Mindoro Resources Ltd. (TSX VENTURE:MIO) (ASX:MDO) (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.
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
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.
KL-19: Total 11.85m @ 0.83% Ni from 1m 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.