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Sep 23, 2008
Mindoro And Avocet Announce Joint Venture On Archangel Project
EDMONTON, Alberta; September 23, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report that a Memorandum of Understanding (the "MOU") has been signed with Avocet Mining PLC ("Avocet"), a London-based AIM listed gold producer, which will allow Avocet to earn up to a 75% interest in Mindoro's Archangel Project, Batangas Province, Philippines. Archangel includes the Kay Tanda epithermal gold-silver resource as well as several porphyry copper-gold prospects (see accompanying map). Avocet will undertake an initial six month due diligence period which will include a minimum requirement of 1,500 meters of diamond drilling.
Under the terms of the MOU, Avocet may earn up to a 75% economic interest in the Property from Mindoro's Philippine subsidiary, MRL Gold Phils, Inc., by funding all exploration on the Property until reaching a Decision to Mine. At Decision to Mine, Mindoro will receive a cash payment of four million dollars, a two percent net smelter royalty on identified ounces, and may participate at production with a 25 percent interest; Avocet and Mindoro would then be responsible for funding their share of capital and operating costs. Avocet will undertake a preliminary six month program, including a minimum 1,500 meters of diamond drilling, designed to complete a fast-tracked, but comprehensive evaluation of the Kay Tanda Project, with a view to making a decision to enter Pre-Feasibility and progress to Feasibility. Additional terms are described with this release on Mindoro's website at www.mindoro.com.
"Avocet's experience in successfully upgrading and advancing to production its open pit gold mines in Malaysia and Indonesia makes it an ideal partner to advance our Kay Tanda Project," commented Tony Climie, Mindoro's CEO. "Avocet has also demonstrated it's commitment to building long-lasting relationships with the community and the government in the regions in which it operates, reflecting Mindoro's own philosophy. We welcome Avocet to the Philippines and look forward to a successful and financially rewarding joint venture."
Jonathan Henry, Avocet's CEO, commented, "This transaction adds to our portfolio of advanced exploration projects with the potential to become a producing asset within three to four years. Entry to the Philippines represents an expansion of our geographic presence to an extremely prospective new country in South East Asia."
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 and which extends over six kilometers along strike to the north-east. To date, drilling has been conducted only on the Kay Tanda part of the trend.
Mindoro has completed 147 reverse circulation (RC) and 26 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 grams per tonne (g/t) gold and over 1,000 g/t silver, which are interpreted as structurally controlled upflow, or "feeder" zones.
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.
On February 6, 2008, Mindoro released a NI 43-101 compliant mineral resource estimate, indicating that from 40 to 67 percent of the previously defined Exploration Target, at a cut-off of 0.5 grams per tonne (g/t) gold had been converted to resources. The complete report is available on SEDAR (www.sedar.com) and Mindoro's website (www.mindoro.com). Summary results of the NI 43-101 report were:
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. High grade intercepts were top-cut to 9 or 10 g/t gold. Additional drilling is required to understand these geological controls and potentially increase both the grade and tonnes of the gold-silver resource.
Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's programs and who has reviewed and verified the technical information contained in this news release.
Avocet is a mining company listed on the AIM market of the London Stock Exchange (Ticker: AVM). The Company's principal activities are gold mining and exploration in Malaysia (as 100 per cent owner of the Penjom mine, the country's largest gold producer), and Indonesia (as 80 per cent owner of the North Lanut gold mine and Bakan project in North Sulawesi). The Company has a number of other advanced mining and exploration projects in South East Asia.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on copper-gold and nickel exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro has announced initial NI 43-101 compliant resource estimates on its Agata North nickel-iron-cobalt project, where resource expansion drilling is on-going with four rigs, and on both its Lobo (SWB) and Archangel (Kay Tanda) gold-silver projects. Mindoro has also identified 22 porphyry copper-gold prospects and recently announced that Gold Fields is carrying out due diligence on the balance of its Batangas projects. Mindoro is well-financed, and will be involved in multiple drill programs in the latter half of 2008 and in 2009.
For further information, contact:
INVESTOR RELATIONS - CANADA
Mindoro Resources Ltd.
Penny Gould, President:
Toll Free: 1.877.413.8187
Renmark Financial Communications Inc.
INVESTOR RELATIONS - EUROPE
Richard H. Mayr: firstname.lastname@example.org
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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