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Jan 11, 2010
Major Nickel Resource Potential for Mindoro in Philippines
This is in addition to Mindoro's Agata North Project, for which a resource estimate was announced on Nov 19, 2009, with an indicated and measured resource of 26.92 million DMT at 1.11% nickel and 0.06% cobalt, containing 657 million lbs nickel and 24 million lbs cobalt; and an additional 3.79 million DMT in the inferred category, containing 89 million lbs nickel and 2 million lbs cobalt. The NI 43-101 technical report was filed on SEDAR on December 30, 2009, and is also available on Mindoro's website at www.mindoro.com.
Mindoro's Surigao projects are located in an important nickel producing district. The Agata North project contains major strategic nickel laterite resources with strong competitive advantages, including excellent infrastructure, close proximity to the ocean and markets, abundant limestone on site and potential for the establishment of a world class nickel and cobalt processing operation.
BASIS FOR THE EXPLORATION TARGET
Mindoro previously reported (Feb. 26, 2008) that mapping north of the Agata Project indicated potential for extensive additional nickel laterite mineralization. Consequently, a program of hand auger drilling was conducted to establish nickel laterite areas at least three meters thick and around one percent nickel. The auger is capable of penetrating only part of the upper limonite horizon and, rarely, the higher-grade saprolite horizon below. A total of 125 hand auger holes were drilled and a total of 438 samples assayed. Thicknesses and nickel grades within an economically relevant range were utilized in deriving the Exploration Target. A conservative doubling of the thickness achieved by hand augering was utilized for thickness estimates. Nickel laterite boundaries were estimated from mapping and hand augering. A specific gravity factor of 1.24 was used for both limonite and saprolite.
Most of the laterite areas are within two to three kilometers of the ocean, and limestone, important for any acid processing technologies, is abundant on the projects. The Exploration Target covers approximately 900 hectares and the Agata North resource about 300 hectares.
The reader is cautioned that the nickel laterite mineralization on the northern Surigao Projects is currently an exploration target only. Detailed drilling will be required to move the Exploration Target into NI 43-101-compliant resources. There is no guarantee 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. Agata already has a NI 43-101 compliant resource.
This large Exploration Target substantially augments Mindoro's plans to evaluate the feasibility of establishing a local processing plant. Mindoro has commissioned an independent study of development and processing alternatives projected for completion in February 2010. The study will also evaluate the merit of a two phase development: Phase 1 selective production of direct shipping ore (DSO) of medium to higher grade material (greater than 1.4 percent nickel) from Agata North to supply feedstock for processing plants, followed by a major Phase 2 processing operation.
SURIGAO NICKEL LATERITE DISTRICT
The Surigao region is emerging as a major nickel producing district, and there are at least ten DSO nickel laterite mines either in production or being developed. There are two main nickel laterite belts in the Surigao Distirct- an eastern coastal belt that is held by a variety of companies and a western coastal belt, which is a region largely controlled by Mindoro..
Much of the Surigao District nickel laterite provides DSO to processing plants in Japan, Australia and China. However, an improved generation of HPAL plants, currently being used with great success by Sumitomo and partner Nickel Asia on their Philippine Coral Bay operation, shows considerable promise for the local processing of Surigao ores. Of major significance is the recent commencement of construction by Sumitomo / Nickel Asia of a HPAL processing operation at Taganito in the eastern Surigao District which will produce 30,000 tonnes of nickel product per annum. This will launch the Surigao District into the ranks of globally important nickel processing camps.
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 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 three joint venture projects with Gold Fields in the Batangas area, Philippines.
In addition to advancing the Agata North nickel laterite project, drilling funded by Gold Fields is in progress on the El Paso copper-gold project and soon to start on the Lobo project. Drilling has recently been competed on the American Tunnels gold and copper-gold targets. Mindoro is assessing various alternatives to commercialize the Kay Tanda gold resource in the best interests of the shareholders. Other objectives include finalizing two joint venture arrangements on Mindoro's porphyry copper-gold prospects at Pan de Azucar and Surigao.
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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