Mindoro Intersects 26.2m @ 4.07 g/t Gold in First New Hole at Archangel and Provides Update on the Proposed TVI Transaction and Board Changes
MELBOURNE, AUSTRALIA -- (Marketwire) -- 08/31/12 -- Mindoro Resources Ltd. (TSX VENTURE: MIO)(ASX: MDO)(FRANKFURT: OLM) (Mindoro, "the Company"), is pleased to announce that it has received the preliminary results of the first diamond drill hole of the current program at Archangel gold project, Batangas, the Philippines. Diamond drill hole KT 191-12 intersected 26.2m @ 4.07 g/t gold from 19.4m down hole including 6m @ 6.12 g/t gold from 19.4m down hole and 8.8m @ 5.36 g/t gold from 36.8m down hole. These intersections are part of a broader interval of 39.25m @ 3.08 g/t gold from 16.4m down hole (0.5 g/t gold cut-off).
The well-developed gold mineralization intersected by KT 191-12 is associated with chalcedonic quartz vein stockwork's and hydrothermal breccias within an interpreted up-flow or "feeder" zone, as shown on the interpreted cross section below:
A map is available at the following address: http://media3.marketwire.com/docs/Archangel1.pdf
Mindoro President and CEO Jon Dugdale said, "we are very pleased with the results from the first new drill hole at Archangel. The thick higher-grade intersection in KT-191-12 conforms with the up-flow or "feeder" zone interpretation and opens the way to potentially extending the resource with further drilling".
This is the first drill hole of an initial three to five drill hole program to test interpreted higher-grade "feeders" or up-flow zones within the Kay Tanda resource area at Archangel. The program is being funded via a drawdown loan facility from Red Mountain Mining Ltd (RMX) and will run until completion of the RMX transaction, anticipated by late September 2012 (see details of the RMX gold assets sale agreement released 23 July 2012), at which time the loan is expected to be discharged through conversion to an RMX inter-company loan. Encouraging results from this first phase of drilling suggests that a systematic program of resource definition and extension drilling should follow.
Drilling progress has been very good. A total of 414.6m have been completed since the program commenced on 5 August, despite inclement weather conditions at times.
The second drillhole of the program KT 192-12, testing an interpreted feeder at the eastern side of the Kay Tanda resource, has now been completed at a downhole depth of 267m. KT 192-12 was an angled hole drilled to azimuth grid north (see plan of drill hole locations below), designed to test the vicinity of previous drill hole KTDH-04 (52m of 11.5 g/t gold from 84 to 136 meters, reported by Mindoro 14 November 2006) that is interpreted to have drilled down a sub-vertical hydrothermal breccia up-flow or "feeder" zone. The drill hole intersected the mineralised stockwork associated with the majority of the current Kay Tanda resource from surface to 73m depth, then intersected a quartz - base metal sulphide "lode" from 180m to 181.6m before intersecting the targeted hydrothermal breccia from 215m to 224m. Results are not yet available for this hole.
The third drillhole of the current program, KT-193-12 has commenced, testing the west Kay Tanda zone (formerly Pulang Lupa).
A map is available at the following address: http://media3.marketwire.com/docs/Archangel2.pdf
All drill hole locations and results are summarized in the table below:
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Northing Easting Azimuth Depth From To Interval Gold Silver
Drill hole (Grid) (Grid) (Grid) (m) (m) (m) (m) g/t g/t
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320
KT 191-12 9,900 9,965 degrees 92.6 16.4 55.65 39.25 3.08 2.70
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Including 19.4 45.6 26.2 4.07 2.95
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Including 19.4 25.4 6.0 6.12 5.27
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Including 36.8 45.6 8.8 5.36 3.51
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48
KT 192-12 10,003 9,907 degrees 267 Results not yet available
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48
KT 193-12 9,330 9,575 degrees (i)55 (i)Drilling in progress
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Total 414.6
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(i)Note the Kay Tanda grid north is oriented 48 degrees from magnetic north.
