Mundoro Mining Inc.

Mundoro Mining Inc.

May 03, 2007 09:04 ET

Mundoro Announces Interim Financial Results for the Quarter Ended March 31, 2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 3, 2007) - Mundoro Mining Inc. (TSX:MUN)(the "Company") announces the filing of the Company's financial and operating results for the quarter ended March 31, 2007. 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 All dollar amounts are in U.S. dollars unless otherwise stated.

Financial Highlights

- The Company's consolidated net loss for the quarter was $2,303,332
or $0.06 per share. The net loss is attributable to:

I. expending $363,164 on the Feasibility Study and Mineral
Exploration costs;
II. expending $2,144,370 on Corporate and Other Expenses, of
which $1,564,932 or 73% is non-cash accounting items; and
III. the above were offset by earning interest income of

- The Company's core burn rate (i.e. Corporate Expenses in the
financial statements) for the quarter was $579,438. It is
anticipated going forward that the core burn rate for the Company
will be approximately $2.1 million per annum.

- The Company ended the quarter with $18,492,842 in cash, cash
equivalents and marketable securities and no debt.

Progress on Feasibility Study

During the quarter, work on the Feasibility Study focused on improvements in the crushing and grinding circuit, including an evaluation of alternative comminution circuits, and on firming up potential cost benefits through sourcing mining and processing equipment locally in China. After the completion of this work, it is anticipated that work on the Feasibility Study will begin to wind down. In the quarter, Mundoro engaged Beijing General Research Institute of Mining and Metallurgy ("BGRIMM") to assist with environmental planning and evaluation. BGRIMM will coordinate its efforts with Golder Associates on the Environmental and Social Impact Assessment.

The Company sponsored the completion and publication of an independent Research Paper titled, "Research on Countermeasures of Protection of Water Environment for Maoling Gold Mine Project," written by a research group associated with Beijing's Qinghua University. The report concluded that the closed circuit treatment system, which Mundoro designed, will release no waste water and therefore, no direct or indirect pollution or damage will occur at the water resources downstream of the mine. This report is being circulated to the relevant government agencies in Liaoning Province and Beijing.

Sustainable Development and Community Relations

Mundoro continues to develop a comprehensive community development program in the surrounding areas of its Maoling Gold Project in Liaoning Province. The rural environment has basic infrastructure such as paved roads, grid-connected electrical service and communications. The Company will work with community leaders to provide further development in a variety of areas including basic sanitation, the provision of fresh water, local medical service improvements as well as assistance for scholastic and professional development. For the initial step, the Company has agreed to provide RMB 1.2 million over three years to fund educational, health and sanitation development in Gaizhou County. The value, scale and feasibility of Mundoro's sustainable development efforts will be determined in such a way that individual programs can be implemented at appropriate stages of Maoling's development.

Licensing and Government Relations

Mundoro continues to document and convey the economic, technical and environmental merits of the Maoling Gold Project to the county, municipal, provincial and national levels of the government in China as well as building further awareness on the project through the additional communication channels of the Canadian Embassy in China, Natural Resources Canada, China International Mining Group, Canada-China Business Council, Austrade and other agencies.

The Company continues to enjoy the strong support of the cities of Yingkou and Gaizhou in their plans for the economic development of their administrative area, of which the Maoling project is an important part of potential future economic generation.

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:

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

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 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

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

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.
    Robert van Doorn
    (604) 630-3593
    Mundoro Mining Inc.
    Teo Dechev
    (604) 630-3591
    Mundoro Mining Inc.
    Ben Chow
    Investor Relations
    (604) 630-3587
    (604) 669-8055 (FAX)