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Feb 06, 2008
NI 43-101 Mineral Resource Estimate Received
EDMONTON, Alberta; February 06, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report results of a National Instrument 43-101 compliant mineral resource estimate for that part of its Kay Tanda epithermal gold-silver prospect drilled to date. To date, from 40 to 67 percent of the previously defined Exploration Target, at a cut-off of 0.5 grams per tonne (g/t) gold, has been converted to resources (see "About Kay Tanda" below). Summary results are:
Kay Tanda: Inferred Resource: 10,592,000 tonnes @ 0.70 g/t Au, 1.9 g/t Ag (238,000 contained ounces Au)
Pulang Lupa: Inferred Resource: 1,007,000 tonnes @ 0.73 g/t Au, 15.1 g/t Ag (24,000 contained ounces Au)
Total Inferred Resource: 11,599,000 @ 0.70 g/t Au, 3.0 g/t Ag (262,000 contained ounces Au)
Kay Tanda: Indicated Resource: No indicated resource
Pulang Lupa: Indicated Resource: 3,365,000 tonnes @ 0.88 g/t Au, 8.0 g/t Ag (95,000 contained ounces Au)
Total Indicated Resource: 3,365,000 @ 0.88 g/t Au, 8.0 g/t Ag (95,000 contained ounces Au)
The tonnage and contained ounces figures above have been rounded to the nearest thousand and gold grades to the nearest 2nd decimal.
Many gold mineralized intercepts, including much of the bonanza grade material, were not included in the resource estimate due to wide drill spacing, averaging 50 meter centers, and lack of information on geological controls. Additional drilling is required to understand these geological controls and further upgrade the resource estimate. Mindoro has received an expression of interest from a company with considerable gold mining expertise in the region, to advance and potentially co-develop Kay Tanda, and negotiations are at an advanced stage.
Tony Climie, president of Mindoro, commented, "We are pleased with results to date. While we would like to have hit our Exploration Target ounces at this early stage of evaluation, we are confident that with additional drilling and geological work we will significantly increase the resource at Kay Tanda. In particular, as we gain a better understanding of the high grade zones and bring these into the resource, we have the potential to significantly increase grade. We agree with our consultants that there is excellent potential to unlock at Kay Tanda and on our adjacent ground, both for epithermal gold-silver and porphyry copper-gold deposits. We apologize that our reporting timeline for the Mineral Resource slipped back due to the intense competition for specialized expertise."
The Mineral Resource Report was completed jointly by Dean Fredericksen, Principal Consultant, of Ravensgate Mineral Industry Consultants of Australia, who carried out the Mineral Resource estimate, and Dr. Bruce Rohrlach, geological consultant, also of Australia, who completed the geological and quality control/quality assurance components of the report. The report will be filed on SEDAR and Mindoro's website within 45 days. Mr. Fredericksen and Dr. Rohrlach have reviewed and verified the technical information detailed in this release.
The Mineral Resource estimate has been estimated by Ordinary Kriging inside as series of primary mineralization domains interpreted at >0.15 and >0.25 g/t gold for Pulang Lupa and Kay Tanda respectively. A later mineralization event is evident in the drilling results and is characterized by a strong gold-base metal signature with locally "bonanza" relatively high gold grades. This mineralization has not been included in the Mineral Resource estimate at this stage, given that the geological controls on distribution and continuity of the mineralization are not yet certain. The Mineral Resources have been reported above a cut-off of 0.4 g/t Au for oxide and transitional material and above a cut-off of 0.6 g/t for fresh material. "Top cuts" were applied for Pulang Lupa at 9.0 g/t gold and for Kay Tanda at 10.0 g/t gold, and these result in a significant reduction in the mean grade of the composites of approximately 15 percent and 17 percent in the Pulang Lupa and Kay Tanda domains respectively.
Dr. Rohrlach concludes:
• The Kay Tanda and Pulang Lupa prospects are interpreted to form part of a substantially larger mineralizing system which to date remains to be fully explored. Mindoro's resource delineation drilling at Kay Tanda and Pulang Lupa has focussed within a relatively small area that is contained within the shallow portions of the southwest quadrant of an otherwise extensive IP chargeability anomaly at Kay Tanda-Pulang Lupa that is approximately 1.6 kilometres wide. This is one of four recognised mineralization centres along the Archangel corridor, and there are several potential avenues for adding substantial ounces of gold-silver to the preliminary resource base at Kay Tanda-Pulang Lupa.
• The present indicated component of the resource is contained entirely within the Pulang Lupa prospect. Additional tonnages of material that are presently classified as an inferred resource at Pulang Lupa as well as the significantly larger Kay Tanda inferred resource could be largely converted to the indicated resource category with relatively modest amounts of additional drilling that would better define grade continuity.
• The majority of the high-grade and locally bonanza grade intersections at depth, which relate to the younger base-metal-rich mineralizing event, are not accounted for in the present resource calculation due to insufficient understanding of their orientation, thus preventing reliable estimation domains to be defined. These deeper, high-grade and locally bonanza-grade quartz-carbonate-base metal vein arrays are an important exploration target in the deeper parts of the Kay Tanda system that have potential to markedly improve any economic outlook of Kay Tanda.
• There is geological reason to believe that the deeper base-metal vein systems trend NNW, near orthogonal to the older and shallower Au-Ag quartz stockworks which have a prominent northeast control. Using carefully targeted diamond drillholes oriented orthogonal to the current drilling, Mindoro is well placed to rapidly test the orientation of these bonanza veins. Once their orientation is confirmed, Mindoro would then be able to more rapidly delineate the zones of bonanza grade and trace them along strike, thus incorporating them into the resource estimate at Kay Tanda and Pulang Lupa. This would have potential to substantially improve the result of any future economic analysis.
• Extensive areas of excellent potential for both porphyry Cu-Au mineralization and additional epithermal mineralization occur within the broader Archangel property and particularly in and around the Kay Tanda mineralizing centre.
• There is good potential for delineation of contiguous extensions of the shallow Kay Tanda quartz-Au-Ag stockwork mineralization to the ENE of Kay Tanda along the zone of argillic alteration (defined by Pima surveys and which coincides with Au anomalism in soils) that trend toward the Marita prospect. This zone passes through the prospective north and south Lumbangan areas where IP anomalies are strong and where Pima data indicates the presence of Fe-oxides at surface and high-temperature illite alteration.
• The area contiguous with and directly north and NNE of Kay Tanda has potential for underlying porphyry mineralization. The presence of intense chlorite-sericite (SCC) alteration and anhydrite veining at depth in diamond holes that lie near the northeast margin of the Kay Tanda prospect, and the location of the center of the 1.6-kilometer wide IP chargeability anomaly that lies near the northeast margin of the Kay Tanda drill grid, suggest that a porphyry target may lay at depth proximal to the northeast margin of the Kay Tanda deposit.
• The Marita and Bootin prospects remain prime porphyry exploration targets.
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. 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.
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.
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.
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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