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Oct 31, 2008
Mindoro Reports Final Drill Results From Agata Nickel Laterite Project
EDMONTON, Alberta; October 31, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report results for the final 83 drill holes on the Agata North Nickel Laterite Project, Philippines. The limonite horizon averages 1.06 percent nickel, 0.13 percent cobalt and 43.36 percent iron over an average thickness of 1.63 meters. The underlying saprolite horizon averages 1.23 percent nickel over an average thickness of 3.85 meters. Grades 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 mapped nickel laterite drill-tested, and a total of 408 drill holes completed. An updated NI 43-101 resource estimate will be released in late November. Management believes that an adequate resource has now been defined in order to identify and advance the optimal mining and processing concept.
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 59 drill holes which were above a cut-off equivalent of two meters at one per cent nickel. The remaining 24 drill holes were below this cut-off and defined outer limits of mineralization:
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 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, drill-ready gold and copper-gold targets in the Surigao District.
The region is also emerging as a major nickel laterite camp, and there are a number of nickel laterite deposits either in production, or being developed. Asia Nickel, in joint venture with Sumitomo, recently announced that it expects to proceed with construction of a high pressure acid leach (HPAL) plant in the Surigao District, which will produce 30,000 tonnes per year nickel product.
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; containing approximately 92.4 million pounds nickel. In addition, the Inferred Resource estimate is an additional 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.
The reader is cautioned that mineral resources which are not mineral reserves do not have demonstrated economic viability. 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 to process, more recent advances and technological refinements, still in their relative infancy, are leading to a new generation of nickel production centers from laterite deposits.
Much of the Surigao District nickel laterite production to date has been as direct shipping ore (DSO) to processing plants in Japan and Australia, with lower grade material going to China for nickel pig iron production (feedstock for stainless steel mills). A recent softening of nickel prices has ended the shipping of low-grade nickel laterite to China for nickel-pig iron production. DSO production of higher grade material continues. However, there is now an increasing trend towards advancing on-site, value-added processing of nickel laterite within the Philippines itself, rather then just shipping out low-value product. The prolifically nickel laterite-mineralized Surigao District will be an important part of this evolution.
Local processing alternatives include; on-site blast or electric arc furnaces 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; 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 and Asia Nickel on their Philippine Coral Bay operation, and the partners recently announced plans for a second HPAL plant to be constructed in the Surigao District.
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:
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:
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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