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Feb 24, 2000
Financing Activities And Project Update Highlights
* Private placement closes and plans underway to raise additional $1 million
* Plans for
- gold resource delineation on Agata Project
- initial drilling of Pan de Azucar gold-copper system
- refining of drill targets on Tiris and Tapian Projects
Mindoro Resources Ltd. ("Mindoro") is pleased to announce it has engaged IBK Capital Corp. ("IBK") to raise up to one million dollars for Mindoro's upcoming exploration and drill programs and for working capital. An announcement will be made when the terms and conditions of the proposed private placement are finalized. IBK is an independent Canadian financial advisory firm with a strong track record of providing exemplary financial services, including capital raising assignments, to both senior and junior resource companies.
Mindoro also reports the closing of the private placement announced in its news release of July 21, 1999. Pursuant to the placement, Mindoro has issued 1,750,000 Units, at a purchase price of $0.20 per unit. Each unit consists of one common share and common share purchase warrant, purchase warrants having an exercise price of $0.30 for one year from date of purchase.
Pursuant to the Canadian Venture Exchange's (CDNX) intentions to implement a two-tier system for listed issuers in March 2000, the CDNX has classified Mindoro as a Tier 1 company. Tier 1 is the more advanced tier where higher financial requirements must be maintained. Please refer to the CDNX Corporate Finance Policies and Procedures Manual (website: www.cdnx.ca under the heading "About CDNX") for further information on tiering.
PROJECT STATUS SUMMARY
During this last resource recession, Mindoro elected to continue measured, cost-effective exploration on its four core projects: achieving early drill success in advancing the Agata Project to the resource delineation stage, identifying identical targets on the adjacent Tapian Project, outlining a very large gold-silver system on the Tiris Project, now near the drill stage, and advancing the strong Pan de Azucar gold-copper system to the drill stage. With confidence now returning to the gold resource sector, Mindoro intends to aggressively advance these projects. Refer to Mindoro's website (www.mindoro.com) to view project maps and for news releases containing more detailed technical reports.
Pan de Azucar, Philippines: This large (2 by 2 kilometers) and strong gold-copper system is at the drill stage (see news releases of Oct. 22, 1997; Nov. 28, 1997; and Feb. 23, 1998). Pan de Azucar has excellent potential for a high sulphidation gold-copper deposit at relatively shallow levels (similar to the major Lepanto Mine, Philippines) as well as for a porphyry copper-gold system at greater depth (similar to the Far SE Deposit, which occurs immediately beneath Lepanto).
An induced polarization survey is planned to further refine drill targets, followed by a combined diamond and reverse circulation reconnaissance drill program this spring. Mindoro continues to receive expressions of interest in a joint venture from major mining companies, however, given the project's potential, management prefers to retain its present equity rights and fund the initial drill program.
Agata Project, Philippines: A reconnaissance drill program in late 1999 tested the Assmicor and Limestone Targets, with 10 of 11 holes intersecting economically significant mineralisation of better than 0.5 grams per tonne (g/t) gold (see news releases of October 26, 1999; and November 17, 1999). The two best holes in the Assmicor Target were 19 meters of 1.1 g/t and 24 meters of 1.4 g/t gold . The near-surface, intrusive-hosted, oxide mineralisation is open to the north and east. Two drillholes drilled on the eastern edge of the Limestone Target intersected 2.7 g/t and 2.2 g/t gold over 7 and 8 meters close to surface, with sections of deeper mineralisation in both holes. Strong soil gold anomalies and old workings occur over an area of approximately 600 by 500 meters, and over a vertical range of at least 120 meters, suggesting a large resource potential. Mineralisation occurs in silty limestones and resembles sediment-hosted deposits in Nevada.
Both targets offer excellent potential for open-pit , heap-leach operations, as well as deeper, higher-grade potential. 4,000 meters of reverse circulation drilling are planned to commence resource delineation.
Tapian Project, Philippines: Similar targets to the Agata Project, including sediment-hosted mineralisation, have been located at Tapian, twenty kilometers to the north along strike. Agata's success has now confirmed Tapian as a very interesting project. Surface sampling and trenching is planned later this year to advance Tapian to the drill stage.
Tiris Project, Indonesia: The principal prospect, Harimau, is a very large (greater than 6 by 2 kilometers) and intense, low-sulphidation gold-silver system (see news releases of Mar. 2, 1998; May 6, 1998; Jul. 27, 1998; Nov. 19, 1998 and Jan. 28, 1999). Harimau contains an extensive surface blanket of low-grade gold-silver mineralisation, in three major zones, which were the sites of Dutch gold sluicing operations in the early twentieth century. Widespread occurrences of mineralised float (up to 10.6 g/t gold and 520 g/t silver) indicate the presence of high-grade zones which are yet to be located. The Harimau gold-silver system is believed to be exposed at a high structural level strongly suggesting, in addition to the near-surface potential already indicated, high potential for multiple zones of higher grade mineralization extending to depth.
Harimau shares many similarities with major low-sulphidation gold-silver deposits elsewhere in the world. Given the unusually large size of the system, it is envisaged that a major drill program will be required to define economic resources at Harimau, requiring additional financings or a major joint venture partner. Mindoro is continuing negotiations with a major mining company on Tiris but is considering all options to maximise value to the shareholders on this high potential project. Tiris is located in southern Sumatra, in an area unaffected by localised trouble spots elsewhere in Indonesia.
With exposure to four such high caliber projects, Mindoro shareholders are well positioned to capitalize on the emerging gold resource uptrend. For detailed information on Mindoro and its projects, investors are encouraged to visit our website at www.mindoro.com or to contact the corporate office. Mindoro is a Canadian mineral exploration company focussing on gold and gold-copper exploration in the Asia Pacific region. Mindoro trades on the Canadian Venture Exchange under the symbol MIO.
For further information, contact Penny Gould, Executive Vice President.
Phone: (780) 413-8187
Fax: (780) 426-2716
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
You can view the Next Press Releases item: Wed May 3, 2000, Goldfields Limited Options Tiris Project And Mindoro Appoints New Director
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