Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

May 07, 2007 12:41 ET

Mindoro Resources Ltd.: Drill Results Expand Kay Tanda Significantly

EDMONTON, ALBERTA--(CCNMatthews - May 7, 2007) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) today reported results from four reverse circulation drill (RC) holes, and partial results from three core holes from the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines. Holes KTRC-104 and KTDH-12 have extended mineralization a further 350 meters to grid west and KTDH-11 extended mineralization 150 meters to grid northwest. In addition, high base metal values have been received from previously reported hole KTRC-101; assaying 5.96 grams per tonne (g/t) gold, 4.13 g/t silver, 3.31 percent zinc and 1.56 percent lead over 26 meters (interpreted as approximate true width), including 14 meters at 10.18 g/t gold, 6.71 g/t silver, 5.72 percent zinc and 2.45 percent lead. The latest drill results are from a combination of infill and extension drilling. The mineralization has now been extended to a total area of over one kilometer in grid east-west direction, and over one kilometer in grid north-south direction. Mineralization is still open in three directions.

The remaining drill holes completed continue to confirm internal continuity (see table below). Drilling to date has been on 50 meter centers, with some infill holes at 25 meter spacing on section to confirm internal continuity. Initially, Kay Tanda is being evaluated for its open-pit, heap-leach potential within the near-surface stockwork zone. Potential is also excellent for deeper, higher-grade veins, stockworks and breccias.

As reported on April 3, 2007, although mineralization is still open in most directions, Mindoro considers it has established a foundation on which to move forward to an advanced evaluation of the project's economic potential. Accordingly, a 43-101 resource estimate has been commissioned. Metallurgical and environmental base-line work is ongoing.

SUMMARY OF LATEST RESULTS

The table below summarizes results of the latest drilling.

(Based on a cut-off grade of 0.3 g/t gold)



---------------------------------------------------------------
KTRC 101(ii) (RC Hole)
---------------------------------------------------------------
Direction: Incl:
140 -70
10050N : 9650E degrees degrees
---------------------------------------------------------------
Sample
Length
From To (m) Au g/t Ag g/t
---------------------------------------------------------------
74.0 80.0 6.0 0.45 1.82
---------------------------------------------------------------
128.0 154.0 26.0 5.96 4.13
---------------------------------------------------------------
1.56% Pb 3.31% Zn
---------------------------------------------------------------
Including 138.0 152.0 14.0 10.18 6.71
---------------------------------------------------------------
2.45% Pb 5.74% Zn
---------------------------------------------------------------
KTRC 104 (RC Hole)
---------------------------------------------------------------
Direction: Incl:
140 -70
9894N : 9524E degrees degrees
---------------------------------------------------------------
92.0 120.0 28.0 0.61 17.18
---------------------------------------------------------------
148.0 176.0 28.0 0.67 0.72
---------------------------------------------------------------
190.0 194.0 4.0 0.32 0.50
---------------------------------------------------------------
KTRC 105 (RC Hole)
---------------------------------------------------------------
Direction: Incl:
140 -60
9800N : 9900E degrees degrees
---------------------------------------------------------------
8.0 44.0 36.0 0.50 0.54
---------------------------------------------------------------
KTRC 106 (RC Hole)
---------------------------------------------------------------
Direction: Incl:
320 -60
9800N : 9767E degrees degrees
---------------------------------------------------------------
10.0 62.0 52.0 0.53 0.59
---------------------------------------------------------------
72.0 94.0 22.0 0.39 0.61
---------------------------------------------------------------
104.0 106.0 2.0 0.40 0.50
---------------------------------------------------------------
112.0 116.0 4.0 0.31 0.50
---------------------------------------------------------------
124.0 126.0 2.0 0.51 0.50
---------------------------------------------------------------
KTDH 11 (Core Hole)
---------------------------------------------------------------
Direction: Incl:
60 -80
10163N : 9491E degrees degrees
---------------------------------------------------------------
185.0 186.0 1.0 4.88 0.50
---------------------------------------------------------------
194.0 197.0 3.0 0.74 0.93
---------------------------------------------------------------
0.34% Pb 0.31% Zn
---------------------------------------------------------------
205.1 209.0 3.9 1.78 0.51
---------------------------------------------------------------
Including 205.1 206.1 1.0 5.67 0.55
---------------------------------------------------------------
239.2 240.2 1.0 2.69 1.55
---------------------------------------------------------------
1.33% Pb 2.28% Zn
---------------------------------------------------------------
(drilled grid north for structural information, parallel to and
missing main stockwork veins)
---------------------------------------------------------------
KTDH 12 (Core Hole)
---------------------------------------------------------------
Direction: Incl:
320 -55
9847N : 9471E degrees degrees
---------------------------------------------------------------
268.3 290.6 22.3 0.41 0.65
---------------------------------------------------------------
313.0 348.0 35.0 0.58 0.58
---------------------------------------------------------------
Including 327.0 331.0 4.0 1.80 0.50
---------------------------------------------------------------
and including 339.0 341.0 2.0 1.15 0.60
---------------------------------------------------------------
KTDH 13 (Core Hole)
---------------------------------------------------------------
Direction: Incl:
140 -70
9950N : 10100E degrees degrees
---------------------------------------------------------------
1.0 36.0 35.0 0.44 2.00
---------------------------------------------------------------
72.0 76.0 4.0 0.37 1.70
---------------------------------------------------------------
89.0 99.0 10.0 0.50 1.05
---------------------------------------------------------------
KTRC 101(ii) Au values previously reported


