Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

November 10, 2005 11:11 ET

Mundoro Announces Interim Results for Third Quarter, 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2005) - Mundoro Mining Inc. (TSX:MUN) announces that the Company's interim financial and operating results for the quarter ended September 30, 2005 have been filed on the SEDAR system. The highlights provided in this release should be read in conjunction with the Company's unaudited interim financial statement and Management Discussion and Analysis for the third quarter, which is available on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars.

Operations Update

Following completion of the Pre-feasibility Study on the Maoling Gold Project in the second quarter, the Company formed an integrated engineering team to complete the Definitive Feasibility Study ("DFS") and to help advance the permitting process. Overall project manager, Ausenco Limited, developed a schedule for all feasibility activities and has developed a scheme for metallurgical testing. Golder Associates Pty Limited ("Golder") has started work on updating the resource estimate for Zone 1 for the DFS. The new resource numbers are expected near year end. Golder and Sinosphere Corporation have developed the outline for the Environmental and Social Impact Assessment and work on gathering the input data has commenced. Golder also has redesigned the tailings storage site in a more favorable location and has designed the geotechnical drilling program. Intercedent, Mundoro's political advisors, have established an awareness program in Liaoning to enhance support for the project. The DFS process is overseen by Mr. Ivor Whitefield who has over 30 years experience in mine construction and project management and was most recently Newcrest's site development manager for the large scale Telfer gold-copper project in Western Australia.

The Company's infill and technical drilling programs continued through the quarter and to the end of October had completed 15,324 metres in 57 holes in Zone 1. Extensions to mineralization beyond the limits of the resource envelope at the south end of Zone 1 have been demonstrated and the deposit remains open in this direction. Drilling has demonstrated relative displacements of mineralization across northeast faults at the south end of the deposit. Results from the drilling completed during the quarter will greatly enhance the integrity of the geological model prior to the next resource modeling and estimation for Zone 1. Subsequent to the end of the third quarter mineralization was intercepted west of Zone 1 suggesting potential for additional mineralization between Zone 1 and Zone 4. Follow-up in this area is being planned for next season and will commence upon the renewal of the exploration license.

The business license of the Company's joint venture company, Liaoning Tianli Mining Company Limited ("Tianli"), lapsed on August 31, 2005. Discussions held in early September with senior officials of the Provincial Government of Liaoning resulted in reassurances that the application was being processed but as of this date the license extension has not been received. The Company has no reason to believe that the license will not be issued.

Subsequent to the end of the third quarter, on October 6th, the Company closed a $25.1 million financing at a price of $2.95 per unit where each unit consists of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). A Warrant is exercisable to purchase one common share of the Company at a price of $4.00 per share until October 7, 2007. If the common shares trade at a volume-weighted price of not less than $5.00 for 15 consecutive trading days, then the Warrants must be exercised within 15 business days after notice by the Company of that event, failing which they will expire. As of October 26, the Company has approximately $28 million in cash and cash equivalents and 37,154,674 shares outstanding (45,740,061 fully diluted).

A 2.5 tonne sample of Zone 1 ore was sent to Perth, WA for metallurgical testing for the DFS under the direction of Ausenco Limited. The main aim is to further refine the process parameters established in the pre-feasibility study. A major geotechnical drilling program is in progress to establish geotechnical data for the proposed tailings dam site, the foundations of the milling facilities and the future open pit. This program should be finished before Chinese New Year and the winter shutdown.

Mundoro will continue to extend the Company's profile in North American and in European investment communities with the objective of sustaining a reasonable valuation in the markets for the Company and its shares. Ongoing communications activities are also being undertaken in China to assist in the advancement, approval and permitting of the Maoling project and the Company is once again a major sponsor of the highly successful China Mining 2005 convention in November, 2005.

Financial Highlights:

- The consolidated loss for the quarter under Canadian GAAP was $1,670,621 ($0.06/ share) compared with a loss of $1,832,380 ($0.07/share) during the same quarter of 2004. Loss during the nine months to September 30, 2005 and 2004 were $4,733,281 ($0.17/ share) and $4,942,090 ($0.19/ share), respectively.

- Mineral exploration costs for the quarter were $1,161,955 compared with $1,388,440 during the same quarter of 2004. Similar costs for the nine months to September 30, 2005 were $2,879,554 compared to $3,367,676 for the same period last year. All exploration costs were expended on the Maoling Gold Project, China.

- Interest income for the current quarter amounted to $41,320 compared to $59,621 during the same period last year.

- Amounts raised during the quarter through the exercise of warrants were $117,591. For the nine months ended September 30, 2005, a total amount of $2,923,884 was raised through the exercise of warrants and stock options.

- Working capital for the quarter ended at $5,886,711 compared with $6,937,915 at the end of December 2004. The financial condition of the Company was further enhanced by the closing of the $25.1 financing on October 6, 2005.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a Vancouver-based, TSX listed resource company focused on the exploration and development of the multi-million ounce, feasibility stage Maoling Gold Project 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, and has been exploring the 20 square kilometer exploration license area since 2001. 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 altered phyllitic metapelite to meta-siltstone with 3-5% disseminated sulphide mineralization. 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 over 8 years. Significant opportunity remains to both optimize the mine's design and to expand the overall resource-base for consideration in a definitive feasibility study being undertaken by an international team of engineers and environmental experts including Ausenco Limited and Golder Associates Pty Limited.

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.
    Colin H. McAleenan
    Chairman and CEO
    (604) 669-8055
    or
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055
    (604) 669-8056 (FAX)
    info@mundoro.com
    www.mundoro.com