Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

August 14, 2006 14:49 ET

Mundoro Announces Interim Financial Results for the Quarter Ended June 30, 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 14, 2006) - Mundoro Mining Inc. (TSX:MUN) announces that the Company's annual financial and operating results for the second quarter ended June 30, 2006 have been filed on the SEDAR system. The highlights provided in this release should be read in conjunction with the Company's interim 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.

Financial Highlights

- The consolidated loss for the quarter under Canadian GAAP was $1,938,896 or $0.05 per share compared with a loss of $1,556,402 or $0.06 per share during the same quarter of 2005, of which $85,598 (2005 - $185,286) was attributable to non-cash stock based compensation.

- Total project costs for the quarter were $1,284,122 compared with $1,116,578 during the same quarter of 2005, reflecting higher levels of activity in the preparation of the definitive feasibility study and associated documentation for the Maoling Gold Project, China.

- During the quarter, the Company raised $292,395 from the exercise of stock options, resulting in a total of 38,401,561 shares issued as at June 30, 2006.

- Interest income in the quarter amounted to $220,303 compared with $34,879 for the same quarter in 2005.

- The Company ended the quarter with $22,595,152 in working capital, compared with $23,847,662 at December 31, 2005.

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 rights to a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government, and has been exploring the 20 square kilometer exploration license area. 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 (prepared by Golder Associates Pty Ltd. (2006) and AMEC Americas (2005 & 2001)):



Zone 1 Probable Reserve(i)
---------------------------------------
Tonnes Grade Contained Gold
(millions) (Au g/t) (million ozs)
---------------------------------------
88.8 1.0 2.8
---------------------------------------
(i) Pre-Feasibility Study - AMEC 2005
---------------------------------------

Project-Wide Gold Resource Estimates
---------------------------------------
Tonnes Grade Contained Gold
(millions) (Au g/t) (million ozs)
---------------------------------------
Zone 1 Measured & Indicated Resource(i)
---------------------------------------
161 0.92 4.8
---------------------------------------
Total Zone 1 and 4 Inferred Resource
---------------------------------------
158 0.9 4.4
---------------------------------------
(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 Company has appointed an international team of engineers and environmental experts including Ausenco Limited, Golder Associates Pty Limited, Sinosphere and ENFI to optimize the mine/mill design and to complete the Definitive Feasibility Study that is now well underway.

The renewal of the exploration license for Maoling has been deferred since November 2005 by the Ministry of Land and Resources in Beijing 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 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 study ("PFS") 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 PFS 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 PFS will be realized. The PFS 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 PFS and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.

Cautionary Statement on Forward-Looking Information

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. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this document are qualified by these cautionary statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.


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

Contact Information

  • Mundoro Mining Inc.
    Colin H. McAleenan
    Chairman and CEO
    (604) 669-8055 or Toll Free in North America: 1-866-294-3111
    or
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055 or Toll Free in North America: 1-866-294-3111
    (604) 669-8056 (FAX)
    info@mundoro.com
    www.mundoro.com