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Jul 20, 2011
Mindoro Intersects High-Grade Copper at Pan De Azucar and Plans to Drill High-Grade Gold Targets at Lobo
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EDMONTON, ALBERTA, July 20, 2011 - Mindoro Resources Ltd. (TSXV: MIO; ASX: MDO; Frankfurt: WKN 906167) today announced further positive and encouraging copper-gold results from its Pan de Azucar Project in the Philippines, including PDA-28: 3.9 meters of 5.3 percent copper, 0.78 g/t gold, 55.7 g/t silver, 5.11 percent zinc from 9.2 meters and 54.8 meters of 1.17 percent copper and 0.77 g/t gold from 20.75 meters.
The Company is also pleased to report that it has regained access and operator status over the Batangas areas, including the South West Breccia (SWB) resources (reported 2004) and other Lobo high-grade gold targets, having been informed that Gold Fields Ltd plans to withdraw from the Batangas projects, effective August 1st 2011. It now plans an initial drilling program to expand the SWB high-grade gold resource prior to evaluating other targets within the mapped five-kilometre epithermal vein system at Lobo.
Mindoro's portfolio includes two projects with NI 43-101 gold resource estimates at Batangas, a copper-gold-sulphur resource drilling project at Pan de Azucar, and ten key porphyry copper-gold prospects at earlier stages of evaluation. Results from recent reconnaissance drilling into high-priority porphyry targets at Tapian-San Francisco in the Surigao district, northern Mindanao, and at Pan de Azucar, will now be evaluated prior to planning further work.
Company President and CEO Jon Dugdale said, "we continue to be highly encouraged by the copper and gold results from Pan de Azucar and we now have an exciting opportunity to also drill-test our high grade gold targets at Batangas and advance our high caliber portfolio of porphyry copper-gold projects"
"Our main agenda continues to focus on advancing the Agata nickel laterite project towards development," he said.
"Having commenced the pre-feasibility study into a major nickel development project, we are well positioned to additionally turn our attention to advancing the gold and copper-gold portfolio."
The status of the Company's key gold and copper-gold projects is summarized below.
Pan de Azucar Project (Iloilo Province, Panay Island), (75% economic interest)
The results from a further three drill holes have been received including:
One hole will also drilled as part of the current program for metallurgical testing to determine potential suitability for production of a copper-gold concentrate and potential acid generation for nickel laterite processing.
The massive pyritic sulphide body remains open and there is strong evidence, including the intersection of porphyry mineralisation in PDA-27, supporting a porphyry copper-gold system nearby.
The most significant results from the Phase 3 drill program are summarized in the following table and the location of holes is shown on the accompanying map, also on Mindoro's website:
Further information on the Pan de Azucar project and the current drill program is available in Mindoro's news releases from March 1, 28, May 5 and 16.
Batangas Projects (Batangas Province, Luzon), (100% economic interest)
Under a joint venture farm-in arrangement with Mindoro, Gold Fields Ltd carried out reconnaissance drilling on two of the Batangas Projects, El Paso and Lobo, consisting of 4,296 meters in 16 drill holes. All results have now been received and are posted with this release on Mindoro's website. Highlights of the program are summarized below:
El Paso Project
Gold Fields has advised it is withdrawing from the joint venture, which now allows Mindoro to prioritize expanding the SWB gold resource (see below), testing other targets within the five kilometer strike of mapped epithermal veins at Lobo, in addition to evaluating other porphyry copper-gold prospects at Lobo, Calo, Talahib and the El Paso porphyry copper-gold prospects.
Lobo Project - SWB Gold Resource (100% economic interest)
The following NI 43-101 compliant resource estimate at SWB was reported by Mindoro in 2004, based on 25 shallow drill holes to a depth of 130 meters and cut-off 0.5 g/t gold:
50 meters depth (see enclosed cross section 10170N, also on Mindoro's website) and the high-grade shoot remains open down-plunge and to the south-west.
SWB is located on the Camo Trend, part of a greater than five km system of mapped epithermal vein-breccia trends, as illustrated on the attached map (also available on Mindoro's website), of which only a small fraction has been drill tested. There remains high potential to expand the SWB resource and to locate additional resources within remaining trends of epithermal veins. Mindoro plans to carry out in-fill and extension drilling at SWB with the objective of upgrading the resource and for metallurgical testing. In addition previous data on the five km Lobo epithermal vein trends will be compiled for further drill targeting.
As reported on October 21, 2005, Mindoro has also discovered porphyry copper-gold mineralization on the Pica Prospect at Lobo, intersecting 213 m at 0.18% copper, 0.30 g/t gold and 1.91 g/t silver from 22 m. Previous work, including Gold Fields drilling, will be evaluated prior to further drill targeting.
