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Jan 04, 2005
Gold Resource Estimate Received and Lobo Geophysics Completed
EDMONTON, AB; January 4, 2005 - Mindoro Resources Ltd. (TSX-V: MIO; Frankfurt: OLM) today announced results of an independent, NI 43-101 compliant, gold resource estimate carried out on the Southwest Breccia mineralization shoot at the Lobo Project in the Philippines. According to the estimate, the indicated resources, to a depth of 130 meters, are 270,000 tonnes at a grade of 6.40 grams per tonne (g/t), containing 56,300 ounces of gold. Additional inferred resources are 61,000 tonnes at a grade of 5.35 g/t, containing 10,500 ounces of gold. The mineralization is open to depth and Mindoro plans to utilize a larger drill rig to extend the resource to depth. This new gold resource is in addition to the inferred gold resource estimate of 370,000 ounces from the Kay Tanda deposit on the adjoining Archangel Project, as reported on January 24, 2003, and which is currently being evaluated for its open-pit, heap-leach development potential.
The Lobo Project is part of Mindoro's target-rich 14,400 hectare land package in the Batangas copper-gold belt. Lobo contains from 5km to 7km of epithermal (high-level) mineralized vein breccia trends, of which only a small part has been drill-tested to date. The Southwest Breccia mineralization shoot occurs on the Camo Trend. Late in 2004, Scout drilling using two man-portable rigs commenced testing other targets on the adjacent Sampson Trend. As reported on Nov. 8, 2004, this drilling located a new gold mineralization shoot in the West Drift area, where hole 38 intersected a 12 meter true width of 7.42 g/t gold including 2.5 meters of 29.46 g/t gold. Resource delineation drilling is planned on this new shoot, as well as on the depth extensions of Southwest Breccia.
Epithermal gold mineralization in the Philippines is typically underlain by associated porphyry copper-gold systems at relatively shallow depths of a few hundred meters. Mindoro is carrying out an aggressive exploration program for both types of deposits. Among other anomalies, preliminary IP results defined an especially promising target at the Pica Prospect, where extensive and strong coincident IP and magnetic anomalies are associated with intense quartz-clay-(pyrite) alteration, as reported on Nov. 22, 2004 release. The stacked anomalies are consistent with the reflection of a porphyry copper-gold system below. A large capacity drill rig will be moved on site by late this month to drill-test the Pica Prospect.
The Southwest Breccia resource estimate was performed by independent consulting geologist Dr. David Bailey of Vancouver, BC. Mineralization is geologically well-constrained within quartz-barite-pyrite breccia having a sharp boundary with adjacent wall-rock. The estimate was based on 25 shallow drill holes completed using a man-portable diamond drill rig. At a cut-off grade of 0.5 g/t gold, 171 drill core samples, totaling 343.4 meters (220.5 meters recovered) were used in the resource estimate. Because of low core recovery in places (average 64%) a Measured Resource category was not included and all resources were placed into the indicated and inferred categories. Resources were estimated using the cross sectional method. For indicated resources, projections were half way to the next section, with resource blocks averaging 15 meters long. For inferred resources, mineralization was projected 25 meters along strike to the southwest, and 30 meters down-plunge beneath the deepest mineralization intercept to date. Assays were performed by McPhar Geoservices of the Philippines, an ISO 9002 accredited laboratory. Standard assay, quality control and check procedures were used. Dr. Bailey's report can be viewed on the Mindoro website at www.mindoro.com. Work at Southwest Breccia was carried out under the supervision of Tony Climie, P. Geol., President of Mindoro; both Mr. Climie and Dr. Bailey are "qualified persons" as defined by National Instrument 43-101.
Mindoro is a Tier One Company trading on the TSX Venture Exchange (TSX-V: MIO) and the Frankfurt Stock Exchange (OLM). The Company is exploring for gold and gold-copper in the prolifically mineralized magmatic arcs of the Asia-Pacific Region. Mindoro has been active in the Philippines since 1996 and is presently focused on six promising projects in politically stable jurisdictions of the Philippines.
For further information, contact:
Penny Gould, Executive Vice President
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716
Marshall Farris, Ascenta Capital Partners Inc.
Phone: (1-604) 628-5800
Toll Free: 1-866-684-4209
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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