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Sep 12, 2006
Drilling Continues to Expand Kay Tanda Gold Zone; First Metallurgical Drill Hole Encounters Porphyry Copper-Gold Features
EDMONTON, Alberta; September 12, 2006 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today reported additional encouraging results from a further nine reverse circulation (RC) drill holes from the Kay Tanda epithermal gold-silver zone, located in the Archangel Project, the Philippines. Drilling is continuing to confirm internal continuity and extend mineralization.
A diamond drill rig completed the first metallurgical core hole to a depth of 99.20 meters. This twinned RC hole KT-22, and collected a large diameter (PQ) sample for metallurgical testing in Australia. A second metallurgical hole has commenced. Core recovery is almost 100% and provides a much better appreciation of geology than the RC holes. Geology consists of pervasive and intense hydrothermal breccias, pebble dyke breccias and andesite porphyry intrusive overprinted by quartz and quartz-sulphide stockworks. Quartz-copper sulphide veins, interpreted as porphyry copper-gold related mineralization, increase near the bottom of the hole, suggesting the very large breccia complex occurs not far above a porphyry system. A third metallurgical hole will continue to a target depth of 500 meters to test for porphyry copper-gold mineralization at depth.
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, and transitional oxide to non-oxide, gold-silver mineralization. Previous results are reported in releases dated May 3, May 23, June 16, July 4, July 25, August 1, August 8 and August 16, 2006. The latest drill holes are confirming internal continuity and extend mineralization significantly beyond the previously known limits. The table below summarizes results of the latest drilling.
The accompanying map ("Kay Tanda & Pulang Lupa Gold g/t X meters") shows the location of all drill holes to date and distribution of gold values in grams per tonne (g/t) times intercept length in meters for each hole. Using a cut-off of 0.3 g/t gold, mineralization intercepts for each drill hole are summed and plotted in contour form. This format illustrates the distribution of mineralization and provides information on mineralization centers, structural controls, as well as mineralization trends. Mindoro considers the contoured areas defined by numbers greater than 15 (g/t x length of intercept) to be of particular interest. Economics of open pit operations are normally determined by the major parameters of grade, metallurgy, strip ratio and tonnage / contained ounces of gold and silver. Though still at the exploration stage, management strongly believes that Kay Tanda, and adjacent zones yet to be drilled, have the potential to be economic. The map also shows the location of additional holes which Mindoro plans on drilling this month in advance of preparing a NI 43-101 resource estimate. Assay cross sections and interpreted mineralization boundaries are also shown for section 9,800N (Kay Tanda), and section 9,300N (Pulang Lupa).
DRILL RESULTS: Kay Tanda Holes KT-34 To KT-42
(Based on a cut-off grade of 0.3 g/t gold)
* corrected result for KT-34 from Aug. 16 release.
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, and for interpreted porphyry mineralization below.
ABOUT KAY TANDA
Kay Tanda and the adjacent Pulang Lupa zone are part of a large area of low-sulphidation, epithermal gold-silver mineralization associated with quartz and sulphide stockworks and hydrothermal breccias in andesitic and dacitic volcanics and intrusives. As drill-defined to date, mineralization at Kay Tanda is about 500 meters by 400 meters in extent, and is open in several directions. In particular, it is continuous with the adjacent Lumbangan Zone, where mineralization on surface has been traced for at least one kilometer to the northeast. Pulang Lupa, which was once connected to Kay Tanda but now-separated by erosion along the intervening watershed, is about 300 meters by 300 meters in extent, and is also open in several directions (see accompanying map).
Near-surface mineralization is in the form of multiple quartz and quartz-sulphide stockwork blankets, commonly extending right from surface, and averaging in thickness from 20 meters to 30 meters, and can be as much as 100 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, passing through a transition oxide / non-oxide zone of several tens of meters also. 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.
As described in Mindoro's December 2, 2005, press release, 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. Thick, up to 20 centimeters, quartz-sulphide veins with chalcocite, chalcopyrite and bornite near the bottom of the hole, are indicative of proximity to a porphyry copper-gold system. The Kay Tanda epithermal breccia based on the recent core hole is now, interpreted as part of a very large hydrothermal breccia above and overprinting a porphyry system. This porphyry prospect constitutes a follow-up target for diamond drill testing, soon to commence.
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
Trent Dahl, Ascenta Capital Partners Inc.
Toll Free: 1.866.684.4209 ext. 28
Richard Mayr, Argentuminvest GmbH
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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