Subscribe for Updates:
Enter your email below to receive email updates
Jan 12, 1998
Mindoro Increases Interest and Identifies New Gold Potential in Myanmar Project
Mindoro Resources Ltd. ("Mindoro") is pleased to announce it has acquired an additional 20% interest in its Concession 11 Project (the "Project") in Myanmar, bringing Mindoro's interest to 50%, the remaining 50% interest held by the Government of Myanmar.
Mindoro acquired its additional interest pursuant to a Conveyance Agreement and a Royalty Agreement between Mindoro and Leeward Capital Corp. ("Leeward") dated December 19, 1997, effective December 12, 1997, whereby Leeward conveyed all of its interest in the Project for US$76,865; that being an amount equal to its project-related outstanding indebtedness to Mindoro. The transaction is subject to a regulatory condition which relates to Leeward. Leeward will retain a 5% net profits interest royalty (NPI) on Mindoro's 50% interest. Mindoro has the option, until feasibility study stage, to acquire Leeward's 5% NPI for a purchase price of US$303,914; that price being equal to all monies previously expended by Leeward on the Project. Mindoro will undertake to replace Leeward's US$40,000 performance guarantee with the Government of Myanmar.
Mindoro assumed operatorship from Leeward in July, 1997, and commenced exploration at the beginning of the dry season in November. This work has focussed on the Kyaukkyi Prospect, in two adjacent creeks named R-70 and R-72, where the previous operator had located an extensive pan concentrate gold anomaly and gossanous boulders with values of up to 4.6 grams per tonne (g/t) gold, 2.3% copper, and 18.3 g/t gold, 0.72% copper and 26 g/t silver, respectively. Petrography of the R-70 type boulders has identified native gold, electrum, chalcopyrite and pyrite associated with quartz within the boxwork-textured gossanous boulders. An epithermal gold signature is suggested by anomalous values in arsenic (maximum 13 parts per million (ppm)) and mercury (maximum 5.1 ppm).
Both boulder trains have now been traced to their suspected sources. R-70 boulders appear to be derived from a poorly exposed quartz-sulphide vein system, while R-72 boulders, approximately 200 metres to the north, are derived from a jasperoid-sulphide zone of replacement-style mineralization. The extents of both these mineralized areas remain to be more fully defined.
Both prospects are hosted by mafic volcanics. Present work has also located outcrops of dioritic intrusives and defined extensive and strong propylitic alteration (epidote-carbonate-chlorite) over at least one kilometre by one kilometre. Within this are zones of quartz-sulphide stockworking, the sizes of which are still not fully defined.
It now appears that the R-70 and R-72 showings are part of a larger, intrusive-related alteration/mineralization system with possible bulk-tonnage gold potential. Accordingly, the plans to drill-test the R-70 and R-72 showings have been deferred while the Kyaukkyi Prospect potential is systematically re-evaluated. Rock exposure, in the form of outcrop and float, is good and the Kyaukkyi Prospect can be brought to a relatively advanced exploration stage through systematic surface work. Work in progress includes geological mapping, prospecting, soil geochemistry, trenching and rock sampling. It is expected that initial results will be reported in early February.
Similarly, at the Project's Thida copper-gold prospect, which was originally interpreted as volcanogenic massive sulphide mineralization, outcrops of intrusive rocks with extensive hydrothermal alteration have also been located during the current program. This prospect is also now reinterpreted as an intrusive-related system. Geological and geochemical work is in progress to redefine the significance of this prospect. In addition, Mindoro has 15 aeromagnatic and 24 gold-drainage anomalies elsewhere on the Project where follow-up evaluation is proceeding.
Mindoro is also actively exploring five of its six projects in the Philippines and three of its eight projects in Indonesia. Mindoro is a well-financed, Canadian mineral exploration company focussing on gold and gold-copper exploration in Asia. Mindoro has 13,365,000 shares issued and outstanding and working capital of approximately $3,200,000.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
You can view the Next Press Releases item: Thu Feb 12, 1998, Encouraging Results from Multiple Gold-Copper Targets, Myanmar
You can view the Previous Press Releases item: Mon Dec 15, 1997, Appointment of Chairman and Vice-Chairman of the Board
You can return to the main Press Releases page, or press the Back button on your browser.