Update on the TVI Transaction
TVI Pacific Inc. (TVI) have agreed to extend the closing date for the first tranche of the proposed Private Placement to 7 September, 2012 and to extend the timeframe within which Special Shareholders Meeting may be held to approve the second tranche of the proposed Private Placement to not later than 9 October, 2012, or such later date as may be agreed upon by the parties. The Company now intends to hold the Special Shareholders Meeting at 4pm on 9 October in Calgary, Alberta, Canada, and has filed notice with Canadian regulatory authorities to that effect. The Notice of Meeting will be issued on or before 10 September 2012.
Please refer to the Mindoro release of 6 July 2012 for further details of the proposed TVI transaction, including the proposed private placement (subject to due diligence, shareholder and regulatory approval); plans to earn 60% in, and operate, two Agata Nickel Project development joint ventures focused on stage 1 DSO production and stage 2 nickel processing respectively, and the option to joint venture the Pan de Azucar Cu-Au-S project.
Retirement of Howard Walker
Mindoro regretfully advises that Director and Vice Chairman of Mindoro Mr. Howard Walker is retiring from the Mindoro board to pursue other private business interests. Mindoro's Chairman Rob Garden said "Howard has done a great job for Mindoro, initially as a director and then as Vice Chairman. While we understand Howard's motivation for leaving the board, there is no doubt that we will miss his wise counsel". Howard has also withdrawn his nomination to become a board member of Red Mountain Mining Ltd (RMX) at the anticipated closing of the RMX transaction that involves the "spin-out" of Mindoro's gold assets (see Mindoro release detailing the binding agreement with RMX dated 23 July 2012). The Company is working with RMX to seek a replacement representative to represent the shareholders interests.
On behalf of the Board of Directors:
Jon Dugdale,
President and CEO
For further information, please contact Mindoro's Melbourne office at +61 3 9614 5055.
For investor relations inquiries please email ir@mindoro.com.
About Mindoro Resources
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, gold and copper-gold exploration and development in the Philippines where its 75% interest PFS-stage (Nov 2011) Agata Nickel Project has NI 43-101 Mineral Resources that include Measured and Indicated resource estimates totalling 42.76 million tonnes at 1.01% nickel, for 430,000 tonnes contained nickel, and Inferred resource estimates totalling 2.435 million tonnes at 0.99% nickel (Sep 2011). In addition the Company has NI 43-101 Mineral Resource estimates on its 100% interest Batangas projects of Indicated Resources 393,000 ounces (Archangel, Indicated 9,879,000t @ 1.1 g/t Au and Lobo, Indicated 270,000t @ 6.49 g/t Au) and Inferred Resources 108,000 ounces (Archangel, Inferred 3,741,000t @ 0.8 g/t Au and Lobo, Inferred 61,000t @ 5.35 g/t Au); a drill-defined copper-gold-sulphur Exploration Target on its 75% interest Pan de Azucar project, Iloilo, as well as 10 key porphyry copper-gold prospects at varying stages of advancement.
The Company's development and 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. Mindoro's exploration programs are prepared and/or designed and carried out under the supervision of Tony Climie, P.Geo., who is a qualified person as defined by National Instrument 43-101 and is a competent person as defined by the JORC Code, and who has reviewed and verified the pertinent disclosure of exploration related technical information contained in this news release. 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. All resource information is also expressed in terms of the JORC Code. The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Jon Dugdale, who is a member of The Australasian Institute of Mining and Metallurgy. Jon Dugdale has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Jon Dugdale 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:
Australia:
Mindoro Resources Ltd.
Jon Dugdale
+61 3 9614 5055
ir@mindoro.com
www.mindoro.com
Canada:
CHF Investor Relations
Jeanny So
+1 416 868 1079 ext 225
CHF Investor Relations
Jeremy Hill
+1 416 868 1079 ext 238
Germany:
Aprendo Capital
Robert Sarcher
+49 821 6089051