Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

September 05, 2007 08:30 ET

Mindoro Resources Ltd.: Further Positive Drill Results From Agata Nickel Laterite

EDMONTON, ALBERTA--(Marketwire - Sept. 5, 2007) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) is pleased to report results from a further twelve drill holes on one long drill cross section (10350N) of the northern laterite zone on the Agata project, Philippines. The limonite horizon averages 0.98 percent nickel and 43.51 percent iron over an average thickness of 3.51 meters. The underlying saprolite horizon averages 1.18 percent nickel over an average thickness of 4.88 meters. Mineralization grades and thicknesses meet Company expectations, and are in line with requirements for direct shipping grade material for ferro-nickel feedstock. Notwithstanding the recent softening of nickel price, demand remains for ferro-nickel feedstock. The Agata project has competitive advantages, in that it is two to three kilometers from tide water, with corresponding low haul distance and costs, and only two days shipping from China.

As reported on March 13, 2007, current objective on the Agata northern nickel laterite project is to define a NI 43-101 compliant resource adequate, initially, for three to five years of production at a rate of 500,000 to 700,000 wet metric tonnes per annum of direct shipping-grade material for the ferro-nickel markets of China, India and Korea. Mindoro has a target production date of the first half of 2008, and would ramp up production to one million tonnes or more per year thereafter depending on market demand. The initial drill program covers less then ten percent of the area of nickel laterite mineralization mapped to date at Agata. On June 20, 2007, Mindoro released a revised global Exploration Target for the northern zone of the Agata project (see "About The Agata Nickel Laterite Project" below).

Results from section 10350N are comparable with previously reported drill sections 10250N, 10300N, 9950N, 10000N, 10050N, 10100N, 10150N and 10200N (June 6 and 18, July 03, and August 14, 2007). A drill location map accompanies this release, as well as the cross section showing assay results. The iron-rich overburden above the limonite horizon also has high iron content of 41.96 percent, and 0.66 percent nickel, and has potential for blending purposes. This section covers an east-west distance of 600 meters and is open to the east, where mineralization is believed to continue for a further 1 kilometer approximately. The nickel and iron grades of the limonite horizon are robust, consistent between all nine sections reported to date, and are in line with grade requirements for ferro-nickel feedstock.

The Environmental Impact Statement is nearing completion and will be submitted in the near future. Mine planning is at an advanced stage.

On August 23, 2007, Mindoro announced that it had reached agreement with Delta Earthmoving Inc. to explore, and advance to production if warranted, a new nickel laterite prospect in the southern part of the Agata project, giving the Company the opportunity to advance another nickel laterite prospect to production at no risk and cost, and the potential to share in significant cash flow.

ABOUT THE AGATA NICKEL LATERITE PROJECT

The nickel laterite prospect is situated on the Agata Project, Surigao Gold District, northern Mindanao, Philippines. There are several nickel laterite mines already in production in the Surigao District, providing direct shipping-grade ore to markets and processing plants in China, Japan, Korea and Australia. The geological extension of the Agata nickel laterite mineralization into an adjacent property, one kilometer south of Agata, is in production and product is being shipped to markets in China (see map accompanying this release). Mindoro's Exploration Target for the various laterite horizons in the northern laterite area is as follows:

Combined ferruginous overburden, limonite and saprolite horizons: 50 to 60 million wet metric tones (WMT) at a grade of 0.9 to 1.1 percent nickel and 28 to 32 percent iron. This includes the following division of tonnage between the overburden/limonite horizon and the saprolite horizon:

- Combined ferruginous overburden and limonite horizons: 30 to 35 million WMT of material at a grade of 0.9 to 1.1 percent nickel and 40 to 44 percent iron.

- Underlying saprolite horizon: 20 to 25 million WMT of material at a grade of 1.0 to 1.4 percent nickel and 8 to 10 percent iron.

The reader is cautioned that the potential quantity and grade of the Exploration Target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. Until a feasibility study has been completed there is no certainty that the Company's projections will be economically viable.

The northern nickel laterite mineralization covers approximately 340 hectares. As shown on the accompanying map, a total of over 90 drill holes has been completed to date within this area. Average thicknesses and grades encountered and a specific gravity of 1.5 grams per cubic centimeter were used to arrive at the above Exploration Target. The Exploration Target does not include significant thicknesses of low-grade, partially lateritized saprolitic rock, grading in the 0.6 to 0.8 percent nickel range, that also has market potential. Nor does it include additional areas of nickel laterite mineralization further south on the Agata Project.

This Exploration Target will form the basis for evaluating several attractive value-added processing options, which includes constructing a local blast or electric furnace for nickel pig iron production. In the meantime, Mindoro will continue to fast-track the direct shipping ore scenario with the objective of achieving production in 2008. Uniquely, direct shipping grade nickel laterite deposits have a low-capital cost and offer a rapid route to production and cash-flow.

Programs are carried out under the supervision of Tony Climie, P.Geol., president of Mindoro, who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying is being performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. 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 advancing the Agata nickel laterite project towards production, Mindoro is carrying out a major resource delineation program on its Kay Tanda gold-silver project. The company has also identified 22 porphyry copper-gold prospects 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
    Investor Relations-Europe
    Richard Mayr
    +49.9421.785250
    +49.9421.785255 (FAX)
    Email: info@argentuminvest.co