Press Release Source: Mindoro Resources Ltd.
Mindoro Reviews Prospects and Plans Aggressive 2006 Drill Programs
Wednesday January 4, 11:55 am ET
EDMONTON, ALBERTA--(CCNMatthews - Jan. 4, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO - News; FWB:OLM) today released an overview of its 2006 drill programs and summary of its 28 prospects in the Philippines. Mindoro's significant land position in the Philippines encompasses 21 porphyry copper-gold prospects, five epithermal gold prospects, one nickel laterite prospect and one massive sulphide prospect. Much of Mindoro's ground remains unexplored, so the potential to find additional prospects is high.
This depth of potential has allowed Mindoro to develop its 2006 objectives on a discovery-driven exploration strategy. The company believes that it can achieve the greatest value for its shareholders in 2006 by confirming several new discoveries through drilling. The company's plans include drilling eight porphyry copper-gold prospects in the first half of 2006. Three of these prospects are located within the company's Batangas Projects and five are within the Surigao Projects. Additionally, BHP Billiton will fund drilling of Mindoro's Agata nickel laterite prospect in the first quarter of 2006.
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An overview of the Batangas and Surigao Projects is provided below and all 28 Mindoro prospects are summarized in the accompanying table (also available on Mindoro's website at www.mindoro.com). Locations of the prospects are also shown on the Batangas and Surigao Prospects location maps, which accompany this release on Mindoro's website. Additional information is also available in the company's press releases and technical reports posted on Mindoro's website.
BATANGAS PROJECTS OVERVIEW
The Batangas Projects is a 24,500 hectare land package located in southern Luzon and is comprised of the Lobo and Archangel projects and the surrounding regional ground. To date, Mindoro has identified 11 porphyry copper-gold prospects and two epithermal prospects in the Batangas Projects. The 2006 field program includes drilling the Pica, Kay Tanda and El Paso porphyry copper-gold prospects as well as the Kay Tanda epithermal prospect.
Pica
Drilling began in the spring of 2005 on the Pica porphyry prospect, located on the Lobo Project. The porphyry copper-gold system was confirmed with the second drill hole, which intersected 213 meters of 0.82 grams per tonne (g/t) gold equivalent (0.18 percent copper, 0.3 g/t gold, and 1.19 g/t silver; see accompanying table). A third hole is currently being drilled.
Kay Tanda
A few kilometers away, on the Archangel Project, plans are underway to mobilize a rig to the Kay Tanda prospect in anticipation of drilling in January or February. Kay Tanda hosts both epithermal gold and porphyry copper-gold targets. Recent metallurgical tests on the epithermal gold prospect were positive and indicate the potential for low-cost heap-leach processing. Mindoro plans to drill the epithermal prospect with the objective of defining an NI 43-101-compliant gold resource and to continue drilling through the epithermal layer into the underlying porphyry copper-gold prospect.
El Paso
Of the remaining nine porphyry copper-gold prospects on the Batangas Projects, one of the highest priorities is the El Paso prospect. Trenching samples over wide intervals at El Paso contained more than one percent copper and multiple drill targets have been identified. Drilling is planned for the first half of 2006, subject to receipt of an exploration permit, which is currently in the advanced stages of the approval process with the Philippines Mines Department.
Mindoro may earn up to a 75 percent interest in the Batangas Projects from Egerton Gold Philippines Inc., a private Philippine company.
SURIGAO PROJECTS OVERVIEW
Mindoro's 26,000-hectare land package in the Surigao Gold District of northern Mindanao is second in size only to Anglo American. The Surigao Projects are comprised of the Agata, Tapian San Francisco, Tapian Main, and Mat-I projects. To date, Mindoro has identified 10 porphyry copper-gold prospects and three epithermal gold prospects here. The proposed 2006 Surigao field program includes drilling five of these porphyry prospects: the Agata North, Agata South, Canaga, Cantikoy and Gold Hill prospects, as well as the Agata nickel laterite prospect.
Agata North and Agata South
Drilling is currently underway on the Agata North porphyry copper-gold prospect. Difficult ground conditions slowed initial progress but early complications are normal when drilling a new project. New drilling strategies are being implemented and Mindoro is confident the difficulties will be overcome. Agata South, the second prospect at Agata, is scheduled for drilling in the second quarter of 2006.
