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Oct 26, 1999
Mindoro Resources Ltd.: Encouraging Drill Results-Agata
EDMONTON, ALBERTA

- Encouraging Drill Results from Two Targets
- Intrusive-Hosted Gold System Indicated on Assmicor Target
- Significant Intersection on East Limestone Target

Tony Climie, President of Mindoro Resources Ltd. ("Mindoro") is pleased to announce partial results from the first nine holes of a reconnaissance drill program on the Agata Project, Surigao Gold District, Philippines. Mindoro can earn a 75% interest from its Philippines partner, Minimax Mineral Exploration Corporation, under a Mineral Production Sharing Agreement awarded by the Philippines government in May, 1999. Eight of these initial drillholes (DDH 01 to 08) are from the Assmicor Target, and the ninth (DDH 09) is from the East Limestone Target. These represent only two of the many gold prospects and geochemical anomalies on the Agata Project (see releases of June 15, 1999; May 13, 1999; and May 13, 1998).

SUMMARY

On the Agata Project, excellent initial results have been received from limited reconnaissance drilling on a but small part of the extensive targets (see TABLE OF RESULTS, below). The intrusive-hosted gold mineralisation on the Assmicor Target offers potential for a shallow oxide, bulk-minable resource, as well as a major primary gold system at greater depth toward the east. The limestone-hosted mineralisation on the East Limestone Target is considered especially interesting given the values defined at this early stage and the extent of the untested targets. It is clear that a major follow-up drill program is justified on these, and other targets at Agata.

ASSMICOR TARGET RESULTS

Eight shallow diamond drill core holes, totaling 454 metres (m), were drilled in a target zone, which, based on soil geochemistry, is up to 250 m in an east-west direction (open to the east), and 400 m north-south. The Assmicor Target merges into the East Limestone Target to the south (see below), expanding the total north-south extent of the two targets to 800 m.

The drillholes intersected a monzonite intrusive cut by younger diorite dykes, before passing into ultramafics at relatively shallow depths below. The dykes vary in thickness from 0.15 to 6.3 m and thicken and dip to the east towards a postulated source intrusion associated with the Philippines Fault, located 100 to 300 m to the east. It is believed all drilling to date has been in the western margins of a multi-phase intrusive system.

Gold mineralisation is associated with vuggy limonitic stockwork (after pyrite) fractures in all of DDH 01 to 06. Stockwork mineralisation appears to occur throughout the entire length of the monzonite body tested to date. Mineralisation grades up to 1.38 grams per tonne (g/t) gold over 24.2 m in DDH 06 and 1.13 g/t gold over 18.8 m in DDH 05. Moreover, mineralisation occurs in at least two, if not more, distinct intrusive phases. The early stockwork mineralisation is cut by a series of dykes with low to high grade gold mineralisation, with values in DDH 04 up to 12.4 g/t gold over 0.8 m and 5.57 g/t gold over 1.5 m. Hydrothermal alteration of the intrusive phases is extensive and consists of albite-chlorite-sericite-carbonate-pyrite-limonite and lesser quartz. Additional infill sampling and assaying of drillcore is in progress.

The dykes and stockwork mineralisation reflect intrusive-hosted gold mineralisation, interpreted as "gold porphyry-style" mineralisation, within multi-phase alkaline and calc-alkaline intrusives associated with the Philippines Fault. A hole will be targeted 100 m further east of DDH 04, near the Philippines Fault, to intersect the postulated source intrusive for the mineralised dykes.

EAST LIMESTONE TARGET RESULTS

Two drillholes totaling 239 m have been completed in the East Limestone Target. The East Limestone Target is one of three areas of contiguous, strong gold soil anomalies in limestone, jointly covering about 500 by 600 m. Local miners panned gold from soils within these anomalies. To date, assay results have been received from only the top 13 m of DDH 09. Calc-silicate from 6 to 13 m returned 2.68 g/t gold. Similar calc-silicate is seen to extend to greater depth in the drillhole. As well, an intrusive dyke and pyrite-mineralised faults occur deeper in the hole. Additional results from this hole and adjacent DDH 10 are awaited. Mineralisation appears related to chlorite-carbonate-pyrite stockworking within the calc-silicate. Rising terrain to the northwest, west and southwest contains numerous shallow pits and workings, which, together with the soil anomalies, suggest that mineralisation could extend for several hundred metres in these directions. It also appears to be open to the east beneath overburden. However, the nature, controls and continuity of the mineralisation are poorly understood at this time.

TABLE OF RESULTS

Significant intersections are summarised below. All measurements are in metres. Samples were logged and split by Mr. Ron Avery, P.Geo., Mindoro Exploration Manager, sealed and transported to McPhar Geoservices in Manila and assayed utilizing standard fire assay procedures. Check assays are being carried out by Intertek Testing Services (ITS Bondar Clegg) in Manila. A complete list of results to date is available on Mindoro's website.

DDH No.    From    To   Length(m) g/t Gold  

99-01       0.0   7.8     7.8       0.635  
99-02       0.0   7.2     7.2       0.432  
99-03      33.0   33.3    0.3       1.900
99-04      11.2   12.0    0.8      12.397
99-04      12.0  18.85   6.85       0.273  
99-04      43.8   45.3    1.5       5.577
99-05       2.4   21.2   18.8       1.133  
99-06       0.0   24.2   24.2       1.380  
99-07       0.0    5.6    5.6       0.717 
99-09       6.0   13.0    7.0       2.682  

Tony Climie stated, "The management team is excited by results from Mindoro's first drill program. Particularly since Agata is considered our third tier project, behind the Pan de Azucar high-sulphidation copper-gold system (Philippines), where drilling is planned for January, and the Tiris low-sulphidation gold system (Sumatra), where drilling is planned for next June-July. In addition, our Tapian Project, near Agata, has very similar targets which we expect to trench later this year".

Mindoro is a Canadian mineral exploration company focussing on gold and gold-copper exploration in the Asia Pacific region. Mindoro trades on the Alberta Stock Exchange under the symbol MIO.


The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
 
 

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