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Sep 02, 2003
KAY TANDA PROSPECT
Recently-acquired data greatly increase potential of Kay Tanda inferred resource
(current estimate 370,000 ozs. gold and 1,300,000 ozs. silver)
- Drill hole planned to collect metallurgical sample
- Leading to pre-feasibility study of open-pit, heap-leach potential
Tony Climie, P.Geol., President of Mindoro Resources Ltd. (Mindoro), is pleased to advise that soil geochemical data from recently-acquired ground immediately adjacent to the Kay Tanda gold prospect, indicates considerable expansion potential to the current inferred resource estimate of 370,000 ounces gold and 1,300,000 ounces silver (see release dated January 24, 2003). Further, an independent geological consultant concluded that the mineralization is potentially amenable to heap-leach processing. As a consequence, Mindoro plans to drill a diamond drill hole to collect metallurgical test samples for column leach testwork and, if results are encouraging, to proceed with a pre-feasibility study and further resource delineation drilling. Kay Tanda is one of several prospects within the Archangel Project area ("Archangel"), Philippines, which includes the underlying Balibago porphyry copper-gold prospect, itself a high priority target.
In a release dated January 24, 2003, Mindoro announced results of an independent resource study for the Kay Tanda gold-silver prospect, based on previous drilling by Western Mining Corporation and Chase Minerals Ltd. The study estimated an inferred resource of 17,000,000 tonnes at a grade of 0.68 grams per tonne (g/t) and 2.48 g/t silver. This equates to 370,000 ounces gold and1,300,000 ounces silver contained within the total inferred resource category. Mineralization occurs as a near-surface sub-horizontal sheet composed of both oxidized and unoxidized material and is considered to have potential for an open pit, heap-leach (or dumpleach) mining operation, especially given the continuing improvement in gold price. The study also concluded that both thickness and grade appear to increase towards the north-east, extending onto an adjacent tenement, subsequently acquired by Mindoro.
The estimate was carried out 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 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, covering 1011.5 hectares, in Batangas Province, 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 (refer release dated July 26, 2001). In a release dated June 5, 2003, Mindoro announced that, as a result of promising results obtained from its exploration activities on the Lobo and Archangel Projects, it had acquired the right to earn a 75% interest in an additional 12,300 hectares of mineral tenements between, and surrounding, these projects. Part of the new acquisitions are the subject of an agreement with Philex Mining Corporation ("Philex"), who controlled the ground immediately east, and covering the extension of the Kay Tanda resource.
Recently-acquired Philex exploration data indicate extensive areas of gold in soil geochemistry anomalies extending north-east from Kay Tanda (refer to accompanying map). The data indicates the potential extensions of the Kay Tanda gold-silver mineralization a further 300 to 500 meters to the north-east. In addition there are extensive areas of anomalous gold in soils geochemistry extending even further to the north-east (see map). Soil gold anomalies, as defined by a threshold value of greater than 100 parts per million gold (with values up to 35 g/t), have been defined semicontinuously over an area covering approximately 4 km by 1 km, and which are still open and unsurveyed to the north-west.
As a consequence of reviewing these newly-acquired data, Mindoro commissioned Dr. Bailey during August to conduct additional evaluations. Dr. Bailey concluded that Kay Tanda is more probably low-sulphidation (not high-sulphidation as previously thought), epithermal mineralization that may potentially be amenable to heap-leach or dump-leach processing. Dr. Bailey also recommended that metallurgical studies be carried out.
Mindoro management notes that Glamis Gold Ltd., one of the most efficient, low-cost gold miners in the world, processes low-grade gold ores, comparable to grades seen at Kay Tanda. For example, the San Martin Mine, Honduras, with proven and probable resources/reserves of 34.9 million 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 million tonnes at 0.58 g/t gold (1,401,000 contained ounces).
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. Additional drill results from the Lobo Project will be released in the near future.
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: Fri Sep 12, 2003, East West Exercises Option To Continue Drilling Lobo
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