Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

October 23, 2006 06:00 ET

Mindoro Resources Ltd.: 23.50 g/t Gold Over 21.3 Meters Intersected at Kay Tanda

EDMONTON, ALBERTA--(CCNMatthews - Oct. 23, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:WKN 906167) today reported results from a further nine reverse circulation drill (RC) holes and two core holes from the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines. Very high-grade gold mineralization was intersected over a thick interval in core hole KTDH-04; which returned 13.90 grams per tonne (g/t) gold over 37.3 meters, from 84 to 121.3 meters, including 23.50 g/t gold over 21.3 meters from 100 to 121.3 meters. Assay results are awaited from below 121.3 meters.

"Naturally we are very excited by this intersection" commented Mindoro's President, Tony Climie, P.Geol. "We will be placing strong emphasis on defining this newly-discovered high-grade zone and on locating other such zones. At the same time we will continue to systematically drill out the low-grade, near-surface, gold-silver resource at Kay Tanda, to establish a NI 43-101 resource, and evaluate its open-pit, heap-leach potential."

Other highlights from the current drill results include:

- Hole KT-58 intersected 1.32 g/t gold over 24 meters.

- Hole KT-60 intersected 82.16 g/t silver and 0.68 g/t gold over 36 meters.

- At the contiguous Pulang Lupa Zone, hole PL-21 intersected 1.53 g/t gold and 48.54 g/t silver over 17 meters followed by 9.82 g/t gold over 6 meters deeper in the hole.

ABOUT KTDH-04

KTDH-04 was drilled beside RC hole KT-54, a step-out of 100 meters north of Kay Tanda. KT-54 was lost at a depth of 82 meters. Increasing alteration and sulphides near the bottom of KT-54 led to the drilling of core hole KTDH-04 nearby to test the mineralization at greater depth, and as a check on RC grades. The two holes are located within an area of increased IP chargeability responses and near a north-east trending creek, which may be fault-controlled (see map accompanying release for location).

A zone of intense silica and illite alteration was intersected between depths of 89m and 126m along the margins of a wider pre-existing hydrothermal breccia, which is interpreted to have been a fluid conduit for epithermal fluids. The conduit is associated with cross-cutting pebble breccia dykes containing disseminated base-metal mineralization; numerous breccia veins infilled with crustiform high-temperature silica and clotted sphalerite-galena-chalcopyrite; zones of breccia-voids with open spaces filled by crustiform quartz and base-metal sulphides; and multi-cycle breccias that display matrix silicification and disseminated sphalerite-galena clots. The sulphides comprise dominantly pyrite (5-10%) with significant sphalerite, galena and chalcopyrite (2-5% collectively). Three internal zones of epithermal bonanza grade gold mineralization lie within the broader conduit of silica-illite-altered breccias, and are interpreted to represent intervals of focused channeling of magmatic hydrothermal fluids.

At about 130 meters depth this mineralized interval grades into a tremolite-actinolite-chlorite-rich assemblage that is overprinted by sericite. This zone is an inner high-temperature propylitic zone or an outer potassic zone which has undergone intense retrograde alteration. In either case it suggests relatively close proximity to a porphyry system. As frequently observed in Philippine copper-gold systems, the epithermal gold system may be telescoped onto the top of a porphyry copper-gold system at deeper levels.

The geometry of the high-grade intersection in hole KTDH-04 is uncertain at present. The intersection occurs within an elongate IP chargeability anomaly that appears to be a structurally-controlled upflow zone ("feeder zone") associated with north-east trending faults. Of particular note is the elevation of this hole. It is being drilled lower down the hilly terrain, and the high-grade mineralization occurs below an elevation of 150 meters. Very few other holes at Kay Tanda have been drilled down to this elevation level. All data sets are being reviewed and re-interpreted to target other high-grade zones within the very extensive areas of low-grade mineralization defined to date. A number of high-grade intercepts have previously been reported from Kay Tanda.



DRILL RESULTS:
(Based on a cut-off grade of 0.3 g/t gold)
SUMMARY OF SIGNIFICANT INTERCEPTS
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KTRC 56
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Sample
From To Length (m) Au g/t Ag g/t
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10100N : 9950E Vertical
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2 10 8 0.46 0.50
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Including 2 4 2 1.27 less than 0.5
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22 42 20 0.69 2.74
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Including 22 24 2 1.41 5.90
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& including 38 40 2 1.36 3.10
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62 74 12 0.37 0.62
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92 103 11 0.59 0.75
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Including 92 94 2 1.14 1.10
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101 103 2 1.19 less than 0.5
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117 119 2 0.52 less than 0.5
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KTRC-57
--------------------------------------------------------------------
10100N : 10000E Vertical
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46 52 6 0.37 4.67
--------------------------------------------------------------------
68 78 10 0.30 0.78
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KTRC-58
--------------------------------------------------------------------
9700N : 9650E Vertical
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34 42 8 0.44 0.90
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100 124 24 1.32 0.53
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including 100 102 2 3.02 0.60
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118 122 4 5.15 0.62
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KTRC 59
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9900N : 9650E Vertical
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82 90 8 0.92 N/R
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Including 82 84 2 2.01 N/R
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134 136 2 0.47 N/R
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156 158 2 0.58 N/R
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KTRC 60
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9900N : 9600E Vertical
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70 106 36 0.68 82.16
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Including 82 94 12 1.34 15.47
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122 144 22 0.86 1.05
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Including 136 144 8 1.76 0.70
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KTRC 61
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Direction:
9800N : 9950E 140 degrees Inclination -85 degrees
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30 42 12 0.48 3.35
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54 86 32 0.53 1.06
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Including 60 68 8 1.03 1.38
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100 102 2 0.32 0.65
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124 130 6 0.37 less than 0.5
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PLRC 20
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9450N : 9500E Vertical
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10 14 4 1.13 36.20
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44 48 4 0.80 1.90
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80 86 6 0.29 0.53
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PLRC 21
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9450N : 9550E Vertical
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1 18 17 1.53 48.54
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Including 1 8 7 2.94 101.73
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44 48 4 0.47 49.90
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74 80 6 9.82 6.83
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Including 74 76 2 19.63 14.00
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PLRC 22
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9350N : 9450E Vertical
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8 32 24 0.75 1.11
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Including 8 14 6 1.18 1.13
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& including 28 30 2 1.59 0.70
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KTDH-02
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Direction:
9800N : 10142E 140 degrees Inclination -70 degrees
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5 38 33 0.48 2.61
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Including 8 9 1 1.12 4.60
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75 83 8 0.47 0.84
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KTDH 04
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10100N : 9895E Vertical
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3 5 2 0.92 31.83
--------------------------------------------------------------------
13 28 15 0.66 2.30
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Including 16 17 1 4.07 5.85
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62 66 4 0.55 N/R
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84 121.3 37.3 13.90 N/R
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Including 100 121.3 21.3 23.50 N/R
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NR: not yet received.
KTDH04 drilling is ongoing, current bottom with assay returns is at
121.3m.
KTDH-03 will be deepened prior to releasing assay results.


