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Sep 20, 2004
Surigao Joint Venture Defines Strong Porphyry Copper-Gold System at Tapian San Francisco
EDMONTON, AB; Sep. 20, 2004 - Mindoro Resources Ltd. (TSX-V: MIO; Frankfurt: OLM) and Panoro Minerals Ltd. (TSX-V: PML) today announced that ongoing geological work is defining an extensive porphyry copper-gold system on the Tapian San Francisco Project, Surigao Gold District, Philippines. An extremely intense phyllic alteration zone has now been mapped for over one kilometer along a northeasterly trend, averaging about 400 meters wide, and which is open in at least two directions. Phyllic alteration characteristically occurs just above and or adjacent to the best-mineralized zone of porphyry copper-gold systems. Strong and extensive copper and gold soil anomalies are associated with the phyllic alteration at Tapian San Francisco. Abundant related gold and base metal showings occur peripheral to the phyllic alteration, suggesting that this is a large and robust mineralization system. A summary compilation map is in preparation and will be filed on the respective company websites when complete.

Porphyry copper-gold systems are large-tonnage, relatively low-grade, copper-gold deposits containing very large copper and gold resources which are potentially bulk-mineable. There are numerous excellent examples of porphyry copper-gold deposits in the Philippines, including the RTZ/Lepanto Far Southeast deposit, and the recent Anglo/Philex Boyongan and Bayugo discoveries. In neighboring Indonesia, the Grasberg porphyry copper-gold deposit is one of the world's premier copper-gold mines.

Porphyry copper-gold deposits in the Philippines usually have epithermal and other types of gold/base metal deposits associated, and these form exploration guides to the nearby and much larger porphyry copper-gold deposits. While evaluating historical gold mines and prospects at Tapian San Francisco in 1997, Mindoro located the associated porphyry copper-gold system. At that time it was not possible to raise funds to evaluate this discovery. However, the discovery of the major Boyongan and Bayugo porphyry copper-gold deposits in the past four years has led to international recognition of the potential of the Surigao Gold District, and to financing opportunities. Australian junior Red5 recently announced the discovery of the Madja porphyry copper-gold deposit adjacent to the Mindoro/Panoro Tapian Extension Project, and the South Korean Government agency KORES is evaluating another porphyry copper-gold prospect just north of Tapian San Francisco.

With 24,000 hectares, the Mindoro/Panoro joint venture has one of the largest land positions in the Surigao Gold District. Porphyry copper-gold deposits in the district are controlled by northeast-trending faults in proximity to northerly trending splays of the Philippine Fault System. Major northeast-trending faults extend eight kilometers from the Boyongan/Bayugo area through Tapian San Francisco, where these faults control the Tapian San Francisco copper-gold system.

There are also abundant epithermal-mesothermal gold/silver/base-metal showings peripheral to the Tapian San Francisco phyllic alteration, and these form additional targets. Two of particular note are Mina and Gold Hill. Mina is an area with little rock outcrop, immediately east of the phyllic alteration. It is reported that 90 drums of high-grade mineralization were shipped to a processing plant in Japan during the 1960s. In July 2004, a piece of massive-sulphide replacement mineralization located by Mindoro in an abandoned test pit at Mina assayed 289 grams (9 ounces) gold per tonne, 1,860 grams (60 ounces) silver per tonne, 2.36% copper, 35% lead and 17% zinc. The Mina area will be covered by a geophysical survey, now in progress, which is expected to result in drill targets.

Gold Hill, 500 meters east of the phyllic zone, is a swarm of epithermal to mesothermal gold/base metal veins, locally with bonanza grades. A grab sample taken by Mindoro from an active artisanal working assayed 20.82 grams gold per tonne and 267.70 grams silver per tonne. While immediate priority is the porphyry copper-gold system, later work will evaluate Mina and Gold Hill, as well as other prospects at Tapian San Francisco.

The above high grade samples taken from Mina and Gold Hill are not representative of any average grades, but they are indicative of the potential concentrations and metal ratios of their respective types of mineralization. A comprehensive sampling program is underway and a full report will be issued when all results are received and interpreted. Samples are assayed using standard techniques by McPhar Geoservices of Manila, an ISO 9002 accredited laboratory.

On reaching a production decision Panoro and Mindoro will have the option to each own a 42.5% interest in the Surigao joint venture with Philippine Partner Minimax retaining a 15% interest.

Geologic work by the Mindoro/Panoro joint venture commenced in June of this year. A combined induced polarization and magnetic survey, carried out by an Australian geophysical contractor, is in progress to refine drill targets, and these targets will be tested over the coming months. Once the Tapian San Francisco survey is complete, geophysical surveying will begin on the joint venture's Tapian Main and Agata Projects. Work is carried out under the supervision of Tony Clime, P.Geol., who is a qualified person as defined by National Instrument 43-101, and the President of Mindoro.

Mindoro is a Tier One Company listed on the TSX Venture Exchange (TSX-V: MIO) and the Frankfurt Stock Exchange (OLM). The Company is exploring for gold and gold-copper in the prolifically mineralized magmatic arcs of the Asia-Pacific Region. Mindoro has been active in the Philippines for seven years and is presently focused on six promising projects in politically stable jurisdictions of the Philippines. For further information please visit Mindoro's website at:

Panoro Minerals Ltd. is a mining exploration company headquartered in Vancouver, Canada and traded on the TSX Venture Exchange. Panoro's strategic focus is on exploring for large-potential gold and copper/gold projects in countries with the corresponding geological potential and where the right political and economic conditions are present. For further information please visit Mindoro's website at:

Investor Relations contact for Mindoro and Panoro
Marshall Farris, Ascenta Capital Partners Inc.
Phone: (1-604) 628-5800
Toll Free: 1-866-684-4209

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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