Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : WKN 906167

Mindoro Resources Ltd.

November 27, 2006 09:28 ET

Mindoro Resources Ltd.: New High-Grade Gold-Silver Zone Intersected at Kay Tanda

EDMONTON, ALBERTA--(CCNMatthews - Nov. 27, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO) (FWB:WKN 906167) today reported additional results from a further four reverse circulation drill (RC) holes from the Kay Tanda epithermal gold-silver zone, located in the Archangel Project, the Philippines. Hole PL-23 returned 4.03 grams per tonne (g/t) gold and 179.16 g/t silver over 26 meters, from 0 to 26 meters, including 16.94 g/t gold and 1045.58 g/t silver (or 37.85 g/t gold equivalent(1)) over four meters. This intercept is followed by 12.24 g/t gold over two meters from 58 to 60 meters. Mineralization intercepts are believed to approximate true widths. Mineralization is open in several directions. The high-grade mineralization in PL-23 is interpreted to be part of another upflow (or "feeder") zone along a northeast-trending structure. Further drilling will target extensions of this zone.

Other significant intersections above the 0.3 g/t gold cut-off were: 0.43 g/t gold over 16 meters in PL-24; 0.44 g/t gold over 22 meters, followed by 8.15 g/t gold over two meters in PL-25 and 0.76 g/t gold over 34 meters in PL-26.

Meanwhile, diamond core hole KTDH-05 is in progress in the northeastern part of Kay Tanda. KTDH-05 is an angle hole to test below hole KTDH-04, and is currently at a depth of 300 meters. A second core rig has been contracted and is being mobilized to site this week. With the RC rig, this brings to three the number of drill rigs operating at Kay Tanda. Mindoro plans on drilling a minimum additional 7,000 meters at Kay Tanda, targeting both the low-grade, near-surface blanket form of mineralization as well as the steeper-dipping and deeper, high-grade "feeder" structures.

The western part of Kay Tanda, from where the latest drilling results are reported, was previously referred to as Pulang Lupa. Based on induced polarization data (see map with release dated October 23, 2006), Pulang Lupa is now believed to be continuous with Kay Tanda at depth, and future infill drilling will be carried out to confirm this.



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 23
---------------------------------------------------------------------------
9350N : 9600E Direction: 140 Incl: -70
degrees degrees
---------------------------------------------------------------------------
SAMPLE LENGTH Gold(1)
FROM TO (m) Au g/t Ag g/t Equiv g/t
---------------------------------------------------------------------------
0 26 26 4.03 179.16 7.61
---------------------------------------------------------------------------
Including 0 6 6 3.01 61.97 4.25
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& including 6 10 4 16.94 1045.58 37.85
---------------------------------------------------------------------------
& including 18 24 6 2.17 3.10 2.23
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58 60 2 12.24 3.85 12.31
---------------------------------------------------------------------------
64 66 2 1.48 1.50 1.51
---------------------------------------------------------------------------
PLRC 24
---------------------------------------------------------------------------
9350N : 9650E Direction: 140 Incl: -70
degrees degrees
---------------------------------------------------------------------------
26 42 16 0.43 1.59
---------------------------------------------------------------------------
58 60 2 0.66 0.90
---------------------------------------------------------------------------
PLRC 25
---------------------------------------------------------------------------
9500N : 9550E Direction: 140 Incl: -70
degrees degrees
---------------------------------------------------------------------------
SAMPLE LENGTH
FROM TO (m) Au g/t Ag g/t
---------------------------------------------------------------------------
20 42 22 0.44 N/R
---------------------------------------------------------------------------
Including 34 40 6 0.97 N/R
---------------------------------------------------------------------------
68 70 2 8.15 N/R
---------------------------------------------------------------------------
PLRC 26
---------------------------------------------------------------------------
9400N : 9700E Direction: 140 Incl: -70
degrees degrees
---------------------------------------------------------------------------
35 69 34 0.76 N/R
---------------------------------------------------------------------------
Including 51 57 6 1.57 N/R
---------------------------------------------------------------------------
79 83 4 0.59 N/R
---------------------------------------------------------------------------

(1) Gold equivalent calculations are based on silver price of US$ 12.00 /
oz and gold at US$ 600 / oz. No adjustments have been made for
different metallurgical factors and the gold equivalent calculation is
used for illustrative purposes.

N/R : Not yet received


A map accompanying this release 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 4 core drill holes at Kay Tanda to date. 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.

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
    or
    Ascenta Capital Partners Inc. - Investor Relations-Canada
    Trent Dahl
    (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.com