Agata Nickel Laterite
An agreement was recently signed with BHP Billiton, who drill test, at their own expense, Mindoro's nickel laterite prospect on the Agata Project. This is a significant achievement for Mindoro, who, upon completion of the drilling and if results warrant development, is under no further obligation to BHP other than to enter into good faith negotiations for the sale of the ore to BHP.
Canaga, Cantikoy and Gold Hill
These prospects on the Taipan San Francisco Project are in an extremely favourable structural location near where the Philippine Fault is cross-cut by the same faults that extend from Anglo American's Boyongan and Boyugo porphyry copper-gold deposits. At Canaga, a trench sample returned 15 meters of one percent copper and a trench at Cantikoy returned 25 meters of one percent copper and 0.5 g/t gold. These are extremely encouraging results and drilling early in 2006 is proposed on both prospects. Extensive historic artisanal gold mining occurred at Gold Hill and drilling is proposed there for the first half of 2006.
Panoro Minerals Ltd. is currently earning a 40 percent interest in the Surigao Projects by funding all exploration. At production, if all options are exercised, Mindoro would hold a 57.5 percent interest and Panoro would hold the remaining 42.5 percent.
Programs are carried out under the supervision of Mindoro's President, Mr. J. A. Climie, P. Geol., who is a qualified person as defined by National Instrument 43-101.
SUMMARY OF PROSPECTS
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PROSPECT
NAME SUMMARY DESCRIPTION (1) STATUS (2)
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I. PORPHYRY COPPER-GOLD (Cu-Au) PROSPECTS
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A. Batangas Projects
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1 Pica A 2 km by 1.5 km high chargeability Drilling will
anomaly with coincident resistivity continue with
and magnetic anomalies. Intensely objective of finding
altered andesitic volcanics and high-grade core
diorite intrusions. Drill hole Pica within large target
2 confirmed porphyry copper-gold area. Hole Pica 3
system, intersecting significant in progress.
mineralization in phyllic zone (213
m @ 0.18% Cu. 0.3 g/t Au and 1.19
g/t Ag: or 213 m of 0.82 g/t Gold
Equivalent (3)).
--------------------------------------------------
2 Calum- Calumpang forms the northern High priority drill
pang extension of Pica. Strong, high target. Drilling not
chargeability anomaly over 700 m yet scheduled.
by 600 m, with coincident
resistivity and magnetic anomalies.
Intensely altered andesitic volcanics.
--------------------------------------------------
3 Camo Moderate chargeability anomaly, not Additional geophysics
yet closed off. Structurally required; planned for
controlled phyllic alteration in second quarter 2006.
andestic volcanics associated with Moderate priority
greater than 0.1% Cu mineralization drill target
in narrow zones of several m wide. emerging.
Proximal high-sulphidation
epithermal vein breccia
mineralization and intrusive diorite
dykes suggest a porphyry target
at depth.
--------------------------------------------------
4 Bali- An 800 m by 600 m high High priority drill
bago chargeability anomaly with target. Drilling not
coincident resistivity anomaly. yet scheduled.
Strongly altered andestic volcanics
with multi-phase intrusive stocks.
High-sulphidation mineralization
telescoped into phyllic alteration
with Cu and Au showings which are
interpreted as porphyry-related.
--------------------------------------------------
5 Kay Dual targets. Extensive near-surface Initial metallurgical
Tanda epithermal Au-Ag mineralization testing of Au
intersected by past drilling over recoveries positive.
500 m by 400 m; open in several In-fill drilling
directions. Chargeability and planned for Jan.-Feb.
resistivity anomalies. Intensely 2006 with objective
silicified volcanics (silica cap?) of defining an
with intrusives at depth. Past exploration target of
drilling intersected porphyry- 18M to 22M tonnes
related phyllic alteration at depth in grade range of
with Cu grading to 0.65% over 3 m. 0.75 to 1 g/t Au.
Drilling will
continue to depth to
test porphyry
targets.
--------------------------------------------------
6 Lumb- 500 m by 300 m moderate to high High priority drill
angan chargeability anomaly with target. Drilling not
coincident resistivity anomaly. yet scheduled.
Strong phyllic overprinted by
argillic alteration with
significant Cu, Au and Ag values
in trenches. Alteration and
mineralization suggest porphyry
Cu-Au target at shallow depth.
