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Jun 07, 2001
Newcrest Options Tiris Project & Drilling to Commence
Tony Climie, P. Geol., President of Mindoro Resources Ltd. ("Mindoro"), is pleased to announce that Mindoro has granted to Newcrest International Pty Limited of Australia ("Newcrest"), the right to undertake a drilling program within, and to elect to earn a 75% interest in, its Tiris Project (the " Project"), Sumatra, Indonesia.
Approximately 1,250 meters of HQ/NQ core drilling will commence around mid-June on the Selatan Anomaly, one of three large gold-in-soil anomalies within the Tiris Project's Harimau Prospect. Newcrest will supervise and fund the drilling. At least 1,000 meters of the drilling must be completed, regardless of whether Newcrest elects to earn an interest in the Project.
Also Newcrest may elect to earn a 75% interest in the Project by funding US$2,700,000 of work (including the initial drilling) within six years. Newcrest would operate the Project.
If Newcrest earns a 75% interest, Mindoro can participate at 25% or convert to a 2.5% net smelter royalty (NSR) on minerals (including gold); alternatively Mindoro may, on a budget by budget basis, participate or dilute (down to 10%) or convert to an NSR on a gradually reducing scale (dependent on its equity level at the time of conversion). If Mindoro's equity reduces to 10% it will automatically convert to a 1% NSR.
If Mindoro converts to an NSR, then, where the spot gold price is in excess of US$350 per ounce for a given Quarter, the NSR in respect of gold only will be increased by 25% for that Quarter.
Last year Newcrest produced just under one million ounces from mines in Australia and Indonesia. Newcrest operates the Gosowong Mine in Indonesia, which produced approximately 275,000 ounces in 2000. Newcrest brings strong financial and technical backing to the Project, as well as local operating experience in Indonesia.
Mindoro, through its wholly-owned local companies, currently has a 100% interest in the Tiris Project which covers 10,000 hectares in the Lebong Gold District of Sumatra, Indonesia. The principal target is the Harimau Prospect, a very large and strong epithermal gold-silver system, containing multiple zones of gold-silver mineralization, that has been defined over an area in excess of two by five kilometers. Gold grades in excess of 1 gram per tonne (g/t), and up to 10.6 g/t, from outcrop and float, are widely distributed across the prospect. Silver values range up to 520 g/t. For further Project information, see Mindoro's web site at http://www.mindoro.com.
Mindoro is a Canadian mineral exploration company focusing on gold-copper exploration in the Asia-Pacific region. On April 26, 2001, Mindoro announced a joint venture with Delta Gold on its Pan de Azucar Project, Philippines. Also in the Philippines, Mindoro has a large ground holding with promising gold-copper prospects near the exciting new Boyongan gold-copper discovery of Anglo American/Philex Gold, as well as high-grade gold reserves on its Lobo Project, and a porphyry gold-copper prospect at the drill stage on its Archangel Project.
Mindoro trades on the Canadian Venture Exchange under the symbol MIO.
For further information, contact Penny Gould, Executive Vice President: Phone: (780) 413-8187;
Fax: (780) 426-2716;
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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