Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

April 19, 2007 09:20 ET

Mindoro Resources Ltd.: Update From Agata Nickel Laterite Project

EDMONTON, ALBERTA--(CCNMatthews - April 19, 2007) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) is pleased to provide an update from the Agata nickel laterite project, where five coring drill rigs are in operation. Both limonite and saprolite horizons of the laterite are substantially thicker than anticipated, not only increasing tonnage potential, but also expanding market potential for the higher-value nickel material in the saprolite horizon. Haul road design and environmental compliance work are currently being initiated.

As reported on March 13, 2007, five coring drill rigs are operating on the Agata nickel laterite project, with the objective of defining 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 very high demand ferro-nickel markets of China and SE Asia. Mindoro has a target production date of the first half of 2008. This initial drill program covers less then 20% of the area of nickel laterite mineralization mapped to date at Agata.

To date, 25 drill holes have been completed for a total of 714 meters. Holes are being drilled on 50 meter centers. The nickel laterite horizons have been substantially thicker than anticipated. The upper limonite horizon has averaged 10.23 meters in thickness, while the saprolite horizon below has averaged 15.94 meters in thickness. Average thickness of the entire nickel laterite horizon is 26.17 meters, considerably exceeding expectations and meaning initial tonnage objective will be reached earlier and increasing overall tonnage potential of the project. The substantially thicker intercepts of the saprolite horizon in the latest drill results is particularly encouraging, as the saprolite characteristically has relatively higher nickel grades than the overlying limonite horizon.

The first assay results are expected to be received in about ten days and will be reported on a section by section basis as received. It is expected that drilling will be completed, and the resource estimate commenced by mid-May. Topographic surveying is nearing completion and planning has been initiated for a haul road to the nearby coast. Discussions are in progress with environmental consulting groups to complete the Environmental Compliance Certificate, a pre-requisite for production. Mindoro continues to receive expressions of interest from China and, more recently, India, to supply nickel and ferro-nickel feedstocks.

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 release of March 13, 2007).

The very high demand for ferro-nickel feedstock for stainless steel production in the Asia-Pacific region, and high nickel prices, presents a great opportunity to get the Agata Project into production fast, and to generate early cash flow. Uniquely, direct shipping grade nickel laterite deposits offer a low-capital cost and rapid route to production and cash-flow.

In 2006, thirty-five wide-spaced drill holes at Agata produced encouraging results, with nickel and iron grades in the range of material in high demand for the rapidly expanding ferro-nickel market for stainless steel production in China and SE Asia. Results were reported in a release dated July 6, 2006. Based on the 2006 drilling, Agata is an excellent Exploration Target with potential for 2 million to 3.5 million tonnes at a grade of 0.9% to 1.2 % nickel and 40 % to 45 % iron, adequate for three to five years production. The latest drill results, with their substantially thicker intercepts of the saprolite horizon, which characteristically has relatively higher nickel grades than the overlying limonite horizon, suggests potential for segregating higher-value feed for nickel processing plants in the Philippines or elsewhere; in addition to the high-iron nickel laterite feed for the ferro-nickel market.

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.

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 the Agata nickel laterite project, 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. (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