Mindoro Resources Ltd.
TSX VENTURE : MIO

Mindoro Resources Ltd.

February 21, 2007 09:00 ET

Mindoro Resources Ltd.: Further Drill Hole Results from Kay Tanda Give High Gold and Silver Values

EDMONTON, ALBERTA--(CCNMatthews - Feb. 21, 2007) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT: WKN 906167) today reported results from a further six reverse circulation drill (RC) holes and partial results of one core (DH) hole from the Pulang Lupa Zone within the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, the Philippines.

Drill highlights include (intersections are believed to approximate true thicknesses):

- 28 meters of 3.43 grams per tonne (g/t) gold and 35.62 g/t silver in PLRC-33, including 8 meters of 10.05 g/t gold and 85.06 g/t silver

- 86 meters of 0.91 g/t gold and 16.53 g/t silver in PLRC-34, including 4 meters of 5.88 g/t gold and 134.03 g/t silver

- 22 meters of 0.99 g/t gold and 63.45 g/t silver in PLRC-35, including 6 meters of 2.37 g/t gold and 152.10 g/t silver

- 44 meters 1.89 g/t gold (silver not yet received) in PLRC-36, including 10 meters of 3.80 g/t gold and another 10 meters of 3.21 g/t gold

- 10 meters of 6.84 g/t gold (silver not yet received) in PLRC-37, including 4 meters of 15.66 g/t gold.

Tony Climie, President of Mindoro, commented, "We are pleased with the latest results. Pulang Lupa is coming together as a robust zone of epithermal mineralization with good, near-surface gold grades and especially high silver values."

The Pulang Lupa Zone is separated from the main Kay Tanda Zone by a small valley, but recent drilling suggests they are actually continuous. The drill holes include both infill and step-out holes. Pulang Lupa has now been drilled on 50 meter centers, defining near-surface epithermal gold-silver mineralization over at least 300 meters by 400 meters, and is still open in most directions. The adjacent Kay Tanda Zone has also been drilled on 50 meter centers, extends over at least 700 meters by 600 meters, and is also open in most directions.



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)

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PLRC 32 (RC Hole)
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Sample Length
From To (m) Au g/t Ag g/t
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9375N : 9595E Direction: 140 degrees Incl: -60 degrees
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12 60 48 0.78 3.01
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Including 24 40 16 1.44 3.64
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& including 52 54 2 2.10 4.60
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PLRC 33 (RC Hole)
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9400N : 9625E Direction: 320 degrees Incl: -80 degrees
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10 38 28 3.43 35.62
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& including 22 30 8 10.05 85.06
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64 72 8 1.30 1.01
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PLRC-33 gold, but not silver results
previously reported Feb. 13, 2007
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PLRC 34 (RC Hole)
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9450N : 9575E Vertical
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2 88 86 0.91 16.53
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Including 2 6 4 5.88 134.03
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& including 22 28 6 1.43 69.97
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& including 74 82 8 1.19 2.13
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less than
108 110 2 0.59 0.5
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128 130 2 0.80 4.80
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PLRC 35 (RC Hole)
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9475N : 9575E Direction: 140 degrees Incl: -60 degrees
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24 46 22 0.99 63.45
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Including 34 40 6 2.37 152.10
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60 62 2 0.63 1.50
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70 72 2 0.31 1.00
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PLRC 36 (RC Hole)
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9400N : 9500E Direction: 140 degrees Incl: -70 degrees
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0 44 44 1.89 N/R
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Including 2 12 10 3.80 N/R
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& including 26 36 10 3.21 N/R
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56 58 2 0.53 N/R
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64 70 6 0.34 N/R
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PLRC 37 (RC Hole)
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9350N : 9713E Direction: 140 degrees Incl: -70 degrees
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0 16 16 0.45 N/R
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48 58 10 6.84 N/R
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Including 48 52 4 15.66 N/R
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64 66 2 2.18 N/R
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PLDH 01 (Core Hole)
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9350N : 9550E Direction: 140 degrees Incl: -45 degrees
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3 26 23 0.34 3.15
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N/R: not yet received
Note: PLDH-01 assay results received down to 26m depth only


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.

PLANS

Drilling will continue to extend and evaluate the epithermal gold-silver mineralization at Kay Tanda; especially targeting and extending the high-grade mineralization encountered in recent holes, and testing areas of enhanced chargeability. A number of the RC holes will be deepened with the core rig to test elevations below 150 meters. Some core holes will also be continued to greater depths where alteration and mineralization suggest proximity to porphyry mineralization. Two metallurgical samples have been sent to Australia for testing and a third sample is being collected. This work will be followed by a National Instrument 43-101 resource estimate and a scoping study.

ABOUT KAY TANDA

Low sulphidation epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense hydrothermal breccias, quartz stockworks, with accompanying base metal sulphides, reflected by an induced polarization chargeability anomaly that is about 1.5 kilometers by 1.4 kilometers in extent. Only a relatively small part of the chargeability anomaly has been drill-tested to date; over about one kilometer by 300 to 600 meters at Kay Tanda (including the Pulang Lupa Zone). This is interpreted as part of a much larger mineral system consisting of epithermal gold-silver and base-metal mineralization telescoped into an underlying porphyry copper-gold system.

Mindoro has completed over 100 reverse circulation (RC) and eight core drill holes at Kay Tanda. Almost all holes have encountered near-surface, generally flat-lying to gently-dipping blanket-like low-grade mineralization, which is partially to strongly oxidized to depths of 40 to 60 meters and non-oxide below this. Drilling, especially at deeper levels, has encountered at least four steeper-dipping and much higher-grade zones, with bonanza grades to 100 g/t gold and over 1,000 g/t silver, in places, 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. Mineralization is thought to be related to swarms of hydrothermal breccias, and prospect-scale quartz stockworking, with the high-grade occurring 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). 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 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.
    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