Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

August 17, 2007 09:02 ET

Project Update by Mundoro Mining

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2007) - Mundoro Mining Inc. (TSX:MUN) (the "Company") announces an update on the ongoing work to renew licenses for the Maoling Gold Project in Liaoning Province, China, as well as on further progress in advancing the project towards development and production.

Overview of Progress on Business License

Mundoro was invited in 1999 by the government to help develop the Maoling gold deposit. A Chinese joint venture company, Liaoning Tianli Mining Company Ltd. ("Tianli"), was formed with a mutual interest to develop Maoling into a national model for large scale, environmentally friendly, and economically sustainable gold mining operations; an interest shared between Mundoro and its partner, the Liaoning Aidi Resources Company Limited ("Aidi"), the corporate arm of the Liaoning Geology and Exploration Bureau. Mundoro's 79% interest in Tianli is represented by five directors and Aidi's 21% interest is represented by three directors. Since entering into this collaboration, the Company has:

- completed extensive exploration work with a total of 231 holes (63,338 m) drilled and over 26,000 samples of drill core cut, prepped and assayed;

- completed a pre-feasibility study in June 2005;

- completed an updated resource estimate published in February 2006 which revealed 4.8 million contained gold ounces in the Measured and Indicated category and an additional 4.4 million contained gold ounces in the Inferred category, resulting in a defined gold resource that is triple the original 1990 Chinese estimate; and

- in final stages of completion of the feasibility study.

The Company has been and continues to build awareness for the project and the Company's commitment to execute the project in an environmentally sound manner. Mundoro continues to develop its relationships with the Liaoning government, the Dalian government, the central and Yingkou/Gaizhou governments in a friendly, constructive manner.

Mundoro received written notice from its Chinese partner, Aidi, that from their perspective, both parties should meet to discuss whether the termination of co-operation and whether additional expenses are warranted at this stage. This will be on the agenda of the next Tianli Board meeting between both stakeholders. In a response to Aidi, Mundoro has stressed that the purpose of the cooperation continues to be development of the Maoling deposit in compliance with all applicable laws and policies as well as international environmental standards, and that the Company expects to be able to do so. The Company has proposed meetings with Aidi and with representatives of relevant government agencies in China in order to fully understand and analyze the implications of provincial policy at this point in time and discuss in a constructive and friendly manner, all options available to Tianli. The Company has made significant strides in building support for the development of a modern mine at Maoling which will serve as a showcase of the latest mine management methods.

Progress on Feasibility Study

Work on the Feasibility Study with Ausenco Limited ("Ausenco") is in the final stages of completion and an interim report will be released by the end of the third quarter. The focus for the final stages is to confirm potential cost benefits through China-sourced mining and processing equipment.

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 Company has agreed to provide RMB 1.2 million over three years to fund educational, health and sanitation development in Gaizhou County.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a TSX listed resource company focused on the exploration and development of one of the world's top gold deposits. The Company's feasibility stage Maoling gold deposit is located in Liaoning Province, China. Maoling is China's largest single, gold resource deposit with 4.8 million contained gold ounces in the Measured and Indicated category and an additional 4.4 million contained gold ounces in the Inferred category. The Company has outlined a Reserve of 2.8 million ounces in the Probable category which was the basis for the Pre-Feasibility Study.

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.

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 www.sedar.com.

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 www.sedar.com.

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
    (604) 630-3593
    or
    Mundoro Mining Inc.
    Teo Dechev
    CFO
    (604) 630-3591
    or
    Mundoro Mining Inc.
    Ben Chow
    Investor Relations
    (604) 630-3587
    Email: info@mundoro.com
    Website: www.mundoro.com