--------------------------------------------------
7 Marita- Marita-Agas is a 1 km by 0.7 km High priority drill
Agas chargeability and resistivity target. Drilling not
anomaly with intense phyllic yet scheduled.
overprinted by argillic alteration.
Strongly oxidized quartz-sulphides
stockworks with significant Cu
values from channel samples.
Intense alteration and quartz
veining, with coincident Cu
showings within the IP anomaly,
suggest a porphyry system at
shallow depths.
--------------------------------------------------
8 Kalabasa-
Bootin High chargeability anomaly High priority drill
coincident with strong phyllic, target. Drilling not
argillic to advanced argillic yet scheduled.
alteration. Channel samples from
argillic zone give significant Cu
and Au values. Near-surface
epithermal Au target with porphyry
target interpreted at shallow depth
--------------------------------------------------
9 El Paso Very favourable structural setting, Geophysics and
12 km from Phelps Dodge Taysan geology ongoing. Very
Porphyry Cu-Au Deposit. Cu soil high priority,
anomalies with coincident multiple drill
geophysical anomalies defined over targets. Drilling
3 km by 1.2 km to date. Especially planned for first
strong charge-ability anomaly at half of 2006.
Calantas Zone. Extensive porphyry-
related alteration with associated
Cu-Au showings (trenches give wide
intervals of plus 1% Cu).
--------------------------------------------------
10 Calo High sulphidation Cu-Au showings Geology and
in an area of extensive argillic geochemistry surveys
to advanced argillic alteration, ongoing. Geophysics
interpreted as porphyry-related. to commence in first
Assays of up to 3.8% Cu and 3.0 quarter of 2006.
g/t Au obtained from grab samples.
Coincident Cu soil anomalies.
Target area at least 2 km by 1 km.
--------------------------------------------------
11 Palac- Potassic-altered intrusives Geological evaluation
pac (diorite) with abundant Cu-Au of erosion level and
showings. Interpreted as deeply remaining potential
eroded poprhyry Cu-Au system. planned for late
2006.
--------------------------------------------------
B. Surigao Projects
--------------------------------------------------
12 Agata Intense (to 31 msec), chargeability Very high priority
North anomaly over 1.3 km by 0.6 km in drill target.
Target very favorable structural setting Drilling in progress.
near Philippine Fault cut by cross
faults; coincident Cu-Au-Zn soil
anomalies and altered ultra-mafics
cut by intrusive dykes with Cu-Au
mineralization.
--------------------------------------------------
13 Agata Intense (to 40 msec) chargeability Very high prioirty
South anomaly over 1.8 km by 0.6 km, drill target.
Target flanked by strong, broad resistivity Drilling planned in
anomalies, at least part of which second quarter 2006.
correspond to structurally-
controlled phyllic alteration.
Proximal anomalous magnetic
features. In very favorable
structural setting on Philippine
Fault splay cut by cross-faults.
Multi-phase intrusive dykes/stocks.
Coincident Cu-Au-Zn soil anomalies.
Abundant artisanal Au workings.
--------------------------------------------------
14 Assmi- Drilling of epithermal gold targets Geophysics proposed
cor by Mindoro in 1999 intersected in late 2006 followed
Porph- porphyry A-type veining within by drilling.
yry multi-phase intrusive dykes and
Prosp- stocks; associated phyllic
ect alteration with retrograde
overprint. Short drill intervals
of up to 0.3% Cu and 0.51 g/t Au.
Resitivity anomaly partially
defined, but prospect not yet
covered by geophysics. In very
favorable structural setting within
Philippine Fault cut by cross-
faults. Extensive flanking
epithermal Au prospects in
intrusives and limestones, and
major Cu-Au soil anomalies.
--------------------------------------------------
15 Ameri- A major area of artisanal Au Drill-ready. Drilling
can mining. Au and minor Cu planned in 2007.
Tun- mineralization associated with
nels multi-phase intrusives and phyllic
alteration with retrograde
overprint. Moderate-strong
chargeability anomaly over 800 m
by 300 m. Within structurally
favorable setting on Philippine
Fault and cross-faults. Coincident
Cu and Au soil anomalies. Probable
poprhyry Cu-Au target.
