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Jan 24, 2003
Inferred Resource Estimate - Kay Tanda Prospect
17,000,000 Tonnes at 0.68 g/t Gold and 2.48 g/t Silver
(370,000 ozs. Gold and 1,300,000 ozs. Silver)

  • Considerable expansion potential
  • Evaluation of economic significance planned

Tony Climie P. Geol., President of Mindoro Resources Ltd. (Mindoro) is pleased to advise results of an independent resource study for the Kay Tanda gold-silver prospect, one of several prospects on the Archangel Project ("Archangel"), Philippines (see release of July 31, 2002). The resource estimate was performed by Dr. David Bailey, P. Geol., geological consultant of Vancouver, B.C. and Mr. S. Carty, M.Aus.I.M.M., geological consultant of Manila, Philippines. Both Dr. Bailey and Mr. Carty (the authors) are "qualified persons" as defined under the Canadian Securities Administrators' National Instrument 43-101. The full technical report was filed on SEDAR on January 22, 2003 (www.sedar.com).

Archangel is a granted Mineral Production Sharing Agreement, covering1011.5 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).

Two areas of gold mineralization have been outlined at Archangel; the Pulang Lupa and Kay Tanda prospects. The gold resource study was restricted to Kay Tanda, where Western Mining Corporation of Australia drilled three diamond drill holes in 1987. In 1996, Chase Minerals Ltd. completed nine reverse circulation holes at Kay Tanda and four at Pulang Lupa, several hundred meters (m) to the west. Work to date has been confined to a limited area within a much larger area of anomalous soils. Mineralization is epithermal high-sulphidation type, probably related to the Balibago porphyry copper-gold prospect, 1 km to the southwest.

Gold and silver resources were estimated for both the near-surface oxide and underlying sulphide mineralization. A cut-off of 0.2 grams per tonne (g/t) was applied, and the estimates made using a standard polygon interpolation method. Specific gravity was assumed to be 2.5 g/cc. Structural and geological data are deficient, and there no data on specific gravity of mineralized material. Accuracy and precision of the analytical data are uncertain because, although a reputable laboratory was used, quality control procedures by the operators did not meet current standards for resource determination.

For these reasons, the results may be considered approximate only. The authors note, however, that the drilling was carried out to standards typically employed in North America and Australia during exploration and that they have no reason to doubt the reliability of results. The results are therefor considered to form a reasonable basis for assessing the gold and silver resource potential at Archangel.

The study results are: oxide mineralization is estimated to be an inferred mineral resource of 6,300,000 tonnes at a grade of 0.48 g/t gold and 4.4 g/t silver. The underlying sulphide mineralization is estimated to contain an inferred mineral resource of about 10,700,000 tonnes at 0.79 g/t gold and 1.3 g/t silver. The total inferred resource of both oxide and sulphide material is estimated to be about 17,000,000 tonnes of mineralized material at 0.68 g/t gold and 2.48 g/t silver. This equates to 370,000 ounces gold and1,300,000 ounces silver contained in the total inferred resource.

The authors note that both the thickness and grade of the oxide and sulphide zones appear to increase to the east, where it is clear that potential exists for the discovery of additional tonnages. Further, that there is a good possibility that precious metals were deposited from solutions passing up northeasterly-striking faults or fracture systems, and that grade may increase towards such structures. They also note that mineralization at Pulang Lupa is probably of similar type to Kay Tanda and has potential for additional resources.

Mindoro management notes that Glamis Gold Ltd., one of the most efficient, low-cost gold miners in the world, processes very low-grade gold ores. For example, the San Martin Mine, Honduras, with proven and probable resources of 34,900,000 tonnes at 0.86 g/t gold (968,000 contained ounces), is a very successful mine with a total cash cost of US$106 per ounce of production. Glamis is also planning to put into production the Imperial Project, California, with measured and indicated resources of 75,000,000 tonnes at 0.58 g/t gold (1,401,000 contained ounces).

Most of the Kay Tanda inferred resource is non-oxide material and therefor may not be amenable to low-cost processing. While the priority for Mindoro remains drill-testing of the Balibago porphyry copper-gold prospect nearby, there is a substantial gold resource inferred at Kay Tanda and, with the increasingly improving gold price outlook, the significance of this resource warrants evaluation. It is planned to undertake detailed geological work on the Kay Tanda and Pulang Lupa resources, as well as metallurgical studies to determine its leachability, and amenability to advanced processing technology such as bacterial-assisted leaching. If results are encouraging, then drilling would be carried out to expand the resource and to locate higher-grade zones (which are inferred by previous drilling, e.g drill-hole CA-002 with 6 m at 8.61 g/t gold).

Mindoro management is encouraged by the size of this initial inferred resource estimate for Kay Tanda and considers this a strong basis for further evaluation of its economic potential. 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.

For further information, contact Penny Gould, Executive Vice President:
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716
Email: mindoro@mindoro.com
Website: http://www.mindoro.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
 
 

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