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

Mindoro Resources Ltd.

September 08, 2010 09:00 ET

Mindoro Resources Ltd.: Agata Nickel Resource Further Increased

EDMONTON, ALBERTA--(Marketwire - Sept. 8, 2010) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (FRANKFURT:WKN 906167) today announced a further significant increase to the Mineral Resource estimate for the Agata Nickel Project based on a review and reinterpretation of the basal saprolite contact and a change in model parameters. The Measured and Indicated resource has increased to 32.6 million tonnes at 1.04 percent nickel for 340,000 tonnes of contained nickel. This is an increase of 2.9 million resource tonnes and 33,000 tonnes of contained nickel compared to the previously announced estimate. In addition there is an Inferred Resource of 1.7 million tonnes at 1.04% nickel.

The recalculated mineral resource estimate is tabulated below.

    Metric             Contained Metal
(K Tonnes)
Classification Horizon K Tonnes Ni %   Co %   Fe %   Ni Co Fe
Measured Limonite 247 1.01 % 0.12 % 48 % 2 0.3 119
  Saprolite 535 1.15 % 0.03 % 11 % 6 0.2 59
  Subtotal 782 1.10 % 0.06 % 23 % 9 0.5 177
Indicated Limonite 9,963 0.94 % 0.11 % 46 % 94 11.0 4,583
  Saprolite 21,847 1.09 % 0.03 % 11 % 238 6.5 2,403
  Subtotal 31,811 1.04 % 0.06 % 23 % 332 17.5 6,986
Measured & Limonite 10,210 0.94 % 0.11 % 46 % 96 11.3 4,702
Indicated Saprolite 22,382 1.09 % 0.03 % 11 % 244 6.7 2,462
  Subtotal 32,592 1.04 % 0.05 % 23 % 340 18 7,164
                       
Inferred Limonite 260 1.00 % 0.11 % 44 % 2.6 0.3 117
  Saprolite 1,421 1.05 % 0.03 % 11 % 14.9 0.4 171
  Subtotal 1,681 1.04 % 0.04 % 17 % 17.5 0.7 288
  • Total metal contents in the reported resources represent metal in the ground and have not been adjusted for metallurgical recoveries and other factors which will be considered in later study
  • Mineral resources which are not mineral reserves do not have demonstrated economic viability
  • The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

The resource review and recalculation was carried out by Mark Gifford MSc (Hons), MAusIMM an independent qualified person as defined by NI 43-101, in conjunction with Quantitative Group in Perth, Australia. The resource estimation method applied was Ordinary Kriging. Cut-off grades applied to the resource were 0.5 percent within the Limonite zone and 0.8 percent within the Saprolite zone. Mr. Gifford has indicated that the density of drilling and continuity of mineralization is sufficient to classify the estimated resource and has verified and authorized the technical information detailed in this release. Mr. Mark Gifford has 22 years of experience as a professional geologist including in a geological managerial position at the Murrin Murrin nickel laterite project in Western Australia and experience on other Nickel Laterite projects around the world. The Ni 43-101 compliant technical report will be filed on SEDAR within 45 days. 

Initial open pit mine designs are in progress based on the new mineral resource model. The objective of this work is to produce a mineral inventory and preliminary production schedule based on the requirements of nickel pig-iron producing offtakers for 0.9% to 1.1% Nickel and >48% Iron Limonitic material and Chinese Electric Arc Furnace (EAF) and/or other acid leach or ferronickel processors that require material grading >1.5 percent Nickel at varying iron content. 

The major acid-leach project scoping studies, including additional metallurgical testing, are due for completion late September 2010. A thermal upgrading scoping study is also in progress through Hatch Engineering.

Regional drilling of the nickel laterite exploration target is progressing, initially in the Tapian area and nickel laterite mineralization has been intersected. Initial results are expected over the coming weeks.

The reader is cautioned that the potential quantity and grade of the Exploration Target is conceptual in nature; it is uncertain if further exploration will result in the Exploration Target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be 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 the company's Qualified Person as defined by National Instrument 43-101, 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. Sample preparation and assaying were performed by Intertek Testing Services, Phils., Inc. (ITS). The ITS Phils. facility is among Intertek's global network of mineral testing laboratories. It provides high quality assay analysis of mineral samples for nickel deposit exploration projects. Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium(Mg), aluminum (Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock analyses are done using X-ray Fluorescence (XRF). The samples are fused using lithium metaborate. XRF analysis determines total element concentrations that are reported as oxides. Intertek mineral testing laboratories implement quality protocols. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of repeat analyses plus split sample analyses and the use of standard reference materials and blanks. Mindoro has also conducted assay verification using standard samples and re-assaying field and pulp duplicates.

ABOUT MINDORO 

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro controls major nickel laterite resources in the Surigao District, Mindanao, where potential for a direct shipping ore (DSO) operation to generate early cash flow is being advanced as well as large scale potential for an onsite processing plant.

Mindoro has NI 43-101 Mineral Resource estimates on its Agata North nickel-cobalt project (August 2010) totaling Measured and Indicated 29.79 million dry metric tonnes (DMT) at 1.03% Nickel and 0.06% Cobalt and Inferred 1.46 million DMT at 1.01% Nickel, 0.04% Cobalt. The Surigao regional exploration target is 50 million to 70 million DMT at 0.9% to 1.2% Nickel (January 2010). 

Mindoro also has NI 43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon which are the subject of a farm-in arrangement whereby Gold Fields Ltd may earn 75% through direct project expenditure. Goldfields has commenced drilling on the Lobo project.

Drilling on the American Tunnels project has confirmed potential for a near-surface, bulk-tonnage gold target and porphyry copper-gold targets. Other objectives include progressing joint venture discussions on Mindoro's porphyry copper-gold prospects at Surigao.

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 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.

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.

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