Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

October 11, 2007 04:00 ET

Mindoro Resources Ltd.: Update on Philippine Projects

EDMONTON, ALBERTA--(Marketwire - Oct. 11, 2007) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) is pleased to provide an update on activities from its projects in the Philippines. The NI 43-101 report for the Kay Tanda epithermal gold-silver prospect is well advanced and preliminary mine planning is in progress. At the Agata North Nickel Laterite Project, work on the 43-101 report has resumed, preliminary design of the road and starter pit have been completed, and the Environmental Impact Statement has been filed. Drilling funded by Delta Earthmoving Inc. has commenced on the Agata South Nickel Laterite Project. Advanced drill target definition work has commenced on multiple porphyry copper-gold targets at the El Paso and Archangel projects. Discussions with potential joint venture partners for some of the company's over 20 porphyry copper-gold projects are continuing.

KAY TANDA GOLD-SILVER PROJECT

Expected completion date of the NI 43-101 resource estimate is late November, two months behind the projected date, due to consultant availability factors. The main report is being prepared by Dr. B. Rohrlach, independent geological consultant in Australia, with the geostatistical resource estimate now underway by Ravensgate Minerals Industry Consultants of Australia. A change in geostatistical consultant was made due to availability factors.

The mineralization is still open in several directions and to depth and, at a later date, further resource extension drilling is planned. In the meantime, the focus is evaluating and advancing Kay Tanda as an open-pit, heap-leach operation. Preliminary mine planning and scoping work are in progress and accelerated community relations programs and environmental base line studies are being carried out.

AGATA NICKEL LATERITE

In addition to 35 drill holes completed on the Agata North Nickel Laterite Project in 2006, the company released results from an additional 54 holes on June 6, June 18, July 3, August 4, and September 5, 2007. Additional drill results are expected to be released shortly.

A priority in recent months has been completion of an Environmental Impact Statement, which has now been filed with the Environmental Management Bureau of the Department of Environment and Natural Resources of the Philippines (the DENR-EMB). Subject to no significant deficiencies being identified in the company's Assessment, the DENR-EMB has a maximum of 120 days from filing to issue an Environmental Compliance Certificate (ECC) to the Company.

Shortly after receipt of the ECC, the company plans to commence construction of the mine haul roads and facilities, which is estimated to take approximately three months, subject to weather conditions and availability of materials and labor. The company currently does not anticipate any significant construction delays.

The company has continued to receive expressions of interest from various parties to negotiate contracts for the sale and purchase of nickel laterite ore and will be pursuing serious negotiations in the coming months. Despite a softening in the LME nickel price in the third quarter of 2007, there remains demand for nickel laterite material grading about 1.0 percent nickel and 40 percent iron. Further demand for higher grade material, which can be achieved by applying higher cut-off grades, remains strong. The Agata Project has competitive advantages in that it is close to the coast (the proposed haul road is 3 km) and just two days shipping to China.

The company previously expected preparatory work on a National Instrument 43-101 resource estimate on Agata North to commence in late spring of 2007; however, due to other operational demands and a shortage of independent qualified persons, the company deferred work on the report pending completion of the more pressing environmental compliance requirements. Having now filed the Environmental Impact Statement with the DENR-EMB and awaiting issuance of the ECC, the company has resumed preparation of a NI 43-101 technical report. Although completion date of the NI 43-101 report is uncertain at this time, this is not expected to delay construction of facilities, contract negotiations, or the actual excavation, shipping and sale of nickel laterite material.

The reader is cautioned that the nickel laterite mineralization is currently an exploration target only. The company has not yet established mineral resources or mineral reserves that would support a commercial mining operation. There is no guarantee that future exploration will result in the discovery of mineral resources or that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. Until a feasibility study has been completed there is no certainty that the company's projections will be economically viable.

On August 23, 2007, the company announced it had reached agreement with Delta Earthmoving Inc. to explore, and advance to production if warranted, the Agata South Nickel Laterite Project. The agreement does not cover Agata North. Drilling commenced almost immediately and there are currently three drill rigs in operation at Agata South.

COPPER-GOLD PROJECTS

On October 9, 2007, the company reported the drill intersection of porphyry copper-gold mineralized clasts / fragments in Calo Project hole seven, believed to have been derived from an area near a diatreme, 700 meters distant. Intensive surface work has commenced in the area of the diatreme to define drill targets for a phase two drill program planned for early 2008. Detailed drill target definition work is in progress on multiple targets on the newly granted El Paso project, on the Archangel project, and elsewhere. The company is discussing joint venture possibilities with several companies who have expressed interest in Mindoro's more than 20 copper-gold targets. The company expects to have several porphyry copper-drill programs underway in 2008.

Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to advancing the Agata nickel laterite project towards production, Mindoro is carrying out a major resource delineation program on its Kay Tanda gold-silver project. The company has also identified 22 porphyry copper-gold prospects in the Philippines and has an aggressive strategy of joint venturing and drilling multiple targets in 2008.

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). 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mindoro Resources Ltd.
    Penny Gould
    Executive Vice President
    (780) 413-8187
    Email: penny@mindoro.com
    Website: www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Trent Dahl
    Investor Relations-Canada
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 228
    Email: info@mindoro.com
    or
    Argentuminvest GmbH
    Richard Mayr
    Investor Relations-Europe
    +49-9421-785250
    +49-9421-785255 (FAX)
    Email: info@argentuminvest.com