Gold Fields eyeing up Mindoro’s assets

Mindoro Resources (MIO-V) is looking to Gold Fields (GFI-N, GOF-J) to prove up its promising copper and gold porphyrys in the Philippines.

The companies signed a non binding agreement that would let Gold Fields earn up to a 75% interest Mindoro’s El Paso, Lobo and Talahib porphyry projects.

The three sites are part of Mindoro’s Batanga prospects on the southern part of Luzon in the Philippines.

Gold Fields has three months to do further due diligence and Mindoro says it expects to have a formal deal done over that period.

To earn the 75% interest in each of the three projects Gold Fields will fund exploration and a feasibility study on each project Mindoro will retain a 25% interest at a production decision.

The deal will let Mindoro focus on its Surigao nickel laterite project which it is moving towards mining.

As currently constructed the deal would let Gold Fields earn a 51% interest in the El Paso project and the Lobo project by spending $3.5 million on a given project.

For the Talahib project Gold Fields would only have to spend $1.8 million to earn the same 51%.

Gold Fields would also have to spend at least $310,000 per year on each project.

It can then earn another 24% interest by completing a feasibility study or contributing a “milestone” amount.

The milestone amount for the El Paso and the Lobo projects, is $14 million and $10.6 million for the Talahib project. Those amounts would be paid in addition to the totals spent in the first phase.

Of the three projects only Lobo has an National Instrument 43-101 compliant resource estimate. In the indicated category the project has 270,000 tonnes at a grade of 6.49 grams gold for 56,380 ounces of gold and inferred resources of 61,000 tonnes grading 5.35 grams gold.

Talahib which lies 8 km west of Lobo, is described as a promising copper and gold porphyry which is being brought to the drill phase.

El Paso sits 7 km north of Lobo and is also in the early stages of exploration

Gold Fields produces roughly 4 million oz. of gold per year and has mineral reserves of 83 million ounces and mineral resources of 251 million ounces.

In Toronto on Sept. 3 Edomonton-based Mindoro shares were off roughly 2 to 25.5 on roughly 25,000 shares traded. In New York Gold Fields shares were off 8 to $8.42 on 7.6 million shares traded.