--------------------------------------------------
16 Gold Strong chargeability anomaly Extremely high-
Hill covering 600 m by 500 m, probably priority porphyry Cu-
(C5) part of a much more extensive Au drill target.
chargeability anomaly (sulphides) Drilling proposed for
at depth. Capped by resitivity first half of 2006.
anomaly. In andesitic volcanics
with limestone and intrusive dykes;
proximal to a large intrusive
complex. Pervasive high temp
propylitic alteration with areas of
strong argillic alteration (and
phyllic?). Historic artisanal Au
mining. Abundant epithermal Au-Cu
showings and high-grade, massive
sulphide/precious metal prospect.
Excellent structural setting near
Philippine Fault and cross-faults
extending from Boyongan and Boyugo
porphyry Cu-Au deposits 8 km to NE.
Coincident strong Cu-Au-As-Pb-Zn
soil anomalies.
--------------------------------------------------
17 Canti- Strong chargeability anomaly over Extremely high-
koy 600 m by 500 m, probably part of priority porphyry
(C6) a much more extensive chargeability Cu-Au drill target.
anomaly (sulphides) at depth. Ongoing geological
Capped by resistivity anomaly. and geochemical work.
Andestic volcanics with multi-phase Drilling proposed for
intrusive stocks and dykes. High first quarter 2006.
temperature propylitic alteration
with structurally-controlled zones
of intense phyllic alteration and
localised potassic alteration. In
extremely favorable structural
location near Philippine Fault cut
by cross-faults extending from
Boyongan and Boyugo porphyry Cu-Au
deposits 8 km to NE. Overprinting
epithermal mineralization.
Porphyry-related Cu-Au minerali-
zation located in several areas
including a trench of 25 m at 1% Cu
and 0.5 g/t Au. Extensive strong
coincident soil Cu-Au-Zn soil
anomalies.
--------------------------------------------------
18 Canaga Strong chargeability anomaly over Extremely high-
(C9) 400 m by 300 m, probably part of a priority porphyry
much more extensive chargeability Cu-Au drill target.
anomaly (sulphides) at depth. Ongoing geological
Flanked by resistivity anomalies. and geochemical
Dominantly recrystallised limestone work. Drilling
and andesitic volcanics with high- proposed for first
temperature propyliic alteration. quarter 2006.
Multi-phase intrusive stocks and
dykes nearby exhibit phyllic and
potassic alteration. In extremely
favorable structural location near
Philippine Fault cut by cross-faults
extending from Boyongan and Boyugo
porphyry Cu-Au deposits 8 km to NE.
Porphyry-related Cu-Au
mineralization is associated with
volcanics and intrusives, including
a trench of 15 m at 1% Cu.
Coincident soil Cu-Au soil
anomalies.
--------------------------------------------------
19 Water- Coincident strong chargeability Further geophysical,
falls (to 20 msec) and resistivity geologic and
(C1) anomaly over 800 m by 600 m. geochemical surveys
Coincident stream sediment Au- prior to drilling.
Cu-As-Zn anomalies. Dominantly
recrystallized and silicified
limestone and ultramafics and
strongly propylitized andesite
with localized argillic and phyllic
areas. In extremely favorable
structural location near Philippine
fault cut by cross fault extending
from Boyungan and Bayogo porphyry
Cu-Au deposits 8 km to NE. Old
adits following Au and base metal
veins.
--------------------------------------------------
20 Tapian Partially-defined chargeability Additional geophyics
Main anomaly covering 1 km by 1 km. and geological work
Flanking resitivity anomaly. planned prior to
Dominantly andesitic volcanics selecting drill
with limestone, ultra-mafics and targets.
multi-phase intrusives. Extensive
propylitic alteration with
scattered narrow argillic zones.
In favorable structural setting
near Philippine Fault and cross-
faults. Extensive historic mining
of epithermal Au. Porphyry Cu-Au
target interpreted at depth.
--------------------------------------------------
21 Bolo- Recconnaisance work located Geophysical and
bolo extensive porphyry-related geological
alteration (phyllic) in andesitic investigations
volcanics, as well as widely recommended in 2006.
distributed calc-silicate boulders
grading in the 1% Cu range.
--------------------------------------------------
C. Iloilo Project
--------------------------------------------------
22 Pan de Intensely altered dacitic volcanics Partner sought to
Azucar- in volcanic caldera. A short (45m); finance drilling.
