Subscribe for Updates:
Enter your email below to receive email updates
Jul 03, 2007
Further Positive Drill Results from Agata Nickel Laterite
EDMONTON, Alberta; July 3, 2007 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) is pleased to report results from a further 13 drill holes on two drill cross sections; 9950N and 10200N on the Agata nickel laterite project. For section 9950N the limonite horizon averages 1.15 percent nickel and 42.16 percent iron over an average thickness of 7.83 meters. For section 10200N, 250 meters to the north, the limonite horizon averages 1.22 percent nickel and 42.02 percent iron over an average thickness of 4.58 meters. These grades exceed current requirements for direct shipping ore for nickel pig iron production in the Asia-Pacific region. The underlying saprolite horizon on section 9950N averages 1.24 percent nickel over an average thickness of 6.54 meters, while for section 10200N the saprolite horizon averages 1.17 percent nickel over an average thickness of 4.50 meters. Mineralization thicknesses exceed expectations, and tonnage of material greater than one percent nickel is expected to be nearly double the original target projection for these two sections.
As reported on March 13, 2007, five coring drill rigs are operating on the Agata nickel laterite project, with the objective of defining a NI 43-101 compliant resource adequate, initially, for three to five years of production at a rate of 500,000 to 700,000 wet metric tonnes per annum of direct shipping-grade material for the very high demand ferro-nickel markets of China, India and Korea. Mindoro has a target production date of the first half of 2008. The drilling is being conducted on 50 meter centers. This initial drill program covers less then ten percent of the area of nickel laterite mineralization mapped to date at Agata. On June 20, 2007, Mindoro released a revised global Exploration Target for the northern part of the Agata Project (see "About The Agata Nickel Laterite Project" below).
Results from 13 drill holes on sections 9950N and 10200N are reported. Results are consistent with the previously reported sections 10000N, 10050N, 10100N and 10150N (June 6 and 18, 2007). A drill location map accompanies this release, as well as two cross sections showing assay results. The iron-rich overburden above the limonite horizon also has high iron content of over 43 percent, as well as greater than 0.7 percent nickel, and has potential for blending purposes. The nickel and iron grades of the limonite horizon are robust, remarkably consistent between all six sections reported to date, and exceed current grade requirements for ferro-nickel feedstock. The average grade of the underlying saprolite horizon (1.21 percent nickel) is diluted by internal boulders and un-lateritized blocks ("floaters") which would be screened out during a mining operation, thus providing higher grade feed which has potential for nickel processing plant feedstock, with corresponding higher credits for nickel content.
Results are exceeding initial expectations and Mindoro management considers they form a sound basis for fast-tracking the project. Haul road designs have been completed, and the Environmental Compliance Certificate is in progress. A mining engineer has been commissioned to carry out mine design planning. Mindoro has been approached by many interested consumers with whom discussions are ongoing.
ABOUT THE AGATA NICKEL LATERITE PROJECT
The nickel laterite prospect is situated on the Agata Project, Surigao Gold District, northern Mindanao, Philippines. There are several nickel laterite mines already in production in the Surigao District, providing direct shipping-grade ore to markets and processing plants in China, Japan, Korea and Australia. The geological extension of the Agata nickel laterite mineralization into an adjacent property, one kilometer south of Agata, is in production and product is being shipped to markets in China (see map accompanying this release). Mindoro's Exploration Target for the various laterite horizons in the northern laterite area is as follows:
Combined ferruginous overburden, limonite and saprolite horizons: 50 to 60 million wet metric tones (WMT) at a grade of 0.9 to 1.1 percent nickel and 28 to 32 percent iron. This includes the following division of tonnage between the overburden/limonite horizon and the saprolite horizon:
• Combined ferruginous overburden and limonite horizons: 30 to 35 million WMT of material at a grade of 0.9 to 1.1 percent nickel and 40 to 44 percent iron.
• Underlying saprolite horizon: 20 to 25 million WMT of material at a grade of 1.0 to 1.4 percent nickel and 8 to 10 percent iron.
The northern nickel laterite mineralization covers approximately 340 hectares. As shown on the accompanying map, a total of over 90 drill holes has been completed to date within this area. Average thicknesses and grades encountered and a specific gravity of 1.5 grams per cubic centimeter were used to arrive at the revised Exploration Target. The Exploration Target does not include significant thicknesses of low-grade, partially lateritized saprolitic rock, grading in the 0.6 to 0.8 percent nickel range, that also has market potential. Nor does it include additional areas of nickel laterite mineralization further south on the Agata Project.
The drilling program has been extended with the objective of defining the revised Exploration Target. This revised Exploration Target will form the basis for evaluating several attractive value-added processing options, which includes constructing a local blast or electric furnace for nickel pig iron production. In the meantime, Mindoro will continue to fast-track the direct shipping ore scenario with the objective of achieving production in 2008.
The very high demand for ferro-nickel feedstock for nickel pig iron production in the Asia-Pacific region, and high nickel prices, presents a great opportunity to get the Agata Project into production fast, and to generate early cash flow. Uniquely, direct shipping grade nickel laterite deposits have a low-capital cost and offer a rapid route to production and cash-flow.
The reader is cautioned that the potential quantity and grade of the Exploration Target described is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource. Until a feasibility study has been completed there is no certainty that the Company's projections will be economically viable.
Programs are carried out under the supervision of Tony Climie, P.Geol., president of Mindoro, who is a qualified person as defined by National Instrument 43-101. Sample preparation and assaying is being performed by McPhar Laboratory of Manila, an ISO 9001/2000 accredited laboratory. Ni, Co, Fe, MgO and Al2O3 assays are performed by AAS after an HCl-HNO3-HClO4 digest, and SiO2 by gravimetric method. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to advancing the Agata nickel laterite project towards production, Mindoro is carrying out a major resource delineation program on its Kay Tanda gold-silver project. The company has also identified 22 porphyry copper-gold prospects in the Philippines and has an aggressive strategy of drilling multiple targets in 2007.
FOR FURTHER INFORMATION, CONTACT:
Executive Vice President
Ascenta Capital Partners Inc.
Toll Free: 1.866.684.4209 ext. 228
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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). 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.
You can view the Next Press Releases item: Wed Jul 4, 2007, Calo Drilling Encounters Porphyry Related Alteration
You can view the Previous Press Releases item: Wed Jun 27, 2007, Shareholders Approve Rights Plan
You can return to the main Press Releases page, or press the Back button on your browser.