MINDORO RESOURCES LTD. - REPORT TO THE SHAREHOLDERS FOR THE THIRD QUARTER ENDED SEPTEMBER 30, 1997
EDMONTON, Nov. 27 /CNW/ -
MARKET CONDITIONS
Junior mining exploration companies, and indeed the seniors as well, have
been experiencing poor market conditions due to lingering effects of the Bre-X
factor, low gold prices and tax-loss selling. Mindoro's share price, along
with all other gold-related stocks, has reflected these poor market
conditions.
However, with our healthy treasury and high potential projects we expect
not only to weather the storm, but to emerge in a strong position when the
inevitable upturn occurs. Our strategy remains on course: to focus on
advancing and adding value to our promising property portfolio in a cost-
effective and prudent manner. We expect to have drill targets defined on at
least 4 projects during the first quarter of 1998.
I am pleased to report we are receiving very encouraging exploration
results from our Philippines projects; the high-potential Tiris project has
been included in the 7th generation CoWs, and work has resumed on the
promising Kyaukkyi prospect, and other targets, in Myanmar. Significant
results are highlighted below.
PHILLIPPINES
AGATA PROJECT
Mindoro's subsidiary, MRL Gold Phils., Inc. has acquired an additional 80
mining claims contiguous to the Agata project, bringing the total number of
claims to 99 (7,850 hectares). These additional claims were acquired due to
encouragement received from the Agata project, where abundant old and active
''high-grader'' gold workings occur, and extensive gold soil geochemical
anomalies are being defined. Initial results will be released in the near
future.
TAPIAN PROJECT
San Francisco Area
MRL has acquired an additional 11 claims contiguous with the San
Francisco claims, bringing the total number of claims to 14 (1,134 hectares).
MRL has received encouraging results from its early exploration work, where
work is focussing on the Mina Tunnels and Limon prospects. At Mina Tunnels,
two extensive soil gold anomalies are being defined in proximity to at least
17 old gold workings and mines.
Work is at an earlier stage on the Limon Prospect, but is already
defining two strong soil gold geochemical anomalies, alteration and
mineralized boulders.
Tapian Main Area
At the Mount Tapian prospect, a strong and extensive stream sediment gold
anomaly has been defined over a watershed area of approximately 1.5 X 1.5
kilometres. Three abandoned pre-World War II gold mines occur in two of the
anomalous drainage systems. Five other anomalous drainage systems were
defined where no previous mining operations occur and these are believed to
represent new targets. Detailed evaluation has commenced.
MRL expects to complete its first phase of evaluation work on the San
Francisco and Tapian Main areas during the first quarter of 1998 and to be in
a position to define priority targets for drill testing in both areas.
PAN DE AZUCAR PROJECT (PANAY ISLAND)
MRL has obtained encouraging results from the Pan de Azucar prospect,
where a strong gold soil anomaly has been defined. Additional arsenic, copper
and gold soil anomalies were also defined. These geochemical anomalies occur
within an area of very strong hydrothermal alteration which is at least 1 km X
1 km in extent. The Pan de Azucar prospect is essentially at the drill stage
and drilling is planned once all government approvals are in place, which is
expected to be during the first quarter of 1998.
MAT-I PROJECT
Systematic geological and geochomical work is in progress and initial
results will be released when available.
LAHUY ISLAND PROJECT
Initial reconnaissance evaluation together with rock sampling was carried
out in November. Results will be reported in the near future. Detailed
investigations of remaining resources in pre-World War II gold mines,
estimated from old records to be in excess of 300,000 ounces of gold at a
grade of 13 g/t gold, will commence once all government approvals are in
place. This is expected to be sometime during the first quarter of 1998.
INDONESIA
I am pleased to report that five CoW applications, including the Tiris
application, have been included in the 7th generation CoWs and have received
parliamentary approval. These are expected to be signed by President Suharto
before year end. The Tiris project contains a strong and extensive gold
geochemical anomaly, which constitutes a high priority target, as well as
historical Dutch gold mines and workings. Geochemical and prospecting work
will commence once preliminary exploration approvals have been received, which
is expected to be in December, 1997.
