Starter Resource Estimates Released for Agata North Nickel Laterite
Project
EDMONTON,
Alberta; April 30, 2008 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt:
WKN 906167) is pleased to report results of a National Instrument 43-101
compliant mineral resource estimate for its Agata Nickel Laterite
Project, Philippines. The estimate covers approximately 15 percent of the
Agata North nickel laterite prospect and will constitute the starter
resource for the early Direct Shipping Ore (DSO) production planned for
this year.
The estimate for combined Measured and Indicated Resources is 4.40
million wet metric tonnes (WMT) grading 1.25 percent nickel, 0.063
percent cobalt and 23 percent iron, at a cut-off grade of 0.80 percent
nickel. In addition, the Inferred Resource estimate is 2.45 million WMT
grading 1.23 percent nickel, 0.062 percent cobalt and 22 percent iron,
also at a cut-off grade of 0.80 percent nickel. The resource estimate
lies within a 57 hectare area (as shown on the accompanying map), which
also includes an additional 30 hectares where mineralized drill
intersections are at a wider spacing of 100 meters by 200 meters, and
which have not yet been included in the resource estimate. Infill
drilling is in progress on the latter. Updated resource figures will be
released as they come to hand.
Tony Climie, president of Mindoro, commented, "We are delighted with
this early stage resource estimate, which is double our original
Exploration Target. This estimate provides the basis for a scoping study,
which is in progress, and on which a production decision for the DSO
scenario will be made. The resource area represents a small part of Agata
North, and does not include Agata South, or recently defined areas of
potential nickel laterite mineralization on our Tapian and Mat-I
Projects. This reinforces our expectations of defining a major resource
on our Surigao Projects, potentially justifying establishing a local
processing plant to maximize economic returns to all stakeholders".
Mineral Resource Estimate
The Mineral Resource model was generated by Dallas Cox, BE (Min), an
independent qualified person as defined by NI 43-101. A total of 134
drill holes, comprising 2,921 meters of diamond drill core and 2,874
assay samples, have been used for the estimate. An Inverse Distance
Squared grade estimation method was utilized within tightly constrained
lithological and grade domains. Mr. Cox has indicated that the
density of drilling and continuity of mineralization is sufficient to
classify the estimated resource and has verified and authorized the
technical information detailed in this release. The accompanying map
shows the area of the current resource in relation to the Agata North
Project. Both dry metric tonnes (DMT) and wet metric tonnes (WMT) are
quoted since the saleable unit for DSO production is actually WMT.
Summary of the Mineral
Resource Estimate:
Resource: Combined limonite and saprolite @ 0.8% Ni cutoff grade
|
Category
|
Mil. WMT
|
Mil. DMT
|
Ni%
|
Co%
|
Fe%
|
Measured
|
1.22
|
0.90
|
1.27
|
0.063
|
23
|
Indicated
|
3.18
|
2.36
|
1.24
|
0.064
|
23
|
Total
Meas. + Ind.
|
4.40
|
3.26
|
1.25
|
0.063
|
23
|
Inferred
|
2.45
|
1.83
|
1.23
|
0.062
|
22
|
- Mineral
resources which are not mineral reserves do not have demonstrated
economic viability.
- The
tonnage and nickel grades above have been rounded to the nearest 2nd
decimal, and iron grades to the nearest whole number, which may have
resulted in minor discrepancies.
- The
estimate of mineral resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
- It
is uncertain if further exploration will result in upgrading the
Inferred mineral resource to an Indicated or Measured mineral
resource or the Indicated mineral resource to a Measured Resource
category.
Mr.
Dallas Cox has 26 years of experience in open pit mine technical
services, mine operations and management in China, Indonesia and the
Philippines. His engineering, mine design and development experience in
the Philippines includes the Rusina Mining (ASX, AIM) Acoje nickel
project, the Platinum Group Metals Corp. (unlisted) Caga nickel project,
and the Filminera Resources and Thistle Mining (TSX) Masbate gold
project. Mr. Cox has also been involved in writing Mineral Resource
reports on both copper-gold and nickel projects that are compliant with
either the National Instrument 43-101 or the JORC reporting codes. The NI
43-101 Technical Report will be filed on SEDAR within 45 days. Details of
mineral resource estimation methods, parameters, and assumptions used
will be described in this technical report.
Click to enlarge.
ABOUT THE AGATA NICKEL LATERITE PROJECT
The nickel laterite prospect is situated on the Agata Project, Surigao
Gold District, northern Mindanao, Philippines. The Surigao Gold District
is not only a current and historical gold producing district but, with
the recent discovery of a cluster of porphyry copper gold deposits, it
also has high potential to become a major copper-gold camp. Mindoro has
multiple gold and copper-gold targets in the District at varying stages
of drill evaluation.
The Surigao Region is now emerging as a major nickel producing district,
and there are at least eight nickel laterite deposits either in
production or being developed; providing DSO to markets and processing
plants in China, Japan, Korea and Australia. These include the SR Metals
Mine, immediately adjacent to Mindoro's Agata nickel laterite project. At
Agata, significant drill results have previously been reported by Mindoro
(see releases on Mindoro website). Agata has strong competitive
advantages, with good grades, just two to three kilometers from tide
water, with corresponding low haul distance and costs, and only two days
shipping from China. Uniquely, DSO nickel laterite operations have a
low-capital cost and offer a rapid route to production and cash-flow.
