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Sep 14, 2009
Mindoro Looks to Maximize Value from Kay Tanda Gold Project as Avocet Withdraws
EDMONTON, Alberta; September 14, 2009 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today reported that Avocet Mining has advised that it will not be proceeding with further investment in Mindoro's Kay Tanda gold project, located in the Batangas Province of southern Luzon, the Philippines.
Under a Memorandum of Understanding signed September 22, 2008, Avocet undertook to drill a minimum 1500 meters of diamond drilling as part of a six month due diligence program. The due diligence period was twice extended in order to accommodate Avocet drilling 2100 meters, in fourteen holes, well in excess of its required minimum. Mindoro has not yet received assay results from the last seven drill holes, nor the revised resource estimate; therefore, the company is unable to comment specifically on the final results of the drill program.
Avocet has specialized in open-pit gold mining in SE Asia to date. In its due diligence evaluation, Avocet took the pragmatic approach of shallow infill drill testing of projected up-dip extensions of high-grade gold vein sets, previously intersected at deeper levels by Mindoro, into a conceptual open-pit. TheseThe conceptual pit was centered on the near-surface low grade stockwork mineralization. The first seven holes, as reported on July 27, 2009, did confirm continuity of near-surface low grade gold-sliver mineralization. The high-grade vein sets, which are probably feeder zones to the gold system, do not extend into such shallow levels. The resource remains open to the north, west and to depth. In addition, interpreted porphyry copper-gold related mineralization has previously been intersected by Mindoro at depth in Kay Tanda.
While Mindoro appreciates the time and expense Avocet has invested in the Kay Tanda project over the past year, it also notes that interest in gold and base metals projects in the Philippines has increased considerably since the Memorandum of Understanding was signed in 2008. In particular, various agencies from China have been aggressively seeking to acquire resources in the Philippines. Mindoro has been contacted by several parties in recent months interested in acquiring the Kay Tanda gold resource; however, Mindoro did not advance discussions due to Avocet's on-going due diligence. With Avocet's withdrawal from the project, Mindoro will be immediately exploring new opportunities to joint venture or sell the Kay Tanda gold resource.
Mindoro has also granted a right of first refusal to Gold Fields over the Archangel Project, which includes Kay Tanda. However, Mindoro's CEO, Tony Climie, stated, "we are not rushing into a new deal on the project. With the price of gold at $1000 per ounce, this is a significant asset and we want to ensure any new arrangement achieves maximum value for our shareholders."
ABOUT KAY TANDA
Kay Tanda is being evaluated for its open-pit, heap-leach potential. Prior to signing the Memorandum of Understanding with Avocet, Mindoro had completed 147 reverse circulation and 26 core drill holes at Kay Tanda. Almost all holes 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, encountered at least five steeply-dipping much higher-grade zones with grades to 246 g/t gold and over 1,000 g/t silver. These are interpreted as structurally controlled upflow, or "feeder" zones. These feeder zones appear to trend NW to SE, at right angles to the dominantly NE to SW trending lower grade stockwork system.
On February 6, 2008, Mindoro released a NI 43-101 compliant mineral resource estimate reporting a total inferred resource of 11,599,000 tonnes at 0.70 g/t gold and 3.0 g/t silver (262,000 contained ounces gold) and a total indicated resource of 3,365,000 tonnes at 0.88 g/t gold and 8.0 g/t silver (95,000 contained ounces gold).
Many gold mineralized intercepts, including much of the higher-grade 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.
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 NI 43-101 resource estimates on its Agata North nickel-cobalt project and on both its Lobo (SWB) and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has a Memorandum of Agreement with Gold Fields covering its Batangas projects.
Mindoro is well positioned to capitalize on the global demand for gold with drilling underway on the American Tunnels gold / copper-gold project and plans to commence drilling the El Paso copper-gold project in September, funded by Gold Fields. Final results are also awaited from due diligence drilling on the Kay Tanda gold project, funded by Avocet. Additional near-term objectives include finalizing one to two joint venture arrangements on Mindoro's porphyry copper-gold prospects at Pan de Azucar and Surigao and identifying a suitable partner to fund development of the significant Agata North nickel resource.
For further information, contact:
Mindoro Head Office
Penny Gould, President
Tel: 780.413.8187 or
Toll Free: 1.877.413.8187
Investor Relations -- Canada
Senergy Communications Inc.
Investor Relations - Europe
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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 and the uncertainty of the availability of capital). 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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