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ASX Release: Marengo Re-Releases Results for Recent Sampling and Exploration Drilling at Rima Prospect

12.03.2015  |  Marketwired

TORONTO, ONTARIO--(Marketwired - March 12, 2015) -

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

Marengo Mining Ltd. (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."

Table 1. Results from Surface Samples at Rima. Coordinates are UTM in AGD 1966, Zone 55. 'Rock' sample types were collected from a point at the respective Northing and Easting, and therefore do not have a width across which they were sampled.
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 - 9366727 290562 0.01 1146 4
YE03938 Rock - 9366726 290580 0.071 2459 10
YE03939 Rock - 9366379 290837 0.037 1988 16
YE03940 Rock - 9366354 290863 0.198 6200 41
YE03948 Rock - 9366310 290880 0.107 3330 24
YE03949 Rock - 9366320 290870 0.052 2238 32
YE03951 Rock - 9367385 291151 0.037 623 <1
YE3921 Rock - 9366258 290951 2.45 61600 174
YE3922 Rock - 9366268 290969 0.174 1911 3
YE3923 Rock - 9366284 291016 0.286 5483 55
YE3924 Rock - 9366295 291036 0.024 487 9
YE3925 Rock - 9366348 291150 0.097 10500 26
YE3926 Rock - 9366310 291091 0.015 309 3
YE3927 Rock - 9367007 290962 0.053 2235 43
YE3928 Rock - 9367020 290868 0.014 342 9
YE3929 Rock - 9367041 291116 0.022 591 19
YE3931 Rock - 9367144 290809 0.079 2926 10
YE3932 Rock - 9367101 291013 0.044 1590 334
YE3933 Rock - 9367294 291230 0.063 1561 89
YE3934 Rock - 9367340 291225 0.11 8337 106
YE3935 Rock - 9367284 291271 0.044 3700 80
YE3936 Rock - 9367132 290884 0.047 3153 430
(1) "ppm" means parts per million.

Drilling Results:

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 0.110
120 144 24 0.1879 0.088 0.0127 0.225
Including
134 144 10 0.3547 0.183 0.0297 0.440
With
142 144 2 0.9810 0.664 0.1350 1.370
(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 0.243
Including
8 22 14 0.2549 0.124 0.0034 0.265
Also including
38 132 94 0.5011 0.234 0.0043 0.514
With
94 120 26 1.0054 0.455 0.0110 1.037
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 0.113
Including
70 80 10 0.2696 0.092 0.0007 0.272
Also including
146 238 92 0.1552 0.062 0.0003 0.156
With
190 218 28 0.2019 0.084 0.0002 0.202
Also including
264 280 16 0.1402 0.089 0.0004 0.141

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 0.119
Including
74 92 18 0.2114 0.087 0.0003 0.212
Also including
106 126 20 0.1715 0.090 0.0003 0.172
Also including
150 164 14 0.3167 0.207 0.0003 0.318
With
162 164 2 0.8900 0.509 0.0003 0.891

*CuEQ% means copper equivalent percentage and is calculated using spot prices of $2.60/lb Cu, and $7.50/lb Mo which results in in equation CuEQ% = Cu% + Mo%*2.885. In calculating the CuEQ%, Marengo assumes that it will be able to recover copper and molybdenum from mineral resources that may be identified in the Rima area. Testing on samples from the nearby Yandera resources suggest recoveries of these metals may be on the order of 91% for copper and 80% for molybdenum. 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, please visit the following link: http://media3.marketwire.com/docs/MRN1.jpg.

To view Figure 2. Map of Recent Sampling at Rima, please visit the following link: http://media3.marketwire.com/docs/MRN2.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, please visit the following link: http://media3.marketwire.com/docs/MRN3.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.

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. John Mears, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Mears is a full-time consultant of Marengo Mining Ltd..

Mr. Mears has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Mears consents to the inclusion in the report of the 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.

