Yandera

The Yandera copper, molybdenum and gold mining project that is being developed by Marengo Mining Limited 95 kilometres south west of Madang, in Papua New Guinea, is in an area regarded as part of the mineral rich New Guinea copper and gold belt. The project is part of exploration licences that cover an area of 1,790 square kilometres. It was previously drilled during the 1970's by BHP and Kennecott Copper and other smaller exploration companies.

Yandera Identified as Containing the Largest Undeveloped Copper Mineralisation in the South West Pacific Area
The 1970 exploration program carried out around the Yandera mining project site consisted of 102 diamond drill holes having been completed totalling 33,000 metres overall. This activity resulted in BHP preparing a mining study of the site that identified the Yandera Porphyry System containing one of the largest such underdeveloped mineralisations in the South West Pacific area.

Power Supply and Tailings Management Delay Yandera Start-up
The Yandera copper, molybdenum and gold project being developed has run up against recent problems concerning the supply of electric power to the site and the best way of ridding the mine of tailings waste. As a result, the planned start-up date will have to be delayed but no longer than 12 months. This will now mean the Yandera mine's first production should occur in 2016. The Yandera mine is expected to have a life of mine extenting to at least 20 years with production averaging between 80,000 and 100,000 tonnes a year of copper and 15,000 tonnes of molybdenum as a mineral concentrate.

The first obstacle the Yandera project had to overcome was that of having power supplied to the mine site when its previously preferred partner, that was going to handle this aspect of the project, announced its withdrawal of its previously proposed arrangements. The partner which withdrew its offer to supply power to the project site was from the Middle East and this was to be its first project outside its home area.

The Madang Development Corporation (MDC) has since entered into a memorandum of understanding with Marengo Mining to have power supplied to the project site in return for it becoming an offtake party to supply electric power to the Madang Province generally. MDC has since commenced talks with international foreign investment groups with the aim of finding an investor willing to provide the much needed power to both the Yandera mine and the people of the Madang Province. Although the memorandum of understanding between MDC and Marengo is non- binding the two parties have agreed to work together in ongoing discussions. The Madang Province has long sought a power source and with the Yandera mine development taking place that will also bring with it new industrial development into the region, the suppy of power to the area could now be commercially cost effective. It is believed the MDC could develop a power station with the help of foreign investment and Marengo Mining could become its biggest customer.

Yandera mine tailings were previously planned to be managed by means of deep sea tailings placement but since 2013 the company is preferring the construction of a tailings dam. This new approach is currently being evaluated.

The Yandera Project is mainly supported by Marengo Mining with the private equity firm Sentient Group holding a 22 percent entity in the company. This could become 33.8 percent if the debentures were all converted. Marengo Mining also have a Chinese partner involved in the development of the Yandera project. This company is China Nonferrous Metal Industry's Foreign Engineering and Construction Company Limited (NFC).
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