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Jul 31, 2002
Mindoro Commissions Gold Resource Evaluation Of Kay Tanda Prospect, Archangel Project, Philippines
Tony Climie P. Geol., President of Mindoro Resources Ltd. ("Mindoro") is pleased to advise that Mindoro has commissioned an independent resource study for the Kay Tanda gold-silver prospect, one of several prospects on the Archangel Project ("Archangel"), Philippines. The study will be performed by Dr. David Bailey, P. Geol., geological consultant, Vancouver, B.C. Dr. Bailey is a "qualified person" as defined under the Canadian Securities Administrators' National Instrument 43-101.
The Archangel Project is a Mineral Production Sharing Ageement (MPSA) application, covering 981 hectares in Batangas, Southern Luzon, 150 km from Manila. Mindoro may earn a 75% interest in Archangel from a private Philippine company, Egerton Gold Phils. Inc., through phased expenditures and issued tranches of Mindoro shares (see release of July 26, 2001). The Chinese and Spanish mined copper and gold at Archangel in earlier centuries and the Japanese mined copper during WWII. The principal target of Mindoro is the Balibago porphyry copper-gold system, which Mindoro proposes to drill-test in early 2003. Balibago is flanked, and overlain, by high-sulphidation epithermal gold-silver mineralization to the north-east, referred to as the Kay Tanda and Pulang Lupa Prospects, and to the south-west, by the Ahit Domes copper-gold high sulphidation prospect. Between 1987 and 1989 Western Mining Corporation completed four reconnaissance diamond drill holes at Kay Tanda, intersecting oxide, gold-silver mineralization at shallow depths in all holes (eg. hole ARD-4B, from 14 to 70 meters (m) returned 56 m of 0.91 grams per tonne (g/t) gold).
Chase Resource Corporation ("Chase"), in alliance with BHP Minerals, further drill-evaluated this gold potential in 1995-1998. Chase drilled thirteen, wide-spaced, reverse circulation holes, intercepting significant thicknesses of low-grade, oxide gold-silver mineralization at shallow depths. Nine holes were completed at Kay Tanda and intersected mineralization over an area of approximately 400m by 350m. Summary results of all Chase holes appear in the following table (data are from a Chase internal company report, dated April, 1997):
RC HOLE INTERVAL INTERCEPT GOLD SILVER From (m) To (m) (m) g/t g/t -------------------------------------------------------- CA-1 8 54 46 0.38 12.0 CA-2 42 98 56 1.31 1.0 CA-3 0 60 60 0.73 4.40 CA-4 60 88 28 0.94 1.90 CA-5 22 42 20 0.59 3.47 CA-6 0 20 20 0.49 1.44 36 66 30 0.42 3.30 CA-7 8 70 62 0.40 <1 CA-8 6 22 16 0.27 1 CA-9 2 46 44 0.56 1 CA-10 No significant results CA-11 0 14 14 2.25 39.0 CA-12 0 22 22 0.74 17.53 CA-13 64 72 8 0.22 3.32
Mineralization is open in several directions. Only three holes were completed on Pulang Lupa Prospect, approximately 1 km to the west; all intersecting low-grade mineralization (best hole: 12 m of 2.3 g/t gold). Mineralization may be continuous between the two prospects beneath cover. Mineralization was interpreted by the Chase consultant, Dr. G. Corbett (1996 internal Chase report), to occur as sheeted veins in a flatly-dipping, silica ledge, replacing a permeable volcanic horizon. Higher grade intercepts (eg. 8.3 g/t gold over 6 m in CA-2) were encountered and may represent main feeder veins. The 1996 Chase Annual Report suggests there are "approximately 10 million tonnes of low grade, oxidized gold ore amenable to very low cost strip mining and heap leaching". However, as far as is known, a resource calculation conforming to current required standards has not been performed. Indeed, drill density may be insufficient to enable a definitive resource estimate at this time.
Although the main target at Archangel remains the central Balibago porphyry copper-gold system, the Kay Tanda and Pulang Lupa epithermal gold-silver prospects may provide potential for an open-pit, heap leach oxide gold-silver operation. Initial work will involve the inferred resource calculation and, if justified, in-fill and extension-drilling and metallurgical testing. Mindoro (Symbol MIO) is a Tier One Company listed on the TSX Venture Exchange. Mindoro is exploring for gold and gold-copper in the high-potential magmatic arcs of the Asia Pacific Region. The Company is presently focussed on a portfolio of six promising projects in the Philippines. Mindoro plans to commence a Phase two drill program, commencing late August, on its Valderama polymetallic, massive sulphide discovery, Pan de Azucar Project (see release of January 9, 2002), with the objective of defining a mineral resource.
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.
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