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Aug 23, 2007
Agreement Reached with Delta to Advance Southern Agata Nickel Laterite
EDMONTON, Alberta; August 23, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to advise that it has reached agreement with Delta Earthmoving Inc. (Delta) to explore, and advance to production if warranted, a new nickel laterite prospect in the southern part of the Agata project, Surigao District, Mindanao. The agreement does not cover the northern Agata nickel laterite project where Mindoro has completed over 90 drill holes with the objective of producing direct shipping ore in 2008.
Tony Climie, president of Mindoro, commented; "This is a good deal for Mindoro. Our resources are currently heavily committed advancing both the northern Agata nickel laterite and our Kay Tanda epithermal gold-silver projects towards production, as well as exploring a large number of porphyry copper-gold targets. We would not be able to advance the southern Agata nickel laterite for quite some time. This agreement gives us the opportunity to advance another nickel laterite prospect to production at no risk and cost, and the potential to share in significant cash flow".
An area of nickel laterite has been mapped at a reconnaissance scale in the southern part of the Agata Project. No drilling or sampling has been carried out in this area, which is 1 to 2 kilometers north of the operating nickel laterite mine of SR Metals, just to the south of the Agata Project (see map accompanying this release). Delta will at its sole cost and risk carry out exploration of the southern Agata nickel laterite and, if results warrant, within six months may select an area of up to 250 hectares to advance to production from a target area of 1,800 hectares. Delta will finance all mine development and production costs, as well as market the product. Delta will receive U.S. $10.50 per wet metric tonne mining cost and 55 per cent of net profits. Mindoro will receive 45 per cent of net profits. This agreement is in line with other similar deals recently concluded on nickel laterite deposits in the Philippines.
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Delta is a private Philippine earthmoving company with the financial and operational capability to develop the southern Agata nickel laterite. It is currently the mining contractor of the Hinatuan Nickel Project, Hinatuan Island, Surigao del Norte and the Kalamazoo Nickel Project in Claveria, Surigao del Norte, producing a combined output of 450,000 tonnes of saprolitic and limonitic nickel laterite ores per month. Delta has strong political and market contacts. Delta is fast tracking the southern Agata nickel project with the intent of being in production in early 2008. Work is commencing immediately.
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 southern Agata nickel laterite project towards production, Mindoro is carrying out a NI 43-101 resource estimate on its Kay Tanda gold-silver project, as well as preliminary mine planning and scoping work. 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.
You can view the Next Press Releases item: Wed Aug 29, 2007, Mindoro Announces Private Placement
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