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Oct 14, 2008
Mindoro Reports Further Drill Results from Agata Nickel Laterite Project
EDMONTON, Alberta; October 14, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report results for a further 21 drill holes from the Agata North Nickel Laterite Project, Philippines. The limonite horizon averages 1.10 percent nickel, 0.12 percent cobalt and 46.04 percent iron over an average thickness of 3.18 meters. The underlying saprolite horizon averages 1.26 percent nickel over an average thickness of 7.83 meters. Grades and thicknesses are consistent with those previously reported and continue to be of potential economic interest.
The resource delineation drilling program was recently terminated at Agata North, with about 80 per cent of the mineralization drill-defined. Results of a further 80 drill holes are awaited. An updated NI 43-101 resource estimate will be released in November. Management believes that an adequate resource has now been defined in order to establish the optimal mining and processing concept, and on which to base an initial scoping study.
The vibrant Asian economies, led by powerhouses China (consistently in the 10 to 12% growth range over the past decade) and India (growing at 7%), will now experience some set-back due to the current "Western Economic Crisis". It remains to be seen what this fallout will be; most likely a dampening down on their rate of spectacular growth. But the progress of hundreds of millions of industrious Asians to middle class consumerism will not be stopped by western economic excesses, nor will the creation of entire new regional infrastructures. There seems little doubt that the growth of China, India, and other developing nations in the region, will continue with but a temporary pause and will provide a ready market for the nickel, cobalt and iron mined in the Philippines.
A full listing of the latest drill results and a drill hole location map is available below. The following table presents the average values of the latest assay results from 18 drill holes:
ABOUT THE AGATA NICKEL LATERITE PROJECT
Location in the Prolific Surigao Copper-Gold and Nickel District
The Agata Nickel Laterite Project is situated on the Agata Project, Surigao Gold District, northern Mindanao, the Philippines. The Surigao Gold District is a current and historical gold producing district where there have been several recent porphyry copper-gold discoveries by Anglo-American. Philex Mining has recently announced that it intends to proceed to production on the Boyongan porphyry copper-gold deposit and the district is now poised to become a major copper-gold camp. Mindoro has multiple gold and copper-gold targets in the Surigao District at varying stages of drill evaluation. The region is also emerging as a major nickel laterite district, and there are a number of nickel laterite deposits either in production, or being developed.
Agata North Mineral Resource Estimate and Exploration Target
On April 30, 2008, Mindoro announced an early-stage NI 43-101 compliant mineral resource estimate for the Agata Nickel Laterite Project. The estimate was updated on August 12, 2008.
The estimate for combined Measured and Indicated Resources is 4.95 million wet metric tonnes (WMT) grading 1.18 percent nickel, 0.074 percent cobalt and 28 percent iron, at a cut-off grade of 0.80 percent nickel; conatining approximately 92.4 million pounds nickel. In addition, the Inferred Resource estimate is 4.37 million WMT grading 1.26 percent nickel, 0.047 percent cobalt and 20 percent iron, also at a cut-off grade of 0.80 percent nickel; containing approximately 92.5 million pounds nickel. Breakdown between limonite and saprolite is given in the August 12, 2008, news release. A total of 228 drill holes, comprising 4,507 meters of diamond drill core and 4,480 assay samples, were used for the estimate. This resource estimate covers about 25% of the Agata North laterite as mapped to date.
The Exploration Target for Agata North is 30 to 40 million WMT at a grade of 0.9% to 1.5% nickel and 18% to 28% iron. This does not include other areas of laterite mineralization on the Agata Project, nor other Mindoro Projects in the Surigao District.
The reader is cautioned that mineral resources which are not mineral reserves do not have demonstrated economic viability. Further, the potential quantity and grade of the exploration target described above is conceptual in nature. There has been insufficient exploration to define mineral resources other than those disclosed in this release, and it is uncertain if further exploration will result in the targets delineating additional mineral resources or that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. Until a feasibility study has been completed there is no certainty that the company's projections will be economically viable.
Enhanced Value, On-Site Processing Alternatives
While sulphide nickel deposits have dominated historical nickel production, the future belongs to nickel laterite deposits. Once regarded as too difficult metallurgically, break-throughs and technological refinements, still in their relative infancy, are leading rapidly to a new generation of nickel production centers from laterite deposits. The Agata Project with its excellent infrastructure, proximity to tide water, potential hydro-electric power on an adjacent river, and the markets that really count, is attractively placed for potential development.
While much of the Surigao District nickel laterite production has been as direct shipping ore (DSO) to processing plants in Japan, Australia and China, several attractive alternatives are emerging for local processing, which include; constructing an on-site blast or electric arc furnace for nickel pig iron production (a low grade ferronickel product); ferronickel smelting (a ferronickel smelter recently commenced operation not far away in NW Mindanao); heap-leaching, for which pilot testing on another Philippine laterite deposit has produced promising results; atmospheric (tank) leaching; and an improved generation of High Pressure Acid Leach (HPAL) plants. HPAL technology is currently being used with great success by Sumitomo on its Philippine Coral Bay operation, and shows considerable promise for the local processing of Surigao ores.
As noted in a February 7, 2008, news release, there is abundant evidence of the beginning of a trend for local/on-site processing of Philippine laterite ores and the growth of a large high-value industry in the Philippines. Mindoro expects that the prolifically nickel laterite-mineralized Surigao District will be an important part of this evolution.
Programs are carried out under the supervision of Tony Climie, P.Geol., CEO and COO of Mindoro, who is a qualified person as defined by National Instrument 43-101. Previous sample preparation and assaying were performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. More recent results were from Intertek Testing Services Phils, XRF analysis are performed to determine total element concentrations (13 elements). Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate samples. MRL has conducted assays verification by using standard samples and re-assaying of field, coarse and pulp duplicates.
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 identified initial NI 43-101 compliant resource estimates on its Agata North nickel-iron-cobalt project, 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 a Memorandum of Understanding with Avocet Mining and a Letter of Agreement with Gold Fields covering Mindoro's Batangas projects.
For further information, contact:
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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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