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Jul 25, 2006
Further Encouraging Drill Results Extend Gold Mineralization at Kay Tanda
EDMONTON, Alberta; July 25, 2006 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today reported encouraging results from a further three holes at the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines. Holes KT-14 assayed 32 meters of 0.52 grams per tonne (g/t) gold and KT-16 assayed 34 meters of 0.66 g/t gold. This extends the mineralization 50 meters beyond its previously known limits. An economic cut-off of 0.3 g/t gold is used for near-surface, oxide mineralization. Mindoro is continuing to receive encouraging gold-silver results from an ongoing reverse circulation drilling program, with thick intersections of low-grade, near-surface oxide mineralization. Previous results are reported in releases dated May 3, May 23, June 16 and July 4, 2006.
Mindoro's President, Tony Climie, P.Geol, stated, "We are pleased to see grades which continue to be in line with successful open-pit, heap-leach mines elsewhere in the world. Two phases of metallurgical testing on Kay Tanda also indicate excellent leaching characteristics. As a result, we plan on commissioning a NI 43-101 resource report followed by a scoping study later this fall to further evaluate Kay Tanda's open-pit, heap-leach potential."
SUMMARY OF DRILL RESULTS, HOLES KT-14 TO KT-16
Mindoro plans to continue both in-fill drilling, to provide further confidence in internal continuity, and drill outside the presently known mineralized area, where mineralization is open in several directions, and on the adjacent un-drilled North Lumbangan zone. A National Instrument 43-101-compliant resource estimate will be prepared when the drill program is finished. A diamond coring rig will be mobilized to Kay Tanda in mid-August to obtain large diameter core samples for additional column leach testing, with the objective of obtaining design parameters for a potential mine and plant. A scoping study will be commissioned on completion of the current drill program. If results are positive, Mindoro will conduct a full feasibility study with the objective of advancing the project to development.
ABOUT KAY TANDA
Kay Tanda, including the semi-contiguous Pulang Lupa zone, is part of an aerially-extensive, semi-continuous zone of epithermal gold-silver mineralization associated with quartz stock-working in andesitic and dacitic volcanics and intrusives. As drill-defined to date, mineralization extends over a strike length of more than 900 meters and has an average width of approximately 350 meters. Mineralization is open in several directions. A drill-hole location plan, and two cross sections, accompanied the July 4, 2006 news release. Similar mineralization has been located at the Lumbangan and Marita zones to the north-east which are yet to be drill-tested.
Near-surface mineralization is in the form of a flat-lying blanket, commonly extending right from surface, and averaging in thickness from 30 meters to 40 meters. Grades typically fall within a range of 0.5 to 0.8 g/t gold and 1 to 3 g/t silver. The mineralization is oxide down to a depth of 50 to 70 meters. Below this, the non-oxide mineralization is generally in the form of higher grade veins, which attain bonanza grades in places (eg. 70 g/t gold over 1 meter in hole KT-4). At this time, focus of the evaluation is on the near-surface mineralization.
Intense porphyry copper-gold related phyllic (quartz-sericite-pyrite) and SCC (sericite-clay-chlorite) alteration plus abundant quartz veins/veinlets with low-grade copper-lead and zinc mineralization, continues to be encountered in all holes immediately below the overprinting epithermal gold-silver zone. This porphyry prospect constitutes a follow-up target for a future diamond drill program.
Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (OLM). The company has identified 22 porphyry copper-gold prospects and a nickel laterite prospect in the Philippines and has an aggressive strategy of drilling multiple targets in 2006.
FOR FURTHER INFORMATION, CONTACT:
Penny Gould, Executive Vice President
Marshall Farris, Ascenta Capital Partners Inc.
Fax: 780.426.2716 Toll Free: 1.866.684.4209 ext. 22
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This correspondence may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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