Archangel Project - Kay Tanda Gold Resource (Batangas, Luzon), (100% economic interest)
Mindoro has outlined a cluster of epithermal gold-silver and porphyry copper-gold prospects along a
six km trend on the on the Archangel Project. The initial focus was the near-surface Kay Tanda epithermal gold-silver resource, which comprises just a small part of the overall six km mineralized trend (see attached map, also available on Mindoro's website).
On March 2010, Mindoro released the following NI 43-101-compliant resource estimate for Kay Tanda, based on more than 200 drill holes and using a cut-off of 0.3 g/t gold for oxide and 0.5 g/t gold for transition and sulphide material:
Mindoro will evaluate the potential of these interpreted higher-grade feeder zones prior to further drill targeting and exploration for additional such vein systems.
Archangel also hosts multiple porphyry copper-gold prospects, associated with strong chargeability induced-polarization anomalies, and extensive porphyry related alteration, which will also be evaluated.
Tapian San Francisco (Surigao, NE Mindanao), (75% economic interest)
In addition to an emerging world-class nickel laterite district, the Surigao region is an historic gold mining and porphyry copper-gold district. The largest project in the district is Philex Mining Corporation's Silangan porphyry copper-gold project (including the Boyongan and Bayugo deposits) which is at the feasibility stage with 2014 targeted for production. Silangan has independent JORC compliant measured and indicated resource estimates (Philex release to Philippines Stock Exchange June 21, 2011)
TSF contains an area of at least 3.5 km by 2 km of pervasive and intense porphyry-related alteration with abundant copper and gold showings, large copper-gold-zinc soil anomalies and associated geophysical anomalies. As disclosed in a news release dated November 6 2006, three reconnaissance drill holes intersected porphyry-related alteration and mineralization in a series of narrow intrusive dikes. To comply with Mines and Geosciences Bureau (MGB) expenditure requirements, a reconnaissance hole was drilled on TSF in June. The results of this drill hole, and other previous work, will be evaluated prior to further drill targeting.
TSF is one of a series of porphyry copper-gold targets held by Mindoro along the western splay of the Philippines Fault which are at varying stages of exploration and also include the Tapian Main and Agata (American Tunnels) Projects. In January 22 2010, Mindoro reported that it had intersected porphyry copper-gold-related alteration and mineralization at American Tunnels in a scout drilling program. Information from previous work will be compiled prior to further drill targeting.
On behalf of the Board of Directors
President and CEO
For further information, please contact Mindoro's Melbourne office at +61 3 9614 5055.
For investor relations enquiries, please email firstname.lastname@example.org, or telephone one of the following:
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on nickel exploration and development and copper and gold exploration in the Philippines with a strategy of advancing early-stage opportunities to production or joint venture.
Mindoro has NI 43-101 Mineral Resource estimates on its Agata nickel-cobalt project, that include a measured and indicated resource of 32.6 million tonnes at 1.04% nickel for 340,000 tonnes contained nickel, and NI 43-101 Mineral Resource estimates on its Lobo and Archangel (Kay Tanda) gold-silver projects, as well as an additional 22 porphyry copper-gold prospects.
Mindoro recently released an integrated preliminary economic assessment (PEA) on the Agata Nickel Project in the Surigao District, Mindanao, where the company controls major nickel laterite resources and is drill testing regional targets. The company has commenced a prefeasibility study into an integrated on site nickel processing project based on the PEA. The company is also assessing the potential to develop a thermally processed (upgraded) nickel ore operation to generate early cash flow.
Drilling is in progress testing the Pan de Azucar gold-copper massive sulphide where extensions at shallow depth are being tested. Mindoro is planning a drilling program to expand gold resources and test high-grade targets at Batangas and evaluating and prioritizing its many high-potential copper-gold targets prior to further drill targeting.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company's thermal processing and large scale production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that sufficient resources will be established and if established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
Mindoro's exploration programs are prepared and/or designed and carried out under the supervision of Tony Climie, P.Geo., who is a qualified person as defined by National Instrument 43-101 and is a competent person as defined by the JORC Code, and who has reviewed and verified the pertinent disclosure of exploration related technical information contained in this news release. Mr. Climie is an executive and a director of Mindoro and is a member of the Alberta Professional Engineers, Geologists and Geophysicists Association. Mr. Climie has more than five years of experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he has undertaken. Mr. Climie has consented to the release of the pertinent exploration related technical information in the form and context in which it appears.
Boyd Willis, MAusIMM, who is a qualified person as defined by National Instrument 43-101, and a competent person as defined by the JORC Code, has reviewed and verified the disclosure of a development nature contained in this news release. Mr. Willis has more than five years of experience which is relevant to the activity which he has undertaken and he has consented to the release of the pertinent development related information in the form and context in which it appears.
The Company's resource estimates were originally prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian Securities Administrators that governs how Canadian issuers disclose scientific and technical information about mineral projects and which is broadly equivalent to the JORC Code in Australia. All resource information is also expressed in terms of the JORC Code.
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty with respect to results of exploration, the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not undertake to update forward looking statements except where required to do so by law.
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