The accompanying map ("Kay Tanda & Pulang Lupa Gold g/t X meters") found at http://www.ccnmatthews.com/docs/MIO1023.pdf shows the location of all drill holes to date and distribution of gold values in grams per tonne (g/t) times intercept length in meters for each hole. Using a cut-off of 0.3 g/t gold, mineralization intercepts for each drill hole are summed and plotted in contour form. Mindoro considers the contoured areas defined by numbers greater than 15 (g/t gold x length of intercept) to be of particular interest. This map format illustrates the distribution of mineralization and provides information on mineralization centers, structural controls, as well as mineralization trends.

PLANS

Mindoro will continue both in-fill drilling, to provide further confidence in internal continuity, and extension drilling outside the presently known mineralized area, where mineralization is open in most directions. Preparatory work on a National Instrument 43-101-compliant resource report has commenced. Particular emphasis will now be placed on defining and locating high-grade zones as seen in KTDH-04, and in the earlier holes KT-04, KT-28, KT-44 and KT-55. Additional drill sampling for metallurgical testing is in progress. This will be followed by a scoping study to commence later this year to further evaluate Kay Tanda's open-pit, heap-leach potential.

ABOUT KAY TANDA

Kay Tanda and the adjacent Pulang Lupa zone are part of a large area of low-sulphidation, epithermal gold-silver mineralization associated with quartz and sulphide stockworks and multi-episodic hydrothermal breccias in andesitic and dacitic volcanics and intrusives. As drill-defined to date, mineralization at Kay Tanda is about 700 meters by 400 meters in extent, and is open in several directions; in particular, to grid-west and grid north. Pulang Lupa, which may connect with Kay Tanda at depth, is about 300 meters by 300 meters in extent, and is also open in several directions. Kay Tanda mineralization extends under younger volcanic and sediment cover to the north, which gradually thickens northwards.

Gold and silver mineralization is associated with multiple quartz stockwork blanket-like bodies, which are flat to gently dipping, associated with varying amounts of pyrite and base-metal sulphides. Individual bodies can be over 100 meters thick (mineralization extends from near-surface to at least 178 meters depth in KT-44). The mineralization is commonly oxide down to 20 to 40 meters, to a maximum depth of 80 meters, then passes through a transition oxide / non-oxide zone of several tens of meters also.

As described in Mindoro's December 2, 2005, press release, two phases of metallurgical testing on Kay Tanda indicate excellent leaching characteristics

Intense porphyry copper-gold related phyllic (quartz-sericite-pyrite) and SCC (sericite-clay-chlorite) alteration plus abundant quartz veins/veinlets with low-grade copper-lead-zinc and molybdenum mineralization, continue to be encountered in all holes immediately below the overprinting epithermal gold-silver zone. In hole KTDH-04, outer potassic zone alteration has been intersected below 130 meters. The Kay Tanda epithermal breccia is interpreted as part of a very large hydrothermal breccia above, and overprinting a porphyry system. This porphyry potential constitutes a target for later diamond drill testing.

Previous results from Kay Tanda are reported in releases dated May 3, May 23, June 16, July 4, July 25, August 1, August 8, August 16, September 12, September 19, October 6, and October 10, 2006. Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples. Checks are being carried out to establish whether there is any significant variation between core hole and RC grades.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to the ongoing drill-delineation of a gold-silver resource at Kay Tanda, Mindoro has identified 22 porphyry copper-gold prospects and a nickel laterite prospect in the Philippines and has an aggressive strategy of drilling multiple targets in 2006.

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 of estimates and projections relating to production). 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 TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mindoro Resources Ltd.: HEAD OFFICE
    Penny Gould
    Executive Vice President
    (780) 413-8187
    Email: penny@mindoro.com
    Website: www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Trent Dahl
    INVESTOR RELATIONS-CANADA
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 228
    Email: info@mindoro.com
    or
    Argentuminvest GmbH
    Richard Mayr
    INVESTOR RELATIONS-EUROPE
    +49-9421-785250
    +49-9421-785255 (FAX)
    Email: info@argentuminvest.com