Mindoro Resources Ltd.: New Resource Estimate for Agata North Provides a Strong Foundation for early DSO Production
CALGARY, ALBERTA -- (Marketwired) -- 04/11/13 -- Mindoro Resources Ltd. (TSX VENTURE: MIO) (ASX: MDO) (FRANKFURT:WKN 906167) ("Mindoro") advises that joint venture partner TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) ("TVI"), and its Philippines operating subsidiary TVIRD, has filed an updated National Instrument 43-101 (NI 43-101) technical report. The independent technical report is entitled "Independent Report on the Nickel Laterite Resource - Agata North, Philippines." The report was prepared by Mark G Gifford, MSc (Hons), FAusIMM, of Margaret River, Western Australia. The NI 43-101 technical report will be filed on Mindoro's SEDAR profile at www.sedar.com and on Mindoro's website at www.mindoro.com within a week of the date of this release.
The NI 43-101 reflects an updated and reclassified resource estimate for the Agata North nickel laterite resource. The new resource provides a robust foundation for moving forward, initially, with a direct shipping operation (DSO) of high-iron limonite (upper laterite horizon), followed by atmospheric leach processing of the underlying saprolite horizon.
-- Measured and Indicated resources increase to 33.9 million dry metric
tonnes (dmt) at 1.1% nickel compared to the previous 31.8 million dmt at
1.05% nickel
-- Inferred resources are 2.0 million dmt at 1.04% nickel
-- At a cut-off grade of 44% iron, there are an estimated 7.9 million dmt
or about 10 million wmt at 48.5% iron and 0.94% nickel - a DSO product
grade currently much in demand in China
-- The joint venture is fast-tracking DSO development and is targeting
production in late 2013
The previous Agata resource estimate was carried out in 2011 (see Mindoro news release dated Sept. 16, 2011). This current resource estimate gives a superior grade-tonnage distribution. Sufficient high-iron limonite has been defined for approximately 5 years of DSO production at approximately 2 million dmt per year. During this period, it is expected that the processing plant will be in operation.
The table below shows results of the resource estimate at a cut-off grade of 0.5% nickel for the limonite horizon and 0.8% nickel for the saprolite horizon. This resource estimate is exclusive of the other regional nickel laterite deposits being Agata South, Bolo-bolo and Karihatag.
----------------------------------------------------------------------------
Classification Sub-Domain kTonnes Ni Co Fe Al
----------------------------------------------------------------------------
Measured Upper Limonite 211 0.98 0.11 49.7 3.11
Lower Limonite 27 1.13 0.15 35.5 2.57
------------------------------------------------------
Total Limonite 238 1.00 0.11 48.1 3.05
------------------------------------------------------
Upper Saprolite 478 1.19 0.03 11.3 0.39
Lower Saprolite
------------------------------------------------------
Total Saprolite 478 1.19 0.03 11.3 0.39
------------------------------------------------------
Measured Sub-Total 716 1.13 0.06 23.5 1.27
----------------------------------------------------------------------------
Indicated Upper Limonite 8,360 0.93 0.11 47.9 3.45
Lower Limonite 1,403 1.00 0.12 36.3 3.01
------------------------------------------------------
Total Limonite 9,764 0.94 0.11 46.3 3.39
------------------------------------------------------
Upper Saprolite 23,411 1.16 0.03 11.9 0.55
Lower Saprolite 48 0.84 0.02 8.9 0.35
------------------------------------------------------
Total Saprolite 23,459 1.16 0.03 11.9 0.55
------------------------------------------------------
Indicated Sub-Total 33,222 1.10 0.05 22.0 1.38
----------------------------------------------------------------------------
Measured & Indicated Grand Total 33,938 1.10 0.05 22.0 1.38
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred Upper Limonite 178 1.05 0.11 47.7 3.38
Lower Limonite 79 1.15 0.10 35.7 2.97
------------------------------------------------------
Total Limonite 258 1.08 0.11 44.0 3.25
------------------------------------------------------
Upper Saprolite 1,828 1.04 0.03 12.4 0.63
Lower Saprolite 0.02 1.11 0.02 7.3 0.21
------------------------------------------------------
Total Saprolite 1,828 1.04 0.03 12.4 0.63
------------------------------------------------------
Grand Total 2,086 1.04 0.04 16.3 0.96
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Classification Sub-Domain Mg SiO2 CaO Cr2O3 MnO
----------------------------------------------------------------------------
Measured Upper Limonite 0.5 2.8 0.03 3.67 1.01
Lower Limonite 5.1 21.1 0.22 2.86 0.85
------------------------------------------------------
Total Limonite 1.0 4.9 0.05 3.58 1.00
------------------------------------------------------
Upper Saprolite 17.9 41.6 0.32 0.89 0.23
Lower Saprolite
------------------------------------------------------
Total Saprolite 17.9 41.6 0.32 0.89 0.23
------------------------------------------------------
Measured Sub-Total 12.3 29.4 0.23 1.78 0.49
----------------------------------------------------------------------------
Indicated Upper Limonite 0.6 3.3 0.21 3.13 0.92
Lower Limonite 3.6 15.8 0.23 2.58 0.83
------------------------------------------------------
Total Limonite 1.0 5.1 0.22 3.05 0.90
------------------------------------------------------
Upper Saprolite 16.5 40.3 0.35 0.91 0.25
Lower Saprolite 19.4 41.1 0.33 0.70 0.18
------------------------------------------------------
Total Saprolite 16.5 40.3 0.35 0.91 0.25
------------------------------------------------------
Indicated Sub-Total 11.9 30.0 0.31 1.54 0.44
