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Jan 18, 2005
Two Promising Porphyry Copper-Gold Drill Targets Defined on Agata Project. New Ground Acquired
Edmonton, AB and Vancouver, B.C., January 18, 2005 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) and Panoro Minerals Ltd. (TSXV: PML) today announced results from its Agata Project, part of the Surigao Joint Venture on Mindanao Island in the Philippines. A major geophysical program has been completed, which defines remarkably strong IP anomalies extending semi-continuously over 4.5 kilometers of strike. Two particularly strong porphyry copper-gold targets are emerging, one in the north area of the project and one in the south. In between, and peripheral to the larger anomalies, satellite anomalies occur, some of which are flanking known epithermal/mesothermal gold mineralization and artisanal workings.
Tony Climie, President of Mindoro comments, "With its favorable structural setting, abundance of gold prospects and gold-copper soil anomalies, Agata has been a project that has intrigued us since we started work on it in 1997. The joint venture funding has allowed us to fast-track and explore Agata aggressively, and we now have defined two excellent porphyry copper-gold targets, as well as other promising gold and nickel prospects. We are very excited about results to date and look forward to moving quickly ahead to major drill programs."
Agata is a highly mineralized project, and has been the site of historical and ongoing artisanal gold mining. It is in a favorable structural setting, at the intersection of cross-cutting faults and a splay of the Philippines Fault, which has focused mineralizing intrusions. Past work by Mindoro focused on epithermal gold mineralization. A 1999 scout drilling intersected promising epithermal gold mineralization in intrusives and limestone, and also recognized the high potential of Agata for porphyry copper-gold deposits. In 2004 the project was joint-ventured with Panoro Minerals Ltd. and an aggressive exploration program focused on porphyry copper-gold deposits commenced.
A total of 75 line kilometers of induced polarization and magnetic geophysical surveying, as well as geological mapping and sampling, has been completed. The geophysical survey was performed by Elliott Geophysical International Pty. Ltd. of Perth, Australia. The geophysical data are being modeled at this time, and shapes of anomalies may change slightly. The accompanying map is a compilation of the main features of Agata. Two intense and broad chargeability anomalies have been outlined, one in the north (North Target) and one in the south (South Target), as well as peripheral anomalies.
The North Target is a very large chargeability anomaly, of greater than 20 m/secs (to 31 m/secs), that covers about 1.6 kilometers by 800 meters. Ultra-mafic rocks in the area exhibit intense quartz-magnetite-(pyrite) alteration, with coincident soil anomalies. The alteration is believed to be related to an underlying intrusive complex, which has high potential for associated porphyry copper-gold mineralization.
The South Target is also a large and extremely strong chargeability anomaly of greater than 20 m/secs (to 39.7 m/secs), and has a flanking, strong resistivity high anomaly. The anomalies extend onto another tenement which has been secured by the joint venture (see Agata Compilation map on Mindoro's website). Geological and geochemical evaluation of the South Target is in its early stages. Small dykes or stocks of altered intrusive, likely the top of a much larger intrusive complex, have been mapped. There are historical and ongoing artisanal gold mining operations in this area. Soil geochemical surveys carried out by Mindoro in 1997 partially covered the South Target and defined gold, zinc and copper anomalies. The South Target geological, geochemical and IP results strongly point to a porphyry copper-gold system at depth.
In addition, a number of other broad, lower order, yet significant, chargeability anomalies have been defined between, and peripheral to the North and South Targets. Surface mineralization and artisanal workings indicate that these may be related to epithermal or mesothermal gold-pyrite mineralization in limestones and other lithologies, and to a pyrite halo associated with the intrusive complexes.
The tenement within the Agata Project (see map) is a Mineral Production Sharing Agreement application covering 81 hectares. This has been acquired by the Surigao Joint Venture and an application has been filed to convert the area to an Exploration Permit. Mindoro will initially hold a 75% interest in the newly acquired ground with the remaining 25% held by a private Philippine company. Panoro has exercised its option to include the acquisitions in the Surigao Joint Venture and, thereby, has the right to earn a 40% interest from Mindoro.
As consideration for the acquisition, the vendor was paid 500,000 Philippine pesos (approximately $10,875 Canadian dollars) and, upon approval of the Exploration Permit, will receive 100,000 Mindoro shares. The vendor will also receive a quarterly advance on royalties in the amount of 50,000 Philippine pesos (approximately $1,087 Canadian dollars). One year after the approval of the Exploration Permit, the vendor will receive a further 250,000 Mindoro shares and, upon a decision to commence production, an additional 500,000 Mindoro shares. For the commercial exploitation of the property, the vendor will receive a royalty of one point five percent Net Smelter Returns (NSR ) for the production of gold and other minerals,
Work will extend to cover this new area; once this is completed and drill targets have been prioritized, an extensive drilling campaign will commence.
The Surigao Joint Venture comprises a total land area of 24,000 hectares and is one of the largest land positions in the Surigao Gold District, where there have been several significant porphyry copper-gold discoveries in recent years. A map showing recent discoveries is available on both companies' websites at the links below:
Mindoro's website: http://www.mindoro.com/news-nov252004.htm
Panoro's website: http://www.panoro.com/news-nov252004.htm
Mindoro is the operator of the Surigao Joint Venture and work is carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101, and President of Mindoro. Results from other Surigao Projects will be released in the near future.
Mindoro is a Tier One Company trading on the TSX Venture Exchange (TSXV: 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 please visit Mindoro's website at: http://www.mindoro.com
Panoro Minerals Ltd. is a Canadian mineral exploration company listed on the TSX Venture Exchange (TSXV: PML). Panoro's strategic focus is on exploring for large-potential gold and copper/gold deposits in countries with the corresponding geological potential and where the right political and economic conditions are present. For further information please visit Panoro's website at: http://www.panoro.com
Investor Relations contact for Mindoro and Panoro
Marshall Farris, Ascenta Capital Partners Inc.
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.
You can view the Next Press Releases item: Thu Jan 20, 2005, Copper-Gold Drill Targets Confirmed on Tapian San Francisco. New Ground Acquired
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