Mindoro Resources Ltd.

Mindoro Resources Ltd.

November 30, 2006 09:00 ET

Mindoro Resources Ltd.: Drilling to Commence on Promising Calo Porphyry Copper-Gold Prospect

EDMONTON, ALBERTA--(CCNMatthews - Nov. 30, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:WKN 906167) today reported that a major program of geophysical surveying over the Calo porphyry copper-gold prospect has been completed, defining an unusually large and intense Induced Polarization (IP) chargeability anomaly within a very favorable geological setting. About 80 percent of the geophysical target is covered by younger volcanic ash and flows. However, near the western and eastern margins, erosional windows expose many low and high-sulphidation copper-gold showings and porphyry-related alteration and mineralization. Calo is located within Mindoro's Batangas projects, Luzon Island, the Philippines, and is approximately nine kilometers south of Phelps Dodge's Taysan porphyry copper-gold deposit. The Batangas projects cover a well-mineralized copper-gold belt and include a number of promising porphyry prospects, as well as the Kay Tanda epithermal gold-silver project, where resource delineation is continuing. A drill contract has been awarded for Calo, and drilling is scheduled to commence within a week.

The geophysical survey was performed by Elliott Geophysics International Pty. Ltd of Australia. Background chargeability values are in the range of five to eight msecs. An area of at least three kilometers by six kilometers of greater than 30 msecs has been defined, which encompasses a cluster of at least four zones of greater than 60 msecs, aggregating 1.6 kilometers by 5.5 kilometers. This includes values to as much as 100 msecs. These chargeability values suggest large concentrations of metal sulphides below the younger cover volcanics, which geological evidence suggests are related to a cluster of porphyry copper-gold centers. The chargeability anomalies occur at the intersection of strong regional north to south, and northeast to southwest structural features. Magnetic data are currently being processed. Summary maps of the geophysical results will be posted on Mindoro's website in the near future.

Geology of the Calo area consists of young cover volcanic ash and flows which mask the older, prospective rocks comprising volcanics and intrusives. Evidence that the sulphides defined by the IP survey relate to porphyry copper-gold mineralization include; porphyry copper-gold mineralization has already been drill-intersected by Mindoro on the far-eastern margin of the Calo chargeability anomaly in an area of much lower chargeability values (maximum of 28 msecs), and where Pica drill hole 2 intersected 213 meters of 0.18 percent copper and 0.30 grams per tonne gold; erosional windows of argillic, advanced argillic, SCC (sericite-clay-chlorite), and peripheral propylitic alteration occur on the western margins of Calo; copper-stained, massive silica boulders, interpreted as porphyry system lithocap, were located in the southern part of Calo; abundant epithermal copper and gold showings occur along the western and eastern margins of Calo, and include high-sulphidation epithermal copper-gold-silver veins; the occurrence of a diatreme breccia. All are features characteristic of Philippine porphyry copper-gold systems.

In addition, in the southwest part of Calo, outcrops of young volcanic agglomerate cover, with clasts cemented by supergene copper minerals and silica have been mapped over an area of 100 meters by 300 meters. Two channel samples gave 2.62 percent copper over 30 meters, and 2.17 percent copper over 20 meters. This exotic copper occurrence, which can be associated with South American porphyry copper deposits, also implies a significant copper source in the underlying rocks.

A 3,500 meter drill contract has been awarded to United Philippine Drilling of Australia and a large diamond drill rig is being mobilized to Calo this week. Given the very large size of the target area, initial planning is to drill six drill holes, spaced a kilometer or more apart, as a preliminary test of the anomaly cluster.

Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101.


Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to the resource delineation being carried out at Kay Tanda, the company 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 2006/2007.

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