Detailed evaluation of the Kelayu, Penampi and Ketungkung gold prospects
continues on the Darit East and Darit CoWs in Kalimantan.
MYANMAR CONCESSION NO.11
Monsoon rains have ceased and field work, under the new operatorship of
Mindoro, has commenced. Work will focus initially on the promising Kyaukkyi
gold prospect with the objective of defining specific drill targets prior to
year end. Follow-up work is also in progress on numerous other gold
geochemical anomalies within the Concession.
On behalf of the Board of Directors
James A. Climie, President November 25, 1997
Printed copies of the financial statements for the quarter ended
September 30, 1997, are available from the Company upon request. Mindoro
Resources Ltd. is a Canadian mineral exploration company focusing on gold and
gold-copper exploration in Asia. Mindoro currently has working capital of
approximately $3,600,000.
Consolidated Balance Sheets
(Unaudited)
As At As At
Sept 30, Dec 31,
1997 1996
-------- --------
CURRENT ASSETS
Cash and short term investments $ 3,738,989 $ 3,094,243
Receivables 168,278 87,895
Accrued interest receivable 30,327 60,055
Prepaid expenses 38,331 72,448
Seriousness bonds 192,125 2,557,513
--------- ---------
4,168,050 5,872,154
DEFERRED EXPLORATION COSTS 2,029,985 892,254
CAPITAL ASSETS 93,091 98,102
--------- ---------
$ 6,291,126 $ 6,862,510
--------- ---------
CURRENT LIABILITIES
Accounts payable and accrued charges 132,394 349,744
CONVERTIBLE DEBENTURES - 2,032,000
--------- ---------
132,394 2,381,744
--------- ---------
SHAREHOLDERS' EQUITY
Share Capital (Sept 30, 1997-13,365,000 6,944,240 4,953,344
common shares; Dec 31,
1996 - 4,380,000 common
shares)
Deficit (785,508) (472,578)
--------- ---------
6,158,732 4,480,766
--------- ---------
$ 6,291,126 $ 6,862,510
--------- ---------
--------- ---------
Consolidated Statements of Loss and Deficit
Nine Months Ended September 30, 1997
(Unaudited)
Sept 30, Sept 30,
1997 1996
-------- --------
REVENUE
Interest income $ 162,489 $ 130,340
------- -------
COSTS AND EXPENSES
General and administrative 502,750 550,291
Depreciation and amortization 20,449 5,333
Unrealized foreign exchange (gain) loss (47,780) 12,342
------- -------
475,419 567,966
------- -------
NET LOSS 312,930 437,626
DEFICIT
Beginning of period 472,578 32,423
------- -------
DEFICIT
End of period $ 785,508 $ 470,049
------- -------
LOSS PER SHARE $ 0.03 $ 0.08
------- -------
------- -------
Consolidated Statements of Changes In Financial Position
Nine Months Ended September 30, 1997
(Unaudited)
Sept 30, Sept 30,
1997 1996
-------- --------
NET (OUTFLOW) INFLOW OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING
Net (loss) income $ (312,930) $ (437,626)
Depreciation and amortization 20,449 5,333
Unrealized foreign exchange (gain) loss (47,780) 12,342
Changes in non-cash working capital 2,179,280 (2,530,191)
--------- ---------
1,839,019 (2,950,142)
--------- ---------
INVESTING
Deferred exploration costs (1,137,731) (477,096)
Capital asset purchases (15,438) (61,377)
--------- ---------
(1,153,169) (538,473)
--------- ---------
FINANCING
Issue of common shares and
special warrants, net of issue costs 1,990,896 4,965,881
(Conversion of) proceeds from
convertible debentures, net (2,032,000) 375,000
--------- ---------
(41,104) 5,340,881
--------- ---------
(DECREASE) INCREASE IN CASH 644,746 1,852,266
Cash and short term investments
(indebtedness) at beginning
of period 3,094,243 1,659,461
--------- ---------
CASH AND SHORT TERM INVESTMENTS AT
END OF PERIOD $ 3,738,989 $ 3,511,727
--------- ---------
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