Mindoro Resources Ltd.
TSX VENTURE : MIO

Mindoro Resources Ltd.

December 12, 2006 09:00 ET

Mindoro Resources Ltd.: New Drill Results Further Extend Mineralization at Kay Tanda

EDMONTON, ALBERTA--(CCNMatthews - Dec. 12, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(Frankfurt: WKN 906167) today reported additional results from a further eight reverse circulation drill (RC) holes and one core hole from the Kay Tanda epithermal gold-silver zone, located in the Archangel Project, the Philippines. Most RC holes were drilled to test extensions to the near-surface low-grade, blanket-like form of gold-silver mineralization. Hole KT-65, with 62 meters of 0.47 grams per tonne (g/t) gold, extended mineralization 100 meters to the north-east beyond known limits. PL-27, with 14 meters of 0.86 g/t gold and 14.9 g/t silver, extended mineralization 50 meters to the north-west of known mineralization. Infill hole PL-28, with 70 meters of 0.42 g/t gold and 8.66 g/t silver from surface, further confirmed internal continuity. Intersections are believed to approximate true thicknesses.

Based on the encouraging results so far at Kay Tanda, a second core rig has been mobilized to site and has commenced drilling in the north part of Kay Tanda. With the RC rig, three drill rigs are now operating at Kay Tanda. Management has approved an additional 7,000 meters of drilling, targeting both the low-grade, near-surface blanket form of mineralization as well as the steeper-dipping and deeper, high-grade zones. The current RC rig is being replaced by a larger rig capable of drilling to greater depth.

Core hole KTDH-05, an angle hole which targeted high-grade mineralization in KTDH-04 at depth (reported in a release dated November 14, 2006), intersected 29 meters of 0.91 g/t gold from surface, part of the near-surface low-grade blanket form of mineralization. This extended mineralization a further 100 meters beyond previously known limits. The hole did not intersect the high-grade at depth, possibly undershooting the mineralization in KTDH-04. Further drilling and structural studies are in progress to determine the nature and controls of the high-grade zones, which have been encountered in at least four widely distributed areas at Kay Tanda. 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.

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 62
---------------------------------------------------------------------------
FROM TO SAMPLE LENGTH (m) Au g/t Ag g/t
---------------------------------------------------------------------------
9750N : 9700E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
1 10 9 0.35 0.70
---------------------------------------------------------------------------
48 50 2 0.35 less than 0.5
---------------------------------------------------------------------------
KTRC 63
---------------------------------------------------------------------------
9850N : 10050E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
20 28 8 0.44 8.75
---------------------------------------------------------------------------
KTRC 64
---------------------------------------------------------------------------
9950N : 9850E Direction: 140 degrees Incl: -75 degrees
---------------------------------------------------------------------------
0 2 2 0.36 0.65
---------------------------------------------------------------------------
KTRC 65
---------------------------------------------------------------------------
10200N : 9950E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
16 18 2 0.49 2.05
---------------------------------------------------------------------------
22 24 2 0.30 0.90
---------------------------------------------------------------------------
36 98 62 0.47 0.61
---------------------------------------------------------------------------
Including 54 56 2 2.20 0.85
---------------------------------------------------------------------------
& including 60 62 2 1.34 0.50
---------------------------------------------------------------------------
& including 72 76 4 1.30 0.50
---------------------------------------------------------------------------
& including 96 98 2 1.80 less than 0.5
---------------------------------------------------------------------------
106 108 2 0.42 less than 0.5
---------------------------------------------------------------------------
114 116 2 0.53 less than 0.5
---------------------------------------------------------------------------
136 138 2 0.65 less than 0.5
---------------------------------------------------------------------------
KTRC 66
---------------------------------------------------------------------------
9700N : 9700E Direction: 140 degrees Incl: -75 degrees
---------------------------------------------------------------------------
32 40 8 0.31 less than 0.5
---------------------------------------------------------------------------
44 46 2 0.86 0.60
---------------------------------------------------------------------------
68 74 6 2.31 0.77
---------------------------------------------------------------------------
KTRC 67
---------------------------------------------------------------------------
9600N : 9900E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
34 36 2 0.44 N/R
---------------------------------------------------------------------------
66 70 4 0.37 N/R
---------------------------------------------------------------------------
80 82 2 1.47 N/R
---------------------------------------------------------------------------
PLRC 27
---------------------------------------------------------------------------
9400N : 9450E Vertical
---------------------------------------------------------------------------
16 18 2 0.33 0.70
---------------------------------------------------------------------------
34 48 14 0.86 14.90
---------------------------------------------------------------------------
Including 40 44 4 1.90 37.53
---------------------------------------------------------------------------
80 90 10 0.38 0.66
---------------------------------------------------------------------------
PLRC 28
---------------------------------------------------------------------------
9450N : 9600E Direction: 140 degrees Incl: -75 degrees
---------------------------------------------------------------------------
2 72 70 0.42 8.66
---------------------------------------------------------------------------
Including 44 48 4 1.42 28.83
---------------------------------------------------------------------------
PLRC 29
---------------------------------------------------------------------------
9400N : 9380E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
54 60 6 0.37 9.28
---------------------------------------------------------------------------
68 70 2 0.72 0.60
---------------------------------------------------------------------------
KTDH 05
---------------------------------------------------------------------------
10100N : 9800E Direction: 140 degrees Incl: -70 degrees
---------------------------------------------------------------------------
3.0 32.0 29 0.91 1.85
---------------------------------------------------------------------------
Including 4.0 10.0 6 2.29 2.86
---------------------------------------------------------------------------
39.0 42.0 3 0.56 1.63
---------------------------------------------------------------------------
52.0 56.0 4 0.32 0.65
---------------------------------------------------------------------------
64.0 67.0 3 1.12 1.87
---------------------------------------------------------------------------
271.0 276.2 5.2 1.50 0.71
---------------------------------------------------------------------------
N/R: not yet received


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 and base-metals 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. Preparatory work on a National Instrument 43-101-compliant resource report has commenced. Two metallurgical samples have been sent to Australia for testing and a third sample is being collected. This work will be followed by 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, and metal sulphides which are 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. 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 80 reverse circulation (RC) and five core drill holes at Kay Tanda. Early drill holes were dominantly within near-surface, generally flat-lying to gently-dipping blanket-like low-grade mineralization, which is partially to strongly oxidized. Drilling, especially at deeper levels, has encountered at least four steeper-dipping and much higher-grade zones, with bonanza grades in places, which are interpreted as structurally controlled upflow, or "feeder" zones. 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. 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 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.

To view the map accompanying this press release please click on the following link: http://www.ccnmatthews.com/docs/MIO1212.pdf

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