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Aug 08, 2006
Additional Positive Drill Results from Kay Tanda: Diamond Drill Rig Mobilized to Collect Metallurgical Samples
EDMONTON, Alberta; August 8, 2006 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today reported additional encouraging gold grades from a further six drill holes, including 28 meters of 1.07 grams per tonne (g/t) gold, from the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines.
Results from an ongoing reverse circulation drilling program are giving thick intersections of low-grade, near-surface, oxide gold-silver mineralization. Previous results are reported in releases dated May 3, May 23, June 16, July 4, July 25, and Aug. 1, 2006. The drill holes continue to extend the near-surface mineralization beyond the previously known limits and infill drilling is confirming mineralization continuity. Location of all drill holes to date are shown the map accompanying this release and on Mindoro's website at www.mindoro.com. A summary of results from the recent drilling at Kay Tanda (KT) follows:
• KT-22: 69 meters of 0.62 g/t gold and 1.75 g/t silver, including 28 meters of 1.07 g/t gold and 2.56 g/t silver; an infill hole confirming mineralization continuity 50 meters from adjacent drill holes on section, and 100 meters between adjacent sections
• KT-23: 14 meters of 0.44 g/t gold; an infill hole, confirming mineralization continuity 50 meters from adjacent drill holes
• KT-24: 14 meters of 0.66 g/t gold and 8.46 g/t silver; an infill hole confirming mineralization continuity 50 meters from adjacent holes
• KT-25: 38 meters of 0.53 g/t gold; an infill hole confirming mineralization continuity 50 meters from adjacent holes (silver results not yet received)
• KT-26: 14 meters of 0.36 g/t gold, followed by 36 meters of 0.34 g/t gold; extends mineralization a further 50 meters to the north and west of known mineralization (silver results not yet received).
• KT-27: 30 meters of 0.75 g/t gold, including 6 meters of 1.25 g/t gold; an infill hole confirming mineralization continuity 50 meters from adjacent holes (silver results not yet received).
GRADES IN LINE WITH SUCCESSFUL GOLD MINES ELSEWHERE
Mindoro's management notes that grades continue to be in line with successful and low-cost, open-pit, heap-leach mines elsewhere in the world. For example, Glamis Gold Ltd., a profitable intermediate-sized gold producer, reports on its website Proven and Probable Reserves for its Marigold Mine of 59,396,000 tonnes at a grade of 0.72 g/t gold (Glamis 66% share); for its San Martin Mine, 10,775,000 tonnes at a grade of 0.76 g/t gold; for the giant Penasquito deposit, currently being developed, 564,000,000 tonnes at a grade of 0.55 g/t gold and 31.7 g/t silver. At Penasquito, one of the pits grades 0.38 g/t gold and 25.4 g/t silver, and another pit 0.22 g/t gold and 20.3 g/t silver. For the Imperial Project, Glamis reports Measured Resources of 67,877,000 tonnes at a grade of 0.59 g/t gold.
CORING RIG MOBILIZED TO COLLECT METALLURGICAL SAMPLES
A diamond drill rig has been mobilized to Kay Tanda to collect large diameter core samples of both oxide and non-oxide material for a new phase of metallurgical testing. The metallurgical test-work will be supervised by P. J. Lewis and Associates, metallurgical consultants of Australia, and the work will be carried out at Metcon Laboratories of Australia. Drilling will commence this week.
SUMMARY OF DRILL RESULTS: Kay Tanda Holes KT-22 To KT-27
(Based on a cut-off grade of 0.3 g/t gold)
Mindoro will continue both in-fill drilling, to provide further confidence in internal continuity, and extension drilling outside the presently known mineralized area, where mineralization is open in several directions. Preparatory work on a National Instrument 43-101-compliant resource report has commenced. Additional drill sampling for metallurgical testing will commence this week. This will be followed by a scoping study to commence by this fall to further evaluate Kay Tanda's open-pit, heap-leach potential. Exploration will also continue for high-grade "feeder zones", as intersected in hole KT-4, which are anticipated along favorable structures below the stockwork mineralization.
ABOUT KAY TANDA
Kay Tanda, including the semi-contiguous Pulang Lupa zone, is part of a large zone of low-sulphidation, epithermal gold-silver mineralization associated with quartz stockworking and hydrothermal breccias 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. 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 quartz stockwork blanket, commonly extending right from surface, and averaging in thickness from 20 meters to 30 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 stockworks or higher grade veins, which attain bonanza grades in places (eg. 70 g/t gold over one meter in hole KT-4). At this time, focus of the evaluation is on the near-surface mineralization. Two phases of metallurgical testing on Kay Tanda indicate excellent leaching characteristics.
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.
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 release 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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