Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

August 24, 2005 09:09 ET

Mundoro Mining Inc.: Initial Results From Maoling's Zone 1 2005 Drilling Program; Resource Expansion Indicated

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 24, 2005) - Mundoro Mining Inc. (TSX:MUN) is pleased to report initial results from its core-drilling programs at the Company's multi-million ounce Maoling Gold Project in China. These holes form part of the program that is targeting geology and structure as well as infill and definition drilling in the southern extension of Zone 1, to provide additional data and resources for consideration in the Zone 1 feasibility study.

Thus far in 2005, the Company's Chinese drilling contractor has completed a total of 9,890 metres in 36 holes. Of the total amount drilled to-date, assaying has been completed for ten holes, four of which were conducted for reconnaissance or structural interpretation and contained no significant gold values. Of the infill and extension holes drilled for grade, MLD159 and MLD163 contain intersections that are significantly above the average resource grade. Two holes encountered notably wide intersections that are outside the current resource envelope: MLD161 intersected 210 metres with a grade of 0.89 grams gold per tonne including 90 metres of 1.23 grams gold per tonne, and MLD164 intersected 212 metres of mineralization, including 80 metres of 1.0 gram.



------------------------------------------------------------------------
Drill Zone 1 Intersection Intersected Gold
Hole Grid Angle (metres) Width (grams
Number Line of Hole From To (metres)(x) /tonne) Comments
------------------------------------------------------------------------
MLD155 5750 -84 - - - NSV geology /
deg. W structure
------------------------------------------------------------------------
MLD156 5700 -78 274.0 326.0 52.0 0.81 infill - block
deg. E faulted
------------------------------------------------------------------------
MLD157 5700 -57 - - - NSV geology /
deg. W structure
------------------------------------------------------------------------
MLD158 5750 -45 - - - NSV geology /
deg. W structure
------------------------------------------------------------------------
MLD159 5700 -75 102.0 242.0 140.0 0.96 infill
deg. E
incl. 160.0 196.0 36.0 1.74
------------------------------------------------------------------------
MLD160 5700 -90 166.0 262.0 96.0 0.56 infill -
deg. faulted block
------------------------------------------------------------------------
MLD161 5600 -70 92.0 302.0 210.0 0.89 infill
deg. E
incl. 192.0 282.0 90.0 1.23
------------------------------------------------------------------------
MLD162 6000 -55 - - - NSV testing north
deg. E limits of
faulted block
------------------------------------------------------------------------
MLD163 5850 -70 6.0 72.0 66.0 1.37 testing
deg. E eastern limits
incl. 38.0 68.0 30.0 1.89
------------------------------------------------------------------------
MLD164 5550 -55 6.0 218.0 212.0 0.80 infill - outside
deg. E resource
envelope
incl. 6.0 86.0 80.0 1.00
------------------------------------------------------------------------

(x) The Zone 1 mineralized body dips at approximately 60 degrees to the
west and has a variable true thickness ranging from approximately
90 to 200 metres


Drill-hole locations described in this release are shown on a map available on Mundoro's website at www.mundoro.com.

Additional holes drilled as part of this program have enhanced the geological model for the zone, providing further data necessary to elevate the Inferred Resources at the south end of the deposit to the Indicated Resource category.

Three core drilling rigs have been in operation at Maoling since early April. Mundoro intends to continue this program concurrent with project feasibility work, with the following objectives:

- To collect structural, geotechnical, hydrological and other data for the Zone 1 feasibility study;

- To maximize the number of gold ounces for consideration by the Zone 1 feasibility study; and

- To continue expanding the gold deposits at Maoling which remain open along strike and down-dip.

Further information on the results and context of past drilling, resource estimates and the pre-feasibility study for the Zone 1 deposit are available on the Company's website at http://www.mundoro.com.

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 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, and has been aggressively 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 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 the final feasibility study through ongoing infill and expansionary drilling.

Quality Control Program

Mundoro Mining has implemented a quality control program to ensure accuracy in the collection and analysis of samples. All drill core (HQ size) is sampled at approximately 2 metre intervals and are cut in half using a diamond saw. One half of the core is archived at the core storage facility on site while the other half is crushed, pulverized and split by a sample preparation laboratory affiliated with the Liaoning Bureau of Geology and Mineral Resources. Pulp samples weighing approximately 150 grams are couriered to ALS Chemex Laboratories in North Vancouver, BC, an ISO 9001-2000 registered facility, for fire assay. Accuracy of results is tested through the systematic inclusion of certified reference standards, field blanks and duplicate samples. The Maoling drilling and exploration program is being carried out under the direction of Colin H. McAleenan, P.Geo., a Qualified Person as defined in National Instrument 43-101.

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
    info@mundoro.com
    www.mundoro.com