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May 13, 1999
Update on Mindoro Resources Ltd. Activities
EDMONTON, ALBERTA--Tony Climie, P.Geol., President of Mindoro Resources Ltd. ("Mindoro"), provides the following update on activities:
Unlike most Canadian juniors that joined the 1996 rush to the promising, under-explored magmatic arcs of the Asia-Pacific region, Mindoro was able to acquire and advance high-potential projects and hence has retained its original focus. Further, rather than sit-out the current mineral industry recession, Mindoro continued measured and prudent exploration, capitalising on depreciated Asian currencies and low exploration costs to add considerable value to its core projects. It has been Mindoro's objective, not just to survive this recession, but to actually advance the company and go into the next up-cycle with a strong project base and emerging discoveries.
As a consequence of these strategies, Mindoro has conserved a treasury of approximately $800,000 and has four high-potential projects at, or near, the drill stage with good financing and/or joint venture potential. There are strong indications that Asian economies are on the rebound and management anticipates that a new mineral cycle will soon follow.
Highlights and status of Mindoro's core projects, together with present plans, are summarised below.
TIRIS PROJECT, SUMATRA, INDONESIA
Tiris is an approved 7th generation Contract of Work, 100 percent held by Mindoro. As previously announced (Mar. 2, 1998, May 6, 1998, Jul. 27, 1998, Nov. 19, 1998, Jan. 28, 1999), the Harimau Prospect is a very large epithermal gold system, extending over more than 5.8 by 2.5 kilometres (km). Gold grades in excess of 1 gram per tonne (g/t), and up to 10.6 g/t, from both outcrop and float, are widely dispersed across the prospect. Silver values range up to 520 g/t.
Geological interpretation suggests that only the uppermost parts of the system are presently exposed by erosion, and that the multiple zones of breccia and stockwork gold/silver mineralisation mapped at surface will likely coalesce at depth to fissure-vein systems, with the potential to host bonanza grades. Mindoro management considers Harimau has significant potential for multiple zones of gold-silver mineralisation.
Given the size of the Harimau gold system, and magnitude of required exploration, Mindoro is seeking a senior partner. There are currently five major companies reviewing the data and Ron Avery, Mindoro's Exploration Manager will be leading interested parties on field visits commencing mid-May, the beginning of the dry season. Work is unaffected by localised areas of unrest in Indonesia. Proposed work for 1999 includes ground geophysics (induced polarisation), further infill geochemical/geological work and initial drill-testing of targets.
Very little field work has been carried out during the past year largely because of the complete overhauling of the mineral tenement system being carried out by the Department of Energy and Natural Resources (DENR). This has been a slow process but with the recent confirmation of the DENR Secretary, approvals of Mindoro's titles (Mineral Production Sharing Agreements, or MPSA's) are expected very soon. Highlights of the Philippines projects follow:
PAN DE AZUCAR PROJECT (PdA)
PdA is an MPSA application in which Mindoro can earn a 75 percent interest. As previously announced (Oct. 22, 1997, Nov. 28, 1997, Feb. 23, 1998), PdA is a strong high-sulphidation gold-copper system that is at the drill stage. Strongly anomalous gold and copper soil geochemistry extends over at least 2 by 1.5 km. Alteration and weathering are too intense for reliable surface rock sampling but gossanous samples give up to 2.2 g/t gold.
Although expressions of interest in a joint venture have been received from majors, given the project's perceived potential, management prefers Mindoro to retain its present equity rights and fund the initial drill program. Plans are to carry out an induced polarisation program to refine drill targets as soon as the MPSA is signed. If it appears the wet season, due in June, will hamper the proposed work program, then drilling will commence first on the Agata Project in Mindanao, where the wet season does not start until December.
Agata is an MPSA application in which Mindoro can earn a 75 percent interest. As previously announced, there are two significant gold prospects at Agata: the Lao and American Tunnels Prospects. To date, most work has been carried out on the Lao Prospect, where gold in soil anomalies have been defined covering in excess of 600 by 600 metres (m) and there are abundant active and inactive gold workings. A saprolite (soil) horizon was mined for gold by several thousand local miners in the 1980's. Locals are actively mining the shallow oxide zone at the Assmicor Mine, where gold mineralisation is associated with an intrusive/ultramafic contact. As previously announced (May 13, 1998), underground channel sampling by Mindoro returned encouraging results, aggregating 4.5 g/t gold over 28 metres.
Adjacent altered limestone, extending for several hundred metres to the west and south of the Assmicor Mine, returned strong gold in soil anomalies (Limestone Target). In addition, numerous inactive gold prospects occur in the limestone from which channel samples returned up to 2.8 g/t gold over 3.7 m (the latter mineralisation is open in all directions beneath overburden). The soil and rock values are considered likely to reflect leakage from blind skarn and/or replacement mineralisation associated with the intrusive contact below. Plans are to drill-test both the high priority Assmicor and Limestone Targets once the MPSA is awarded.
Less work has been undertaken by Mindoro on the American Tunnels Prospect, approximately 600 m to the north where gold mineralisation is being mined by locals in proximity to an intrusive/ultramafic contact.
A laterite with significant nickel-cobalt values is present in ultramafics at Agata over an area of some 11km2. A joint venture partner is being sought to evaluate this nickel-cobalt potential.
TAPIAN MAIN PROJECT
The Tapian Main Project is part of an MPSA application in which Mindoro can earn a 75 percent interest. Epithermal gold mineralisation occurs as veins, stockworks and breccias associated with contacts between greenschist, ultramafics, limestones and andesitic intrusives. There was extensive pre-World War II underground development of one of the vein systems (Rosario Mine) and a 100 ton per day mill was constructed, but mining is believed to have been interrupted by the war and production records destroyed.
As previously announced (1997 Annual Report), work by Mindoro defined a strong gold in soil anomaly extending over approximately 250 by 600 m in areas of poor outcrop, containing gold mineralization of up to 2.96 g/t over 8 m and 14.4 g/t in grab samples. Once the MPSA is awarded, plans are to carry out trenching of soil and rock targets. A joint venture partner may then be sought.
Management believes strongly that Mindoro's market capitalisation does not adequately reflect the underlying value of its assets, but does expect that market recognition will follow as MPSA's are awarded and Mindoro advances in 1999 to drilling programs and/or joint venture arrangements on several key projects.
Mindoro is a Canadian mineral exploration company focussing on gold and gold-copper exploration in the Asia Pacific region and operates projects in the Philippines and Indonesia.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
You can view the Next Press Releases item: Tue May 25, 1999, Mindoro Resources Ltd. Mineral Titles Awarded, Philippines
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