Pan de Azucar Overview


At Pan de Azucar prospect located near Panay Island, Mindoro has discovered the Valderama massive pyritic sulphide body where promising gold, copper, silver and zinc values were intersected by Mindoro in three drill programs. Mindoro holds a 75 % economic interest in the Pan de Azucar Project and, in 2012, signed joint venture agreements with TVI Resource Development (Philippines) Inc. ("TVIRD")to progress a two stage development strategy for the Pan de Azucar Project.

TVIRD may earn a 60% interest in the direct shipping operation (DSO) joint venture through achieving DSO production. TVIRD may also earn up to 60% in the Processing joint venture Details of the joint venture arrangements are described in Mindoro's September 27, 2012 press release.

Exploration Target
On February 8, 2012, Mindoro announced a drill defined Exploration Target of 8 million to 12.7 million dry metric tonnes (DMT) in a grade range of 35% to 40% sulphur (70% to 90% pyrite), 0.4% to 0.6% copper and 0.5 g/t to 0.7 g/t gold. The sulphide also contains significant silver and zinc values.

The reader is cautioned that the Valderama massive sulphide mineralization, located on the Pan de Azucar MPSA, is currently an Exploration Target only. Detailed drilling will be required to convert the Exploration Target into NI 43-101-compliant resources. There is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. Until a feasibility study has been completed there is no certainty that the company's projections will be economically viable.

Based on the potential acid production rates in the Pre-feasibility Study released November 2, 2011, the Pan de Azucar Exploration Target potentially contains enough sulphur for 10 to 15 years of sulphuric acid supply for the Agata project.

Further metallurgical testing, in particular continuous thermal-oxidation test work, is required to confirm the results of the initial work.



PAN DE AZUCAR MASSIVE SULPHIDE MINERALIZATION



HOLE No. FROM (m) To (m) Run (m) Au g/t Ag g/t Cu% Zn% Sulphur
PDA-18 35.60 94.90 59.30 0.90 3.45 0.45 0.45 > 40%
Including 35.60 61.23 25.63 1.26 3.79 0.58    
PDA-20 1.60 33.30 31.70 1.15 6.12 0.48   > 40%
Including 1.60 17.70 16.10 2.11 7.89 0.78    
PDA-21 2.80 42.00 39.20 1.00 15.71 1.89 2.02 42%
PDA-22 10.00 23.00 13.00 0.62 8.61 2.53    
PDA-22 38.10 85.60 47.50 0.75 1.01 0.09   41%
PDA-25 11.10 87.10 76.00 0.64 4.54 0.38    
Including 27.00 87.10 60.10 0.53 2.14 0.31   40%
Including 23.10 40.00 16.90 0.59 3.06 1.01    
PDA-28 9.2 13.1 3.9 0.78 55.31 5.30 5.11 38
PDA-28 20.75 75.55 54.8 0.77 11.52 1.17 0.68 40


Left: Location of Pan De Azucar Copper-Gold Sulphur Prospect Massive Sulphide Materialization