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Nov 25, 2008
Valderama Massive Pyritic Sulphide Prospect to be Evaluated as a Stand-Alone Sulphuric Acid Producer
EDMONTON, Alberta; Nov. 25, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to provide an update on its Valderama massive pyritic sulphide prospect, Pan de Azucar Project, Iloilo Province, Philippines. Valderama is emerging as an increasingly important component of Mindoro's future strategy. It has the potential to provide feedstock pyrite for a stand-alone sulphuric acid producing plant to supply the Philippine fertilizer industry, as well as the growing nickel laterite processing operations in the Philippines. Sulphuric acid is the major cost-component (greater than 50 per cent) in the hydrometallurgical processing of nickel laterite. A cheap source of supply of sulphuric acid has the potential to considerably enhance the economics and competitiveness of Mindoro's Agata North nickel laterite project.
Sulphuric acid is produced by the processing of either sulphur or pyrite and is used to produce ammonium sulphate-and phosphate fertilizers. The pyrite conversion process also produces excess power that could be sold into the national grid. Sulphur and sulphuric acid prices and supply have been volatile over the past two years; and both have been in short supply, and at record price levels. The shortage and high price were critically affecting the economics of both the fertilizer industry and nickel (and other metals) processing. Sulphur price was as high as US$ 800 a tonne in June of this year, since decreasing markedly to under US $80 a tonne currently. Mindoro management believes that sulphur and sulphuric acid prices will recover to price levels supportive of this concept, as oil and other commodity prices rise with the inevitable resumption of Asian growth. In addition, demands of the fertilizer industry in a region of looming agricultural under-supply will likely contribute to sulphur and sulphuric acid price increases.
Scenarios that will be evaluated by Mindoro include, in the short term to establish early cash flow via the direct shipping of pyrite and sale to fertilizer producers and nickel laterite processing operations; and in the near to medium term, the establishment of a stand-alone suphuric acid production plant to supply low-cost sulphuric acid to the Agata North nickel laterite project, currently being evaluated by Mindoro; with excess product sold on to other nickel laterite processing operations and to the fertilizer industry. With its large nickel laterite resources, and proximity to markets, nickel laterite processing is likely to be a high growth industry in the Philippines, with corresponding increasing demand for sulphuric acid. The Valderama Prospect is within a few hundred meters of tide water and a relatively short barge distance to most other Philippine islands, including Northeast Mindanao, the site of Mindoro's Agata North laterite resource.
Mindoro plans to assay previously un-assayed sections of massive and semi-massive pyritic material for sulphur. Subject to the results of these additional assays and the company's market studies, infill and extension drilling will be required to calculate a NI 43-101 compliant resource estimate. The potential recovery of gold, silver, copper and zinc content from Valderama will also be evaluated.
ABOUT THE PAN DE AZUCAR PROJECT
The Pan de Azucar Mineral Production Sharing Agreement covers 535 ha on Pan de Azucar Island and adjacent Panay Island. Under a 1997 agreement with a private Philippines company, Mindoro may earn a 75 percent interest in the Pan de Azucar Project through phased exploration expenditures and issues of shares. Mindoro has earned a 40 percent interest to date and has recently extended its right to earn the additional 35 per cent to bring it to a total 75 per cent interest.
Pan de Azucar Island is a volcanic caldera, and has two main prospects; the Valderama pyritic massive sulphide and Asparin Hill porphyry copper-gold prospects. As described in press releases dated Oct. 2, 2001, Dec. 3, 2001, Jan. 9, Oct. 2, and Nov. 7, 2002, and Jan. 23, 2003, 14 drill holes in two programs partially outlined Valderama, defining a flat-lying, near-surface sheet of massive pyritic sulphides. Based on drilling, mapping and geophysical expression, Valderama is up to 200 meters wide and extends for about 800 meters along strike. The massive sulphides are typically between 10 to 40 meters thick and consist of nearly pure pyrite which, where assayed to date, contains from 36 to 42 per cent sulphur. The Phase 1 drill holes were not assayed for sulphur. The massive pyritic sulphide is defined as greater than 90 percent pyrite. There were also numerous intersections of semi-massive sulphide (between 40 and 90 percent pyrite), which have also not yet been assayed. Significant gold, silver, copper and zinc values are associated.
Intersections of massive pyritic sulphide include:
*No significant result
Two holes were drilled on the Asparin Hill porphyry copper-gold target, 700 meters west of Valderama. A short, 45 meter drill hole intersected porphyry-related alteration, including biotite alteration, with disseminated and veinlet chalcopyrite mineralization. The hole was terminated at shallow depth due to budget considerations at the time. Additional drilling at Asparin Hill will be undertaken at a future date.
Programs are carried out under the supervision of Tony Climie, P.Geol., CEO and COO of Mindoro, who has approved the technical disclosures in this release and 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, copper and zinc were determined by AAS after an HCl-HNO3-HClO4 digest. Sulfur assays were by wet method. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate samples. MRL has also 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 diverse resource exploration in the Philippines and 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 an updated resource estimate will be released in late November, and on the Kay Tanda and SW Breccia gold and silver projects. Mindoro has also identified more than 20 porphyry copper-gold prospects and recently entered into joint venture arrangements with Gold Fields and Avocet Mining on its 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.
Barbara Komorowski: firstname.lastname@example.org
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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