Appendix 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code Explanation Commentary
Sampling techniques • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
• Diamond drilling was used to collect samples for logging and assaying
• Each 2 m interval of drill core was cut in half to generate a split of ~ 1.5kg, of which a 250 g split was pulverized to produce a charge for fire assay for gold and four acid digestion and multi-element analysis with ICP-AES or ICP-OES
• Channel samples were collected by continually sampling chips collected by hammer and chisel across the width of the channel sample, and then a 250 g spilt was pulverized for fire assay and four acid digestion and multi-element analysis with ICP-AES or ICP-OES
• Rock grab samples were collected as 2-5 kg samples from GPS locations, and then a 250 g split was pulverized for fire assay and four acid digestion and multi-element analysis with ICP-AES or ICP-OES
Drilling techniques • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). • Diamond drilling was used for all holes in this drilling program
• Holes were oriented to test for mineralization observed at surface
• Core diameter was HQ or NQ
Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
• Core was measured and compared to the reported drill length
• Recoveries were generally better than 90%
Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.
• Core was all geologically logged in detail, including lithology, alteration, mineralization, and oxidation
Core was oriented where orientation markings were reliable
• Core was all photographed
Sub-sampling techniques and sample preparation • If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.
• Core was split in half with a diamond-blade saw, generally in 2 meter intervals
• Core samples were crushed with a 1.5 kg split 70% passing 2mm, and then a 250 g split was pulverized to 85% passing 75 microns
• Channel samples and rock grab samples had a 1.5 kg split crushed to 70% passing 2mm, and then a 250 g split pulverized to 85% passing 75 micron
Quality of assay data and laboratory tests • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
• QAQC data include standards and laboratory checks. Standards were inserted at a rate of 1 for every 20 core samples sampled at 2 m intervals and 1 for every 10 channel samples or rock grab samples
• The lab performs internal quality checks
• Random duplicates from pulps are re-analysed
• A selection of pulps are sent to different labs of assay checks
Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
• Data is validated while being entered into the database
• Data is further validated while being evaluated with 3D software
Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.
• Drill collars are located initially with a hand-held GPS, and are later measured with DGPS
• Downhole surveys are taken while drilling using a Reflex survey tool every 50 m
• Sample locations are collected with GPS
• The project uses the AGD66 Z55 projection
Data spacing and distribution • Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.
• Drill spacing was designed to test for the presence and limits of observed surface mineralization
• The spacing of the drilling at Rima may be close enough in some areas to eventually demonstrate some mineral resource
• For core, 2m intervals were composited mathematically after receiving results
Orientation of data in relation to geological structure • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
• Drill holes were angled, and designed to test conceptual orientations
• Previous models of mineralization at previously reported resources suggested steeply dipping zone, which Rima drilling tested
Sample security • The measures taken to ensure sample security. • Surface samples were bagged by geologists and geotechnicians. Bagged samples were shipped by transport contractor to the prep lab
• Crushed splits of core samples were bagged by core samplers and transported in sealed bags to the prep lab by transport contractor
Audits or reviews • The results of any audits or reviews of sampling techniques and data. • Sampling techniques are periodically reviewed
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code Explanation Commentary
Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
• The Rima prospect is located within Exploration License 1335, which is 100% controlled by Marengo Mining Ltd.
Marengo Mining Ltd. has access arrangement with various tribes in the area
• This tenement is in good standing and there are no known impediments
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • Exploration work in the Rima area was completed by Marengo Mining Ltd. employees and/or contractors
Geology • Deposit type, geological setting and style of mineralisation. • Mineralization at Rima is porphyry-Cu style and is hosted in potassic and phyllic alteration, and is similar to mineralization observed at the Yandera Mineral Resource
Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
• easting and northing of the drill hole collar
• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
• dip and azimuth of the hole
• down hole length and interception depth
• hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
• A table with a summary of the drill hole information is provided above
Data aggregation methods • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
• Drill results reported are weighted averages of individual 2 m core samples that encompass an area with elevated copper concentrations, generally in excess of 0.1% copper
Relationship between mineralisation widths and intercept lengths • These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
• The true thickness of mineralization is not known, and the thickness is reported as drilled thickness
Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. • See figures associated with text
Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • Refer to table associated with text
Other substantive exploration data • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. • The exploration work included some geological surface mapping and examination of previous surface mapping and historical geophysical surveys
Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
•Refer to text and figures
Appendix 2
Drill Hole Summary Table for Rima
Locations were measured with hand-held GPS and are in the UTM AGD1966 Zone 55 projection. Azimuth is relative to projected north. TD is total (maximum) drilled depth.
DH Easting (m) Northing (m) RL (m) AZIM INCL TD (m)
YD560 290995 9366332 2029 134° -60° 200.7
YD561 290930 9366250 1990 065° -65° 263.4
YD562 290930 9366250 1990 245° -65° 300.6
YD563 290926 9366149 2047 058° -65° 239.9

ARBN: 161 356 930



Contact

Marengo Mining Ltd.
Pieter Britz
Chief Executive Officer
+61 400 666980
pb@marengomining.com

Marengo Mining Ltd.
Alex Dann
Chief Financial Officer & Corp Secretary
+1 416 464 4067
ad@marengomining.com
www.marengomining.com


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