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Dec 03, 2001
Further Copper-Gold Intersections From Pan De Azucar Drilling
Drill Program Extended

Tony Climie, P. Geol., President of Mindoro Resources Ltd. ("Mindoro") is pleased to report results from an additional six drill holes of a diamond drill program on the Pan de Azucar Project ("PDA"), Philippines. Delta Gold Limited of Australia, through its 100% owned subsidiary Olympic Mines Limited, may earn up to a 65% interest in PDA (see release of April 26, 2001). Mindoro is currently operator of the property and Delta is funding the exploration.

Results from drill holes PDA-01 to 03 were previously reported on October 2, 2001. PDA-03 in the Valderama Hill Zone intersected an encouraging 37.1 meters (m) at 0.8% copper and 1.87 grams per tonne (g/t) gold from 16.3 to 53.4m.

Hole PDA-04 targeted deeper, disseminated mineralization in the Asparin Hill Zone, approximately 700m west of Valderama Hill. It intersected strongly altered andesitic to dacitic volcanics with hydrothermal breccias and pyrite mineralization. However, no significant gold or copper values were encountered to end of hole at 166m.

To date, drilling has been on a wide-spaced (200 by 50m) reconnaissance level, to comparatively shallow depths. The accompanying map shows the location of drill holes with respect to geochemical and geophysical anomalies. For clarity, only the very strong chargeability anomaly over Valderama Hill is shown, and not the more subdued, and deeper, chargeability anomalies elsewhere, nor the strong resistivity low anomalies detected by the IP survey. McPhar Geoservices of Manila, using standard procedures, analyzed all drill core samples.

PDA-05 (21,200N, 20210E, vertical) was drilled 50m grid west of PDA-03, and intersected strongly altered andesite, with silica-pyrite-clay altered hydrofractured breccias to end of hole at 72m. No significant copper and gold values were encountered. The mineralized massive pyrite horizon appears to have been faulted off in this hole, and may occur deeper.

PDA-06 (21,200N, 20320E, vertical) was drilled 50m grid east of hole 3. It intersected massive, pyritic sulphides from 13 to 47.5m, with blebs and veinlets of chalcopyrite, enargite and sphalerite; and then semi-massive pyrite and hydrofractured andesite with clay-pyrite-silica breccias to end of hole at 72m. A 41.5m section from 6 to 47.5m analysed 1.2 g/t gold and 0.12 % copper.

PDA-07 (21,200N, 20,360E, vertical) was drilled 40m grid east of hole 6, and intersected altered andesites, with zones of intense clay-pyrite-silica alteration and breccias to end of hole at 66m. A zone of clay-pyrite-silica alteration associated with faulting, and with disseminated chalcopyrite, analysed 0.5g/t gold and 0.99% copper over 4.7m from 29.5 to 34.2m.

PDA-08 (21,400N, 20,150E, vertical) was drilled to test a strong chargeability anomaly as well as extensions of mineralization, 200m to the north of Section 21,200N. It intersected altered andesitic volcanics and andesite porphyry, which was originally interpreted as intrusive but which may be a dyke. In the first phase of drilling, the hole ended at 33m in the porphyry. In the extension drill program, currently underway, the drill hole entered massive pyritic sulphide at 55m and is continuing in this at 95m depth.

PDA-09 (21,400N, 20,095E, vertical) was drilled 50m west of hole 8, and intersected altered andesites, massive and semi-massive pyrite, and silica-pyrite hydrofractured breccia. Enargite, sphalerite and chalcopyrite mineralization is associated with the pyrite mineralization. A 2.65m section from 20.35 to 23m analysed 1.97 g/t gold and 2.2 % copper.

The Valderama Hill Zone is a shallow, high-sulphidation pyritic sulphide system, apparently overprinted by low-sulphidation events, that can be traced over about 1,600m in a north-south direction; it is flat-dipping, up to 40m thick and is estimated to be100 to 200m wide. Distribution and controls of the copper-gold mineralization, which appear to occur in several different settings, are not yet understood.

A magnetic high in the Ferraris Hill Area (see map) was found to be due to four causes; (1) secondary mag-hemite in the Valderama Zone, (2) quartz-magnetite altered dacite associated with gold-silver-lead soil anomalies, (3) quartz-magnetite alteration in propylitically-altered andesite, containing disseminated chalcopyrite mineralization, and (4), unaltered andesite porphyry talus eroded from the surrounding caldera wall and obscuring underlying bedrock. The quartz-magnetite-chalcopyrite mineralized andesite (3) will be evaluated to establish whether it relates to possible porphyry copper-gold mineralization nearby. A magnetic high underlying the Asparin Hill area, with associated soil geochemical anomalies, has not yet been explained.

Mindoro is encouraged by results to date. Although the above holes completed the originally planned 800m drill program, an additional 150m of drilling will continue to test mineralization in the northern part of the Valderama Zone. Drilling has resumed at PDA and will continue into December.

Newcrest International Pty Limited has advised that it is withdrawing from Mindoro's Tiris Project in Sumatra, Indonesia, due to disappointing drill results (release of September 21, 2001). While the small size of the program (six drill holes in 1,152m) is a limited test of the large Harimau gold-silver target, realistically, it will be difficult to continue exploration in current conditions, and no further work is planned at Tiris.

OTHER PROJECTS - Mindoro has considerable project depth in the Philippines:
- Expressions of interest have been received from two large mining companies in the Lobo and Archangel Projects. Lobo has high-grade gold reserves with considerable upside potential for these, and a porphyry copper-gold deposit below, while Archangel has gold resources and a porphyry copper-gold prospect at the drill stage.
- Mindoro also has a large ground position, including a number of gold and gold-copper prospects, in proximity to the world class Boyongan copper-gold discovery of Anglo American / Philex Gold in the Surigao Gold District.
- On its Agata Project in the Surigao District, Mindoro previously drill-intersected significant gold mineralization on its Carlin-style, Limestone Prospect; intrusive-hosted, oxide gold mineralization on the Assmicor Prospect, as well as gold-copper mineralization of possible porphyry-style nearby.

Mindoro trades on the Canadian Venture Exchange under the symbol MIO. For further information,
contact Penny Gould, Executive Vice President:
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

You can view the Next Press Releases item: Wed Jan 9, 2002, Further Encouraging Drill Results From Pan De Azucar

You can view the Previous Press Releases item: Tue Oct 2, 2001, Mindoro Advises Initial Drill Results, Pan De Azucar Project, Philippines

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