----------------------------------------------------------------------------
Measured & Indicated Grand Total 11.9 30.0 0.31 1.55 0.44
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred Upper Limonite 0.8 5.5 0.03 3.16 0.93
Lower Limonite 3.9 21.7 0.14 2.73 0.82
------------------------------------------------------
Total Limonite 1.8 10.5 0.06 3.03 0.90
------------------------------------------------------
Upper Saprolite 16.2 41.5 0.35 0.99 0.26
Lower Saprolite 18.9 42.7 0.28 0.65 0.16
------------------------------------------------------
Total Saprolite 16.2 41.5 0.35 0.99 0.26
------------------------------------------------------
Grand Total 14.4 37.7 0.32 1.24 0.34
----------------------------------------------------------------------------
The mineral resource estimates were produced by Mark Gifford MSc (Hons), who is a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM) and an independent qualified person as defined by NI 43-101, in conjunction with Quantitative Group Pty Ltd (QG) in Perth, Australia. A total of 593 drill holes were completed at Agata North for 10,851 metres, and 11,100 core samples were used in the resource estimate. The resource estimation method applied was Ordinary Kriging. Cut-off grades applied to the resource were 0.5% nickel within the Limonite zone and 0.8% nickel within the Saprolite zone.
Sample preparation and assaying were performed by Intertek Testing Services, Phils., Inc. (ITS). The ITS Philippines facility is among Intertek's global network of mineral testing laboratories. Each sample is analyzed for nickel (Ni), cobalt (Co), iron (Fe), magnesium (Mg), aluminum (Al), silica (SiO2), Calcium Oxide (CaO), Chromium(III) Oxide (Cr2O3), Potassium Oxide (K2O), Manganese(II) oxide (MnO), Sodium oxide (Na2O), Phosphorus(V) oxide (P2O5), and Titanium dioxide (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 were carried out, using a system of repeat analyses plus split sample analyses and the use of standard reference materials and blanks. Assay verification was carried out using standard samples and re-assaying field and pulp duplicates.
Mark Gifford, FAusIMM, 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.
High-Iron and Limestone DSO/Lime Production Facility
TVI further reports that both the high-iron DSO and the limestone DSO are near-term opportunities that have the potential to generate strong cash flows beginning in late 2013 (contingent on, among other things, receipt of permits in a timely manner). The high-iron laterite and limestone deposits occur one kilometre from the coast, which is expected to minimize transportation costs due to the close proximity of the mine pit to the port.
The upper portions of the laterite profile comprise the ferruginous zone and limonite zone, both rich in iron. The deposit is expected to be developed as a surface mining operation with the high-iron material sold to the Chinese iron ore market.
Beneath the ferruginous and limonite zone is the higher nickel grade saprolite zone, which will be the dominant feed for a new nickel processing facility currently under consideration by the Project Execution/Technology Development team. The high-iron DSO operation would be expected to generate early cash flow before the nickel processing plant is built and put into operation, but shipments are expected to continue after this until the high-iron material is exhausted. The high-iron DSO operation already has an existing Environmental Compliance Certificate (ECC); however, other permits such as a port permit and a Declaration of Mining Project Feasibility are also required.
The limestone occurring at the coast is a massive recrystallized limestone of very high purity levels with Calcium Carbonate (CaCO3) greater than 95% according to the Agata Report. The initial plan is to develop a resource, mine, and ship limestone DSO utilizing the infrastructure developed initially for the high-iron DSO. Currently no permits are in place for mining the limestone.
Since the quality of limestone quarried at Agata is expected to be high, the Project Execution/Technology Development team also plans to construct a lime production facility at the Agata project site. The lime produced would be used in the nickel processing plant, offsetting the costs of imported lime while also creating potential for some to be sold. The lime processing facility is a medium-term project currently expected to come online at the beginning of 2015 pending the receipt of all required permits, among other things.
On behalf of the Board of Directors,
Tony Climie, CEO
About Mindoro
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro has a 75% interest, and an option to acquire the remaining 25%, in the Agata Nickel Project, Mindanao, and the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVI Pacific Inc. has the option to earn up to a 60% interest in these projects by meeting the earn-in requirements outlined in the September 27, 2012 release. Mindoro also holds a 53.3% stake in ASX listed Red Mountain Mining (ASX: RMX), which has a 100% direct and indirect interest in the Batangas gold and copper-gold projects.
Tony Climie P.Geol., is the CEO of Mindoro Resources Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person as defined by National Instrument 43-101. Tony Climie consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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.
Contacts:
Mindoro Resources Ltd.
Investor Relations
ir@mindoro.com
Mindoro Resources Ltd.
Australia:
Clayton Northey
+61 3 9028 8187
Canada:
CHF Investor Relations
Jeremy Hill
+1 416 868 1079 ext. 238
www.mindoro.com