Agata project ready for drilling
Mindoro Resources Ltd MIO
Shares issued 13,515,000 May 12 close $0.45
Wed 13 May 98 News Release
Mr. Tony Climie reports
MRL Gold Phils, a wholly owned subsidiary of Mindoro, has completed phase I
evaluations, including geochemical and geological surveys, on its Agata
gold project, Surigao Gold District, Mindanao Island, Philippines.
Extensive gold showings, prospects and anomalies have been outlined by this
work.
Geology consists of multi-phase intrusives emplaced into clastic limestones
and ultramafics. Exploration focus has been on the Lao and American tunnels
prospects, where erosion has exposed the mineralized contact between
intrusives, limestone and ultramafics. In addition, economically
interesting nickel and cobalt values have been obtained from laterite
developed on the ultramafics.
A total of 1,026 soil samples were collected from the B horizon and
submitted to McPhar Geoservices (Phils.) Inc. (ISO 9002 - accredited). They
were sieved to -80 mesh, and the -80 fraction was analyzed for gold,
copper, lead, and zinc. Gold analyses for soils and rocks were performed by
fire assay (gravimetric or atomic absorption spectrometer finish) on a 30
gram sample, with a lower detection limit of 10 parts per billion (ppb).
One standard sample and one reagent blank sample were included in each 30
sample charge. Every tenth sample was routinely rechecked, with results
varying within normal limits.
Gold soil values ranged from less than 10 ppb to 2,300 ppb (1,000 ppb
equals 1 gram per tonne), and averaged 44.6 ppb. Copper values ranged from
5 parts per million to 1,100 ppm, and averaged 105 ppm. Results for nickel
and cobalt laterite samples ranged from 4,240 ppm to 10,450 ppm for nickel
(overall average 7,119 ppm), while cobalt ranged from 226 ppm to 1,831 ppm
(overall average 784 ppm).
LAO PROSPECT
Abundant gold occurrences are associated with the contact between
intrusives, ultramafics and limestone. The favourable contact zone is
exposed over approximately 500 metres, but extends beneath overlying
limestone and ultramafics to the north, south and west. The area has been
the site of extensive gold mining by high-graders and there are at least 30
inactive and active pits, shafts and adits. The soil geochemical survey
defined a semi-continuous gold anomaly (greater than 50 ppb) of
approximately 500 metres by 250 metres covering the erosional window.
Copper (maximum 1,100 ppm) and arsenic (maximum 380 ppm) anomalies are
associated. The anomaly includes a zone of 225 metres by 100 metres
exclusively within limestone, with values up to 2,300 ppb gold (limestone
target). Additional, lower order soil gold anomalies occur elsewhere in the
limestone and ultramafics.
Gold mineralization is associated with quartz-carbonate-sulphide
stockworks, sulphide disseminations and stringers. Coarse, crystalline gold
occurs on limonitic fractures in the intrusive and is interpreted to be
supergene gold redeposited through weathering and remobilization from
primary sulphide associated mineralization.
Surface rock channel sampling returned values up to 2.8 g/t gold over 5
metres from limonitic and altered limestone within the limestone target.
This, and surrounding soil anomalies, are interpreted as leakage from a
mineralization source at depth related to the intrusive contact.
Approximately 300 metres north of the limestone target, high-graders are
mining gold from the Assmicor mine along the contact zone between the
intrusive and ultramafics. Recovered grade is in the order of 13 g/t gold,
but losses to tailings are likely high due to primitive recovery
techniques. Underground channel sampling of walls in the Assmicor mine by
MRL gave encouraging results, averaging 4.5 g/t gold along the entire 28
metres of the present winzes and tunnels. Geometry of the mineralization,
and significance of these results, is not understood at this time.
There are two interpreted mineralization targets within the Lao prospect:
Mineralization ponded along the intrusive contact with the impermeable
ultramafics;
Stockwork, replacement and possibly skarn mineralization, associated with
the intrusive/limestone contact.
The limestone target is at the drill ready stage. It is planned to further
evaluate the mineralization encountered in the Assmicor mine by excavating
cross-cuts on both sides of the underground workings to test grade, lateral
(two-dimensional) extent and to determine geometry of the mineralization.
AMERICAN TUNNELS PROSPECT
Gold mineralization is associated with a contact between intrusives and
ultramafics exposed in an erosional window of approximately 500 metres by
300 metres. There are nine active and inactive tunnels exploiting gold both
above and below the contact. The American Tunnels are being actively mined
by high-graders. There are no reliable production records, but extracted
grades up to 200 g/t gold are reported by local miners from selective
mining of narrow, high-grade zones. Losses to tailings are likely high.
A soil gold anomaly (greater than 50 ppb) of 200 metres by 150 metres has
been defined coincident with the erosional window. This anomaly is
considered subdued and restricted due to the masking effect of overlying
ultramafics.
Gold mineralization is associated with quartz-carbonate-sulphide stockworks
within the intrusives and ultramafics, and with disseminated sulphides in
silicified zones. Limited rock sampling has been carried out to date. Grab
samples up to 32 g/t gold have been obtained from the American Tunnel. The
favourable mineralized contact zone is likely to extend to the north, south
and east under ultramafic rocks. It is planned to systematically map and
sample the underground workings. Main objective is to define a bulk-tonnage
gold resource within 50 metres on either side of this contact zone.
NICKEL-COBALT LATERITE PROSPECT
Laterite nickel and cobalt mineralization is associated with a peneplain
surface developed on the ultramafics. Five old exploratory pits completed
by a Filipino nickel company were located and resampled, returning an
average of 0.7 per cent nickel and 0.07 per cent cobalt over a total pit
depth of 25 metres. An evaluation of the economic potential is planned.
PHASE ONE INTEREST EARNED
Mindoro has elected to proceed to phase two on Agata, Tapian and Mat-I and,
in accordance with the memorandum of agreement with Minimax Mineral
Exploration, has issued 150,000 shares in Mindoro to Minimax. MRL may earn
a 75 per cent interest in all projects.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
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