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

Mindoro Resources Ltd.

May 05, 2011 17:12 ET

Mindoro Reports High Grade Copper Intersections and Thick Extensions to the Pan De Azucar Massive Sulphide Mineralization

- 13m of 2.53% Cu and 0.62 g/t Au and 47.5m of 0.75 g/t gold from hole PDA-22

- Sixty metre thick extensions to the massive sulphides intersected to the east

EDMONTON, ALBERTA--(Marketwire - May 5, 2011) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (ASX:MDO) (FRANKFURT:WKN 906167) is pleased to announce results from a further two drill holes on the Valderama massive pyritic sulphide mineralization at Pan de Azucar Project, Iloilo Province, Philippines. Hole PDA-22 intersected 13 metres of 2.53% copper and 0.62 g/t gold from 10 metres, including 2 metres of 5.88% copper. This was followed by 47.5 metres of 0.75 g/t gold, 44% iron and 41% sulphur from 38.1 metres depth. Hole PDA-23 intersected intermittent massive pyritic sulphides from 50 metres to 76 metres followed by over 37 metres of massive pyritic sulphides from 81 metres depth. In addition PDA-25 intersected 60 metres of massive pyritic sulphide mineralization from 27 metres depth beneath younger volcanic cover to the east of PDA-22. Results are not yet available for this drillhole.

Summary of holes PDA-22 to PDA-23 (intercepts approximate to true thicknesses):

Hole No.From (m)To (m)RunAu g/tAg g/tCu%Fe%S%
PDA-22
10.0023.0013.000.628.612.534040
Including12.9014.902.000.5712.185.884142
38.1085.6047.500.751.010.094441
PDA-23
74.5576.552.000.691.854040
81.70119.0037.304140
Including81.7090.709.000.571.734440

PDA-22 and PDA-23 are step-out drill holes, 50 metres and 100 metres, respectively, along strike to the northeast of the previously drill-intersected massive sulphide mineralization. Further drillholes PDA-24 and PDA-25 are the eastern most step-out drillholes on the same sections as PDA-22 and PDA-23 respectively (see plan). The 60 metre thick intersection of massive pyritic-sulphide mineralization from 27 metres in PDA-25 lies under 27 metres of younger volcanic cover and opens up potential for a considerable extension of the mineralization to the east. Hole PDA-24 intersected intermittent massive sulphides. Analytical results are not yet available for PDA-24 and PDA-25.

"We are extremely encouraged by the shallow, high-grade, copper results from Pan de Azucar and the intersection of thick massive sulphides projecting under younger volcanics to the east. There are more results to come and so far it looks very positive," 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 while holes PDA 19 to PDA 21 were reported on March 28, 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 metres. 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 will be undertaken on 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 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 the Pan De Azucar Massive Sulphide Mineralization charts, please visit the following link: http://media3.marketwire.com/docs/mio_pda.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