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Mar 13, 2007
Drilling Commences at Agata Nickel Laterite with Five Rigs
EDMONTON, Alberta; March 13, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today is pleased to report that drilling at the Agata nickel laterite prospect has commenced with five coring drill rigs in operation. Objective is to define a NI 43-101 compliant resource, adequate initially for three to five years of production at a rate of 500,000 to 700,000 wet metric tones per annum of direct shipping-grade material for the very high demand ferro-nickel markets of China and SE Asia. Preliminary marketing studies and environmental permitting have commenced. Target production date is the first half of 2008.
Tony Climie, president of Mindoro, commented that "this is an important step in our Company's growth. The very high demand for ferro-nickel feedstock for stainless steel production in our region, and high nickel prices, presents a great opportunity to get our Agata Project into production fast, and to generate early cash flow. Uniquely, direct shipping grade nickel laterite deposits offer a low-capital cost and rapid route to production and cash-flow".
The nickel laterite prospect is situated on the Agata Project, Surigao Gold District, northern Mindanao, Philippines. In addition to the nickel laterite mineralization, Agata has a cluster of porphyry copper-gold prospects and two epithermal gold prospects which are also being advanced by Mindoro. There are several nickel laterite mines already in production in the Surigao District, providing direct shipping-grade ore to markets and processing plants in China, Japan, Korea and Australia. The geological extension of the Agata nickel laterite mineralization into an adjacent property, one kilometer south of Agata, recently went into production.
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In 2006, thirty-five wide-spaced drill holes at Agata produced encouraging results, with nickel and iron grades in the range of material in high demand for the rapidly expanding ferro-nickel market for stainless steel production in China and SE Asia. Results were reported in a release dated July 6, 2006. Based on the 2006 drilling, Agata is an excellent Exploration Target with potential for 2 million to 3.5 million tonnes at a grade of 0.9% to 1.2 % nickel and 40 % to 45 % iron, adequate for three to five years production. The initial drill program and Exploration Target covers less then 20% of the area of nickel laterite mineralization mapped to date at Agata.
The reader is cautioned that the potential quantity and grade of the Exploration Target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. Until a feasibility study has been completed there is no certainty that the Company's projections will be economically viable.
With five drill rigs working around the clock, it is expected that drilling will be completed, and the resource estimate commenced by late April. Work on an Environmental Compliance Certificate has commenced. More than ten expressions of interest have been received from potential purchasers of the product.
The project is just one kilometer from tidewater and investigations of the potential mine road access to the coast have also commenced. Mindoro's objective is to define a "starter" resource sufficient for three to five years production, and to commence production in the first half of 2008. The longer term objective is to expand this resource, and mine life, once production has commenced.
Exploration on the Agata Property is carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101, and President of Mindoro.
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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