Aspar- reconnaissance drill hole in 2002
in intersected potassic alteration
Hill with disseminated; and veinlet
Cu mineralization grading 0.24%
Cu over 10 m.
--------------------------------------------------
II. EPITHERMAL GOLD (Au) PROSPECTS
--------------------------------------------------
Multiple epithermal Au-(Ag) Prospects at Surigao, Batangas and
Iloilo. Most advanced are:
--------------------------------------------------
A. Batangas Projects
--------------------------------------------------
1 SWB 25 drill holes completed by Mindoro Economic evaluation
from 2003-2004 defined an NI 43-101 of development
compliant indicated reource of 270K potential will be
tonnes at 6.49 g/t Au containing carried out when
56,380 ozs Au and additional additional resources
inferred resource of 61K tonnes at have been defined on
5.35 g/t Au containing 10,540 ozs Batangas projects.
Au.
--------------------------------------------------
2 Kay Extensive near-surface epithermal In-fill drilling
Tanda Au-Ag mineralization intersected planned for Jan.-Feb.
by past drilling over 500 m by 2006 with objective
400 m; open in several directions. of defining an
Initial metallurgical testing of exploration target
Au recoveries positive. from 18M to 22M
tonnes at a grade
of 0.75 to 1 g/t Au.
Drilling will
continue to depth to
test porphyry targets
below.
--------------------------------------------------
B. Surigao Projects
--------------------------------------------------
3 Lime- Silty limestone with 600 m by Additional drilling
stone 500 m Au soil anomaly. Two Mindoro planned as
drill holes in 1999 on east edge priorities allow.
intersected 2.7 g/t Au over 7 m and
2.2 g/t Au over 8 m. Carlin deposit
similarities.
--------------------------------------------------
4 Assmi- 7 of 8 Mindoro drill holes in 1999 Additional drilling
cor intersected better than 0.5 g/t Au planned as priorities
in oxidised intrusives, including allow.
1.1 g/t over 19 m and 1.4 g/t over
24 m.
--------------------------------------------------
5 Tapian Pre-WW2 Au mine with extensive Will be drill-tested
Main underground workings. Grade in conjunction with
recorded as 8.3 g/t Au. Extensive drilling of porphyry
Au soil anomalies defined. Cu-Au targets nearby.
--------------------------------------------------
C. Iloilo Project
--------------------------------------------------
6 Pan de Massive pyritic sulphide deposit Additional drilling
Azucar- near Asparin porphyry Cu-Au planned in
Valder- prospect, Pan de Azucar. Scout conjunction with
ama drilling in 2001 & 2002 intersected drilling Asparin
mineralization grading to 37 m of porphyry target.
0.8% Cu, 1.87 g/t Au.
--------------------------------------------------
III. NICKEL (Ni) LATERITE PROSPECT
--------------------------------------------------
A. Surigao Projects
--------------------------------------------------
1 Agata Surface samples from an area of Agreement concluded
300 ha in a much larger area of with BHP Billiton
nickel laterite mineralization who will fund test
graded from low values to 2.09% drilling commencing
Ni, with most values above 0.5% Ni. first quarter 2006.
Test pits ranged from 0.8% to
2.21% Ni.
--------------------------------------------------
(1) Programs are carried out under the supervision of Mindoro's
President, Mr. J. A. Climie, P. Geol., and a qualified person as
defined by National Instrument 43-101
(2) Proposed work programs are subject to financing and receipt of
necessary government approvals
(3) Gold equivalents are calculated based on prices of US $2.03/lb
for copper, US $505/oz for gold, and US $7/oz for silver. Gold
equivalents do not infer that metal processing economics for
copper, gold and silver are the same, but are intended to convey
only the approximate relative values of the various metal
intercepts assuming a 100 percent recovery for all metals.
ABOUT MINDORO
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (OLM). The company has identified 21 porphyry copper-gold prospects and a nickel laterite prospect in the Philippines and has an aggressive strategy of drilling multiple targets in 2006.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Penny Gould
Mindoro Resources Ltd. - Head Office
Executive Vice President
(780) 413-8187
(780) 426-2716 (FAX)
penny@mindoro.com
www.mindoro.com
Marshall Farris
Ascenta Capital Partners Inc.
Investor Relations
(604) 628-5800 or Toll Free: 1-866-684-4209
info@mindoro.com
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Source: Mindoro Resources Ltd.