As reported on March 13, 2007, the initial objective on the Agata North
project was to define a NI 43-101 compliant resource adequate, initially,
for three to five years of production at a rate of 500,000 to 700,000 wet
metric tonnes per annum of direct shipping-grade material for the
ferro-nickel markets of China, India and Korea. Mindoro has a target
production date for 2008, and would ramp up production to one million
tonnes or more per year thereafter depending on market demand. The
initial drill program covers less than 23 percent of the area of nickel laterite
mineralization mapped to date at Agata North, and the resource itself,
just 15 percent. Based on these results the Global Exploration Target for
Agata North has been revised slightly as follows:
Combined ferruginous overburden, limonite and saprolite horizons:
40 to 60 million wet metric tonnes (WMT) at a grade of 0.9 to 1.5 percent
nickel and 18 to 28 percent iron. This includes the following division of
tonnage between the overburden/limonite horizon and the saprolite
horizon:
- Combined
ferruginous overburden and limonite horizons: 25 to 35 million WMT
of material at a grade of 0.9 to 1.3 percent nickel and 40 to 44
percent iron.
- Underlying
saprolite horizon: 15 to 25 million WMT of material at a grade
of 1.0 to 1.6 percent nickel and 8 to 16 percent iron.
The Agata North nickel
laterite mineralization covers approximately 379 hectares. A total of 150
drill holes have been completed to date within this area. The Exploration
Target does not include additional areas of nickel laterite mineralization
on the Agata South project (covering an estimated 260 hectares}, where
Mindoro is in a joint venture with a Philippine mining contractor (Delta
Earthmoving) nor does it include potential areas of nickel laterite
covering a further 1,650 hectares on the adjacent Tapian Main, Tapian SF
and Mat-I tenements (see news release dated Feb. 26, 2008).
While much of the Surigao District nickel laterite production has been as
DSO to processing plants in Japan, Australia and China, several
attractive alternatives are emerging for local processing, which include;
at the low technology end of the spectrum, constructing a blast or
electric furnace for nickel pig iron production (low grade ferro-nickel
product which is increasingly entrenching itself as a substitute for
refined nickel in stainless steel production), atmospheric leaching for
which pilot testing on another Philippine laterite deposit has produced
promising results, and a new generation of High Pressure Acid Leach
(HPAL) plants. HPAL technology is currently being used with great success
by Sumitomo on its Philippine Coral Bay operation, and shows considerable
promise for the local processing of Surigao ores. In fact, Sumitomo
recently announced plans to proceed with permitting to construct an HPAL
plant in the Surigao District. This HPAL technology has a proven track
record, in contrast to HPAL operations previously attempted in Australia.
Construction of a local processing plant, rather than simply shipping out
raw product, would greatly increase the returns to all stakeholders;
including Mindoro, its Philippine partner, the local people, local
government units, and to the Philippines itself. Mindoro considers a
tonnage threshold of 50 million WMT to be of potential interest for this
scenario.
As noted in a February 7, 2008 news release, there is abundant evidence
of the beginning of a trend for local/on-site processing of Philippine
laterite ores and the growth of a large high-value industry in the
Philippines. We expect that the prolifically nickel laterite-mineralized
Surigao District will be an important part of this evolution.
Programs are carried out under the supervision of Tony Climie,
P.Geol., president of Mindoro, who is a qualified person as defined by
National Instrument 43-101. Sample preparation and assaying were
performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited
laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after
an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. Normal Quality
Control and Quality Assurance procedures are being carried out, using a
system of duplicate samples. MRL has also conducted assays verification
by using standard samples and re-assaying of field, coarse and pulp
duplicates.
The potential quantity and grade of the exploration target described
above is conceptual in nature. There has been insufficient exploration to
define mineral resources other than those disclosed in this release, and
it is uncertain if further exploration will result in the targets
delineating additional mineral resources or that these resources, if
delineated, will be economic or sufficient to support a commercial mining
operation. Until a feasibility study has been completed there is no
certainty that the company's projections will be economically viable.
ABOUT MINDORO
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and
the Frankfurt Stock Exchange (WKN 906167). In addition to advancing the
Agata nickel laterite project towards production, Mindoro has announced
an initial 43-101 compliant gold-silver mineral resource estimate on its
Kay Tanda gold-silver project, and is proceeding to advance this project.
The company has also identified 22 porphyry copper-gold prospects in the
Philippines and has an aggressive strategy of drilling multiple targets
in 2008.
For further information,
contact:
HEAD OFFICE
Penny Gould
Executive Vice President
Phone: 780.413.8187
E-mail: penny@mindoro.com
Website: www.mindoro.com
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INVESTOR RELATIONS-CANADA
Trent Dahl
Ascenta Capital Partners Inc.
Phone: 604.628.5800
Toll Free: 1.866.684.4209 ext. 228
E-mail: info@mindoro.com
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INVESTOR RELATIONS-EUROPE
Richard Mayr
Argentuminvest GmbH
Phone: +49.9421.785250
Fax: +49.9421.785255
E-mail: info@argentuminvest.com
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The
TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.
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 of estimates and projections relating to production). 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.
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