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Jul 10, 2002
Mindoro to Raise $330,000 To Finance Drilling; AurionGold Withdraws From Pan De Azucar
Tony Climie, P. Geol., President of Mindoro Resources Ltd. ("Mindoro") is pleased to report that Mindoro has signed a Letter of Engagement with Wolverton Securities Ltd. ("Wolverton"), whereby Wolverton has agreed to act as Mindoro's agent in a public offering of 3,000,000 units at $0.11 per unit, on a best efforts basis. Units will be offered under the TSX Venture Exchange Short Form Offering Policy (the "Financing"). Units will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share during the first year for $0.15 and during the second year for $0.30. Net proceeds will be used for advancing Mindoro's projects in the Philippines and for general working capital. Wolverton will receive a commission of 10% of the gross proceeds of the Financing and Brokers Warrants equal to 10% of the shares issued in the Financing, exercisable at $0.11 for two years. The Financing is subject to regulatory approval. Gross proceeds from the Financing are in addition to gross proceeds of $150,000 from a Private Placement announced July 5, 2002.
AurionGold Withdraws, Mindoro Regains Equity Entitlement
Mindoro has received notice that joint venture partner AurionGold Limited ("AurionGold", formerly Delta Gold) is withdrawing from the Pan de Azucar Project ("PDA"), Philippines. Mindoro reverts to its original 75% earning entitlement, rather than 25% under the joint venture arrangement, and sees this as an excellent opportunity in a project that has had substantial value added to it. Minimax Mineral Exploration Corp., Mindoro's Philippine partner, would hold the remaining 25% equity.
AurionGold financed a geophysical survey and an 1,100 meter scout diamond drill program in late 2001. Mindoro operated the PDA project. Promising results were obtained from the Valderama Zone, where a tabular, massive pyritic sulphide deposit, with associated copper, gold, silver and zinc mineralization, was discovered at a shallow depth. A full technical report on PDA can be referenced on SEDAR (http://www.sedar.com).
Delta Gold, a 500,000 ounces gold/year producer, merged with Goldfields Australia, in early 2002 to become AurionGold, a 1 million ounces/year gold producer, thereby raising their threshold target deposit size. Work at PDA went into limbo for six months during the merger process. Recently, Placer Dome Inc. of Canada announced an unsolicited bid for AurionGold. If the takeover is successful, the new company would have a total annual production of 3.8 million ounces gold/year. Based on drill results to date, and extent of geophysical and geochemical anomalies, a reasonable target objective for the Valderama Deposit is 15-20 million tonnes containing 1.5 to 2 million ounces gold equivalent. It seems unlikely that this would meet AurionGold's target criteria, especially if taken over by Placer Dome. Mindoro considers Valderama Deposit an attractive target and plans to finance ongoing resource delineation itself. A strong chargeability anomaly, 800 m long (open to the north) and 150 to 200 m wide, reflects the main body of mineralization. The Valderama Deposit has been only partially outlined by drilling to date and is open in most directions. Results (previously reported) from ten, shallow, wide-spaced holes gave economically significant results in five holes as follows (drill intercepts are true thicknesses within the massive sulphide deposit):
HOLE FROM TO (m) LENGTH COPPER GOLD SILVER ZINC (m) (m) (%) (g/t) (g/t) (%) --------------------------------------------------------------- PDA-03 16.3 53.4 37.1 0.8 1.87 PDA-06 6.0 47.5 41.5 0.12 1.2 PDA-08 55.75 96 40.25 0.69 1.21 4.34 0.63 Including 55.75 75 19.25 1.08 1.19 6.49 1.19 Additional intercepts proximal to the massive sulphide deposit, possibly in "feeder" faults: PDA-07 29.5 34.2 4.7 0.99 0.5 13.43 1.23 PDA-09 20.35 23 2.65 2.2 1.97 31.1 1.3 ---------------------------------------------------------------
The Valderama Deposit is interpreted as a massive sulphide cap overlying a porphyry copper-gold system, (a common association in the Philippines, where the two are frequently telescoped close together). Mindoro's geological and petrology consultants have recognised zonal alteration and disseminated copper and magnetite mineralization, characteristic of a proximal porphyry system, at PDA (as referenced in the technical report on SEDAR). However, initial focus will be to drill out the Valderama Deposit, rather than explore for a proximal porphyry deposit. Associated epithermal vein mineralization is also suspected at PDA. The planned drill program (approximately $200,000) will bring Mindoro to the 40% equity level in PDA.
Mindoro trades on the TSX Venture Exchange under the symbol MIO. For further information, contact Penny Gould, Executive Vice President:
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
You can view the Next Press Releases item: Wed Jul 31, 2002, Mindoro Commissions Gold Resource Evaluation Of Kay Tanda Prospect, Archangel Project, Philippines
You can view the Previous Press Releases item: Fri Jul 5, 2002, Mindoro Completes 1,500,000 Unit Private Placement
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