MIO.V
Mindoro Resources Ltd.: Kay Tanda Prospect
Thursday November 20, 9:02 am ET
EDMONTON, ALBERTA--
- Metallurgical test work commenced to evaluate open-pit, heap-leach potential of Kay Tanda Inferred Resource
- Currently 370,000 ounces gold, 1,300,000 ounces silver, with considerable expansion potential
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- Drilling planned to extend the resource, and test higher-grade targets
Tony Climie P. Geol., President of Mindoro Resources Ltd. (Mindoro) is pleased to advise that a major exploration program, including metallurgical testing, has commenced on the Kay Tanda gold prospect. Kay Tanda is one of several prospects on the Archangel Project, 5 km southeast of the Lobo Project on which Mindoro is drill-testing an extensive epithermal gold system. The Lobo and Archangel Projects are part of a 13,400 hectare land position situated in a well-mineralized copper-gold belt in Batangas Province, Luzon Island, Philippines, and in which Mindoro can earn a 75% interest.
Western Mining Corporation in the 1980's, and Chase Resources in the 1990's, carried out wide-spaced drilling at Kay Tanda, intersecting significant gold-silver mineralization in most drill holes. Mindoro is evaluating Kay Tanda for its open-pit, heap-leach development potential, as well as the potential of higher-grade gold mineralization intersected in the previous drill holes. Mineralization occurs as a near-surface, sub-horizontal sheet of silica stockworks, hydrothermal silica breccias and matrix silicification, that has not yet been fully delineated.
(1) NEAR-SURFACE, OPEN-PIT, HEAP-LEACH POTENTIAL
In a release dated January 24, 2003, Mindoro announced results of an independent resource study by consultants Dr. D. Bailey and Mr. S. Carty, based on the previous drilling. This resulted in an inferred resource estimate of 17,000,000 tonnes at a grade of 0.68 grams per tonne (g/t) and 2.48 g/t silver; equating to 370,000 ounces gold and1,300,000 ounces silver (see the January 22, 2003 Technical Report filed on SEDAR). Thickness and grade appear to increase towards the north-east, extending onto an adjacent tenement belonging to Philex Mining Corporation (Philex). This ground was subsequently acquired under an agreement with Philex.
Recently-acquired Philex exploration data (see release dated September 02, 2003) indicate soil gold anomalies (greater than 100 parts per million gold, with values up to 35 g/t), have been defined semi-continuously over an area covering approximately 4 km by 1 km, indicating substantial potential to increase the resource. Only a small part of this anomaly has been tested by drilling.
Mindoro commissioned Dr. Bailey during August, 2003, to conduct additional evaluations. He concluded that Kay Tanda is a low-sulphidation, epithermal gold-silver resource that may be amenable to heap-leach or dump-leach processing, and recommended metallurgical studies be carried out (see news release dated September 2, 2003). Drill cuttings from the Chase Resources reverse circulation drill holes have been located, and representative samples submitted to McPhar Geoservices of Manila (ISO 9002 accredited) for leach-testing (bottle roll tests). Results will be reported when received. If results are satisfactory, the inferred resource will be extended by additional drilling of the open-ended mineralization, and a scoping study carried out.
Mindoro management notes that Glamis Gold Ltd., one of the most efficient, low-cost gold miners in the world, processes low-grade gold ores, comparable to grades seen at Kay Tanda. For example, Glamis is proposing to put into production the Imperial Project, California, with measured and indicated resources of 75 million tonnes at 0.58 g/t gold (1,401,000 contained ounces). The current higher gold prices have enhanced the economic potential of Kay Tanda considerably.
(2) HIGHER-GRADE POTENTIAL
The wide-spaced drilling by Chase Resources (1997) intersected higher-grade gold mineralization in places eg. Hole CA-02 intersected 8.6 g/t gold over 6 m (68 to 74 m), and CA-09, more than 200 m distant, intersected 7 g/t gold over 2 m (112 to 114 m). The higher-gold grades appear to be associated with more-strongly developed quartz veins and stockworks. No systematic structural studies were conducted previously and controls of the higher-grade zones are unknown. Given the large aerial extent of the gold-silica mineralization at Kay Tanda, and strength of the epithermal system, the potential for economically interesting, higher-grade gold zones is considered good.
Initially, a diamond core hole will be drilled to gain structural information. This will be twinned with the Chase Resources reverse circulation hole CA-02 (56 m of 1.31 g/t gold, including the higher-grade intercept noted above), and will be followed by step-out drilling. An IP/resistivity survey is also planned to define the strongest silica-gold zones, and assist in step-out drill target selection. Geological and geochemical surveys are in progress, to be followed by geophysics and diamond drilling scheduled in December and January respectively.
Mindoro is a Tier One Company listed on the TSX Venture Exchange (symbol MIO). The Company is exploring for gold and gold-copper in the high-potential magmatic arcs of the Asia-Pacific Region and is presently focussed on six promising projects in the Philippines. Additional drill results from the Lobo Project will be released in the near future.
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Contact:
Mindoro Resources Ltd.
Penny Gould
Executive Vice President
Phone: (780) 413-8187
Fax: (780) 426-2716
Email: mindoro@mindoro.com
Website: www.mindoro.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
