Mindoro Resources Ltd.

Mindoro Resources Ltd.

November 09, 2010 12:34 ET

Mindoro Commences Drilling Pan de Azucar Copper-Gold and Pyrite Project

EDMONTON, ALBERTA--(Marketwire - Nov. 9, 2010) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (FRANKFURT:WKN 906167) today announced that drilling has commenced on its Pan de Azucar Project, Iloilo Province, Philippines.

An initial program of approximately 1,000 meters will further evaluate the Valderama massive sulphide body where promising gold, copper, silver and zinc values were intersected by Mindoro in two scout-drill programs. The program will also lead to a preliminary options study on the suitability of the massive pyritic sulphide as feedstock for sulphuric acid production for processing of the Agata nickel laterite resource. 

Pan de Azucar Island covers an intensely altered volcanic caldera hosting the Valderama pyritic massive sulphide body and Asparin Hill porphyry copper-gold prospect. Fourteen drill holes in two programs partially outlined the Valderama sulphide body, a flat-lying and near-surface sheet of massive pyritic sulphides carrying significant base and precious metal values. Drill results included PDA-03 with 37.1 meters of 0.82% copper, 1.88 g/t gold from 16.3 meters depth; PDA-06 with 37 meters of 0.14 % copper, 1.25 g/t gold from 6 43 meters depth; PDA-08 with 40.25 meters of 0.69 % copper, 1.21 g/t gold, 4.34 g/t silver, and 0.63% zinc from 55.75 meters depth. The mineralization is hosted within a body of nearly pure pyrite containing from 36 to 42 percent sulphur. For further information regarding previous Pan de Azucar drill programs, refer to press releases on Mindoro's website dated October 2 and December 3, 2001; January 9, October 2, and November 7, 2002; and January 23, 2003.

The Valderama sulphide body is typically between 10 to 40 meters thick. Based on drilling, mapping and geophysical expression, Valderama is estimated to be approximately 200 meters wide by 800 meters long. The mineralization is open to the north for a further 250-300 meters, to the property boundary, where gossanous outcrops are present.

The Pan de Azucar Mineral Production Sharing Agreement covers 535 ha on Pan de Azucar Island and adjacent Panay Island. Under a 1997 agreement with a private Philippines company, Mindoro may earn a 75 percent interest in the Pan de Azucar Project through phased exploration expenditures and issues of shares. Mindoro has earned a 40 percent interest to date and has recently extended its right to earn the additional 35 percent to bring it to a total 75 percent interest, which will be attained during the current program.

Tony Climie, P.Geol, is Mindoro's Qualified Person as defined by National Instrument 43-101, who is responsible for monitoring the supervision and quality control of Mindoro's regional exploration programs and who 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 nickel, copper and gold 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 value-added direct shipping ore (DSO) operation to generate early cash flow is advancing as well as large scale potential for an onsite processing plant.

Mindoro has NI 43-101 Mineral Resource estimates on its Agata nickel-cobalt project totaling Measured and Indicated 32.6 million dry metric tonnes (DMT) at 1.04% Nickel and 0.05% Cobalt and Inferred 1.68 million DMT at 1.04% Nickel, 0.04% Cobalt. The Surigao regional Exploration Target is 50 million to 70 million DMT at 0.9% to 1.2% Nickel (see press releases dated January 11 and September 8, 2010). Drilling of the Surigao nickel laterite exploration target is in progress.

Mindoro also has NI 43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon which are the subject of a farm-in arrangement whereby Gold Fields Ltd may earn 75 percent interest through direct project expenditure. 

Drilling on the American Tunnels project at Agata has confirmed potential for a near-surface, bulk-tonnage gold target and deeper porphyry copper-gold targets and at Pan de Azucar the company has commenced drilling of copper-gold and massive pyritic sulphide targets. Other gold and copper-gold targets in the Surigao region will be reviewed prior to developing proposals for further drilling or joint venture.

The company's DSO and large scale production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that sufficient resources will be established and if 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.

The potential quantity and grade of the Exploration Target is conceptual in nature; it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation.

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 with respect to results of exploration, 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. The Company does not undertake to update forward looking statements except where required to do so by law.

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.
    Mindoro Head Office
    Penny Gould, VP Investor Relations
    780.413.8189 or Toll Free: 1.877.413.8187
    CHF Investor Relations
    Investor Relations - Canada
    Jeanny So, Director of Operations
    jeanny@chfir.com or ir@mindoro.com
    CHF Investor Relations
    Investor Relations - Europe
    Robert Sarcher, Director