Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : WKN 906167

Mindoro Resources Ltd.

August 23, 2010 16:40 ET

Mindoro Resources Ltd.: Increased Agata Nickel Resource and Regional Drilling Commenced

EDMONTON, ALBERTA--(Marketwire - Aug. 23, 2010) - Mindoro Resources Ltd. (TSX VENTURE:MIO); (FRANKFURT:WKN 906167) today announced an increased Mineral Resource estimate for the Agata Nickel Project. This includes a Measured and Indicated resource of 29.8 million tonnes at 1.03 percent nickel, an increase of 2.9 million tonnes compared to the December 2009 estimate with a slight decrease in grade due to a more robust estimation methodology and more detailed information. In addition an Inferred resource of 1.46 million tonnes at 1.01 percent nickel has been estimated.

The mineral resource estimate is tabulated below.

    Metric             Contained Metal (K Tonnes )
Classification Horizon K Tonnes Ni % Co % Fe % Ni Co Fe  
Measured Limonite 248 1.01 % 0.11 % 48 % 2.5 0.27 119  
  Saprolite 522 1.12 % 0.03 % 11 % 5.9 0.16 57  
  Subtotal 771 1.08 % 0.06 % 23 % 8.4 0.43 176  
Indicated Limonite 9,972 0.94 % 0.11 % 46 % 94 11.0 4,587  
  Saprolite 19,052 1.07 % 0.03 % 11 % 204 5.7 2,096  
  Subtotal 29,024 1.03 % 0.06 % 23 % 298 16.7 6,683  
Measured & Limonite 10,220 0.94 % 0.11 % 46 % 96 11 4,706  
Indicated Saprolite 19,574 1.07 % 0.03 % 11 % 210 6 2,153  
  Subtotal 29,794 1.03 % 0.06 % 23 % 306 17 6,859  
                         
Inferred Limonite 258 1.00 % 0.11 % 44 % 2.6 0.3 114  
  Saprolite 1,206 1.01 % 0.03 % 11 % 12.2 0.4 133  
  Subtotal 1,464 1.01 % 0.04 % 17 % 14.8 0.7 246  
  • Total metal contents in the reported resources represent metal in the ground and have not been adjusted for metallurgical recoveries and other factors which will be considered in later study
  • Mineral resources which are not mineral reserves do not have demonstrated economic viability
  • The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

The new resource estimate was carried out by Mark Gifford MSc (Hons), MAusIMM an independent qualified person as defined by NI 43-101, in conjunction with Quantitative Group in Perth, Australia. A total of 593 drill core holes for 10,851m of diamond drill core were used for the estimate. The resource estimation method applied was Ordinary Kriging, a very robust and proven methodology with regards to lateritic nickel deposits. All previous resource estimates were completed by a length-weighted inverse distance squared method to provide an indicative resource appropriate to the drilling density at the time of reporting. Cut-off grades applied to the resource were 0.5 percent within the Limonite zone and 0.8 percent within the Saprolite zone. Mr. Gifford has indicated that the density of drilling and continuity of mineralization is sufficient to classify the estimated resource and has verified and authorized the technical information detailed in this release. . Mr. Mark Gifford has 22 years of experience as a professional geologist including in a geological managerial position at the Murrin Murrin nickel laterite operation in Western Australia and experience on other Nickel Laterite projects around the world. The Ni 43-101 compliant technical report will be filed on SEDAR within 45 days.

A plan available with this release on Mindoro's website illustrates the distribution of nickel laterite drilled from 2006 to date.

Detailed open pit mine design is now in progress based on the new mineral resource model. The objective of this work is to produce a mineral inventory and preliminary production schedule based on the requirements of nickel pig-iron producing offtakers for 0.9% to 1.1% Nickel and greater than 48% Iron Limonitic material and Chinese Electric Arc Furnace (EAF) and/or other acid leach or ferronickel processors that require material grading greater than 1.45 percent Nickel at varying iron content.

In addition a scoping study has been initiated through Hatch engineering group in Perth into low-capital cost, thermal upgrading technologies, such as sintering, to produce much higher-value iron and iron-nickel products from the Limonitic ores. These have the potential to quickly phase out the shipping of raw DSO product, and to form an intermediate development stage prior to a major acid-leach processing operation. The major acid-leach project scoping studies, including additional metallurgical testing, are due for completion late September 2010.

Mindoro has also now commenced drilling the regional nickel laterite exploration target in order to convert a significant proportion of the 50 million to 70 million DMT @ 0.9% to 1.2% nickel Exploration Target to NI 43-101 compliant Mineral Resource. A total of 7,000m to 10,000m are planned to complete this program, over the next 4 to 6 months.

The reader is cautioned that the potential quantity and grade of the Exploration Target is conceptual in nature; it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.

Tony Climie, P.Geol, is the company's Qualified Person as defined by National Instrument 43-101, who is responsible for monitoring the supervision and quality control of Mindoro's exploration programs and who has reviewed and verified the technical information contained in this news release. Sample preparation and assaying were performed by Intertek Testing Services, Phils., Inc. (ITS). The ITS Phils. facility is among Intertek's global network of mineral testing laboratories. It provides high quality assay analysis of mineral samples for nickel deposit exploration projects. Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium(Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence (XRF). The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides. Intertek mineral testing laboratories implement quality protocols. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of repeat analyses plus split sample analyses and the use of standard reference materials and blanks. Mindoro has also conducted assay verification using standard samples and re-assaying field and pulp duplicates.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro controls major nickel laterite resources in the Surigao District, Mindanao, where potential for a direct shipping ore (DSO) operation to generate early cash flow is being advanced as well as large scale potential for an onsite processing plant.

Mindoro has NI 43-101 Mineral Resource estimates on its Agata North nickel-cobalt project (August 2010) totaling Measured and Indicated 29.79 million dry metric tonnes (DMT) at 1.03% Nickel and 0.06% Cobalt and Inferred 1.46 million DMT at 1.01% Nickel, 0.04% Cobalt. The Surigao regional exploration target is 50 million to 70 million DMT at 0.9% to 1.2% Nickel (January 2010).

Mindoro also has NI 43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon which are the subject of a farm-in arrangement whereby Gold Fields Ltd may earn 75% through direct project expenditure. Goldfields has commenced drilling on the Lobo project.

Drilling on the American Tunnels project has confirmed potential for a near-surface, bulk-tonnage gold target and porphyry copper-gold targets. Other objectives include progressing joint venture discussions on Mindoro's porphyry copper-gold prospects at Surigao.

This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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