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Lobo Project:
The Lobo Project and related prospects are located in the western half of the Batangas Projects. Mindoro has drilled out and defined a National Instrument 43-101-compliant resource at SW Breccia on the Lobo Project. Indicated resources, to a depth of 130 meters, are 270,000 tonnes at a grade of 6.49 g/t gold, containing 56,380 ounces of gold. Additional inferred resources are 61,000 tonnes at a grade of 5.35 g/t gold, containing 10,540 ounces of gold. The mineralization is believed to be open to depth and to the south-west along strike. Mindoro plans to use a larger drill rig to extend the resource, which is open in two directions, at a later date. While this has potential for a small gold mine, Mindoro is searching for larger deposits and has identified much higher potential targets on its Batangas tenements, including the Kay Tanda, Calo and El Paso prospects.
Mindoro has completed a major geophysical survey using combined induced-polarization and magnetic surveying. This was conducted over Lobo in late 2004 to help define porphyry copper-gold targets because epithermal gold deposits in the Philippines are commonly underlain in close proximity by porphyry copper-gold mineralized intrusions.
Geophysical surveys give strong indications of at least two interpreted buried porphyry copper-gold systems on the Lobo Project. Drilling began on the first of these, the Pica Prospect, in May 2005. The second drill hole at Pica intersected 213 meters at a grade of 0.18% copper, 0.30 g/t gold and 1.91 g/t silver between 22 and 235 meters. Pica represents a new porphyry copper-gold discovery, and Mindoro is pleased it was able to vector into significant mineralization with just two drill holes. Subsequent geophysical work in the area indicated that Pica is actually on the eastern edge of a much larger and more intense mineral system encompassing the Calo Prospect, where a major drill program has just commenced.
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