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Sep 22, 2003
Mindoro Resources Ltd. and Panoro Minerals Ltd. Companies join forces to explore emerging Surigao Gold/Copper Porphyry Belt, Philippines
Tony Climie, P.Geo., President of Mindoro Resources Ltd. (Mindoro), trading on the TSX-Venture Exchange with the trading symbol MIO, and Helmut H. Wober, P.Eng., President of Panoro Minerals Ltd. (Panoro), trading on the TSX -- Venture Exchange with the trading symbol PML, are pleased to announce that Mindoro and Panoro are joining forces to explore Mindoro's 24,000 hectare land position in Surigao Province, Northern Mindanao, Republic of the Philippines.
Mindoro, an experienced operator with a wholly owned subsidiary in the Philippines, where the company has been active since 1997, and where it is currently engaged in an intensive drill program at its Lobo project on Luzon Island, holds an Option to acquire a 75% interest from a private Philippine company in a 24,000 hectare land position consisting of six properties in Surigao Province and historical gold district of Northern Mindanao.
Panoro has been granted an Option by binding Letter of Intent, dated September 18, 2003, to earn a 40% participating and ownership interest in the Surigao Properties of Mindoro with the remaining interests being Mindoro 35% and the Philippine Partner 25%. In order to earn this interest Panoro has to fund a total of CAD 2 Million in exploration expenditures over a period of 4 Years (350,000 in Year 1, 450,000 in Year 2 and 600,000 each in Years 3 and 4) after the execution of a Formal Agreement. Panoro has three months after the date of this Letter of Intent to notify Mindoro that it has obtained the financing for at least the first twelve months expenditure requirements of Panoro under the Farm-In Agreement.
The 24,000 hectare land position contains several identified targets, marked by numerous historical gold/copper mining operations, characteristic alteration zones and coincident gold and copper geochemical anomalies in stream sediments and systematic soil grids, and two gold prospects on which encouraging drill results have been obtained, located at district controlling structural intersections, that indicate a high potential for the occurrence of bulk tonnage gold deposits in calcareous sediments and of sizeable porphyry gold/copper deposits.
The targets of immediate interest are located on the Agata and the Tapian San Francisco Projects (See attached map: Surigao and Mindoro Projects).
Panoro has engaged the services of Mr. David G. Bailey, PhD., P.Geo., as independent consultant to evaluate the property package and to make recommendations for initial exploration programs. In the Summary of his report Dr. Bailey states:
"Of the (above) properties, the Agata and Tapian San Francisco offer excellent potential for the discovery of copper-gold porphyry deposits and associated high level epithermal precious metal mineralization. Of these two properties, Tapian San Francisco has the best potential for the discovery of a near-surface porphyry copper-gold porphyry deposit because of the presence of a large phyllic alteration zone overlain by highly anomalous copper and gold in soils, the recognition of potassic alteration and the presence of large throughgoing northeasterly structures that control the locations of the Boyongan copper-gold porphyry deposit and the Placer gold deposit (note: this was a hardrock mine) to the northeast of Tapian San Francisco. In addition, potential exists within the Riverside project area for carbonate hosted precious metal mineralization. Previous exploration at Agata has shown the presence of significant features for both copper-gold porphyry deposits and near- surface epithermal mineralization. Tapian Main requires further exploration to define the geology and its mineral potential and only a small area, that around the old gold workings, has been mapped and prospected to date. The Northern Agusan, Lake Mainit and Mat-I properties require initial exploration based on stream sediment geochemistry to define areas for further exploration.
Accordingly a regional exploration programme is proposed over those properties that have yet to be explored. A program of detailed alteration mapping and geophysical surveying is recommended at Agata and Tapian San Francisco. Follow-up programmes at Tapian San Francisco and Agata are recommended based on diamond drilling but dependent on the results of Phase 1 exploration. Exploration at Tapian Main should initially be at property wide scale and should comprise stream sediment sampling and mapping with emphasis on defining zones of hydrothermal alteration.
Total cost of first phase exploration are expected to be about PP 13,707,000 (about US$ 250,000) while follow up diamond drilling will cost approximately PP 41,745,000 (about US$ 760,000)"
Mindoro, with its corporate and operational infrastructure in the Philippines in place, will be the operator for at least the first 24 months of the Earn-In Period, with Panoro having the right, at its sole expense and discretion, to delegate a Professional Geologist to the project from time to time, with the costs becoming part of the Earn--In requirements.
Panoro has become interested in the Surigao Gold and Copper Province, with its gold and gold/copper porphyry deposits and unexplored potential for large tonnage deposits, because it meets Panoro's stated strategic goals to explore for such deposits.
The Surigao Gold and Gold/Copper Province is the northern part of the prolific Eastern Mindanao gold belt, where activities have recently intensified with the discovery of the Boyongan gold/copper porphyry deposit. This deposit, originally discovered in 2000 is subject to intensive delineation drilling by Anglo American who has first earned a 40% interest in the project from Philex Gold by expending US$ 2.2 Milllion and after a total expenditure of US$ 9 Million purchased an additional 10% interest from Philex for US$ 20 Million in March of 2002 to form a 50:50 Joint Venture with Philex Gold. The Northern Miner reported in April 2003: "Anglo discovered the deposit in September 2000, when hole 6 returned a 365 metre intercept grading 0.7% copper and 1.9 grams gold per tonne. Subsequent drilling yielded further impressive results, including 393 metres grading 1.58% copper and 2.39 grams gold per tonne in hole 15, and 896 metres of 0.49% copper and 1.57 grams gold per tonne in hole 18." Subsequent and ongoing drilling with up to 6 rigs resulted in indications of a cluster of three porphyry systems. Anglo American and Philex have promised an independently estimated resource inventory for later this year.
Other gold/copper porphyry prospects in Northern Mindanao are Suyoc, Mapawa, Masgad (currently explored by Korean Resources Corp.), Canaga (Spinifex) and Asiga. Several additional types of gold deposits occur in the district such as:
Low-sulphidation epithermal gold vein/stockwork: Placer Mine (Manila Mining), Motherlode (current exploration by Pelican Resources);
Carbonate/sediment hosted stratabound gold: Tanganaan ;
Epithermal/carbonate replacement veins: Siana (current exploration by RED 5 Limited);
Gold skarn: Alipao
Also active in the Surigao District are Sumitomo Mining, Climax-Arimco.
See also attached Map: Surigao -- Agusan Mining District, Geological settings, Mineral Deposits & Prospects
Panoro Minerals Ltd. is a mining exploration company headquartered in Vancouver, Canada and traded on the TSX Venture Exchange. Panoro's strategic focus is on exploring for large-potential gold and gold/copper projects in countries where the right political and economic conditions are present.
For investor inquiries please call 604-629-0903, email email@example.com or visit the company's website at www.panoro.com
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
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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