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Nov 17, 1999
Mindoro Resources Ltd. Drilling Confirms Potential for Large Gold Deposit on Agata Project, Philippines
Tony Climie, P.Geol., President of Mindoro Resources Ltd. ("Mindoro"), is pleased to announce complete results from a reconnaissance drill program confirming the potential for a sizable gold deposit on the Agata Project, Surigao Gold District, Philippines.
Eleven diamond drill holes were completed for a total of 798 metres (m) on two targets: the Assmicor and East Limestone Targets. Holes 1 - 8 tested the Assmicor Target, hole 11 was 100 m east of Assmicor, while holes 9 - 10 were completed in the East Limestone Target. Partial results from the first nine drill holes were released on October 26, 1999. This release includes results of infill sampling of those holes, as well as results from holes 9, 10 and 11. These targets are only two of the many gold targets and geochemical anomalies occurring over 8 kilometres of strike on the Agata Project (see releases of October 26, 1999; June 15, 1999; May 13, 1999, and May 13, 1998).
Ten of the eleven holes intersected significant gold mineralisation exceeding 0.5 grams per tonne (g/t) gold. Gold mineralisation on the Assmicor Target offers potential for a shallow, bulk-minable resource, as well as a major porphyry-type gold system beneath alluvial cover to the east. Especially encouraging are excellent gold intersections from holes 9 and 10 drilled at the edge of the East Limestone Target. The East Limestone and adjacent West and South Limestone Targets (the "Limestone Targets") have the potential to host a major gold resource. Many targets still remain untested at Agata.
Tony Climie stated, "The Agata Project now reveals its true potential for the development of significant gold resources. These drill results, particularly at this time of a gradually consolidating gold price, place an increasingly positive complexion on Mindoro. In addition, we still have our two best projects, Pan de Azucar and Tiris, to drill".
Eight, shallow diamond core holes, totaling 455 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, expanding the total north-south extent of the two targets to 800 m.
As previously reported, the drillholes intersected a monzonite intrusive, ultramafics, minor calc-silicate, limestone and chlorite schist which are all cut by younger diorite dykes. Significant gold mineralisation was intersected in seven of the eight holes. Most results were reported previously on October 26, 1999. New results from infill sampling include: 0.54 g/t gold over 9 m in hole 3, and 0.72 g/t gold over 5.6 m in hole 7.
Hole 11 was drilled approximately 100 m to the east of holes 3 and 4, and was targeted to test for the source of mineralised dykes in the drill holes further west. The hole intersected multi-phase intrusive from 34 to 104 m. The intrusive exhibits extensive quartz-magnetite, chlorite, sericite, carbonate, epidote and pyrite. Alteration is, therefore, categorised as phyllic, an alteration commonly associated with porphyry gold-copper mineralisation.
The best intercept in hole 11 was 0.57 g/t gold over 3.85 m followed by an intercept of 0.52 g/t gold over 3 m at the bottom of the drillhole. Although still in mineralisation, the hole was terminated at 104 m due to technical difficulties. Extensive intervals of anomalous copper values, coincident with 3 to 7% disseminated pyrite, occur throughout the intrusive, with a maximum value of 3,030 ppm (0.3%) copper over 2.3 m.
Significantly, abundant quartz veins containing magnetite were intersected in the lower half of the hole. These are interpreted to represent sheeted veins which are commonly found adjacent to copper-gold porphyry systems. Hole 11 is believed to sit on the western edge of the main system, likely occurring further to the east, and under the alluvial plain through which the Philippines Fault extends. This fault controls most of the major porphyry gold-copper deposits in the Philippines.
EAST LIMESTONE TARGET
Drill holes 9 and 10, totaling 239 m, were completed in the East Limestone Target, one of three contiguous gold soil anomalies jointly covering an area of about 500 by 600 m. Due to hilly terrain, the holes were collared in an easily accessible area, at the base of the rising terrain on the eastern edge of the anomaly. Hole 9 was drilled at 45 degrees west towards the anomaly, while hole 10 was drilled vertically from the same site. Geology in both holes consists of strongly altered limestone, calc-silicate and chlorite schist, intruded by diorite dykes.
Hole 9 intersected 2.68 g/t gold over 7 m (previously reported), 0.58 g/t gold over 4.9 m, and 0.51 g/t gold over 4 m. Hole 10 intersected 2.21 g/t gold over 8 m and 1.28 g/t gold over 8.3 m. Mineralisation occurs with siderite-chorite-epidote-pyrite alteration in calc-silicates associated with brittle fractures and stockworks. Both the alteration and mineralisation correlate well between holes 9 and 10, suggesting it is replacement skarn mineralisation conforming to the gentle east dip of the enclosing calc-silicate beds. The intrusive source for the skarn mineralisation and dykes is believed to be associated with the Philippines Fault, just to the east. This may also constitute an intrusive-hosted target and appears to be part of a very large system also responsible for the Assmicor Target mineralization plus the numerous other anomalies and showings at Agata.
The gold soil anomalies on the Limestone Targets occur over a vertical range, or thickness, of 120 m, suggesting that mineralisation may also occur over this range. Given the very encouraging gold intercepts in holes 9 and 10 on the lower eastern edge of the Limestone Targets, these are the highest priority targets on Agata at this time. Results from holes 9 and 10 suggest additional blind mineralisation (i.e. not reflected by surface soil anomalies), might also be anticipated. A major reverse circulation drill program is planned to confirm the Limestone Targets' gold resource potential.
TABLE OF RESULTS
Significant intersections are summarised below. All measurements are in metres. Samples were logged and split by Mr. R. Avery, P. Geo., Mindoro Exploration Manager, sealed and transported to McPhar Geoservices in Manila and assayed using standard fire assay procedures. Check assays were carried out by Intertek Testing Services and varied within acceptable limits. A complete list of results to date is available on Mindoro's website.
-------------------------------------------------------------- Hole No. From To Length (m) g/t Gold -------------------------------------------------------------- 1(x) 0.0 7.8 7.8 0.64 2(x) 0.0 7.2 7.2 0.44 3 9.0 18.0 9.0 0.54 3(x) 33.0 33.3 0.3 1.90 4(x) 11.2 12.0 0.8 12.40 4(x) 43.8 45.3 1.5 5.58 5(x) 2.4 21.2 18.8 1.13 6(x) 0.0 24.2 24.2 1.38 7(x) 0.0 5.6 5.6 0.72 9(x) 6.0 13.0 7.0 2.68 9 42.0 46.9 4.9 0.58 9 53.0 57.0 4.0 0.51 10 3.0 11.0 8.0 2.21 10 39.2 47.5 8.3 1.29 11 38.1 41.95 3.85 0.57 11 100.6 103.6 3.0 0.52 -------------------------------------------------------------- (x)previously reported, October 26, 1999
Management is extremely pleased with these drill results and the overall technical success of the Agata reconnaissance drill program. From these results, combined with Agata's extensive gold soil anomalies, good potential is seen for a large near-surface gold resource plus strong indications of a porphyry gold-copper system at depth. Furthermore, only a small area of a large concession was tested with this reconnaissance program. We are optimistic subsequent programs will identify more discoveries and confirm Agata's sizable gold resource potential.
Mindoro is in the process of completing a Cdn$350,000 private placement, the proceeds of which, after covering costs of the Agata drill program, will be allocated to follow-up work on Agata and Pan de Azucar and to working capital. Roche Securities Limited of Edmonton is the agent for the placement. 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.
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