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

Mindoro Resources Ltd.

March 28, 2011 10:49 ET

Mindoro Reports High-Grade Gold and Copper Intersections at Pan De Azucar

EDMONTON, ALBERTA--(Marketwire - March 28, 2011) -

  • 39.2m of 1.00 g/t gold, 1.89% copper from 2.80m, including 17m of 0.94 g/t gold, 3.16% copper
  • 31.7m of 1.15 g/t gold, 0.48% copper from 1.60m, including 16.1m @ 2.11 g/t gold, 0.78% copper

Mindoro Resources Ltd. (TSX VENTURE:MIO) (ASX:MDO) (FRANKFURT:WKN 906167) is pleased to announce high grade gold and copper results from a further three drill holes from the current resource definition program on the Valderama massive sulphide body at Pan de Azucar Project, Iloilo Province, Philippines. Holes PDA-19 to PDA-21 gave the following results (intercepts approximate to true thicknesses):

Summary of Significant Intercepts for PDA 19 to 21                    
HOLE NO.   FROM (m )   TO (m )   RUN (m )   Au g/t   Ag g/t   Cu %   Zn %
PDA-19   71.00     94.00     23.00     0.43   1.85   0.10        
PDA-20   1.60     33.30     31.70     1.15   6.12   0.48        
Including   1.60     17.70     16.10     2.11   7.89   0.78        
PDA-21   2.80     42.00     39.20     1.00   15.71   1.89     2.02  
Including   18.10     35.10     17.00     0.94   24.39   3.16     4.17  

In addition, step-out drill holes PDA-22, PDA-23 and PDA-24, 50m to 100m to the northeast of the previously identified massive sulphide mineralization, have also located massive sulphides. Analytical results are not yet available for these drill holes.

"We are extremely encouraged by the shallow, high-grade, gold and copper results from Pan de Azucar. These results demonstrate continuity of the mineralization, and the location of extensions of the massive sulphides, with results to come, is also 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. The results reported in this release are from a further three holes completed from a program that has now been extended to at least 1,500 meters. 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. 

The current drill holes are expanding the mineralization and confirming continuity between the previously drilled 200 meter spaced sections, as well as indicating the presence of internal high grade material as seen in PDA-21, which will be followed up by more detailed drilling. PDA-19, with lower copper and gold values, was drilled close to the western margin of mineralization. The higher gold values encountered in the upper part of PDA-20 are due, to some extent, to supergene enrichment.

The Valderama massive sulphide is predominantly pyrite. Sulphur results received from PDA-18 included 25.63 meters of 47% sulphur and 46% iron from 35.6 meters depth, and 27.55 meters of 39% sulphur and 37% iron from 67.35 meters depth. 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.

A map accompanying this news release on Mindoro's website shows the location of all drill holes completed to date.

ABOUT PAN DE AZUCAR

Pan de Azucar Island covers an intensely altered volcanic caldera hosting the Valderama pyritic massive sulphide body and Asparin Hill porphyry copper-gold prospect 700 meters to the east. Fourteen drill holes in two previous 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.

Previous 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 and 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% sulphur and is typically between 10 to 40 meters thick. Based on drilling, mapping and geophysical expression, Valderama is estimated to be from 150 to 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.

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, January 23, 2003 and March 1, 2011.

The Pan de Azucar Mineral Production Sharing Agreement covers 535 ha on Pan de Azucar Island and adjacent Panay Island. Mindoro currently holds a 40% direct economic interest in the project and has recently met the expenditure threshold, earning the right to a total 75% direct and indirect interest from a private Philippine company.

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 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% interest in three of Mindoro's projects at Batangas through direct project expenditure.

Mindoro is assessing the potential to develop a value-added shipping ore nickel operation to generate early cash flow as well as large scale potential for an onsite processing plant in the Surigao District, Mindanao, where the company controls major nickel laterite resources and is drill testing regional targets. An integrated preliminary economic assessment on the Agata nickel laterite project is expected to be completed in the first quarter of 2011, leading to commencement of a prefeasibility study into an integrated on site nickel processing project.

Three drill programs are currently in-progress on the Company's projects including regional nickel drilling at Surigao; copper-gold drilling at Pan de Azucar and gold and copper-gold drilling by Gold Fields at Lobo (Batangas). 

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. 

Tony Climie, P.Geol, is Mindoro's Qualified Person as defined by National Instrument 43-101 and is a competent person as defined by the JORC Code, who is responsible for monitoring the supervision and quality control of Mindoro's exploration programs and who has reviewed and verified the technical information contained in this news release. Mr. Climie is an executive and a director of Mindoro and is a member of the 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 technical 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
    Jon Dugdale
    President and CEO
    +61 3 9614 5055
    jon@mindoro.com
    or
    Mindoro Resources Ltd. - Australia
    Nathan Ryan
    NWR Communications
    +0420 582 887
    nathan@mindoro.com
    or
    Mindoro Resources Ltd. - Canada
    Penny Gould
    VP Investor Relations
    +780.413.8187 or Toll free 1.877.413.8187
    penny@mindoro.com
    or
    Mindoro Resources Ltd. - Germany
    Robert Sarcher
    Aprendo Capital
    +49.821.6089051
    robert@mindoro.com
    www.mindoro.com