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Jan 31, 2007
Infill Drill Holes Establishing Internal Continuity of Mineralization at Kay Tanda
EDMONTON, Alberta; January 31, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today reported additional results from a further two reverse circulation drill (RC) holes and partial results of two core (DH) holes from the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines. Drill highlights include 64 meters of 1.61 grams per tonne (g/t) gold from surface, including 36 meters of 2.35 g/t gold, in KTRC-68; and 92 meters of 0.69 g/t gold, including 12 meters of 2.13 g/t gold in KTDH-07. With two reverse circulation rigs and one core rig now drilling Kay Tanda, plus metallurgical test work underway in Australia, the company anticipates completing a National Instrument 43-101 resource estimate early in the second quarter of 2007.
REVERSE CIRCULATION DRILL RESULTS
The RC infill holes are continuing to confirm internal continuity of the aerially extensive, near-surface low-grade, blanket-like form of gold-silver mineralization. To date, drill spacing has been mostly on 50 meter centers. Drill spacing is being closed in to approximately 50 meters by 25 meters in several areas to give a greater degree of confidence in internal continuity.
KTRC-68 intersected 64 meters of 1.61 g/t gold and 2.02 g/t silver from surface. KTRC-69 intersected 38 meters of 0.48 g/t gold and 5.86 g/t silver from surface, followed by 8 meters of 0.49 g/t gold and 4.38 g/t silver, and then 48 meters of 0.80 g/t gold and 1.36 g/t silver, including 8 meters of 2.63 g/t gold and 2.11 g/t silver. All intersections are believed to approximate true thicknesses.
CORE DRILL RESULTS
Core hole KTDH-06, an angle hole drilled towards grid east, targeted the deeper, high-grade mineralization intersected in KTDH-04 (reported in a release dated November 14, 2006). It intersected 39 meters of 0.45 g/t gold from surface, part of the near-surface, low-grade blanket form of mineralization. The high-grade mineralization was not intersected at depth, possibly due to offsetting along heavy faulting encountered in this hole, or an easterly dip of the high-grade zone, parallel to the drill hole. Core hole KTDH-08, drilling grid west, will test the latter possibility.
Core hole KTDH-07 was another infill hole. Partial results have been received to date and confirm continuity of mineralization between adjacent holes, giving thick intercepts of near-surface, blanket-form breccia and stockwork mineralization. It intersected 19 meters of 0.39 g/t gold and 2.85 g/t silver extending from near surface, followed by 92 meters of 0.69 g/t gold and 1.84 g/t silver, including 12 meters of 2.13 g/t gold. Mineralization is open to depth.
SUMMARY OF LATEST RESULTS
The table below summarizes results of the latest drilling. (Based on a cut-off grade of 0.3 g/t gold)
A map accompanying this release and posted on Mindoro's website ("Kay Tanda 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. Mindoro considers the contoured areas defined by numbers greater than 15 (g/t gold x length of intercept) to be of particular interest. This map format illustrates the distribution of mineralization and provides information on mineralization centers, structural controls, as well as mineralization trends.
Click to Enlarge
Drilling will continue to extend and evaluate the epithermal gold-silver mineralization at Kay Tanda; especially targeting and extending the high-grade mineralization encountered in recent holes, and testing areas of enhanced chargeability. A number of the RC holes will be deepened with the core rig to test elevations below 150 meters. Some core holes will also be continued to greater depths where alteration and mineralization suggest proximity to porphyry mineralization. Two metallurgical samples have been sent to Australia for testing and a third sample is being collected. This work will be followed by a National Instrument 43-101 resource estimate and a scoping study.
ABOUT KAY TANDA
Low sulphidation epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense hydrothermal breccias, quartz stockworks, with accompanying base metal sulphides, reflected by an induced polarization chargeability anomaly that is about 1.5 kilometers by 1.4 kilometers in extent. Only a relatively small part of the chargeability anomaly has been drill-tested to date; over about one kilometer by 300 to 600 meters at Kay Tanda. This is interpreted as part of a much larger mineral system consisting of epithermal gold-silver and base-metal mineralization telescoped into an underlying porphyry copper-gold system.
Mindoro has completed over 90 reverse circulation (RC) and seven core drill holes at Kay Tanda. Almost all holes have encountered near-surface, generally flat-lying to gently-dipping blanket-like low-grade mineralization, which is partially to strongly oxidized to depths of 40 to 60 meters and non-oxide below this. Drilling, especially at deeper levels, has encountered at least four steeper-dipping and much higher-grade zones, with bonanza grades to 100 g/t gold and over 1,000 g/t silver, in places, which are interpreted as structurally controlled upflow, or "feeder" zones. Further drilling and structural studies are in progress to determine the nature and controls of the high-grade zones. Mineralization is thought to be related to swarms of hydrothermal breccias, and prospect-scale quartz stockworking, with the high-grade occurring preferentially at elevations below 150 meters (ASL) within a boiling zone. Few holes have penetrated to this depth to date. Such upflow zones can be associated with bonanza mineralization and constitute some of the world's best epithermal gold-silver deposits.
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 (WKN 906167). In addition to the resource delineation being carried out at Kay Tanda, 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 2007.
FOR FURTHER INFORMATION, CONTACT:
Executive Vice President
Ascenta Capital Partners Inc.
Toll Free: 1.866.684.4209 ext. 228
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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