Mindoro
Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today announced the last
batch of infill drilling results from the company's Agata Nickel Project in
the Philippines with grades and thickness of potential economic interest,
including limonite intersections averaging 4.06 meters (m) at 1.15% Nickel,
0.13% Cobalt and 48% Iron and saprolite intersections averaging 7.25m at
1.31% Nickel. The peak limonite intersection was AGL-453: 10.9m @
1.55% Nickel and 40% Iron from 1.9m and peak saprolite intersection
AGL-545:13.45m @ 1.73% Nickel from 4.10m including 3.95m @ 2.04 % from
4.10m.
This
release includes results from the final 92 holes of a total program of 185
holes for 3,560m on 25m x 25m to 50m x 50m grid patterns.
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The
following table shows the more significant limonite intersections:
Limonite
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From (m)
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Thickness (m)
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Ni%
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Co%
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Fe%
|
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1.90
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10.90
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1.55
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0.09
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40
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0.00
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11.00
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1.18
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0.14
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51
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4.00
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10.00
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1.21
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0.11
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48
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3.20
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9.40
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1.18
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0.14
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49
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2.10
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9.60
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1.20
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0.16
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50
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The
following table shows the more significant saprolite intersections:
Saprolite
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From (m)
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Thickness (m)
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Ni%
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Fe%
|
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4.10
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13.45
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1.73
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10
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AGL-498
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1.10
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13.15
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1.55
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18
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AGL-456
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5.75
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12.25
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1.58
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13
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AGL-505
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4.80
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12.10
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1.55
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13
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AGL-450
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7.35
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10.30
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1.66
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10
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AGL-531
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6.40
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10.00
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1.58
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12
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AGL-523
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11.55
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9.35
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1.67
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16
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AGL-441
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10.55
|
9.80
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1.53
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15
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AGL-525
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14.00
|
8.00
|
1.86
|
15
|
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A list
of drill results for all 92 holes is available with this release on
Mindoro's website at www.mindoro.com.
The
average thicknesses and grades from the total 185 hole program are
summarized below:
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|
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Ni%
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Co%
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Fe%
|
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1.63
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0.64
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0.07
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48
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3.91
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1.13
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0.13
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48
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7.56
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1.30
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0.03
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12
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The
accompanying plan illustrates the distribution of nickel laterite drilled
from 2006 to date, with nickel grade times thickness (meters) expressed as
cool to hot colours. The results of the program include grades and
thicknesses in excess of the average mineral resource grades reported in
November 2009. In particular, average limonite grades of 1.13% Nickel
and 48% iron compare to the average Measured and Indicated Mineral Resource
grade prior to this drilling program of 0.98% Nickel, 45% Iron. These
average grades are consistent with the requirements of direct shipping ore
(DSO) nickel pig-iron producing offtakers for 0.9% to 1.1% Nickel and
>48% Iron. In addition the Agata intersections include transition
to saprolite zones of >1.5% Nickel that, depending on the iron content,
may be suitable for Chinese Electric Arc Furnace (EAF) and/or other acid
leach or ferronickel processing facilities in Australasia.
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The
final results of the drilling are now being modeled in preparation for an
updated NI43-101 Mineral Resource statement, due by the end of August
2010. The updated Mineral Resource model, combined with mine planning
information, will allow preparation of an NI 43-101 Mineral Reserve
statement. Offtake discussions have been advanced but will not be finalized
until a detailed mine schedule is produced from the Mineral Reserve
information. Agata Nickel Project phase 1 (DSO) scoping and feasibility
studies will then be finalized and submitted to the Philippines Mines and
Geosciences Bureau (MGB) for final development approval.
Drilling rigs have now
been mobilized to commence drilling the regional nickel laterite
exploration target with the objective of converting a significant
proportion of the 50 million to 70 million DMT at 0.9% to 1.2% nickel
Exploration Target to NI 43-101 compliant Mineral Resource.