A map accompanying this release and posted on Mindoro's website ("Kay Tanda Gold g/t X meters"), 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. Two assay cross sections (A-A' and B-B') accompanied the April 3, 2007, release.

ABOUT KAY TANDA

Low sulphidation epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense quartz stockworks, veins and hydrothermal breccias, with accompanying base metal sulphides. Kay Tanda is reflected by an induced polarization chargeability anomaly that is about 1.5 kilometers by 1.4 kilometers in extent, which is part of a much larger chargeability anomaly which extends over six kilometers along strike to the northeast. To date, drilling has been conducted only at Kay Tanda, which is interpreted as intermediate to low sulphidation epithermal quartz-carbonate-gold-silver-base-metal mineralization telescoped into the top of an underlying porphyry copper-gold system.

Mindoro has completed over 140 reverse circulation (RC) and ten core drill holes at Kay Tanda. Almost all holes have encountered near-surface, generally flat-lying to gently-dipping blanket-like low-grade stockwork mineralization. This is strongly to partially oxidized to depths of 40 to 60 meters and non-oxide below this. Drilling, especially at deeper levels, has encountered at least five steeply-dipping, much higher-grade zones with bonanza grades to 100 g/t gold and over 1,000 g/t silver, which are interpreted as structurally controlled upflow, or "feeder" zones. Further drilling and structural studies are in progress to determine the nature and controls of the high-grade zones. The high-grade mineralization appears to occur preferentially at elevations below 150 meters (ASL) within a boiling zone. Few holes have penetrated to this depth to date. Such upflow zones can be associated with bonanza mineralization and constitute some of the world's best epithermal gold-silver deposits.

Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying is performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. . Gold assays were by 50 gm fire assay fusion; where gold assays greater than 3 ppm were by gravimetric finish, and by AAS where the gold values were less than that threshold. Silver was determined by AAS after an HCl-HNO3-HClO4 digest. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). The Company is carrying out three major drill programs: resource delineation drilling on the Kay Tanda epithermal gold-silver prospect, reconnaissance drilling on the Calo porphyry copper-gold prospect, and advancing a significant nickel laterite prospect towards production; in addition to holding another 22 identified porphyry copper-gold prospects in the Philippines

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.
    Investor Relations-Canada
    Trent Dahl
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 228
    Email: info@mindoro.com
    or
    Argentuminvest GmbH
    Investor Relations-Europe
    Richard Mayr
    +49.9421.785250
    +49.9421.785255 (FAX)
    Email: info@argentuminvest.com