Mundoro Mining Inc.

Mundoro Mining Inc.

October 30, 2006 11:52 ET

Mundoro Reports Strengthening of Joint Venture Board

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 30, 2006) - Mundoro Mining Inc. (TSX:MUN) ("Mundoro", the "Company"), is pleased to report changes to the board of directors of its Chinese joint venture company, Liaoning Tianli Mining Company Ltd. ("Tianli"). The board of directors of Tianli met to strengthen the commitment by both Mundoro and the joint venture partner Liaoning Aidi Resources Company Limited ("Aidi"), the corporate arm of the Liaoning Geology and Exploration Bureau, to advance the Maoling Gold Project ("Maoling") in China towards production.

Mundoro's 79% interest in Tianli is represented by five directors and Aidi's 21% interest is represented by three directors. The new composition of the board represents a broad cross section of skills and experience that is well suited to advance the development of Maoling.

From Aidi, the three directors offer the joint venture a wealth of experience within the provincial and local governments:

Mr. Yu Wenli, joins Tianli as a director of the board. Before becoming Director of the Geology and Exploration Bureau of Liaoning, Mr. Yu was the Vice Director of the Environmental Protection Bureau of Liaoning. He is trained as a lawyer and a water engineer.

Mr. Qu Yajun, retains his position as Deputy General Manager of Tianli. Mr Qu is Deputy General Manager of Tianli and a Vice Director in the Geology and Exploration Bureau of Liaoning.

Mr. Wang Baomin, a resident of Yingkou city, which is the closest port city to the Maoling property, retains his Director position on the Tianli board. Mr. Baomin is the director of Team 5 of the Liaoning Geology and Exploration Bureau.

The board of Tianli wishes to thank Mr. Wen Decai for his contributions to the joint venture company since its inception and accepts his retirement from the board.

From Mundoro, the five directors reflect the changes in management over the last year as the Company has progressed from exploration to project development. The team now has the technical and business background needed to advance Maoling into the production phase:

Mr. Robert van Doorn, has accepted the position of Chairman of Tianli. Mr. van Doorn is Mundoro's President and Chief Executive Officer, and is a mining engineer and MBA graduate. He has accumulated over 25 years experience in the mining industry holding senior positions in various underground and open-pit mining operations. His extensive understanding of the mining sector has been strengthening by working in various positions in the financial industry over the last 15 years.

Mr. Alan Riles, joins Tianli as a Director of the board and General Manager of the joint venture company. Mr. Riles is Mundoro's Chief Operating Officer who brings over 25 years of international operating management experience in mining. He has held key management positions at mining and development operations including Western Metals Resources Ltd.'s Mount Gordon mine in Australia, Rio Narcea Gold Mines' operations in Spain, and most recently as Chief Operating Officer for INCO's Goro Nickel development project in New Caledonia. Mr. Riles has been coordinating work on Maoling's Definitive Feasibility Study and will be responsible for procurement, construction and commissioning of the mining operation.

Mr. Patrick Powers, continues to be a member of the Tianli board. He is Mundoro's Vice President, China, and has 25 years of experience in international commerce, government relations and trade policy, primarily focused on China.

Mr. John Gruetzner, continues as a Director of Tianli. Mr. Gruetzner is Executive Vice President of Intercedent Limited, a business advisory firm that has operated in China since 1991.

Mr. Thomas Allen, retains his position in Tianli as a Director. Mr. Allen is the Vice Chairman of Mundoro's board of directors, is Counsel at the international law firm Ogilvy Renault.

Mr. van Doorn commented on the joint venture's work in China: "I am impressed with the progress Mundoro has made over the last year to strengthen our relationship with Aidi and build awareness of the Maoling Gold Project among Chinese stakeholders while at the same time strengthening the management team. The company is pursuing to build a world-class sustainable gold mine at Maoling that will create value for both shareholders of Tianli, be a role model of environmental protection in Liaoning, and enhance the resource partnership between Canada and China."

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:

--------------------------------- --------------------------------------
Contained Contained
Tonnes Grade Gold Tonnes Grade Gold
(millions) (Au g/t) (million ozs) (millions) (Au g/t) (million ozs)
--------------------------------- --------------------------------------
Zone 1 Pre-Feasibility Probable
Reserve Zone 1 Measured & Indicated Resource(i)
--------------------------------- --------------------------------------
88.8 1.0 2.8 161 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

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 mid 2007.

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

Investors are encouraged to review 'Risk Factors' associated with the Maoling project as outlined in the Company'sprospectus 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
    CEO & President
    (604) 669-8055
    Mundoro Mining Inc.
    Teo Dechev
    CFO & VP of Corporate Development
    (604) 669-8055
    (604) 669-8056 (FAX)