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Nov 29, 2000
Mindoro Acquires Two High Potential Copper-Gold Projects in Philippines
- Lobo Mine - High-Grade Gold (Copper) Reserves and El Indio-Type Potential
- Archangel - Porphyry Copper-Gold Prospect at Drill Stage with Peripheral Gold Resources
Tony Climie P. Geol., President of Mindoro Resources Ltd. ("Mindoro"), is very pleased to announce, subject to regulatory approval, the acquisition of two high-potential, gold-copper projects in the Philippines: Lobo Mine and Archangel.
Mindoro, through its 100% held Philippines subsidiary, MRL Gold Phils. Inc., has the right to earn up to 75% interest in the Lobo and Archangel Projects from Egerton Gold Phils. Inc. ("Egerton"), a private Philippines company (see Heads of Agreement below). The projects are near Batangas, Southern Luzon, 150 kilometres (km) south of Manila. Mineral Production Sharing Agreement ("MPSA") applications on both projects are in their final approval stages.
Excellent drill results released at Anglo American/Philex Gold's Boyungan discovery (Philex releases of September 15 and November 7, 2000) highlight the unusually high grades and economic attractiveness of porphyry copper-gold systems in the Philippines and the potential for new discoveries. It is understood that Anglo is moving two larger drill rigs onto the discovery and will be drilling it aggressively during 2001. Mindoro already has four promising projects near Boyungan (Mindoro releases of September 21, 2000 and September 28, 2000).
LOBO MINE PROJECT
The Lobo Mine operated between 1966 and 1969, with underground production from three levels on a high-grade gold-copper vein over a vertical range of 50 meters (m) and 350 m horizontal extent. Copper head grade is reported as 2.67%. Mining ceased due to then current economic factors. Despite high gold grades, gold was not a significant component at that time due to the $30 per ounce gold price. The Philippines Mines and Geosciences Bureau (1986) reported a remaining mining reserve of 90,700 tonnes at a very high 20.5 grams per tonne gold (g/t), or 60,000 contained ounces. Copper and silver grades for this ore block were not given. Mineralization is open to depth and along strike. The Lobo Vein has been traced for 1000 m on surface and at least three additional mineralized veins are known within one km. No systematic modern exploration has been performed and the potential to greatly expand and discover new reserves is high.
Lobo is a typical high sulphidation gold-copper system that occurs within a four by two km area of strongly altered volcanics. Dr. Greg Corbett, internationally recognized consultant and expert on Pacific copper gold systems, reported in 1996 that "The Lobo Vein is an extremely good target for bonanza grade high sulphidation gold-copper mineralization similar to El Indio in Chile". Barrick Gold's El Indio Mine is one of the world's great gold-copper deposits, with historic production plus remaining reserves totaling 140 million tonnes at 0.71% copper, 2.9 g/t gold and 22 g/t silver, including high-grade, "bonanza" veins (100 to 1,000 g/t gold).
The Lobo gold-copper veins are considered related to a porphyry copper-gold system below which also constitutes an important target. Mindoro plans to explore and develop the gold-copper veins, focusing on El Indio-type bonanza targets, and to explore for an underlying porphyry copper-gold system.
Archangel is a separate gold-copper system nine km southeast of Lobo. Similar high sulphidation gold-copper mineralization occurs in strongly altered volcanics which extend over five by two km. In this case, however, the underlying porphyry copper-gold system (Balibago Prospect) has been exposed by erosion. It is untested by drilling.
The Chinese and Spanish mined copper and gold at Archangel in earlier centuries and the Japanese mined copper during WWII. Western Mining Corporation defined strong copper soil anomalies over the Balibago Prospect in 1987-1989 but focused on the gold potential of two high-sulphidation zones peripheral to this: Kay Tanda and Pulang Lupa. Chase Minerals, in alliance with BHP Minerals, further drill-evaluated this gold potential in 1995-1998. Only three holes were completed on Pulang Lupa, all intersecting low grade minralization (best hole 12 m of 2.3 g/t gold). The mineralization is open. Based on wide-spaced drilling at Kay Tanda, a near-surface, low-grade resource of approximately 8.3 million tonnes at 0.68 g/t gold was inferred, or 182,000 contained ounces. Mineralization is open in all directions and includes higher grade intercepts (eg. 8.3 g/t gold over 6 m) which have the potential to be extended, and are of potential economic interest. Approximately 500 m south-west of these gold zones, erosion has exposed the top of the Balibago porphyry copper-gold prospect, which is manifested by strong copper in soil anomalies, porphyry-style alteration and disseminated copper mineralization in a microdiorite stock. The Balibago Prospect is a high priority drill target.
HEADS OF AGREEMENT
Phase 1: Mindoro may earn a 51% interest by spending US$1.5 million on exploration over a three year period. Mindoro will issue 500,000 shares to Egerton upon receipt of the MPSA's.
Phase 2: Mindoro may earn a further 24% interest (total 75%) by issuing a further 500,000 shares to Egerton upon commencement of Phase 2 and taking the project to feasibility stage.
Phase 3: Upon completion of a bankable feasibility study, Mindoro will issue 500,000 shares to Egerton.
Lobo and Archangel are important additions to Mindoro's strong project portfolio in a region that will attract accelerating attention for its high-quality gold-copper projects. They provide an existing high-grade gold reserve (Lobo Mine) with very high upside potential; a drill-ready porphyry copper-gold target (Balibago) with adjacent low-grade gold resources (182,000 ounces drill-inferred at Kay Tanda) which are open, and contain higher grade zones not yet evaluated in detail; as well as further diversifying Mindoro into copper-gold projects.
Elsewhere, due diligence evaluations of the Tiris (Indonesia) and Pan de Azucar (Philippines) Projects have been completed by two large Australian companies and joint venture negotiations are in progress.
Mindoro is a Canadian mineral exploration company focusing on gold and gold-copper exploration in the Asia Pacific region. Mindoro trades on the Canadian Venture Exchange under the symbol MIO. For further information, contact Penny Gould, Executive Vice President.
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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