Subscribe for Updates:
Enter your email below to receive email updates
Nov 27, 2002
Drill For Equity Agreement On Lobo And Archangel Projects
Drilling planned for January, 2003 Mineral Titles Awarded
Tony Climie, P. Geol., President of Mindoro Resources Ltd. ("Mindoro") is pleased to advise that, subject to regulatory approval, Mindoro has signed an innovative agreement with East West Drilling Limited of Australia ("East West") to drill Mindoro's Lobo and Archangel Projects, Philippines.
East West will earn 500,000 Mindoro shares by completing 2,000 meters (m) of reverse circulation drilling. Alternatively, if Mindoro elects to carry out diamond core drilling instead, then East West may earn 600,000 Mindoro shares by completing 1,000 m of core drilling. Reverse circulation drilling is planned at this time. Mindoro will pay for mobilization and certain support costs, such as fuel and additives.
This agreement allows Mindoro to achieve several important objectives:
- drill two high priority projects early in 2003
- outlay minimal cash expenditures
- retain full equity entitlement in both projects
Within one year of completion of this drill program, East West has the right to perform a second, identical, drill-for-equity program on any project of Mindoro's choice in the Philippines. The principal of East West, Mr. P. Draper, has an equity position in the Lobo and Archangel Projects, via his interest in Egerton Gold Philippines Inc. ("Egerton"). Mindoro may earn a total 75% interest in the two projects from Egerton, who will retain 25% equity (see release dated November 29, 2000).
MINERAL TITLES AWARDED
Tony Climie is also very pleased to advise that title documents (Mineral Production Sharing Agreements, or "MPSAs") for the Lobo and Archangel Projects have been approved and signed by Secretary Heherson Alvarez of the Department of Environment and Natural Resources. The Lobo MPSA covers 1,164 hectares and the Archangel MPSA, 981 hectares. The projects occur near Batangas, Southern Luzon, several hours drive from Manila, in a recognised porphyry copper-gold belt.
Recent reconnaissance work on the Lobo Project (see release dated September 16, 2002) outlined two major epithermal veins: the Sampson and Camo Veins, 0.8 km apart, each over 2 km in strike and with widths to 19 m. The Sampson Vein was mined underground on a small scale in the 1960s for copper-gold-silver. On 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.
Reconnaissance rock sampling indicates 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 systems. Of particular note are the high silver values recorded in a number of places. On the Sampson Vein, high values occur in outcrop, sub-crop and dump material around the old Lobo Mine where up to 5.1% copper, 3.36 g/t gold and 790 g/t silver were obtained (average 1 m sample width). A rock chip sample of outcrop (1 m width), 700 m along strike to the northeast, gave 1,792 g/t silver and 8.68% copper. 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.
The substantial dimensions of the veins, and the high values obtained from reconnaissance sampling, suggest the Lobo Project has high potential for bonanza-grade mineralization of potential economic interest. The high-sulphidation mineralization of the Sampson and Camo Veins suggest that a source porphyry copper-gold system is present beneath the Lobo vein systems (see release dated October 2, 2002).
The Archangel Project, 5 km to the southeast, is an extensively mineralized area. The drill-ready Balibago porphyry copper-gold prospect is exposed in a creek bed, and is flanked and overlain by the Ahit Domes high-sulphidation copper-gold prospect to the west and the Kay Tanda gold-silver prospect to the east. The latter is the subject of a current, independent resource calculation (see release dated July 31, 2002).
Mindoro plans to commence the drill program on the Lobo Project in January, 2003. It is likely that the Balibago porphyry copper-gold prospect will also be drill-tested during this program.
Mindoro is a Tier One Company listed on the TSX Venture Exchange (Symbol MIO). Mindoro 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.
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: Thu Jan 16, 2003, Form 27 - Material Change Report Under Section 118(1) of the Securities Act
You can view the Previous Press Releases item: Thu Nov 7, 2002, Drilling Update on Pan De Azucar
You can return to the main Press Releases page, or press the Back button on your browser.