PNG - Exploration Licenses

Papua New Guinea (PNG) is home to some of the world's most spectacular mineral discoveries, and yet it remains remarkably under explored. There were two major periods of exploration in the post war period; Copper oriented exploration in the 1960s and Gold oriented programs in the 1980's. Panguna and Ok Tedi both resulted from the exploration in the 60's, whilst Wafi and Tolukuma trace their origins to the exploration of the 80's.

Morumbi has secured two mineral licenses totaling 129,000 ha in the Popondetta region in the Owen Stanley Range of PNG via the acquisition of Rockwell, a private company registered in the Bahamas: EL 1767 and EL 1649.

The Owen Stanley Range is host to a number of world-class gold-copper porphyry and high-level epithermal gold deposits. There are a number of major companies that are conducting exploration in the belt which is consider to have tremendous exploration potential for discovering large deposits.

The license EL 1767 consists of 341 square kilometers of land and was the subject of prior exploration activity on the part of Rockwell as EL 1412. The much larger EL 1649 license is 948 square kilometers but to date very little work has been undertaken to properly assess its potential for mineral reserves. As part of the process for securing EL 1767, Rockwell had entered into a MOU with Onaudi Resources Ltd. a landowner company registered in PNG and representing the local villagers of Ainare in the province of Oro, Papua New Guinea. Morumbi has taken on all of Rockwell's obligations to the landowner company including all social and other programs. Partnerships with local landowner groups is an important part of Morumbi's approach to exploration and resource development as it ensures the interest of all parties are fully aligned, and that the people who actually own the resources, and under whose villages those deposits lie, get to benefit from them. The MOU provides for the landowner company to receive a carried 10% working interest in the EL 1767 with costs recovery from 50% of their participating interest. EL1767 is almost totally surrounded by Goldminex Resources Limited, which has recently completed an option agreement with VALE of Brazil to conduct a 5-year $25 Million program.

Goldminex has identified two significant Cu-Au porphyry targets that overlap onto the Popondetta property to the northwest referred to as Liamu and to the southwest near Goldminex camp. The same structures, rock types, and alterations have been found by Newmont and others that conducted exploration on the Popondetta property, and these will be the focus of the exploration program.

Morumbi's current exploration program is targeting extensions of both the Liamu and Foasi Ubei prospects, with stream sediment sampling and trenching program looking to identify prospects for follow-up work to identify drill targets.

Following the publication of the NI 41-101 for EL 1767, it is anticipated that work will start on exploration of EL 1649