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Aug 16, 2006
Drilling Expands Kay Tanda-Pulang Lupa Gold Zones and Encounters High-Grade Mineralization
EDMONTON, Alberta; August 16, 2006 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today reported additional encouraging results from a further ten drill holes from the adjacent Kay Tanda and Pulang Lupa epithermal gold-silver zones, located in the Archangel Project, the Philippines. At Kay Tanda, results included six meters of 6.96 grams per tonne (g/t) gold in hole KT-28, including two meters of 18.85 g/t gold, followed by two meters of 9.16 g/t gold deeper in the hole. At Pulang Lupa, 28 meters of 1.47 g/t gold was intersected in hole PL-17 and six meters of 0.98 g/t gold and 81.82 g/t silver in hole PL-19.
The high grade gold intersections in KT-28 are interpreted to correlate with the high-grade gold reported May 23, 2006, from KT-04, 50 meters along strike to the north-east, which intersected 10 meters of 9.31 g/t gold. A fault extending through the two drill holes is interpreted to control high-grade feeder zones to the widespread blanket of stockwork gold-silver mineralization. Although additional high-grade feeder zones very likely occur, Mindoro's main focus remains on drill-defining the low-grade near-surface mineralization with the objective of establishing a 43-101 compliant resource and proceeding to a scoping study later this year.
SUMMARY OF LATEST RESULTS
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 gold-silver mineralization. Previous results are reported in releases dated May 3, May 23, June 16, July 4, July 25, August 1, and August 8, 2006. A drill hole location map accompanied the latter release. The latest drill holes extend the near-surface mineralization significantly beyond the previously known limits. Highlights from the recent drilling at Kay Tanda (KT) and Pulang Lupa (PL) are:
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 Imperial Project, Glamis reports Measured Resources of 67,877,000 tonnes at a grade of 0.59 g/t gold.
DRILL RESULTS: Kay Tanda Holes KT-28 To KT-34 and Pulang Lupa PL-17 To PL-19
(Based on a cut-off grade of 0.3 g/t gold)
Note: N/R -- Not yet received
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 most directions. Preparatory work on a National Instrument 43-101-compliant resource report has commenced. Additional drill sampling for metallurgical testing is in progress. This will be followed by a scoping study to commence later this year to further evaluate Kay Tanda's open-pit, heap-leach potential. Exploration will also continue for high-grade "feeder zones", as intersected in holes KT-04 and KT-28, 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, and can be as much as 60 meters thick. 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 80 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-04). 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:
HEAD OFFICE INVESTOR RELATIONS
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.
You can view the Next Press Releases item: Tue Aug 22, 2006, Clarification Related to Comparison of Drilling Results From Kay Tanda-Pulang Lupa Gold Zones
You can view the Previous Press Releases item: Tue Aug 8, 2006, Additional Positive Drill Results from Kay Tanda: Diamond Drill Rig Mobilized to Collect Metallurgical Samples
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