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Mar 15, 2010
Mindoro Receives Nickel Laterite Development Options Study
  • Company Commits To Pre-Construction Stage Of Direct Shipping Ore Operation
  • Scoping Study Commissioned Into Larger Scale Processing Operation
EDMONTON, ALBERTA, March 15, 2010 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) announces that it has received the final options study commissioned to examine the range of development and processing options available and comment on their applicability to the Agata nickel laterite resource and the Surigao regional nickel laterite Exploration Target. The study was authored by Boyd Willis of Boyd Willis Hydromet Consulting in Brisbane, Australia.

The Agata nickel laterite resource announced on November 11, 2009, totals Measured and Indicated 26.92 million dry metric tonnes (DMT) at 1.11% Nickel and 0.06% Cobalt and Inferred 3.79 million DMT at 1.06% Nickel, 0.05% Cobalt. The Surigao regional Exploration Target announced on January 11, 2010, is 50 million to 70 DMT at 0.9% to 1.1% Nickel.

The Options Study examined six options for first stage development and processing as well as several hybrid options. These included Direct Shipping Ore (DSO), constructing an on-site processing plant which has an array of potentially applicable technologies; including Nickel Pig Iron production, Ferronickel Smelting, Heap Leaching, Atmospheric (Tank) Leaching and High Pressure Acid Leaching (HPAL).

The conclusions of the study are that a DSO operation focused on a higher grade component of the limonite resource, whilst not optimising value from the resource, offers an opportunity for early cash flow and could be integrated into a staged atmospheric leach with saprolite neutralization then HPAL project treating the much larger low grade (>0.9% Nickel) limonite target. The Mindoro board has approved a recommendation that Boyd Willis Hydromet Consulting conduct a scoping study into the favoured development and processing options. The scoping study will consider a staged development commencing with selective higher grade (>1.4% Nickel) limonite DSO with saprolite atmospheric leaching as well as a major integrated HPAL / Atmospheric Leach / Saprolite Neutralization project.

In conjunction with the scoping study the Mindoro Board has approved the first, pre construction, stage of the DSO operation. This will involve a drilling program planned to define the higher grade component of the measured and indicated resource to allow mine planning, a mining contract and submission to the Mines and Geoscience Bureau (MGB) allowing Declaration of Mining Project Feasibility under the Philippines Mining Regulations. The resource is located on a mining permit (an MPSA), and has a granted Environmental Compliance Certificate (ECC) in place. Mine planning will provide a more accurate estimate of capital and operating costs for a conceptual 1 million tonne per annum DSO project. Offtake / marketing agreement(s) will also be sought during this stage.

In addition to the scoping study and pre construction stage of the DSO, Mindoro will commence drilling the regional laterite Exploration Target in order to convert a significant proportion of the 50 million to 70 million DMT @ 0.9% to 1.2% Nickel Exploration Target to NI 43-101 compliant inferred to indicated resource estimate.

The reader is cautioned that there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.

Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's exploration programs and who has reviewed and verified the technical information contained in this news release.

ABOUT MINDORO

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 controls major nickel laterite resources in the Surigao District, Mindanao, where potential for a direct shipping ore (DSO) operation to generate early cash flow is being investigated as well as large scale potential for an onsite processing plant.

Mindoro has NI 43-101 resource estimates on its Agata North nickel-cobalt project and on both its Lobo 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 of southern Luzon, where drilling is also in progress, funded by Gold Fields. Drilling on the American Tunnels project has confirmed potential for a near-surface, bulk-tonnage gold target and porphyry copper-gold targets. Other objectives include finalizing joint venture arrangements on Mindoro's porphyry copper-gold prospects at Surigao.

For further information, contact:

Mindoro Head Office
Penny Gould, VP Investor Relations
penny@mindoro.com
Tel: 780.413.8189 or
Toll Free: 1.877.413.8187

Investor Relations -- Canada
Senergy Communications Inc.
Investor Relations
ir@mindoro.com
Tel: 1.778.331.2030

Investor Relations - Europe
Robert Sarcher
robert@mindoro.com
Tel. 49.821.6089051

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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