“To be able to achieve production on schedule and below budget, particularly in the current strong gold price environment, puts the company in a very strong position to continue to deliver on its broader growth strategy in Latin America,” said Mundo Minerals’ Managing Director, John Langford. Langford said plant commissioning was scheduled to commence in March, with first gold production anticipated in April 2008.

The Engenho project, which is located in the State of Minas Gerais in Brazil, was previously operated by AngloGold Ashanti which closed it in 2004 after treating some 171,257 metric tons (mt) of ore from an open pit through a conventional Carbon-in-Pulp (CIP) treatment facility.

Mundo Minerals also completed its expenditure commitments under the Tocantins Joint Venture in Brazil to earn an initial 51% interest in tenements which include the recently discovered Conceição gold prospect. The company reported that it has now met its initial expenditure commitment of $1.3 million to earn a 51% interest in the tenement portfolio, which covers an area of approximately 180,000 ha in a substantial greenstone belt. Mundo’s Joint Venture Partner is Gamaleira Ltda (a joint venture between IamGold and AngloGold Ashanti). Mundo’s other two exploration assets in South America are the 100%-owned Torrecillas Gold Project in Peru and the Tocantins Gold Project in Brazil.