Mindoro provides highlights of activities
Mindoro Resources Ltd MIO
Shares issued 16,305,539 May 11 close $0.12
Thu 13 May 99 News Release
Mr. Rodney Orr reports
Unlike most Canadian juniors that joined the 1996 rush to the promising,
underexplored magmatic arcs of the Asia-Pacific region, Mindoro was able to
acquire and advance high-potential projects and hence has retained its
original focus. Further, rather than sit out the current mineral industry
recession, Mindoro continued measured and prudent exploration, capitalizing
on depreciated Asian currencies and low exploration costs to add
considerable value to its core projects. It has been Mindoro's objective,
not just to survive this recession, but to actually advance the company and
go into the next up cycle with a strong project base and emerging
discoveries.
As a consequence of these strategies, Mindoro has conserved a treasury of
approximately $800,000 and has four high-potential projects at, or near,
the drill stage with good financing and/or joint venture potential. There
are strong indications that Asian economies are on the rebound and
management anticipates that a new mineral cycle will soon follow.
Highlights and status of Mindoro's core projects, together with present
plans, are summarized below.
TIRIS PROJECT, SUMATRA, INDONESIA
Tiris is an approved seventh generation contract of work, 100 per cent held
by Mindoro. As previously announced (in Stockwatch March 3, 1998, May 7,
1998, July 28, 1998, Nov. 20, 1998, Jan. 29, 1999), the Harimau prospect is
a large epithermal gold system, extending over more than 5.8 by 2.5
kilometres. Gold grades in excess of one gram per tonne, and up to 10.6
grams per tonne, from both outcrop and float, are widely dispersed across
the prospect. Silver values range up to 520 g/t.
Geological interpretation suggests that only the uppermost parts of the
system are presently exposed by erosion, and that the multiple zones of
breccia and stockwork gold/silver mineralization mapped at surface will
likely coalesce at depth to fissure-vein systems, with the potential to
host bonanza grades. Mindoro management considers Harimau has significant
potential for multiple zones of gold-silver mineralization.
Given the size of the Harimau gold system, and magnitude of required
exploration, Mindoro is seeking a senior partner. There are currently five
major companies reviewing the data and Ron Avery, Mindoro's exploration
manager will be leading interested parties on field visits commencing
mid-May, the beginning of the dry season. Work is unaffected by localized
areas of unrest in Indonesia. Proposed work for 1999 includes ground
geophysics (induced polarization), further infill geochemical/geological
work and initial drill-testing of targets.
PHILIPPINES PROJECTS
Little field work has been carried out during the past year largely because
of the complete overhauling of the mineral tenement system being carried
out by the Department of Energy and Natural Resources (DENR). This has been
a slow process but with the recent confirmation of the DENR secretary,
approvals of Mindoro's titles (mineral production sharing agreements, or
MPSAs) are expected soon. Highlights of the Philippines projects follow:
PAN DE AZUCAR PROJECT (PdA)
PdA is an MPSA application in which Mindoro can earn a 75 per cent
interest. As previously announced (in Stockwatch Oct. 23, 1997, Dec. 1,
1997, Feb. 24, 1998), PdA is a strong high-sulphidation gold-copper system
that is at the drill stage. Strongly anomalous gold and copper soil
geochemistry extends over at least two by 1.5 kilometres. Alteration and
weathering are too intense for reliable surface rock sampling but gossanous
samples give up to 2.2 g/t gold.
Although expressions of interest in a joint venture have been received from
majors, given the project's perceived potential, management prefers Mindoro
to retain its present equity rights and finance the initial drill program.
Plans are to carry out an induced polarization program to refine drill
targets as soon as the MPSA is signed. If it appears the wet season, due in
June, will hamper the proposed work program, then drilling will commence
first on the Agata project in Mindanao, where the wet season does not start
until December.
AGATA PROJECT
Agata is an MPSA application in which Mindoro can earn a 75 per cent
interest. As previously announced, there are two significant gold prospects
at Agata: the Lao and American Tunnels prospects. To date, most work has
been carried out on the Lao prospect, where gold in soil anomalies have
been defined covering in excess of 600 by 600 metres and there are abundant
active and inactive gold workings. A saprolite (soil) horizon was mined for
gold by several thousand local miners in the 1980s. Locals are actively
mining the shallow oxide zone at the Assmicor mine, where gold
mineralization is associated with an intrusive/ultramafic contact. As
previously announced (in Stockwatch May 14, 1998), underground channel
sampling by Mindoro returned encouraging results, totalling 4.5 g/t gold
over 28 metres.
Adjacent altered limestone, extending for several hundred metres to the
west and south of the Assmicor mine, returned strong gold in soil anomalies
(Limestone target). In addition, numerous inactive gold prospects occur in
the limestone from which channel samples returned up to 2.8 g/t gold over
3.7 metres (the latter mineralization is open in all directions beneath
overburden). The soil and rock values are considered likely to reflect
leakage from blind skarn and/or replacement mineralization associated with
the intrusive contact below. Plans are to drill test both the high priority
Assmicor and Limestone targets once the MPSA is awarded.
Less work has been undertaken by Mindoro on the American Tunnels prospect,
approximately 600 metres to the north where gold mineralization is being
mined by locals in proximity to an intrusive/ultramafic contact.
A laterite with significant nickel-cobalt values is present in ultramafics
at Agata over an area of approximately 11 square kilometres. A joint
venture partner is being sought to evaluate this nickel-cobalt potential.
TAPIAN MAIN PROJECT
The Tapian Main project is part of an MPSA application in which Mindoro can
earn a 75 per cent interest. Epithermal gold mineralization occurs as
veins, stockworks and breccias associated with contacts between
greenschist, ultramafics, limestones and andesitic intrusives. There was
extensive pre-World War II underground development of one of the vein
systems (Rosario mine) and a 100-ton-per-day mill was constructed, but
mining is believed to have been interrupted by the war and production
records destroyed.
As previously announced (1997 annual report), work by Mindoro defined a
strong gold in soil anomaly extending over approximately 250 by 600 metres
in areas of poor outcrop, containing gold mineralization of up to 2.96 g/t
over 8 metres and 14.4 g/t in grab samples. Once the MPSA is awarded, plans
are to carry out trenching of soil and rock targets. A joint venture
partner may then be sought.
OUTLOOK
Management believes strongly that Mindoro's market capitalization does not
adequately reflect the underlying value of its assets, but does expect that
market recognition will follow as MPSAs are awarded and Mindoro advances in
1999 to drilling programs and/or joint venture arrangements on several key
projects.
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