Mindoro Resources Ltd.

Mindoro Resources Ltd.

March 05, 2010 11:10 ET

Mindoro Resources Ltd.: Significant Upgrade for Kay Tanda Gold-Silver Resource

- Measured and indicated resource now 9.879 Mt at 1.06 g/t Au, containing 337,500 ounces gold. - An additional 3.74 Mt at 0.81 g/t Au in the inferred category, containing 97,200 ounces gold

EDMONTON, ALBERTA--(Marketwire - March 5, 2010) - Mindoro Resources Ltd. (TSX VENTURE:MIO); (FRANKFURT:WKN 906167) is pleased to announce results of a new mineral resource estimate for the Kay Tanda gold-silver resource, Archangel Project, Batangas, Philippines The new resource estimate, shown in the table below, demonstrates a 34 percent increase in grade, and a 22 percent increase in contained ounces relative to the previous estimate of February 6, 2008, as well as the conversion of most of the resource to measured and indicated categories.

The new resource estimate was carried out by gold miner Avocet Mining PLC, and audited and verified on behalf of Mindoro by Dallas Cox, BE (Min), an independent qualified person as defined by NI 43-101. The new estimate was the result of drilling an additional 14 new core holes (for 2,041 meters) at a new orientation, as well as creation of a more detailed mineralization and geological domain model than for the previous estimate.

This resource estimate is based on 200 drill holes, (160 reverse circulation and 40 diamond drill holes). The resource estimation process was based on the length-weighted inverse distance squared technique within constrained grade wireframes. Avocet used a cut-off of 0.3 g/t Au for oxide and 0.5 g/t Au for transition and sulphide material. High grade gold and silver outliers were top cut based on a log probability analysis of the individual wireframe flagged data subsets. This resulted in a variable range of top cuts, from no applied cuts to a maximum of 75 g/t for gold and 250 g/t for silver. However, top cuts applied for gold were more often in the range 2 to 10 g/t and for silver in the range 10 to 40 g/t.

Previous metallurgical testing commissioned by Mindoro had produced excellent results for oxide, transitional and sulphide material. Further metallurgical scoping test work by Avocet separated samples into different mineralization styles, gold grades ranges and oxidation types. The results for all sample types indicate that gold is extractable by heap leaching techniques and conventional CIL/RIL methods.

In its due diligence evaluation, Avocet took the pragmatic approach of shallow infill drill testing of projected up-dip extensions of high-grade gold vein sets, previously intersected at deeper levels by Mindoro, into a conceptual open-pit. The conceptual pit was centered on the near-surface low-grade stockwork mineralization. The high-grade vein sets, which are probably feeder zones to the gold system, do not extend into such shallow levels. The resource has been defined over a 1km strike length and remains open to the northeast and southwest within a six km corridor of anomalous stream sediment, soil and rockchip geochemistry and IP chargeability. In addition, interpreted porphyry copper-gold related mineralization has previously been intersected by Mindoro at depth.

Summary of Resource
Gold Silver
Metric Grade Grade Gold Silver
Tonnes (g/t Au) (g/t Ag) (ounces) (ounces)
Oxide ( greater than
0.3 g/t Au)
Measured 2,673,000 0.80 7.72 68,900 663,200
Indicated 1,581,000 0.65 4.24 33,000 215,300
Measured + Indicated 4,254,000 0.75 6.42 101,900 878,500
Inferred 680,000 0.57 3.04 12,400 66,400
Transition ( greater than
0.5 g/t Au)
Measured 1,401,000 1.30 4.92 58,700 221,400
Indicated 1,058,000 1.11 2.61 37,900 88,900
Measured + Indicated 2,459,000 1.22 3.92 96,600 310,300
Inferred 537,000 0.97 2.57 16,800 44,400
Fresh ( greater than
0.5 g/t Au)
Measured 1,663,000 1.46 2.58 78,000 138,000
Indicated 1,503,000 1.26 2.09 61,000 101,000
Measured + Indicated 3,166,000 1.37 2.35 139,000 239,000
Inferred 2,524,000 0.84 1.23 68,000 100,000
Measured 5,737,000 1.11 5.54 205,600 1,022,600
Indicated 4,142,000 0.99 3.04 131,900 405,200
Measured + Indicated 9,879,000 1.06 4.50 337,500 1,427,800
Inferred 3,741,000 0.81 1.75 97,200 210,800

- 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.

- This work has produced Measured, Indicated and Inferred Mineral Resources in accordance with the definitions outlined in the JORC Code of 2004 (Australasian Joint Ore Reserves Committee) and is reported in accordance with CIM National Instrument 43-101.

- The NI 43-101 compliant Technical Report will be filed on SEDAR within 45 days

Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's programs. 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 Rusina Mining Limited's Acoje nickel project, Platinum Group Metals Corporation's Caga4 nickel project, Red5 Limited's Siana gold project, Metals Exploration Limited's Runruno gold-molybdenum project, Filminera Resources' Masbate gold project and Mindoro's Kay Tanda gold project. Mr. Cox is a Qualified Person as defined by NI 43-101 and he has reviewed and verified the technical information contained in this news release.


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 investigated as well as large scale potential for an onsite processing plant.

Mindoro has NI 43-101 resource estimates on its Agata North nickel-cobalt project and on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three joint venture projects with Gold Fields in the Batangas area of southern Luzon, where drilling is also in progress, funded by Gold Fields. 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 finalizing joint venture arrangements 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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