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Jun 20, 2007
Greatly Increased Exploration Target For Agata Nickel Laterite
EDMONTON, Alberta; June 20, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to advise that it has significantly increased its Exploration Target for the northern nickel laterite area on the Agata Project, Surigao District, Mindanao. Mindoro had initially defined an Exploration Target sufficient for 3-5 years production of direct shipping ore at a rate of 500,000 to 700,000 wet metric tones (WMT) per year (see release dated March 13, 2007), and commenced defining that Exploration Target with five core rigs. As a result of the encouraging drill results to date, as well as geological mapping of the extent of the northern laterite and the current high demand and prices for nickel and ferro-nickel feedstock, Mindoro is now evaluating the global potential of the project, and enhanced value options via on-site or local processing alternatives.
Exploration Target for the various laterite horizons in the northern laterite area is as follows:
Combined ferruginous overburden, limonite and saprolite horizons: 50 to 60 million WMT at a grade of 0.9 to 1.1 percent nickel and 28 to 32 percent iron. This includes the following division of tonnage between the overburden/limonite horizon and the saprolite horizon:
• Combined ferruginous overburden and limonite horizons: 30 to 35 million WMT of material at a grade of 0.9 to 1.1 percent nickel and 40 to 44 percent iron.
• Underlying saprolite horizon: 20 to 25 million WMT of material at a grade of 1.0 to 1.4 percent nickel and 8 to 10 percent iron.
The northern nickel laterite mineralization covers approximately 340 hectares. As shown on the accompanying map, a total of over 90 drill holes have been completed to date within this area. Average thicknesses and grades encountered and a specific gravity of 1.5 grams per cubic centimeter were used to arrive at the revised Exploration Target. The Exploration Target does not include significant thicknesses of low-grade, partially lateritized saprolitic rock, grading in the 0.6 to 0.8 percent nickel range, that also has market potential. Nor does it include additional areas of nickel laterite mineralization further south on the Agata Project.
The drilling program has been extended with the objective of defining the revised Exploration Target. This revised Exploration Target will form the basis for evaluating several attractive value-added processing options, which includes constructing a local blast or electric furnace for nickel pig iron production. In the meantime, Mindoro will continue to fast-track the direct shipping ore scenario with the objective of achieving production in 2008.
A map accompanying this release shows the locations of drill holes completed to date on the northern laterite area.
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.
click to enlarge
ABOUT THE AGATA NICKEL LATERITE PROJECT
Several areas of nickel laterite mineralization occur on the Agata Project, Surigao Gold District, northern Mindanao, Philippines. There are a number of nickel laterite mines already in production in the Surigao Gold 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, is in production and product is being shipped to markets in China (see map accompanying this release).
The very high demand for ferro-nickel feedstock for nickel pig iron production in the Asia-Pacific region, and high nickel prices, presents an excellent opportunity to get the Agata Project into production fast, and to generate early cash flow. Uniquely, direct shipping grade nickel laterite deposits have a low-capital cost and offer a rapid route to production and cash-flow.
As reported on March 13, 2007, five coring drill rigs are operating on the Agata nickel laterite project, with the objective of defining 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 tonnes per annum of direct shipping-grade material for the very high demand ferro-nickel markets of China, India and Korea. Mindoro has a target production date of the first half of 2008. The drilling is being conducted on 50 meter centers. This initial drill program covers less then ten percent of the area of nickel laterite mineralization mapped to date at Agata.
Initial drill results were reported on June 6, 2007, for eleven drill holes on two sections (10,050N and 10,150N); the limonite horizon averages 1.21 percent nickel and 41.07 percent iron over an average thickness of 6.27 meters. The underlying saprolite horizon averages 1.13 percent nickel over an average thickness of 5.75 meters.
Results of a further two sections (10,000N and 10,100N) were reported on June 18, 2007; the limonite horizon averages 1.15 percent nickel and 44.77 percent iron over an average thickness of 6.63 meters. The underlying saprolite horizon averages 1.13 percent nickel over an average thickness of 7.01 meters.
These grades exceed current requirements for direct shipping grade ferro-nickel feedstock for nickel containing pig iron production in the Asia-Pacific region.
Results are exceeding initial expectations and Mindoro management considers they form a sound basis for fast-tracking the project. Haul road designs have been completed, and the Environmental Compliance Certificate is in progress. Mindoro has been approached by many interested consumers with whom discussions are ongoing.
Programs are carried out under the supervision of Tony Climie, P.Geol., president of Mindoro, who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying is being performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. 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 advancing the Agata nickel laterite project towards production, Mindoro is carrying out a major resource delineation program on its Kay Tanda gold-silver project. The company has also identified 22 porphyry copper-gold prospects 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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