Mindoro Resources Ltd.

Mindoro Resources Ltd.

January 04, 2005 14:33 ET

Mindoro Resources Ltd.: Gold Resource Estimate Received and Lobo Geophysics Completed


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINDORO RESOURCES LTD.

TSX VENTURE SYMBOL: MIO
FRANKFURT SYMBOL: OLM

JANUARY 4, 2005 - 14:33 ET

Mindoro Resources Ltd.: Gold Resource Estimate
Received and Lobo Geophysics Completed

EDMONTON, ALBERTA--(CCNMatthews - Jan. 4, 2005) - Mindoro Resources Ltd.
(TSX VENTURE:MIO)(FWB: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.

ABOUT MINDORO

Mindoro is a Tier One Company trading on the TSX Venture Exchange (TSX
VENTURE: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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Mindoro Resources Ltd.
    Penny Gould
    Executive Vice President
    (780) 413-8187
    (780) 426-2716 (FAX)
    Email: penny@mindoro.com
    Website: www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Marshall Farris
    Investor Relations
    (604) 628-5800 or Toll Free: 1-866-684-4209
    Email: info@ascentacapital.com
    Website: www.ascentacaptial.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.