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Jul 24, 2007
Bonanza Zone Extended at Kay Tanda
EDMONTON, Alberta; July 24, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report that it has drilled another bonanza-grade intercept from the Kay Tanda epithermal gold-silver prospect, Archangel Project, the Philippines. Core hole KTDH-24 intersected 99.2 meters of 2.72 grams per tonne (g/t) from 1.8 to 101.0 meters, which includes one meter of 192.09 g/t gold from 47.0 to 48.0 meters. This is believed to be the extension of bonanza mineralization previously reported on June 15, 2007, from KTDH-20, 12.5 meters along strike to the southeast, which intersected 61 meters grading 5.12 g/t gold from 3.0 to 64.0 meters, including one meter of 246.41 g/t gold from 25.0 to 26.0 meters. The bonanza intercepts enhance overall grades and will be reduced by cutting in the final resource estimate. Mindoro applies rigorous quality assurance, quality control and security programs in all drilling material handling and assay procedures and all results are reported with complete confidence in their integrity.
KTDH-24 was the final hole in an infill program recommended by Golder Associates in their geostatistical overview of Kay Tanda (see release dated June 11, 2007). Golder recommended close-spaced drilling (12.5 by 12.5 meters) over a small portion of the deposit to provide information on the short-scale continuity of the mineralization. It is anticipated that more such bonanza zones will be encountered within the large area of mineralization outlined to date at Kay Tanda, and this second intercept provides excellent information on the structural controls and orientation of the bonanza zone (northwest strike and 65 degrees northeast dip).
Hole KTDH-24 completed the current phase of drilling, which had the objective of the Exploration Target defined below (About Kay Tanda). A NI 43-101 resource estimate is in progress. The mineralization is still open in several directions and to depth and, at a later date, further resource extension drilling is planned. In the meantime, the focus is on evaluating and advancing Kay Tanda as an open-pit, heap-leach operation. A mining engineer, Mr. Dallas Cox BE (Min), with a great deal of open-pit gold mining experience in the SW Pacific region, is carrying out preliminary planning and scoping work. Community relations programs and environmental base line studies are being accelerated.
SUMMARY OF LATEST RESULTS
The table below summarizes results of core hole KTDH-24 (based on a cut-off grade of 0.3 g/t gold).
ABOUT KAY TANDA
Epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense quartz stockworks, veins and hydrothermal breccias, with accompanying base metal sulphides. Kay Tanda is reflected by an induced polarization chargeability anomaly that is about 1.5 kilometers by 1.4 kilometers in extent, which is part of a much larger chargeability anomaly which extends over six kilometers along strike to the northeast. To date, drilling has been conducted only on the Kay Tanda part of the trend.
Mindoro has completed 147 reverse circulation (RC) and twenty six core drill holes at Kay Tanda. Almost all holes have encountered near-surface, generally flat-lying to gently-dipping blanket-like low-grade stockwork mineralization. This is strongly to partially oxidized to depths of 40 to 160 meters and non-oxide below this. Drilling, especially at deeper levels, has encountered at least five steeply-dipping, much higher-grade zones with bonanza grades to 246 g/t gold and over 1,000 g/t silver, which are interpreted as structurally controlled upflow, or "feeder" zones. Structural studies are in progress to determine the nature and controls of the high-grade zones, and the latest hole (KTDH-24) has helped considerably in this regard. The high-grade mineralization appears to occur preferentially at elevations below 250 meters (ASL) interpreted to be a paleo-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.
At a cut-off 0.3 grams per tonne (g/t) gold, the immediate Exploration Target is from 35 to 40 million tonnes of open-pitable material at a grade of 0.76 to 0.80 g/t gold and 2.4 to 2.8 g/t silver, containing between 860,000 and 1,000,000 ounces of gold and 2.7 million to 3.6 million ounces of silver. This Exploration Target may be revised upwards at a later date as extension drilling continues with two diamond drill rigs at Kay Tanda. At a cut-off at 0.5 g/t gold, the immediate Exploration Target is from 15 to 20 million tonnes of open-pitable material at a grade of 1.1 to 1.4 g/t gold and 3.0 to 3.4 g/t silver, containing from 530,000 to 900,000 ounces of gold and from 1.45 to 2.2 million ounces of silver.
Kay Tanda is being evaluated for its open-pit, heap leach potential. Initial metallurgical test work has produced excellent results. Kay Tanda is interpreted as intermediate to low sulphidation epithermal quartz-carbonate-gold-silver-base-metal mineralization telescoped into the top of an underlying porphyry copper-gold system.
Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying is performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. . Gold assays were by 50 gm fire assay fusion; where gold assays greater than 3 ppm were by gravimetric finish, and by AAS where the gold values were less than that threshold. Silver was determined by AAS after an HCl-HNO3-HClO4 digest. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples.
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.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). The Company is carrying out three major drill programs: resource delineation and expansion drilling on the Kay Tanda epithermal gold-silver prospect where a NI 43-101 compliant resource estimate is in progress; reconnaissance drilling on the Calo porphyry copper-gold prospect; and advancing a significant nickel laterite prospect towards early production; in addition to holding another 22 identified porphyry copper-gold prospects in the Philippines.
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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