operating cost of US$187 per ounce. This study will serve as a foundation for the final feasibility study which is expected to be completed by Q3, 2006. A substantial amount of additional drilling, engineering and financial data will be incorporated into the design of an expanded mine plan and the optimization of processing and tailings management facilities.

Golder Associates Pty Limited: Mine and Tailings Facility Design, Hydrology and Geotechnical Studies

Golder Associates, an international group of consulting companies specializing in tailings dam design, engineering and environmental services, will design the tailings impoundment facilities and undertake the geotechnical, hydrological and mine design aspects of the Maoling project. They are a recognized world leader in the design and management of mine tailings storage facilities, and are building a strong track record in China's mining sector, having been involved in the design and construction of the tailings facilities for Sinogold's Jianchaling and Jinfeng gold projects and Afcan's Tanjianshan project in China.

Sinosphere Corporation and Golder Associates Pty Limited: Environmental Management & Project Permitting

Sinosphere Corporation, together with Golder Associates, is managing the Environmental and Social Impact Assessment (ESIA) for Maoling and will be instrumental in drafting all environmental permit applications and helping to guide them through the various government approving agencies. Sinosphere has been operating in China since 1999, providing expertise in research, strategy development, engineering, environment, health and safety and social sciences. The firm is the representative of the World Business Council for Sustainable Development in China and has undertaken or managed over 1,500 Due Diligence or ESIA projects in a wide variety of industries throughout the country.

Intercedent Limited: Business Development

Intercedent Limited is a business facilitator that has operated in China since 1991, providing companies with advice on market and policy development. Mundoro has engaged Intercedent to assist with the guiding of all permit applications through the different government approval levels and project execution strategies, benefiting from its experience and knowledge of local business practices, as well as its close working partnerships within China. Intercedent can apply innovative and country-specific solutions to the development strategy for Maoling.

With the assistance of its newly-formed team of experts covering all aspects of mine and business development in China, Mundoro is well equipped to rapidly advance the Maoling Gold Project through the feasibility and permitting phases.

Joint Venture Business License

The business license of the Company's joint venture company, Liaoning Tianli Mining Company Limited, lapsed on August 31, 2005. With the assistance of Mundoro's partner, Liaoning Aidi Resources Company Limited, management has engaged in friendly and constructive talks with senior officials of the Provincial Government of Liaoning, resulting in the reassurance that the application for the license renewal is being processed. The Company expects that the license will be issued soon.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a Vancouver-based, TSX listed resource company focused on the exploration and development of the multi-million ounce, feasibility stage Maoling gold deposit in Liaoning Province, China. The Company has a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government, and has been aggressively exploring the 20 square kilometer exploration license area. Thus far, two deposits that outcrop at surface have been outlined at Maoling in which disseminated, free-milling gold mineralization occurs within a sequence of metasedimentary rocks. A pre-feasibility study completed in June of 2005 demonstrated the economic viability of developing a large-scale open-pit mine on the Zone 1 orebody to produce an average of approximately 328,000 ounces of gold per year over 8 years. Significant opportunity remains to both optimize the mine's design and to expand the overall resource-base for consideration in the final feasibility study through ongoing infill and expansionary drilling.

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Mundoro Mining Inc.
    Colin H. McAleenan
    Chairman and CEO
    (604) 669-8055
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055