At the same time,
Mindoro has initiated scoping studies into value-added on site processing,
including . low-capital cost, thermal upgrading technologies, such as
sintering, to produce much higher-value iron and iron-nickel products.
These have the potential to quickly phase out the shipping of raw DSO
product, and to form an intermediate development stage prior to a major
acid-leach processing operation. The major acid-leach project scoping
studies, including additional metallurgical testing, are due for completion
late September 2010.
The reader is
cautioned that the potential quantity and grade of the Exploration Target
is conceptual in nature; it is uncertain if further exploration will result
in the Exploration Target being delineated as a mineral resource and there
is no guarantee that these resources, if delineated, will be economic or
sufficient to support a commercial mining operation. The company's
production objectives are intended to provide an indication of management's
current expectations and are still conceptual in nature. It is uncertain
that it will be 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
the company's Qualified Person as defined by National Instrument 43-101,
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. Sample preparation
and assaying were performed by Intertek Testing Services, Phils., Inc.
(ITS). The ITS Phils. facility is among Intertek's global network of
mineral testing laboratories. It provides high quality assay analysis of
mineral samples for nickel deposit exploration projects. Each sample is
analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium(Mg), aluminum
(Al), silica (SiO2), CaO, Cr2O3, K2O, MnO, Na2O, P2O5, and TiO2. Whole rock
analyses are done using X-ray Fluorescence (XRF). The samples are fused
using lithium metaborate. XRF analysis determines total element
concentrations that are reported as oxides. Intertek mineral testing
laboratories implement quality protocols. Normal Quality Control and
Quality Assurance procedures are being carried out, using a system of
repeat analyses plus split sample analyses and the use of standard
reference materials and blanks. Mindoro has also conducted assay
verification using standard samples and re-assaying field and pulp
duplicates.
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Mindoro
is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the
Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on exploration in
the Philippines with a strategy of advancing early stage opportunities to
production or joint venture. Mindoro controls major nickel laterite
resources in the Surigao District, Mindanao, where potential for
development of a phase 1, direct shipping ore (DSO) operation to generate
early cash flow is being advanced as well as large scale potential for an
onsite processing plant.
Mindoro has NI 43-101
Mineral Resource estimates on its Agata North nickel-cobalt project
(November 2009) totaling Measured and Indicated 26.92 million dry metric
tonnes (DMT) at 1.11% Nickel and 0.06% Cobalt and Inferred 3.79 million DMT
at 1.06% Nickel, 0.05% Cobalt. The Surigao regional exploration target is
50 million to 70 million DMT at 0.9% to 1.2% Nickel (January 2010).
Mindoro also has NI
43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay
Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold
prospects and has three projects in the Batangas area of southern Luzon
which are the subject of a farm-in arrangement whereby Gold Fields Ltd may
earn 75% through direct project expenditure. Goldfields has commenced
drilling gold targets on the Lobo project.
Drilling on the
American Tunnels project has confirmed potential for a near-surface,
bulk-tonnage gold target and porphyry copper-gold targets. Other
objectives include progressing joint venture discussions on Mindoro�s
porphyry copper-gold prospects at Surigao.
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For
further information, contact:
Mindoro Head Office
Penny Gould
VP
Investor Relations
penny@mindoro.com
Tel: 780.413.8187 or
Toll Free: 1.877.413.8187
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Investor Relations - Canada
Senergy
Communications Inc.
Investor Relations
ir@mindoro.com
Tel: 1.778.331.2030
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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.
The reader is
cautioned that the potential quantity and grade of the regional exploration
target is conceptual in nature; it is uncertain if further exploration will
result in the exploration target being delineated as a mineral resource and
there is no guarantee that these resources, if delineated, will be economic
or sufficient to support a commercial mining operation. The company�s
production objectives are intended to provide an indication of management�s
current expectations and are still conceptual in nature. It is uncertain
that it will be 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.
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 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.
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