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Oct 18, 2005
New Acquisitions in Surigao Gold District
EDMONTON, Alberta; October 18, 2005 --- Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today announced it has acquired additional tenements near its Tapian San Francisco Project, Surigao Gold District, Northeast Mindanao, the Philippines. The tenements cover new potential target areas, as well as extensions of trends in which Mindoro has defined promising porphyry copper-gold prospects.
Tony Climie, P.Geol., President of Mindoro, said "the new acquisitions represent a further strengthening of our large land position in an emerging world-class porphyry copper-gold camp, a land position we commenced assembling in 1997".
Exploration work will extend to cover the new acquisitions. Once this work is completed and drill targets have been prioritized, an extensive drilling campaign will likely be proposed for early 2006.
Mindoro and its Philippine partner have one of the largest land holdings in the Surigao Gold District, with 26,000 hectares covering at least eight porphyry copper-gold prospects and numerous epithermal gold prospects. Panoro Minerals Ltd., a Canadian company, has the option to acquire a 40 percent interest in the projects through expenditures of CDN $2 million and is currently funding 100 percent of expenditures.
The tenements were acquired from private Philippine interests and are in the form of Mineral Production Sharing Agreement applications. These will be converted to Exploration Permits (EPs), which are simpler and more rapidly granted tenements. They form four separate groupings totaling 1,053 hectares. Mindoro will hold a 75 percent interest in the newly acquired ground, with the remaining 25 percent held by its Philippine partner. Panoro has the option to include the acquisitions in the Surigao Joint Venture and earn a 40 percent interest.
As consideration for the acquisition and subject to regulatory approval, Mindoro has paid the vendor 2,000,000 Philippines Pesos (PHP) (approximately CDN $41,850) and will issue 125,000 Mindoro shares upon registration of the EPs. After registration, the vendor will receive advance royalties of PHP 142,000 (CDN $3,000) per quarter. One year after registration of the EPs, the vendor will also receive 175,000 Mindoro shares.
When a feasibility study begins, if Panoro has exercised its option, the vendor will receive 200,000 Panoro shares, although Mindoro has the option to substitute Mindoro shares of equivalent value. When production begins, the vendor will receive 500,000 Mindoro shares. For the commercial exploitation of the property, the vendor will receive a royalty of one point five percent (1.5%) NSR (Net Smelter Returns) for production of gold and other minerals.
As reported in releases dated January 8, January 18 and August 5, 2005, Mindoro has defined a cluster of porphyry copper-gold targets on its Tapian San Francisco Project. Mindoro has advanced to the drill stage the C5 and C6 prospects, which have correlating geophysical (induced polarization and resistivity), soil copper and gold anomalies, strong porphyry-related alteration, as well as proximal copper-gold mineralized float boulders.
Mindoro's Surigao Projects, new acquisitions and other significant prospects are shown on the Surigao Gold District map on Mindoro's website. Two major porphyry copper-gold discoveries were made in recent years by the Anglo American-Philex Gold joint venture, just ten kilometers from Mindoro's Tapian San Francisco Project. Red5 of Australia recently announced the discovery of a porphyry copper-gold prospect contiguous to another of Mindoro's Surigao projects.
Mindoro is also very active on its Batangas Projects, Luzon Island, and will shortly be reporting drill results from its Pica porphyry copper-gold prospect.
Mindoro is a Tier 1 Company trading on the TSX Venture Exchange (TSXV: MIO) and the Frankfurt Stock Exchange (OLM). The company is exploring for gold and gold-copper in the prolifically mineralized magmatic arcs of the Asia-Pacific Region. Mindoro has been active in the Philippines since 1996 and is presently focused on six promising projects in politically stable jurisdictions of the Philippines.
For further information, contact;
Penny Gould, Executive Vice President
Marshall Farris, Ascenta Capital Partners Inc.
Toll Free: 1-866-684-4209
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