MARENGO Mining is developing a ten-hole exploratory drilling program at Yandera after its exploration program “exceeded expectations”.

”The implemented exploration program has exceeded expectations both in the amount of work accomplished and the obtained results,” the company said in its September quarter activities report.

The company’s geology team has completed preliminary outcrop mapping and sampling of areas to the west and north of its existing “frog” camp, in particular the area around Rima Creek.

“All outcrops in the area displayed either potassic or phyllic type alteration with attendant fracture based mineralisation,” the group said.

Based on these results the drilling program will seek various identified outcrops and test mineralisation at depths of up to 500 metres.

“The initial drill pads are built and improvements to Frog camp have been undertaken to prepare for the drilling crews,” the company said.

“In addition to the ongoing mapping program we have begun developing cross sections and maps to reflect the new understanding of the genesis of the mineralisation in and around Yandera.

“The ability to successfully predict areas of higher grade mineralisation is critical to our success in drilling.”

Marengo said the development of new conceptual models would continue well into late 2015.

The company announced the successful outcome in its September quarter activities report, where it also declared its intention to implement a new intensive training course for geologic and environmental staff.

Marengo acknowledged the need to devote more resources to the Yandera project and announced three stages it will use to “elevate the project to one that is economically robust”.

The first stage will involve the company boosting its training, data, mapping and sampling, and, potentially, exploratory drilling.

“In stage two, will the company intends to follow this with a larger scale mapping and sampling program to continue to define new drill targets,” Marengo said in a statement.

“New targets will be prioritised and drilled after completing drilling and field studies.”

The final stage will involve proving up new resources, completing an updated resource model and potentially finalising an updated feasibility study.