- Mindoro Resources Ltd. (TSX VENTURE:MIO - News; ASX:MDO - News; FRANKFURT:WKN
906167) is pleased to announce drilling results of potential economic
interest on the Bolobolo and Karihatag nickel targets located in the Surigao
nickel district of NE Mindanao, the Philippines. The company has also signed
an agreement to acquire a significant new area of nickel laterite
mineralization, adjacent to its existing Tapian Project, from Corplex
Resources Inc.
A total of 309 holes for 3,458m have
been completed to date from a 7,000m to 10,000m program systematically
testing regional nickel targets with the objective of converting a
significant proportion of the exploration targets to resource.
"The new nickel drilling results
are very encouraging and confirm the potential of the Bolo Bolo and Karihatag
targets" said Mindoro's President and Chief Executive Officer Jon
Dugdale, "the acquisition of further areas of potential adds confidence
that we will meet our regional exploration target objectives".
A map showing the location of the
Bolobolo and Karihatag targets and the new acquisition area is available with
this release on Mindoro's website. A table of drill results from a further
136 drill holes, comprising 1,550 meters, is also available with this release
on Mindoro's website. Highlights are summarized below.
BOLOBOLO TARGET
Results for the first eight drill holes
have been received and highlights are reported below. Detailed mapping has
indicated the dimensions of the nickel laterite mineralization are
approximately 1.2 km by 1 km. Initial drilling was on 100 meter centers,
however, given the promising results this has been closed in to 50 meter
centers to enable a resource estimate to be made on conclusion of drilling.
BBL-04: Total 7.30m @ 1.26% Ni from 1m including:
Limonite 3.25m @ 0.99% Ni from 1m
Saprolite 4.05m @ 1.47% Ni from 4.25m
BBL-03: Saprolite 7.15m @ 1.22% Ni from 3.8m
BBL-05: Saprolite 6.45m @ 1.46% Ni from 2.7m
BBL-01: Saprolite 3.75m @ 1.13% Ni from 1.55m
KARIHATAG TARGET
Results for the first 22 holes have been
received and highlights are reported below. The target dimensions are approximately
900 meters by 500 meters, and drilling is proceeding on 50 meter centers.
11.85m @ 0.83% Ni from 1m
KL-19: Total including:
Limonite 7.50m @ 0.77% Ni from 1m
Saprolite 4.35m @ 0.93% Ni from
8.5m
KL-20: Saprolite 6.60m @ 1.04% Ni from 1.6m
KL-21: Saprolite 5.00m @ 1.00% Ni from 4.25m
KL-012: Saprolite 4.90m @ 1.08% Ni from 7.75m
Results were also received from the
Tapian and Canaga targets, where mineralization is more erratic due to less
favorable geology and more extensive erosion. The most prospective part of
the Tapian target, the MAMATFA Area, has not yet been drilled due to drilling
access issues currently being negotiated. As reported on October 14, 2010,
this area produced excellent nickel results from a well-developed limonite
horizon exposed in a road cut which was channel sampled at 25 meter intervals
over 350 meters averaging 1.07% nickel and 42% iron in the lower limonite
horizon and which remains open to depth.
NEW TENEMENT ACQUISITION
An agreement was signed on January 7th,
2011, with Philippine company, Corplex Resources Inc. whereby Mindoro's
Philippine subsidiary, MRL Gold Phils. Inc., may acquire a 100% interest in
an exploration permit application of 142 hectares adjacent to Mindoro's
Tapian Project and covering an area of nickel laterite mineralization.
Corplex will retain a three percent gross smelter royalty on payable nickel,
cobalt and iron produced. One third of this royalty (one percent) may be
purchased by Mindoro for US$ 5 million. Upon receipt of certification from
the Philippines Mines and Geosciences Bureau that the application is valid
and in good standing, Corplex will receive a cash payment of one million
pesos (approximately $20,000). Once the tenement is granted, Corplex will
receive an additional payment of two million pesos (approximately $40,000).
On granting of the tenement Mindoro plans to commence drilling to define the
extent of nickel laterite mineralization.
On behalf of the board of directors,
Jon Dugdale, President and CEO
Mindoro is a Tier 1 Issuer trading on
the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and
Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on nickel, copper
and gold exploration in the Philippines with a strategy of advancing
early-stage opportunities to production or joint venture.
Mindoro has NI 43-101 Mineral Resource
estimates on its Agata nickel-cobalt project and NI 43-101 Mineral Resource
estimates on its Lobo and Archangel (Kay Tanda) gold-silver projects, as well
as an additional 22 porphyry copper-gold prospects. Senior gold producer,
Gold Fields, may earn 75% interest in three of Mindoro's projects at Batangas
through direct project expenditure.
Mindoro is assessing the potential to
develop a value-added direct shipping ore (DSO) nickel operation to generate
early cash flow as well as large scale potential for an onsite processing
plant in the Surigao District, Mindanao, where the company controls major
nickel laterite resources and is drill testing regional targets. An
integrated preliminary economic assessment on the Agata nickel laterite
project is expected to be completed in the first quarter of 2011, leading to
commencement of a prefeasibility study into an integrated on site nickel
processing project.
Three drill programs are currently
in-progress on the Company's projects including regional nickel drilling at
Surigao; copper-gold drilling at Pan de Azucar and gold and copper-gold
drilling by Gold Fields at Lobo (Batangas).
The Company's DSO and large scale
production objectives are intended to provide an indication of management's
current expectations and are still conceptual in nature. It is uncertain that
sufficient resources will be established and if established that these
resources will be converted into economically viable mining reserves. Until a
feasibility study has been completed, there is no certainty that these
objectives will be met.
Tony Climie, P.Geol, is Mindoro's
Qualified Person as defined by National Instrument 43-101 and is a competent
person as defined by the JORC Code, who is responsible for monitoring the
supervision and quality control of Mindoro's exploration programs and who has
reviewed and verified the technical information contained in this news release.
Mr. Climie is an executive and a director of Mindoro and is a member of the
of the Alberta Professional Engineers, Geologists and Geophysicists
Association. Mr. Climie has more than five years of experience which is
relevant to the style of mineralization and type of deposit under
consideration and to the activity which he has undertaken. Mr. Climie has
consented to the release of the technical information in the form and context
in which it appears.
The Company's resource estimates were
originally prepared in accordance with Canadian National Instrument 43-101
Standards of Disclosure for Mineral Projects of the Canadian Securities
Administrators ("NI 43-101") and the Canadian Institute of Mining,
Metallurgy and Petroleum classification system. NI 43-101 is a rule developed
by the Canadian Securities Administrators that governs how Canadian issuers
disclose scientific and technical information about mineral projects and
which is broadly equivalent to the JORC Code in Australia. All resource
information is also expressed in terms of the JORC Code.
This release may contain forward-looking
statements including management's assessments of future plans and operations,
and expectations of future production. These statements are based on current
expectations that involve a number of risks and uncertainties, which could
cause actual results to differ materially from those anticipated. These risks
include, but are not limited to, the risks associated with the mining and
exploration industry (e.g. operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty with respect to results of exploration, the uncertainty
of estimates and projections relating to production and the uncertainty of
the availability of capital). The assumptions used in the preparation of such
statements, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The Company does not undertake to update forward
looking statements except where required to do so by law.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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