Mindoro Resources Ltd.

Mindoro Resources Ltd.

July 06, 2011 13:52 ET

Mindoro Intersects Strong Nickel and Iron Grades at Agata South

- Highlights: 17.05m of 1.02% Ni, 10.50m of 1.06% Ni, and 11.70m of 1.07% Ni, all from surface

- High iron zone intersected: 4.7m of 50% Fe, 0.59% Ni and 0.11% Co from surface

EDMONTON, ALBERTA--(Marketwire - July 6, 2011) - Mindoro Resources Ltd (TSX VENTURE:MIO) (ASX:MDO) (FRANKFURT:WKN 906167) is pleased to report positive results from its Agata South nickel laterite drilling program, with strong nickel and iron grades intersected at surface and thicker than expected limonite and saprolite profiles.

Agata South is part of the larger Agata Project, located in the Surigao nickel district of NE Mindanao, Philippines, which hosts the NI 43-101 compliant Agata mineral resource several kilometers to the north. As illustrated on the accompanying map (also available with this release on Mindoro's website), Agata South encompasses three areas of nickel laterite mineralization, with the southern most of those initially drilled at 100m x 100m centers, now with in-fill drilling underway at 50m x 50m centers.

"We are very pleased with the strong nickel and iron results generated from drilling at Agata South," said Mindoro's President and Chief Executive Officer Jon Dugdale. "Upon completion of in-fill drilling in July, we will be in a position to upgrade the resource at the Agata Nickel Project. The upgraded resource will be incorporated into the prefeasibility study production schedule and the near-surface high-iron material will be evaluated for early stage production."

A total of 645 holes, for 7,045m of a 10,000m program to systematically test regional nickel targets, have been completed. A table of results from the first 41 drill holes at Agata South is attached to this release (also available on Mindoro's website), with highlights summarized below:

ASL-1: Total 12.1m @ 0.96% Ni from surface,
Including 4.7m @ 0.59% Ni, 0.11% Co, 50% Fe from surface
and 7.4 m @ 1.20% Ni from 4.7 m saprolite
ASL-3: Total 17.05m @ 1.02% Ni from surface,
Including 4.75m @ 0.53% Ni, 46% Fe from surface
and 12.3m @ 1.20% Ni from 4.75 m saprolite
ASL-4: Total 10.50m @ 1.06% Ni from surface
ASL-8: Total 14.30m @ 0.93% Ni from surface
Including 7.0m @ 0.77% Ni, 0.11% Co, 47% Fe from surface
and 7.3m @ 1.09% Ni from 7m saprolite
ASL-10: Total 11.70m @ 1.07% Ni from surface
Including 10.50m @ 1.08% Ni from 1.2m saprolite
ASL-45: Total 9.00m @ 1.05% Ni from 2.85m
ASL-49: Total 14.45m @ 0.94% Ni from 0.20m

Upon completion of the Agata South program, drilling will return to the northern laterite targets, such as San Jose.

On behalf of the board of directors

Jon Dugdale, President and CEO

For further information, please contact Mindoro's Melbourne office at +61 3 9614 5055.


Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on nickel exploration and development and copper and gold exploration in the Philippines with a strategy of advancing early-stage opportunities to production or joint venture.

Mindoro has NI 43-101 Mineral Resource estimates on its Agata nickel-cobalt project that include a measured and indicated resource of 32.6 million tonnes at 1.04% nickel for 340,000 tonnes contained nickel and NI 43-101 Mineral Resource estimates on its Lobo and Archangel (Kay Tanda) gold-silver projects, as well as an additional 22 porphyry copper-gold prospects. Senior gold producer, Gold Fields, may earn 75 percent interest in three of Mindoro's projects at Batangas through direct project expenditure.

Mindoro recently released an integrated preliminary economic assessment (PEA) on the Agata Nickel Project in the Surigao District, Mindanao, where the company controls major nickel laterite resources and is drill testing regional targets. The company has commenced a prefeasibility study into an integrated on site nickel processing project based on the PEA. The company is also assessing the potential to develop a thermally processed (upgraded) nickel ore operation to generate early cash flow.

Drilling is in progress testing the Pan de Azucar gold-copper massive sulphide where extensions at shallow depth are being tested. Gold Fields are finalising reports on the results from their recent drilling program at Lobo (Batangas).

The Company's thermal processing 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.

Mindoro's exploration programs are prepared and/or designed and carried out under the supervision of Tony Climie, P.Geo., who is a qualified person as defined by National Instrument 43-101 and is a competent person as defined by the JORC Code, and who has reviewed and verified the pertinent disclosure of exploration related technical information contained in this news release. Mr. Climie is an executive and a director of Mindoro and is a member of the Alberta Professional Engineers, Geologists and Geophysicists Association. Mr. Climie has more than five years of experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he has undertaken. Mr. Climie has consented to the release of the pertinent exploration related technical information in the form and context in which it appears.

Boyd Willis, MAusIMM, who is a qualified person as defined by National Instrument 43-101, and a competent person as defined by the JORC Code, has reviewed and verified the disclosure of a development nature contained in this news release. Mr. Willis has more than five years of experience which is relevant to the activity which he has undertaken and he has consented to the release of the pertinent development related information in the form and context in which it appears.

The Company's resource estimates were originally prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian Securities Administrators that governs how Canadian issuers disclose scientific and technical information about mineral projects and which is broadly equivalent to the JORC Code in Australia. All resource information is also expressed in terms of the JORC Code.

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. - Australia:
    Nathan Ryan
    NWR Communications
    +61420 582 887

    Mindoro Resources Ltd. - Canada:
    Jennie Guay
    CHF Investor Relations
    +416 868 1079

    Mindoro Resources Ltd. - Germany:
    Robert Sarcher
    Aprendo Capital