Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

November 09, 2007 09:01 ET

Mundoro Q3 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2007) - Mundoro Mining Inc. (TSX:MUN) (the "Company") announces the filing of the Company's financial and operating results for the quarter ended September 30, 2007. The highlights provided in this release should be read in conjunction with the Company's interim financial statements and Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in U.S. dollars unless otherwise stated.

Financial Highlights

- The Company's consolidated net loss for the quarter was $889,964 or $0.02 per share compared with a net loss of $2,512,639 or $0.07 per share for the previous period's quarter. The expenditures for the quarter were:

I. $245,081 on the final Feasibility Study and Mineral Exploration;

II. $583,290 on corporate expenses;

III. $325,484 on other expenses that are non-cash accounting items; offset by

IV. interest income of $263,891.

- The Company ended the quarter with $18,876,159 in cash with no debt.

Community Relations

In the second quarter of this year, Mundoro committed to provide RMB1.2 million over three years to fund educational, health and sanitation development in Gaizhou County. As part of the contribution, the Company was pleased to present over 340 official Olympic school bags to the schools in Gaizhou County. Mundoro is continuing to roll out its community contribution program this quarter with further contributions to the local community.

Licensing and Government Relations

Mundoro continues to build awareness for the project and the Company's commitment to execute the project in an environmentally sound manner by deploying additional communication channels in China, such as the Canadian Embassy in China, Natural Resources Canada, China International Mining Group, Canada China Business Council, Austrade and other agencies. Mundoro has a strong balance sheet to complete the Environmental and Social Impact Assessment ("ESIA") process and to commence the development process for the Maoling Gold Project ("Maoling"). Mundoro remains committed to the World Bank's Equator Principles and adheres to international and Chinese national standards for mining in its development process for Maoling.

The Company continues to document and convey the economic and environmental merits of developing Maoling to the county, municipal, provincial and national levels of government in China. In 2006, Mundoro and the Liaoning Geological and Exploration Bureau ("Aidi"), completed a Chinese qualified geological exploration report (i.e. reserve estimate) and are awaiting the restoration of the business license before being permitted to submit this estimate for review and acceptance. The project meets national guidelines for foreign participation in gold projects. In addition, the Company has been communicating the mining plan and building confidence with officials in Liaoning and the central government for the past two years.

Progress on Feasibility Study

Overseen by Ausenco Limited ("Ausenco"), the Feasibility Study work has concentrated on optimization of capital and operating costs, including incorporation where possible of Chinese equipment. Final completion of the Feasibility Study is pending completion of essential fieldwork (i.e. geotechnical drilling) which awaits the business license renewal. The company received an interim report on the feasibility work completed to date and is evaluating process improvements through a faster production ramp up.

The technical merits of Maoling are well documented in the 2005 Pre-feasibility Study and have been supplemented with the work that is ongoing in the Feasibility Study and the preparatory material for the completion of a full ESIA. The Company has completed, with the support of The China Nonferrous Engineering and Research Institute ("ENFI"), Beijing General Research Institute of Mining and Metallurgy ("BGRIMM"), Qinghua University, Ausenco, and Golder and its internal staff, most of the components of the Feasibility Study and hopes to restore the business license for the Chinese joint venture company Liaoning Tianli Mining Company Ltd. ("Tianli") to be able to complete a formal ESIA.

Neither the government nor the leadership of the province is being asked by Tianli to endorse the project until a team of experts has completed the formal ESIA process as required under the 2005 ESIA law in China. At this point Tianli is asking for the renewal of its business license. The formal ESIA report is one of the 42 reports/documents required for a mining permit that can only be issued having been reviewed provincially and nationally and ratified by the State Council.

An initial independent report by Qinghua University in Beijing and the analysis completed to date by ENFI, BGRIMM, Ausenco and Golder all indicate that the deposit can be developed in a safe and responsible manner that will have no negative impact on the water quality in the region.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a TSX listed resource company focused on the exploration and development of one of the world's top gold deposits. The Company's feasibility stage Maoling gold deposit is located in Liaoning Province, China. Maoling is China's largest single, gold resource deposit with 4.8 million contained gold ounces in the Measured and Indicated category and an additional 4.4 million contained gold ounces in the Inferred category. The Company has outlined a Reserve of 2.8 million ounces in the Probable category which was the basis for the Pre-Feasibility Study.

The Company has a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government. Thus far, two deposits that outcrop at surface have been outlined at Maoling in which disseminated, free-milling gold mineralization occurs within a sequence of metasedimentary rocks.

The renewal of the exploration license for Maoling has been deferred since November 2005 pending the renewal of a business license for Mundoro's joint venture company, Liaoning Tianli Mining Company Ltd. Mundoro and its partner, Liaoning Aidi Resources Company Limited, have undertaken a strategy of engagement and building awareness with a wide range of government agencies in order to resolve the issue.

Investors are encouraged to review 'Risk Factors' associated with the Maoling project as outlined in the Company's prospectus documents and other regulatory filings, available on the SEDAR website at www.sedar.com.

The pre-feasibility described herein was prepared to broadly quantify the Maoling Zone 1 deposit's capital and operating cost parameters, and to further the development of the project. It was not prepared for use as a valuation of the deposits, nor should it be considered to be a final feasibility study. The information contained in the Study reflects various technical and economic conditions at the time of writing that can change significantly over relatively short periods of time. There can be no assurance that the potential results contained in the Study will be realized. The study was prepared by AMEC Americas Ltd. under the direction and oversight of Mr. Mark Pearson P.Eng. of Vancouver, BC, an 'Independent Qualified Person' as defined by National Instrument 43-101. Resource estimation for the Zone 1 area in 2006 was carried out in the Brisbane, Australia office of Golder Associates Pty Limited, an international earth sciences consulting group under the direction and oversight of Dr. Andrew Richmond, MAusIMM, an 'Independent Qualified Person' as defined by NI43-101. NI43-101 compliant technical reports for the pre-feasibility study and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Mundoro Mining Inc.
    Robert van Doorn
    CEO & President
    (604) 630-3593
    or
    Mundoro Mining Inc.
    Teo Dechev
    CFO & VP Corporate Development
    (604) 630-3591
    or
    Mundoro Mining Inc.
    Ben Chow
    Investor Relations
    (604) 630-3587
    Email: info@mundoro.com
    Website: www.mundoro.com