Vancouver — Initial results from ongoing drilling by
The first hole tested the downdip extension of mineralization at the Dita 1 trench (24.7 grams gold and 2.1 grams silver per tonne over 14.5 metres) and returned 2.84 grams gold over 0.9 metre.
Moving 25 metres to the east, hole 2 failed to return any significant values.
The holes were drilled into what appears to be an erosional window, and Mindoro hopes to intersect the mineralized breccia body by drilling farther down and along slope.
Some 61 metres to the north, hole 3 tested the downdip extension of mineralization discovered in Dita trench 2 (11 metres grading 19.1 grams gold). Drilled at 45, the hole collared in mineralized quartz-barite-sulphide breccia, with the first 13.3 metres grading 8.32 grams gold. Included in this section was a higher-grade portion running 17 grams gold over 4.1 metres.
Hole 4 was collared from the same site and drilled in an easterly direction, slightly oblique to the dip of the mineralized breccia, at 70. Once again, the hole encountered mineralization from surface down to a depth of 17.85 metres, yielding a value of 9.62 grams gold. Included in this section was a 2.9-metre portion running 23.56 grams gold.
Collared from the same site, hole 5 was drilled down the guts of the mineralization in the westerly direction at 70. The hole cut the favourable quartz-barite-sulphide breccia from surface to 5.9 metres returning 3.43 grams gold. This mineralization was followed by infaulted, altered andesite, gouge and hydrofractured andesite to 24.5 metres. The quartz-barite-sulphide breccia was then intersected again, down to a depth of 68 metres. Partial assay results down to a depth of 38.3 metres have yielded 14.28 grams gold over 13.8 metres. At 74 metres down-hole, crews cut a 10-metre zone of sulphidic siliceous breccia with base metal sulphides. Complete assay results for the hole are expected shortly.
The mineralization in the SW Breccia zone is low-sulphidation epithermal and overprinted on to an earlier, copper-gold, high-sulphidation style. The zones occur as pods or lens, so a considerable amount of drilling will be required to define the mineralization. Mindoro plans to add a second drill rig to Lobo in the next few months.
The Edmonton-based company was created in 1996 at the height of the junior exploration boom. During the past seven years, Mindoro has explored several targets in Indonesia, Myanmar and the Philippines, and met with limited success.
In 2000, the company deviated from grassroots exploration by inking a deal with a privately held Philippine company to earn a 51% stake in both the Lobo and nearby Archangel properties. Under the deal, Mindoro must spend US$1.5 million over three years, and issue 500,000 shares for each project. It can then earn an additional 24% by issuing another 500,000 shares and taking the project to the feasibility stage. On completion of a feasibility study, the private company gets a further 500,000 shares.
Situated in Batangas province, the Lobo property has long been considered prime hunting ground for high-grade copper and gold mineralization. The history of the project dates back to the early 1900s, when the Lobo copper deposit was discovered along the Sampson structural zone. However, development did not start until 1944, when Pan Philippine developed the project for barite. In 1966, the property was taken over by Copper Belt Mining and developed for copper. Between 1966 and 1969, the mine produced 604 tonnes copper, 47.2 kg gold and 955.7 kg silver. Since 1969, it has been dormant as foreign firms elected to stay away from the country because of its draconian mining laws, political unrest and tenement issues.
The Sampson vein contains classic El Indio-style pyrite-enargite-tetrahedrite veins. Production and reserves at El Indio total 23.2 million tonnes averaging 4% copper, 6.6 grams gold and 50 grams silver per tonne. El Indio also produced 191,000 tonnes of direct shipping ore, the average grade of which was 209 grams gold per tonne.
The Lobo mine is underlain by andesitic flow. The vein strikes north 60 east and dips at 60 northwest. In outcrop, the zone is made up of barite and quartz, with occasional copper oxides.
Earlier this year, the Philippine government finally granted a mining permit for the project, paving the way for Mindoro to start work. The company completed a program of mapping, prospecting, trenching and rock-geochemical sampling. The reconnaissance work outlined another major epithermal vein system, some 800 metres away. Dubbed Camo, the trend extends for at least 2 km with widths ranging up to 20 metres. The highest trench values came from the SW Breccia zone, in the southwestern part of the Camo trend, and this is the target of current drilling.
With drill targets ready, the junior inked an agreement with East West Drilling of Australia, to explore the Lobo and Archangel projects. East West is led by Peter Draper, who is also a principal in the private Philippine company that holds the projects.
Under the deal, East West gets 600,000 shares by completing 1,000 metres of diamond core drilling. Mindoro will pay for mobilization and certain support costs, such as fuel. Within one year of the drill program’s completion, East West has the right to perform a second, identical, drill-for-equity program on any project of Mindoro’s choice in the Philippines.
Meanwhile, Mindoro has arranged a non-brokered private placement of 1.1 million units priced at 15 each. A unit consists of one share and one half-warrant. A whole warrant entitles the holder to buy one additional share at 30 in the first year and at 50 in the second.
In early March, the junior granted insiders the option to buy 560,000 shares priced at 15 each for five years, and with drilling already under way, an agreement was reached to settle $95,000 in debt owed to two Mindoro insiders by issuing 272,726 shares.
Although most of the exploration work has been focused on the Lobo property, crews at the nearby Archangel project have outlined an alteration system measuring 1.5 by 3 km. The system is characteristic of a porphyry copper-gold deposit and features at least six widely distributed copper oxide showings. Previous operators also defined extensive and strong copper soil anomalies. The targets have yet to be tested.
Earlier this year, Mindoro tabled an inferred resource of 17 million tonnes running 0.7 gram gold and 2.5 grams silver per tonne for the Kay Tanda epithermal gold zone on the Archangel property.
Mindoro has 26.2 million shares outstanding, or 38.3 million shares fully diluted.
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