Marengo to spend US$1.6b to boost Yandera

MARENGO Mining is expected to plough US$1.6 billion (K4.50 billion) into Yandera and get it into production by 2014, according to reports out of the US yesterday.
Marengo chief executive Les Emery is currently on a whirlwind road-show in the US and Canada to raise US$25 million (K68.50 million) to help complete his drilling programmes before the start-up of construction.
In an interview with IntelAsia Minesite, Emery said it would cost US$1.6 billion to bring Yandera into production in 2014.
The copper/gold project is located near the Ramu nickel project in Madang province.
Not all the money would come from Marengo and Emery said he was enthusiastic about the reception he got from reception he got in North America and he hoped Australian miners would also be interested as a result of the Rudd-government’s heavy resource sector’s super profits tax of 40%.
“Indeed, with the latest resources tax turning sentiment towards Australia even sourer, talk turns to the possibility of moving the company’s domicile somewhere more hospitable.
“Such a move would possibly add yet another leg to Les’s world tours, and is purely hypothetical at this stage.
“But the sentiment is plain … if Australia thinks it doesn’t need Marengo, well the feeling is mutual.
“But it’ll be interesting to see if that lack of Australian institutional interest changes as Marengo’s ongoing drilling campaign starts to deliver results, and as the completion of the feasibility study on Yandera draws nearer,” the report said.
“Marengo is also drilling its first deep hole on Yandera, down to a depth of around a kilometre, and if that shows up strongly mineralised it could be something of a game-changer,” it said.