Mindoro Resources Ltd.
TSX VENTURE : MIO

Mindoro Resources Ltd.

November 18, 2009 09:00 ET

Mindoro Resources Ltd.: Major Upgrade for Agata North Nickel-Cobalt Laterite Resource

- Indicated and measured resource now 26.92 million dry metric tonnes at 1.11% nickel and 0.06% cobalt, containing 657 million lbs nickel and 24 million lbs cobalt

- An additional 3.8 million dry metric tonnes in inferred category containing 89 million lbs nickel and 2 million lbs cobalt

- Exploration Target for additional laterite areas to be announced soon

EDMONTON, ALBERTA--(Marketwire - Nov. 18, 2009) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(WKN 906167) is pleased to announce an upgraded mineral resource estimate for the Agata North nickel laterite, Agata Project, Surigao Gold District. The new resource estimate, shown in the table below, demonstrates a 40 percent increase in total tonnage relative to the December 16, 2008, estimate, as well as the conversion of most of the resource to indicated and measured categories.

The increase in the indicated and measured resource is mostly due to the broadening of the search parameters as a result of the detailed variographic studies and the reinterpretation of the 0.8 percent nickel domain lower surface, carried out by the independent Qualified Person who conducted the previous estimate.

The estimate covers about 80 percent of Agata North. Mindoro is carrying out reconnaissance work, including manual auger drilling on other laterite areas on its Surigao Projects. An Exploration Target will be announced for these next month.

While considerable additional resource potential exists at Agata and other Surigao projects, an adequate resource has been established to form the basis for a detailed evaluation of potential development alternatives and studies are in progress. All development alternatives are being considered. Emphasis will be on establishing an on-site processing plant. However, Mindoro notes the recent increases in direct shipping ore (DSO) prices, particularly in the higher grade categories, and will also evaluate DSO as a means to achieving short-term cash flow. Mindoro is receiving increasing expressions of interest from DSO traders and developers interested in accessing Agata North for DSO operations.

Agata North has strong competitive advantages for both DSO and processing operations: excellent infrastructure, adjacent to the ocean, proximity to China and other Asian markets, considerable upside resource potential, favorable metallurgical characteristics, and extensive limestone deposits on-site.

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.

SUMMARY OF MINERAL RESOURCE ESTIMATE

Resource @ 0.5 % Ni cutoff grade (Limonite) and 0.8% cutoff grade (Saprolite)

CategoryLaterite HorizonMil. WMTMil. DMT Ni%Co%Fe%Contained Ni Metal (Mil lb)Contained Co Metal (Mil lb)
MeasuredLimonite2.161.401.000.114431.013.26
Saprolite0.640.511.160.031113.09 
IndicatedLimonite12.988.440.980.1146181.5521.02
Saprolite20.7016.561.180.0311431.20 
Measured + IndicatedLimonite15.149.840.980.1145212.5624.28
Saprolite21.3417.071.180.0311444.28 
Total Measured + Indicated36.4826.921.110.0624656.8424.28
InferredLimonite1.561.010.920.104420.492.17
Saprolite3.482.781.110.031268.260.00
Total5.033.791.060.052188.742.17

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.

  • Tonnage is reported in both wet metric tonnes (WMT), applicable for DSO operations, and dry metric tonnes (DMT), applicable to any processing operation
  • 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 Mineral Resource model was generated by Dallas Cox, BE (Min), an independent qualified person as defined by NI 43-101. A total of 408 drill holes, comprising 7300 meters of diamond drill core, and 7271 assayed samples, were used for the estimate. These drill holes cover approximately 80% of the currently delineated laterite area at Agata North. An Inverse Distance Squared grade estimation method was utilized within tightly constrained lithological and grade domains. Mr. Cox 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. Both dry metric tonnes (DMT) and wet metric tonnes (WMT) are quoted. The NI 43-101 compliant Technical Report will be filed on SEDAR within 45 days.

Mr. Dallas Cox has 27 years of experience in open pit mine technical services, mine operations and management in Australia, China, Indonesia and the Philippines. His engineering, mine design and development experience in the Philippines includes the Rusina Mining Limited Acoje nickel project, the Platinum Group Metals Corporation Caga4 nickel project, the Red5 Limited Siana gold project, the Metals Exploration Limited Runruno gold-molybdenum project, the Filminera Resources Masbate gold project and Mindoro's Kay Tanda gold project.

Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's programs and who has reviewed and verified the technical information contained in this news release.

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 copper-gold and nickel exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro has NI 43-101 resource estimates on its Agata North nickel-cobalt project and on both its Lobo (SWB) and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has an active joint venture with Gold Fields covering its Batangas projects.

Mindoro is well positioned to capitalize on the expanding global demand for gold and copper, and resurging interest by China in nickel. Drilling is underway on its American Tunnels gold and copper-gold project, and on the El Paso copper-gold project, funded by Gold Fields. Final results have been received from due diligence drilling by Avocet Mining PLC on the Kay Tanda gold project, for which an upgraded resource estimate will be released next week. Additional near-term objectives include finalizing one to two joint venture arrangements on Mindoro's porphyry copper-gold prospects at Pan de Azucar and Surigao and identifying a suitable partner to fund development of the significant Agata North nickel resource.

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.

Contact Information

  • Mindoro Resources Ltd. - Head Office
    Penny Gould
    President
    780.413.8187 or Toll Free: 1.877.413.8187
    penny@mindoro.com
    www.mindoro.com
    or
    Senergy Communications Inc.
    Graham Johnstone
    Investor Relations - Canada
    1.778.331.2030
    ir@mindoro.com
    or
    Mindoro Resources Ltd.
    Robert Sarcher
    Investor Relations - Europe
    49.821.6089051
    robert@mindoro.com