Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : WKN 906167
ASX : MDO

Mindoro Resources Ltd.

May 16, 2011 20:09 ET

Mindoro Reports 76 Meters of Copper-Gold in Step Out Hole at Pan De Azucar

- Thick mineralized intersection of 76.0m of 0.64 g/t gold and 0.38% copper from 11.1m

- including gold-silver zone of 8.8m of 1.65 g/t gold, 23.5 g/t silver from 11.1m

- including copper zone of 16.9m of 1.01% copper, 0.59 g/t gold from 23.1m

EDMONTON, ALBERTA--(Marketwire - May 16, 2011) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (ASX:MDO) (FRANKFURT:WKN 906167) is pleased to announce results from drillhole PDA-25, a step out hole testing for the eastern boundary of the Valderama massive pyritic sulphide mineralization at Pan de Azucar Project, Iloilo Province, Philippines. Hole PDA-25 intersected 76 meters (m) of 0.64 g/t gold and 0.38% copper from 11.1 m, including a gold-silver zone of 8.8 m of 1.65 g/t gold, 23.5 g/t silver from 11.1 m; a copper zone of 16.9 m of 1.01% copper, 0.59 g/t gold from 23.1 m and a massive sulphide zone of 60.1 m of 0.53 g/t gold, 0.31% copper 40.1% sulphur from 27 m. Results were also received for drill hole PDA-24 from a heavily faulted zone with no significant copper or gold in massive pyrite stringers.

Summary of holes PDA-24 and PDA-25 (intercepts approximate to true thicknesses):

Hole No.From (m)To (m)RunAu g/tAg g/tCu %Fe %S %
PDA-25
Total11.187.176.00.644.540.38
Including11.119.98.81.6523.480.26
Including23.140.016.90.593.061.01
Including27.087.160.10.532.140.3141.440.1
PDA-24
132.8144.511.7Results not significant2924

PDA-25 was drilled on the eastern side of the Valderama Zone to test potential extensions in this direction (see attached plan). It intersected nine meters of unaltered flow-dome andesitic volcanic rocks from surface before entering the highly altered and mineralized sequence below. This is most significant in that it indicates mineralization is continuous below the younger flow-dome, and remains open to the east and northeast.

"The 76 meter thickness of mineralization intersected in drill hole PDA-25 is extremely encouraging, particularly as the mineralization remains open to the east and north-east. The company will complete the current program and assess results prior to planning further drilling for un-tested extensions," said Mindoro's President and Chief Executive Officer Jon Dugdale.

Results from PDA-18, the first drill hole of the current drill program, were reported on March 01, 2011, results from PDA 19 to PDA 21 were reported on March 28, 2011 and results from PDA-22 and PDA-23 were reported on May 5, 2011. The results reported in this release are from a further two holes completed from a program that has now been extended to at least 1,500 meters. Drillholes PDA-26 and PDA-27, in progress, will complete the current program and will be reported once results are received. Promising gold, copper, silver and zinc values were intersected by Mindoro in two previous scout-drill programs and the objective of the current program is to establish an inferred resource estimate and locate extensions of the mineralization.

A preliminary options study is in progress, examining the suitability of the Valderama massive pyritic sulphide as feedstock for sulphuric acid production for processing of the Agata nickel laterite resource. Mindoro also plans to undertake bench-scale metallurgical testing to ascertain recoveries of copper, gold and other base and precious metals within the Pan de Azucar massive sulphide.

The attached plan and the longitudinal section illustrating the projected massive sulphide mineralization are also available with this release on Mindoro's website.

On behalf of the board of directors

Jon Dugdale, President and CEO

ABOUT MINDORO

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, 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. In addition Gold Fields are awaiting 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.

To view the Pan De Azucar - Massive Sulphide Projection and Pan De Azucar Massive Sulphide Mineralization maps, please visit the following link: http://media3.marketwire.com/docs/516mio_maps.pdf

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:
    Jon Dugdale
    President and CEO
    +61 3 9614 5055
    jon@mindoro.com

    Mindoro Resources Ltd. - Australia:
    Nathan Ryan
    NWR Communications
    +0420 582 887
    nathan@mindoro.com

    Mindoro Resources Ltd. - Canada:
    Penny Gould
    VP Investor Relations
    +780.413.8187 or Toll free 1.877.413.8187
    penny@mindoro.com

    Mindoro Resources Ltd. - Germany:
    Robert Sarcher
    Aprendo Capital
    +49.821.6089051
    robert@mindoro.com
    www.mindoro.com