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Aug 10, 2010
Agata Nickel Infill Drilling Completed; Higher-Grades Intersected
EDMONTON, ALBERTA, August 10, 2010 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today announced the last batch of infill drilling results from the company's Agata Nickel Project in the Philippines with grades and thickness of potential economic interest, including limonite intersections averaging 4.06 meters (m) at 1.15% Nickel, 0.13% Cobalt and 48% Iron and saprolite intersections averaging 7.25m at 1.31% Nickel. The peak limonite intersection was AGL-453: 10.9m @ 1.55% Nickel and 40% Iron from 1.9m and peak saprolite intersection AGL-545:13.45m @ 1.73% Nickel from 4.10m including 3.95m @ 2.04 % from 4.10m.
This release includes results from the final 92 holes of a total program of 185 holes for 3,560m on 25m x 25m to 50m x 50m grid patterns.
The following table shows the more significant limonite intersections:
The following table shows the more significant saprolite intersections:
A list of drill results for all 92 holes is available with this release on Mindoro's website: www.mindoro.com.
The average thicknesses and grades from the total 185 hole program are summarized below:
The following plan illustrates the distribution of nickel laterite drilled from 2006 to date, with nickel grade times thickness (meters) expressed as cool to hot colours. The results of the program include grades and thicknesses in excess of the average mineral resource grades reported in November 2009. In particular, average limonite grades of 1.13% Nickel and 48% iron compare to the average Measured and Indicated Mineral Resource grade prior to this drilling program of 0.98% Nickel, 45% Iron. These average grades are consistent with the requirements of direct shipping ore (DSO) nickel pig-iron producing offtakers for 0.9% to 1.1% Nickel and >48% Iron. In addition the Agata intersections include transition to saprolite zones of >1.5% Nickel that, depending on the iron content, may be suitable for Chinese Electric Arc Furnace (EAF) and/or other acid leach or ferronickel processing facilities in Australasia.
The final results of the drilling are now being modeled in preparation for an updated NI43-101 Mineral Resource statement, due by the end of August 2010. The updated Mineral Resource model, combined with mine planning information, will allow preparation of an NI 43-101 Mineral Reserve statement. Offtake discussions have been advanced but will not be finalized until a detailed mine schedule is produced from the Mineral Reserve information. Agata Nickel Project phase 1 (DSO) scoping and feasibility studies will then be finalized and submitted to the Philippines Mines and Geosciences Bureau (MGB) for final development approval.
Drilling rigs have now been mobilized to commence drilling the regional nickel laterite exploration target with the objective of converting a significant proportion of the 50 million to 70 million DMT at 0.9% to 1.2% nickel Exploration Target to NI 43-101 compliant Mineral Resource.
At the same time, Mindoro has initiated scoping studies into value-added on site processing, including . low-capital cost, thermal upgrading technologies, such as sintering, to produce much higher-value iron and iron-nickel products. These have the potential to quickly phase out the shipping of raw DSO product, and to form an intermediate development stage prior to a major acid-leach processing operation. The major acid-leach project scoping studies, including additional metallurgical testing, are due for completion late September 2010.
The reader is cautioned that the potential quantity and grade of the Exploration Target is conceptual in nature; it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource and 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 company's Qualified Person as defined by National Instrument 43-101, who is 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. Sample preparation and assaying were performed by Intertek Testing Services, Phils., Inc. (ITS). The ITS Phils. facility is among Intertek's global network of mineral testing laboratories. It provides high quality assay analysis of mineral samples for nickel deposit exploration projects. Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium(Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence (XRF). The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides. Intertek mineral testing laboratories implement quality protocols. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of repeat analyses plus split sample analyses and the use of standard reference materials and blanks. Mindoro has also conducted assay verification using standard samples and re-assaying field 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 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 development of a phase 1, direct shipping ore (DSO) operation to generate early cash flow is being advanced as well as large scale potential for an onsite processing plant.
Mindoro has NI 43-101 Mineral Resource estimates on its Agata North nickel-cobalt project (November 2009) totaling 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 is 50 million to 70 million DMT at 0.9% to 1.2% Nickel (January 2010).
Mindoro also has NI 43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon which are the subject of a farm-in arrangement whereby Gold Fields Ltd may earn 75% through direct project expenditure. Goldfields has commenced drilling gold targets on the Lobo project.
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 progressing joint venture discussions on Mindoro's porphyry copper-gold prospects at Surigao.
For further information, contact:
Mindoro Head Office
Penny Gould, VP Investor Relations
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.
The reader is cautioned that the potential quantity and grade of the regional exploration target is conceptual in nature; it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource and 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.
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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