Deal helps Mindoro advance gold projects

By teaming up with Australian companies, Mindoro Resources (MIO-V) is advancing its Tiris and Pan de Azucar grassroots projects in Indonesia and the Philippines, respectively.

In April, Mindoro dealt Delta Gold an option to earn a 65% interest in the Pan de Azucar project. More recently, similar arrangements were made with Newcrest International for Tiris.

The Pan de Azucar deal calls for Delta to spend A$4.5 million on exploration over four years to earn 45%. The junior can earn an additional 10% by completing a bankable feasibility study within the following three years, and another 10% by paying half of the gross value of the reserves outlined to a minor Philippine partner.

Assuming all goes as planned, Mindoro would be left with a 25% participating stake, which can be converted to a 2% net smelter return royalty (NSR). Also, the company is expected to relinquish operatorship within the first year of the agreement.

Pan de Azucar

Pan de Azucar covers 10.8 sq. km of Panay Island and is distinguished geologically by dacitic and andesitic porphyries surrounding a depression measuring 2 km long by 2 km wide. Underlying the depression are pyroclastic and flow deposits exhibiting ferruginous quartz-sericite-alunite alteration.

Although intense weathering has rendered rock sampling unreliable, gossan samples nevertheless run up to 2.3 grams gold per tonne, whereas shallow auger samples yield up to 6 grams. Soils in the area are also anomalous in gold, as well as copper.

Mindoro considers the property prospective for near-surface, high-sulphidation gold-copper deposits and related porphyry zones at depth. Neither is rare to the Philippines.

An induced-polarization survey is under way in preparation for drilling.

The Newcrest agreement sees that company spending US$2.7 million on exploration over six years in exchange for a 75% interest. At that point, Mindoro must convert its stake to a 2.5% NSR or begin covering its pro rata share of expenditures. In the event the former option is taken, the royalty, in respect to gold only, increases to 25% if spot prices exceed US$350 per oz. for any given quarter.

As part of the deal, Newcrest is funding and managing a 1,250-metre drilling program, now underway. At least 1,000 metres must be drilled even if the company decides to back out of the project in the meantime.

Tiris

Tiris covers 100 sq. km of Indonesia’s island of Sumatra, in the Lebong gold district. Geologically, the property consists of variably welded dacitic air-fall tuffs intruded by andesitic porphyries.

Hydrothermal alteration is pervasive and widespread, with early propylitic and phyllic assemblages overprinted by strong, gold-bearing quartz-sericite-adularia-pyrite alteration. Stockwork and hydrothermal breccia outcrops, along with float samples, collected over a 10 sq.-km area have run up to 10.6 grams gold and 520 grams silver.

Mindoro believes the present erosion level sits high in the system, where mineralization is widely dispersed as stockworks in the permeable air fall-tuffs. Stockworks may merge at depth into fault-controlled vein systems, and stratabound mineralization between contrasting permeability boundaries has not been ruled out.

Geochemical soil sampling to date has outlined three main anomalies, collectively referred to as Harimau. Drilling is focusing on the Selatan area.

In addition to those above, Mindoro is earning 75% interests in four projects on the Philippine island of Mindanao and similar interests in two others on the island of Luzon. The first four, dubbed Tapian San Francisco, Tapian Main, Agata and Mat-I, cover 250.8 sq. km near the recent Boyongan copper-gold porphyry discovery of Anglo American (AAUK-Q) and Philex Gold (PGI-V) (T.N.M., March 12-18/01).

Like Pan de Azucar, the Lobo and Archangel properties cover high-sulphidation epithermal systems. Both were previously mined, with the former still hosting a resource of 90,700 tonnes grading 20.5 grams gold.

Mindoro is seeking partners at all six projects.

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