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Jan 20, 2005
Copper-Gold Drill Targets Confirmed on Tapian San Francisco. New Ground Acquired
Edmonton, AB and Vancouver, B.C.; January 20, 2005 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) and Panoro Minerals Ltd. (TSXV: PML) today announced that its geophysical exploration program has confirmed additional copper-gold targets on their joint venture project in Surigao.
The major geophysical program defined seven chargeability anomalies at the Tapian San Francisco Project, which is one of the projects in the Surigao Joint Venture on Mindanao Island in the Philippines. The anomalies are interpreted to represent sulphide mineralization; of particular interest are the C4, C5 and C6 chargeability anomalies and flanking resistivity anomalies, which correlate with strong and extensive porphyry-style alteration. Copper and gold soil geochemical anomalies are coincident with the geophysical anomalies and alteration. These multiple stacked anomalies point strongly to the presence of a porphyry copper-gold system at depth.
A compilation map of the main geological and geophysical results at Tapian San Francisco is available on the companies' websites. The project is in a favorable structural setting adjacent to the Philippine Fault system and is on the extension of southwest structural trends extending from the recent Boyongan and Bayugo discoveries about eight kilometers away. The geophysical results are still being correlated with geological and geochemical data, but it is clear that porphyry copper-gold targets of considerable potential interest are emerging, and that promising drill targets are being defined, in particular in the southern part of Tapian San Francisco.
In the south, the C4, C5 and C6 chargeability anomalies, and peripheral resistivity anomalies correlate with soil and rock geochemical anomalies, and with strong hydrothermal alteration that extends northeasterly for more than 1.5 kilometers and is about 800 meters wide. This has a core of intense quartz-sericite-pyrite alteration extending over one kilometers and averaging 200 meters wide, which is interpreted as the phyllic zone of a porphyry copper-gold system. Alteration is open to the southwest. The chargeability anomalies are interpreted to represent sulphide mineralization at depth, and the resistivity anomalies to represent associated quartz alteration (more details are available in our news release dated Sept. 20, 2004).
The adjacent tenement to the south, a Mineral Production Sharing Agreement ("MPSA") covering 486 hectares, has been acquired from private Philippine interests. Although the Exploration Period of the MPSA has expired, Mindoro has applied to the Philippines Mines Dept. to have it renewed. Mindoro will hold a 75% interest in the newly acquired ground with the remaining 25% held by a private Philippine company. Panoro has the option to include the acquisitions in the Surigao Joint Venture and earn a 40% interest. Should Panoro choose to not include the acquisitions, then any Panoro shares issuable to the vendor may be replaced with Mindoro shares.
As consideration for the acquisition and subject to regulatory approval, Mindoro has paid the vendor 1,500,000 pesos (approximately CDN$32,000) and will issue 40,000 Mindoro shares and 40,000 Panoro Shares. The vendor will also receive 150,000 pesos (approx. CDN$3,000) six months after the agreement date; 50,000 Mindoro shares and 50,000 Panoro shares after one year; and 250,000 Mindoro shares and 250,000 Panoro shares at both feasibility stage and upon a decision to commence production. For the commercial exploitation of the property, the vendor will receive a royalty of one point five percent NSR (Net Smelter Returns) for 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.
A total of 30 line kilometers of induced polarization and magnetic geophysical surveying has been completed as well as detailed geological mapping and sampling. Although there are abundant epithermal gold showings at Tapian San Francisco, which are also being assessed for their economic potential, the geophysical program focused on defining underlying porphyry copper-gold targets. The survey was performed by Elliott Geophysical International Pty. Ltd. of Perth, Australia, and modeling of data carried out by S.J.V. Consultants Ltd. of Vancouver, B.C. using an inversion program developed by a consortium of major mining companies in conjunction with the University of B.C. The geophysical report will be available on SEDAR and Mindoro's and Panoro's website when completed.
The Mindoro/Panoro 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 projects at Surigao will be released in the near future.
ABOUT MINDORO 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.
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