Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

March 30, 2007 14:04 ET

Mundoro Announces Annual Financial Results for the Year Ended December 31, 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) - Mundoro Mining Inc. (TSX:MUN) (the "Company") announces the filing of the Company's financial and operating results for the year ended December 31, 2006. The highlights provided in this release should be read in conjunction with the Company's year end financial statements and Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in U.S. dollars unless otherwise stated.

Highlights

- The Company's consolidated net loss for the year was $6,911,414 or $0.18 per share compared with a net loss of $6,057,552 or $0.20 per share for the previous year. The net loss is attributable to:

- expending $3,226,458 on the Feasibility Study and Mineral Exploration costs;

- expending $4,537,560 on Other Corporate operations, of which $1,577,434 is non-cash accounting items; and

- the above were offset by earning interest income of $852,604.

- The Company ended the quarter with $19,130,742 in cash, cash equivalents and marketable securities and no debt.

For 2006, Mundoro moved forward in developing Maoling through a number of changes in management and additions to the project technical team to enhance the Company's ability to advance the Feasibility Study, develop a sustainable mining operation that will complement and benefit local communities, and build project awareness at the various levels of government in China.

The Company continues to be focused on the renewal of the business license, advancing the technical and environmental studies as well as the community relations work for the Maoling Gold Project, investigating financing alternatives for the construction of a mining operation at Maoling and taking advantage of opportunities for property acquisitions to build further shareholder value. The Company will continue to market to investors by attending investor conferences and road shows in North America, Europe and Asia to increase market awareness of the Company.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a TSX listed resource company focused on the exploration and development of the multimillion ounce, feasibility stage Maoling gold deposit in Liaoning Province, China. The Company has a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government. Thus far, two deposits that outcrop at surface have been outlined at Maoling in which disseminated, free-milling gold mineralization occurs within a sequence of metasedimentary rocks. Exploration and feasibility work conducted thus far has outlined the following Reserves and Resources, estimated using a 0.50 g/t gold cut-off grade:



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Tonnes Grade Contained Gold
(millions) (Au g/t) (million ozs)
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Zone 1 Pre-Feasibility Probable Reserve
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88.8 1.0 2.8
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Tonnes Grade Contained Gold
(millions) (Au g/t) (million ozs)
---------------------------------------------------------------------------
Zone 1 Measured & Indicated Resource(i)
---------------------------------------------------------------------------
161 0.92 4.8
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Total Zone 1 and 4 Inferred Resource
---------------------------------------------------------------------------
158 0.9 4.4
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(i) estimate includes Measured Resource of 4 million tonnes grading 1.31
grams gold per tonne


A pre-feasibility study completed in June of 2005 demonstrated the economic viability of developing a large-scale open-pit mine on the Zone 1 orebody to produce an average of approximately 328,000 ounces of gold per year for 8 years. The bankable feasibility is expected to be completed in later 2007.

The renewal of the exploration license for Maoling has been deferred since November 2005 pending the renewal of a business license for Mundoro's joint venture company, Liaoning Tianli Mining Company Ltd. Mundoro and its partner, Liaoning Aidi Resources Company Limited, have undertaken a strategy of engagement and building awareness with a wide range of government agencies in order to resolve the issue.

Investors are encouraged to review 'Risk Factors' associated with the Maoling project as outlined in the Company's prospectus documents and other regulatory filings, available on the SEDAR website at www.sedar.com.

The pre-feasibility described herein was prepared to broadly quantify the Maoling Zone 1 deposit's capital and operating cost parameters, and to further the development of the project. It was not prepared for use as a valuation of the deposits, nor should it be considered to be a final feasibility study. The information contained in the Study reflects various technical and economic conditions at the time of writing that can change significantly over relatively short periods of time. There can be no assurance that the potential results contained in the Study will be realized. The study was prepared by AMEC Americas Ltd. under the direction and oversight of Mr. Mark Pearson P.Eng. of Vancouver, BC, an 'Independent Qualified Person' as defined by National Instrument 43-101. Resource estimation for the Zone 1 area in 2006 was carried out in the Brisbane, Australia office of Golder Associates Pty Limited, an international earth sciences consulting group under the direction and oversight of Dr. Andrew Richmond, MAusIMM, an 'Independent Qualified Person' as defined by NI43-101. NI43-101 compliant technical reports for the pre-feasibility study and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Mundoro Mining Inc.
    Teo Dechev
    CFO & VP of Corporate Development
    (604) 669-8055
    or
    Mundoro Mining Inc.
    Ben Chow
    Investor Relations Manager
    (604) 669-8055
    (604) 669-8056 (FAX)
    Email: info@mundoro.com
    Website: www.mundoro.com