Mundo Minerals Ltd (ASX: MUN) has a strong link to Australia's biggest mining conference - the Diggers & Dealers Forum in Kalgoorlie as its managing director John Langford, chairman Barry Eldridge and director Brian Hurley are key committee members of the conference organisation.
In an update on the company, Mundo said that it confirmed that its target was to build up to 200,000 oz per annum from three mines - the established Engenho operation -- including the nearby Crista target - and Jaqueira project, all in Brazil, and the Torrecillas project in Peru.
As the first mine, Engenho has built up production and John Langford said the mine should achieve its target production for 2009 of 30,000 oz.
Engenho, in the State of Minas Gerais was mined in 2004 by AngloGold Ashanti.
The Engenho resource model is continuing to meet or exceed expectations with the treatment plant achieving consistent metallurgical recoveries of approximately 94%, he said.
Mundo has started drilling the Crista property, 1 kilometre north of the Engenho mine. The objective is to build up a reserve to increase production from the Brazilian operations within two years to 55,000 oz per annum.
The company said exploration at Torrecillas continues to deliver promising results and stoping trials have continued to deliver grades of about 22 grams/tonne gold.
Langford pointed out that at this stage the ore assessments were not based on the Australian JORC Code for resource assessment.
Today's report showed that 2010 output was expected to be 36,000 oz, rising to 100,000 oz in 2011 with commissioning of Torrecillas and 205,000 oz in 2012 with Jacquira coming on stream.
When the Cristas deposit is developed the mined grade from the Engenho area will be lifted above the average grade of 4 g/t and when Torrecillas commissions the grade there is expected to range between 14 and 20 g/t gold.