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Aug 06, 2009
Drilling To Commence At American Tunnels
EDMONTON, Alberta; August 6, 2009 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) advises that a drilling contract for the American Tunnels prospect, Agata Project, Surigao Gold District has been signed. The contract was awarded to Indodrill, an Australian-Indonesian company which recently completed a due diligence drill program for Avocet Mining PLC on Mindoro's Kay Tanda gold-silver resource (initial results for which were reported on July 27, 2009). The drill rig is being mobilized to site and drilling will commence in mid-August.
An initial test of 6 to 8 drill holes totaling 1,200 to 1,500 meters is planned at American Tunnels. The drill program is designed to test both gold mineralization and an underlying porphyry copper-gold target. The drilling will commence on a window of exposed mineralization, where artisanal miners are carrying out near-surface, small-scale mining of both gold and copper mineralization.
GOLD - COPPER MINERALIZATION ON THE AGATA PROJECT
American Tunnels is a small erosional window through ultra-mafic cap rocks within an extensive, six kilometre trend of strong IP chargeability anomalies associated with extensive alteration, geochemical anomalies, and abundant gold and copper-gold showings. There are over 100 shallow artisanal mines and workings within the trend, but mineralization is mostly obscured by ultra-mafic cap rock of variable thickness. Where the mineralization is exposed, younger gold mineralization is telescoped into interpreted porphyry copper-gold related mineralization. The drilling is targeting both types of mineralization. The cross section accompanying this release (and available on Mindoro's website at www.mindoro.com) shows the location of the small scale miners' underground workings near the top of the IP chargeability anomaly.
ABOUT AMERICAN TUNNELS
The American Tunnels area has a long and continuing history of small scale, artisanal gold mining, which peaked with about 3000 miners in the mid 1980s. Gold is mined from a honeycombing of shallow (5 to 20 meters) underground workings, estimated to be several hundred meters in extent, within an area of about 200 meters by 225 meters at American Tunnels. Free gold is also present in streams draining ultramafic cap rocks several hundred meters north of American Tunnels. There are also dozens of artisanal gold workings within other erosional windows to the south on the Agata Project.
The miners follow narrow high-grade veins, stock-works and fracture-filled zones near the top of an intrusive complex. Small scale miners provided some grade information, of varying degrees of reliability, from more recent workings. Unfortunately, most information has been lost for ever. Recovered gold grades were reportedly in a wide range from 2 g/t gold to as high as plus 1,000 g/t gold. The gold appears to be intermediate level and related to multi-phase intrusions. Local controls are not understood well. Supergene enrichment of gold is likely at near-surface levels.
Porphyry Copper-Gold Target
In the past year small scale miners were actively mining high-grade copper from shallow workings over an area of about 150 m by 50 m at American Tunnels. These were mined by manual methods and ore grading 5 percent to 15 percent copper was sent by local buyers to China for processing. Late in 2008, lower copper prices terminated the copper mining, however, with increasing copper prices, small-scale mining of a high-grade lens of copper mineralization has re-commenced.
American Tunnels is characterized by a chargeability anomaly, extending over 800 meters by 300 meters, with associated resistivity and magnetic anomalies. As reported on November 17, 2008, extensive underground sampling of the copper workings gave high copper values, associated in places with high gold and molybdenum values. Mineralization is at the top of multi-phase intrusives, on the cusp of the chargeability anomaly, and is interpreted as a high-grade, late-stage concentration at the upper contact of the intrusive stocks and dykes, and derived from porphyry copper-gold mineralization below. American Tunnels is in the center of a six kilometer trend of chargeability anomalies and at a point where the chargeability is near-surface, and actually daylights.
Petrology indicates mineralization is principally within late, more-fractionated monzonite phases of a syenite, monzonite, monzodiorite and diorite intrusive complex of dykes, sills, and small stocks intruding ultramafic rocks. Mineralization is associated with complex alteration assemblages of chlorite, epidote, actinolite, biotite, sericite, magnetite and albite. Copper minerals are chalcopyrite and bornite. These features, as well as the high molybdenum values, are consistent with a porphyry copper-gold setting.
The currently planned program is an initial drill test only of a large target area.
Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's programs and who has reviewed and verified the technical information contained in this news release.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on copper-gold and nickel exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro has NI 43-101 resource estimates on its Agata North nickel-cobalt project and on both its Lobo (SWB) and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has a Memorandum of Understanding with Avocet Mining and a Memorandum of Agreement with Gold Fields covering its Batangas projects.
Mindoro is well positioned to capitalize on the global demand for gold with plans to drill the Lobo and El Paso copper-gold projects, funded by Gold Fields, and drill the American Tunnels gold /copper-gold project, commencing in August. . Final results are also awaited from due diligence drilling on the Kay Tanda gold project, funded by Avocet. Additional near-term objectives include finalizing one to two joint venture arrangements on Mindoro's porphyry copper-gold prospects at Pan de Azucar and Surigao and identifying a suitable partner to fund development of the significant Agata North nickel resource.
For further information, contact:
Mindoro Head Office
Penny Gould, President
Tel: 780.413.8187 or
Toll Free: 1.877.413.8187
Investor Relations -- Canada
Senergy Communications Inc.
Investor Relations - Europe
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.
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 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.
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