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Sep 16, 2002
MAJOR EPITHERMAL VEIN-SYSTEM DEFINED ON LOBO PROJECT
High gold-silver-copper values widely-distributed in large vein structures
Camo Vein: 1.45 g/t gold, 487 g/t silver and 1 % copper over 9 m true-width channel sample; 22.4 g/t gold in float 1 km along strike Sampson Vein: to 3.36 g/t gold, 1,792 g/t silver and 21.6 % copper in 1 m rock-chip samples.
Tony Climie P. Geol., President of Mindoro Resources Ltd. ("Mindoro") is pleased to report results of a reconnaissance geological mapping and rock sampling program on Mindoro's Lobo Project ("Lobo"), Philippines. The work was carried out during July 2002, by consulting geologist H. Ruelo, B.Sc., Professional Geologist, under the supervision of Tony Climie, who is a "qualified person" as defined under the Canadian Securities Administrators' National Instrument 43-101. Significant results are summarized on the accompanying map. A full technical report is available on SEDAR (http://www.sedar.com).
Lobo is a Mineral Production Sharing Agreement application in its final stages of approval, covering 1,164 hectares in Southern Luzon, 150 km from Manila. Mindoro may earn a 75% interest in Lobo from a private Philippine company, Egerton Gold Philippines Inc., through phased expenditures and issued tranches of Mindoro shares (see release of November 29, 2000).
The Sampson Vein, on the Lobo Property, was mined underground on a small scale in the mid-late 1960s for copper-gold-silver. Based upon old records, development and exploration workings extended over about 300 meters (m) of strike length and to shallow depths of less than 100 m. The operation failed due to, the then-prevailing, economics and metal prices (gold was US$30/ounce). Upon cessation of mining, the Philippines Mines and Geoscience Bureau (1984) reported remaining reserves in the active stopes, as 90,700 tonnes at a high-grade of 20.5 grams per tonne (g/t) gold, or 60,000 contained ounces.
No systematic, modern exploration has ever been carried out on the property. Dr. G. Corbett, internationally recognized expert on Southwest Pacific copper-gold systems, reported in 1996 that "The Lobo Vein is an extremely good target for bonanza-grade high-sulphidation gold-copper mineralization similar to El Indio in Chile" (Chase Minerals Philippines Corporation report). This assessment is strongly supported by the present work, which had the objective of establishing surface extent of the vein systems, their nature, and distribution of high-grade copper-gold-silver mineralization on surface.
The Lobo Prospect consists of epithermal vein-breccia style mineralization, which is structurally controlled, and comprises high-sulphidation copper (± iron) sulphides in barite-quartz gangue. The work outlined two major, parallel veins: the Sampson Vein and the Camo Vein, 0.8 km to the southeast, were mapped over strike-lengths in excess of 1.25 km, and, based on float and subcrop distribution, are each believed to be over 2 km long. These dimensions are significantly greater then previously recognized. Several other, more restricted, barite-quartz-sulphide veins were located and mapped within 1 km to the north of the Sampson Vein.
Rock exposure is poor and it is difficult to establish true widths of the veins from surface work. However, old mining records (Philippines Mining Journal, July, 1967), report vein widths of up to 60 feet (19 m) in underground workings on the Sampson Vein. On the Camo Vein, an outcrop was observed where true width is in excess of 9 m, and open on at least one side.
Reconnaissance rock sampling (24 samples) was carried out to obtain information on distribution of mineralization. Rock samples are mostly "character" rock-chip samples of outcrop or sub-crop over 1 m or less. Due to the poor outcrop, and inherent uncertainties relating to surface sampling, these samples cannot be regarded as representative of the overall vein systems. The results do, however, indicate that high copper-gold- silver values occur widely distributed in veins across the property. These values appear to represent multiple, well-mineralized shoots within the vein system. Of particular note are the high silver values recorded in a number of places. The primary mineralization contains arsenic, as is characteristic of high-sulphidation mineral systems.
On the Sampson Vein; high values occur in outcrop, sub-crop and dump material around the old Lobo Mine where values of up to 21.6 % copper, 3.36 g/t gold and 790 g/t silver were obtained (average 1 m sample width). A rock chip sample of outcrop (over 1 m), 700 m along strike to the northeast, assayed 1,792 g/t silver and 8.68% copper. There is very limited outcrop to sample along the Sampson Vein.
On the Camo Vein; a channel sample over a true width of 9 m gave 1.45 g/t gold, 487.5 g/t silver and 1 % copper. This is open on at least one side. The width and values of the Camo Vein in this area are clearly of economic interest. Nearby, additional high-grade samples were collected from limited rock exposures. Approximately 1 km along strike to the southwest, a float sample assayed 22.43 g/t gold. Values of up to 1.92 g/t gold, 22.4 g/t silver were obtained from float and narrow (up to 1 m), rock chip samples from several smaller veins mapped further to the northwest.
The substantial dimensions of the veins, especially the Sampson and Camo Veins, and the high values obtained from reconnaissance sampling, suggest that Lobo has high potential for bonanza-grade mineralization of potential economic interest. The high-sulphidation mineralization of the Sampson and Camo Veins strongly suggest that a magmatic source is present nearby. It is considered very likely that a source porphyry copper-gold system is present beneath the Lobo vein systems. Alteration and magnetic data support this concept and this also presents a target of considerable interest.
Mindoro management is extremely encouraged by these results, and Lobo is slated for high-priority follow-up. Planned work includes additional geological and geochemical surveys, orientation electromagnetic surveys (with the objective of defining high-sulphide sections along the veins), and consideration of an induced polarization / magnetic survey to explore for the suspected underlying porphyry copper-gold system. This work is expected to lead to the selection of high-priority drill targets.
Mindoro is a Tier One Company listed on the TSX Venture Exchange (Symbol MIO). The Company is exploring for gold and gold-copper in the high-potential magmatic arcs of the Asia Pacific Region and is presently focussed on six promising projects in the Philippines. Drilling is to resume later this month on Mindoro's Pan de Azucar Project, where a massive-sulphide deposit with encouraging gold-copper-silver-zinc values has been discovered (see releases of January 9, 2002, December 3 and October 2, 2001).
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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