Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

May 23, 2006 13:44 ET

Mindoro Resources Ltd.: Kay Tanda Drilling Encounters Further Encouraging Gold Mineralization, Including Bonanza-Grade Vein

EDMONTON, ALBERTA--(CCNMatthews - May 23, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:OLM) today reported results of a further five drill holes from the Kay Tanda epithermal gold-silver prospect, located in the Archangel Project, Philippines. Highlights include 10 meters of 9.31 grams per tonne (g/t) gold in hole KT-4, which includes a bonanza-grade intercept of 1 meter of 70.97 g/t gold, 8.90 g/t silver, 1.06% copper, 1.35% lead and 2.74% zinc; 45 meters of 0.55 g/t gold in KT-8; and 110 meters of 0.44 g/t gold, including 14 meters of 0.90 g/t, in KT-9. Intense porphyry copper-gold related phyllic alteration continues to be encountered in all holes immediately below the overprinting epithermal gold-silver zone.

Evaluation by an independent consultant, Dr. Bruce Rohrlach, suggests Kay Tanda is a classical low-sulphidation gold-silver system. The upper funnel-shaped part consists of low-grade, potentially bulk-mineable gold-silver mineralized quartz stock-works. Lower down, at around 130 meters depth, the bonanza vein in KT-4 was encountered. This level is interpreted as the boiling zone where other such bonanza veins are expected to occur. This is consistent with epithermal gold-silver systems seen in New Zealand and many other Pacific Arc locations.

"Grades of the upper stock-work zone are in line with expectations and we are optimistic that we can establish the presence of an economic open-pit, heap-leach project, especially with current and anticipated gold prices. We are particularly excited by the bonanza intersection in KT-4. This is a new target type at Archangel, and we believe that we will find more of these very high-grade veins," said Tony Climie, president of Mindoro. "We have embarked on a major drilling campaign over the next year to establish the economic potential of the near-surface stock-work gold-silver zone as well as the underlying bonanza veins, and the porphyry copper-gold system we interpret below."

A reverse circulation drill rig has now completed 12 drill holes on Kay Tanda. Based on results to date, the program will be expanded from the originally planned 20 to 25 drill holes to at least 40 holes. Drilling has being carried out on 100 meter-spaced centers to date, but will close in to 50 meter spacing on most sections. A diamond core rig will be moved onto Kay Tanda during the summer to search for more bonanza veins, and continue to depth to evaluate the porphyry copper-gold targets.

SUMMARY OF DRILL RESULTS

Drill results from KT4 to 9 are summarized below. KT-1 to 3 were reported on May 03, 2006. Oxide mineralization extends from 40 to 70 meters depth. Near-surface gold-silver intersections are believed to represent near-horizontal zones of mineralization and to approximate true thicknesses. The narrower, higher grade and bonanza intersections below are probably veins whose orientation and width will require more drilling to establish.

Near-surface mineralization occurs over a large area at Kay Tanda, exceeding 800 meters along strike, with widths ranging from 200 to over 400 meters. Previous metallurgical tests were positive. The current drill program has the objectives of defining the gold-silver resource, collecting samples for further metallurgical testing, discovering more bonanza veins, and gain information on the interpreted porphyry-copper-gold system beneath.



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SUMMARY TABLE : KTRC 04 TO 09
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KTRC-04
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9800N : 9800E : Vertical
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Sample
From To Length
(m) (m) (m) Au, g/t Ag, g/t
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5 26 21 0.43 0.82
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Including 19 26 7 0.60 0.82
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50 55 5 0.45 0.56
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62 68 6 1.25 1.44
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100 106 6 1.06 0.70
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Including 105 106 1 5.25 1.15
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133 143 10 9.31 1.74
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Including 133 134 1 70.97 8.90
------------------------
1.06%Cu; 1.35%Pb;
& 2.74%Zn
------------------------------------------------------------
------------------------------------------------------------
KTRC-05
------------------------------------------------------------
10000N : 10100E : 75 Degree Inclination: 140 Degree Direction
------------------------------------------------------------
7 11 4 0.47 1.07
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15 17 2 0.47 2.20
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72 75 3 0.86 2.93
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------------------------------------------------------------
KTRC-06
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9900N : 9800E : 70 Degree Inclination: 140 Degree Direction
------------------------------------------------------------
8 9 1 0.35 less than 0.50
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16 18 2 0.40 0.60
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------------------------------------------------------------
KTRC-07
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9900N : 10175E : 70 Degree Inclination: 140 Degree Direction
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3 20 17 0.36 0.97
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27 37 10 0.56 2.42
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79 81 2 0.59 0.75
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89 93 4 0.70 1.48
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106 107 1 9.50 1.50
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KTRC-08
------------------------------------------------------------
9900N : 10100E : 70 Degree Inclination: 140 Degree Direction
------------------------------------------------------------
3 48 45 0.55 2.80
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85 87 2 0.76 less than 0.5
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91 98 7 0.74 less than 0.5
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KTRC-09
------------------------------------------------------------
9750N : 10100E : 70 Degree Inclination: 140 Degree Direction
------------------------------------------------------------
0 110 110 0.44 2.06
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Including 26 40 14 0.90 1.43
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Including 64 70 6 0.89 5.27
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Balibago Prospect

A diamond core drill rig has commenced testing the Balibago porphyry copper-gold prospect, also on the Archangel Project, and is currently at a depth of 140 meters.

Programs are carried out under the supervision of Tony Climie, P. Geol., who is a qualified person as defined by National Instrument 43-101. Normal Quality Control and Quality Assurance procedures are being carried out, utilizing 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 (OLM). 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.


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
    (780) 426-2716 (FAX)
    penny@mindoro.com
    www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Marshall Farris
    Investor Relations
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 22
    info@mindoro.com