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Gold/Mining/Energy : Mindoro Resources Ltd - MIO -- Ignore unavailable to you. Want to Upgrade?

To: Sudeep Naidoo who wrote (138)	6/15/1999 1:06:00 PM
From: Sudeep Naidoo	Read Replies (1) \| Respond to of 147

Mindoro Resources' Agata project results Mindoro Resources Ltd MIO Shares issued 16,305,539 Jun 14 close $0.17 Tue 15 Jun 99 News Release Mr. Tony Climie reports Mindoro Resources has completed its results from underground sampling of an active high-grader gold mine (Assmicor mine) within Mindoro's Agata project, Philippines. The mine is within the Lao Prospect, one of two clusters of gold prospects on the project. It is operated by local miners on a small scale and occurs along the mineralized contact zone of a monzonite intrusive and ultramafic rocks. Abundant active and inactive gold workings occur along this contact over a strike length of 400 metres. The saprolite (soil) horizon developed over this contact zone was mined by thousands of local miners during the 1980s. Local miners are now mining gold from a mixed oxide/sulphide zone to shallow depths within the mine. Assmicor mine consists of a main shaft, presently at 30 metres depth, with a series of short development drifts extending from this. The miners are planning to abandon the operation soon since their primitive mining techniques (hammer and chisel) cannot handle the increasingly harder rock at depth, as well as water inflows. Channel sampling of the mine by Mindoro was carried out in three phases. The first, reported on May 13, 1998, returned an average of 4.5 grams per tonne gold over the total 28 metres of workings developed at that time. The majority of samples were collected from along the mined-out walls and do not reflect the actual ore grade material mined. The second sampling phase was carried out in November, 1998. Twenty channel samples were collected. Results ranged from 0.17 g/t gold (over 2.1 metres) to 26.8 g/t gold (over 2.3 metres), and averaged 5.5 g/t over a total of 57.7 metres. Once again, the majority of samples were from along the mined-out walls, indicating mineralization extends outside the limits of the small-scale mining operation. Phase one and two sampling combined to give an average of 5.2 g/t gold over a total of 85.7 metres. All samples were analyzed by McPhar Geoservices, Manila, using standard fire assay procedures. The third sampling phase was carried out in May, 1999, and was supervised by Tony Climie and Dr. Gerhard Kirchner, a mining engineer and director of Mindoro. Three underground channel samples from the working faces of the mine and one representative sample from the mill feed were collected. Samples were submitted to McPhar Geoservices for standard fire assays, as well as to Intertek Testing Services (ITS-Bondar Clegg), Manila, for screen fire assays, both as a check and to determine the amount of coarse gold present. Sampled material consisted of strong quartz-pyrite stockworked-monzonite with limonitic fractures containing visible gold. Two, one-meter-wide channel samples from the north-working face of the mine returned 20.11 g/t (closest to the contact) and 3.59 g/t gold, for an average of 11.85 g/t gold over a true width of two metres (Intertek results). The McPhar results were 15.80 g/t gold and 5.08 g/t gold respectively, for an average of 10.44 g/t gold over the two metres. A one-metre channel sample from the south face of the mine, the maximum width presently exposed by mining, returned 16.32 g/t gold (Intertek) and 29.90 g/t gold (McPhar). Mineralization is open to the east (hanging wall) in both cases. The mill feed sample returned 13.74 g/t gold (Intertek), or 10.30 g/t gold (McPhar). The screen assays indicate the coarse gold component (greater than 150 mesh) ranges from 8.7 per cent to 54.3 per cent of the total gold assay. Some of this coarse fraction gold is thought to be of supergene origin. The extent of any potential enrichment is unknown at this time. The underground samples are considered encouraging and indicate economically interesting grades occur over a true width in excess of two metres along the favourable contact zone, which is known to extend for at least 400 metres along strike. The Assmicor contact zone offers excellent potential for establishing an early resource and initial exploration work will be directed at this. Of particular significance are three broad gold in soil anomalies (greater than 50 parts per billion), totalling approximately 10 hectares, within adjacent altered limestones (Limestone Target, previously reported May 13, 1998). Small-scale mining operations took place within these limestones and gold was also recovered by panning of the soils. Extensive inactive workings occur within one of these anomalies, where encouraging rock channel values (up to 2.8 g/t gold over five metres, announced May 13, 1998) were obtained in pyritized limestone. This mineralization, and the surrounding soil anomalies, are interpreted to reflect leakage from higher-grade skarn or replacement gold mineralization associated with the inferred intrusive body at depth. Exploration will be directed at testing both the near-surface bulk-tonnage, as well as this deeper, higher-grade potential. Ron Avery, Mindoro's exploration manager, is presently on site supervising detailed target definition in advance of drill testing of both the Assmicor and Limestone Targets, planned to commence in July. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com