Medoro Resources Ltd.
TSX VENTURE : MRS

Medoro Resources Ltd.

September 27, 2010 10:36 ET

Medoro Resources Ltd.: Marmato Town Relocation Underway

TORONTO, ONTARIO--(Marketwire - Sept. 27, 2010) - Medoro Resources Ltd. (TSX VENTURE:MRS) is pleased to announce that it has been informed by the Marmato municipal authorities and the Department of Caldas (Colombia) that they have approved the building of new infrastructure related to the relocation of the town to the El Llano area, located 3 kilometres to the east of Marmato.

As part of this process, a new school with a capacity for 1,200 students, including 26 classrooms, washrooms, physics and chemistry laboratories, a cafeteria, sport field, computer sciences rooms, library, and auditorium. The cost of the facility is currently estimated at US$1.7 million. Once construction is completed, the existing school in Marmato will be relocated to El Llano. For the building of the new school, the municipality has already donated the necessary land.

Also, the bidding process for the construction of a new health facility for El Llano has commenced. This facility, which will replace the current one in Marmato, will be designed to provide first-level response for medical emergencies and surgeries as well as administrative offices, a childbirth room and other related services. It is expected that construction will commence within six months. The municipality of Marmato has already donated the necessary land. Funding for this phase, amounting to US$700,000, will be provided by the Caldas Government and the Marmato municipality. The second phase funds, estimated at US$1.0 million, have not yet been funded, but Medoro, as part of its social and relocation plans, has agreed to fund a portion of this cost, in conjunction with the municipal and departmental governments. 

In addition to the construction of a new school and hospital, the municipality has advised the Colombian Interior Ministry of its plans for the construction of a new municipal administrative headquarters in El Llano, including the mayor´s office, municipal council headquarters and secretary´s offices.

The mayor has also requested that the general commander´s office of the national police build a new police station with a capacity for 25 officers and related equipment in El Llano to replace the current one in Marmato, at an estimated cost of US$500,000. The municipality has already donated the necessary land.

Additionally, in support of the relocation, the Caldas Government has been paving and rebuilding portions of the roadway in the area. The work commenced in July, 2010 with an estimated cost of US$1.5 million.

As a result of geological instability in certain areas of Marmato as a result of historical mining activities, the mayor´s office has decided to relocate 15 high risk housing units to El Llano, at a cost of US$250,000. The land for this relocation will be contributed by the municipality.

Medoro has been developing a socialization plan for the Marmato Project and of the relocation of the town since January 2010. The company has had more than 100 meetings with the community in which more than 4,000 people have participated, in order to better inform the community about its social plan including the relocation of the town as well as its proposed environmental management plan related to the development of a large scale mining project.

Commenting on these developments, Serafino Iacono, Interim Chief Executive Officer stated, "We are extremely pleased to see the support and commitment of officials at the municipal and departmental levels, and the community in general, as we move forward with this project. Our vision is not just about moving the town so that we can build a mine, it is about resolving problems that have been created by hundreds of years of small scale mining, and building a better future for everyone."

About Medoro Resources Ltd.

Medoro Resources Ltd. is a gold exploration, development and mining company with a primary emphasis on Colombia. Medoro owns most of the prolific Marmato gold district and the producing Mineros Nacionales underground gold mine located in Zona Baja at Marmato. The Company is conducting an exploration and infill drilling program at its Marmato Project to expand and upgrade its already substantial gold resources there as the basis for its plan to develop a large open pit gold mine to realize the large potential of the Marmato Project. The Company's Marmato Project currently hosts measured and indicated gold resources of approximately 7.5 million ounces, and an inferred resource of approximately 2.2 million ounces.

Medoro has a 5% interest in the Frontino Gold Mines assets through a joint venture with Gran Colombia Gold Corp., which operates the joint venture and holds the other 95%. The 5% interest is a carried interest for one year, during which time Medoro has a back-in right option to increase its interest to 50% by paying 50% of the net purchase price, Finders Fees and any capital expenditures incurred by the joint venture up until the exercise of such option, plus a premium of 25% thereon. If Medoro does not exercise its back-in right, its 5% interest would be a participating interest subject to dilution if Medoro does not contribute it ongoing share of expenditures. The Frontino Gold Mines assets cover a large land position of 2,907 hectares in the northeast of the Department of Antioquia, Colombia.

Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela where it is continuing its efforts to obtain an exploitation permit to allow development of these gold properties when circumstances in Venezuela allow. Medoro owns interests in gold exploration properties in Mali in respect of which it is seeking possible joint venture partners to further explore these properties.

Additional information on Medoro Resources Ltd. can be found on the Company's website at www.medororesources.com and by reviewing the Company's profile on SEDAR at www.sedar.com.

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects, and transactions involving Medoro. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance 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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