Mindoro cuts grade in Philippines

Vancouver The third hole of a four-hole drill program by Mindoro Resources (MIO-V) has returned 37.1 metres grading 0.8% copper and 1.87 grams gold per tonne from the Valderama Hill zone on the Pan de Azucar property in the Philippines.

The Edmonton-based junior is targetting two large induced polarization geophysical anomalies during the short 800-metre program. The first three holes were collared on the 1,600-by-200-metre Valdermara Hill anomaly.

Drilled vertically, hole 1 tested the western flank of the zone cutting massive pyritic sulphides from 11 to 19 metres before entered silica-pyrite-clay altered volcanics through to the end of hole at 90 metres. The highest-grade values encountered were 18 metres grading 0.08% copper and 0.65 gram gold from 2 metres down-hole.

Moving 140 metres to the north, hole 2 cut massive pyritic sulphides from 12 to 18 metres before entering silica-pyrite-clay altered volcanics through to the end of the hole at 173 metres. This hole returned a high value of 35 metres grading 0.1% copper from surface.

The highest grade hole was drilled a further 160 metres north. Below a near-surface oxidized zone, hole 3 cut massive pyritic sulphides with disseminations and vienlets of chalcopyrite from 16.3 to 53.4 metres down-hole before cutting silica-pyrite-clay altered breccias and volcanics to the end of the hole at 94.5 metres.

Mineralization is described as a "high-sulphidation replacement-style" generated by the interaction of magmatic and meteoric fluids in the cooling volcanic pile.

Based on the results from hole 3, an additional four holes are planned for the Valderama Hill zone during this round of drilling.

Assay results from the fourth hole, which tested the Asparin Hill anomaly are pending.

Located on the island of Panay, Pan de Azucar covers 10.8 sq. km 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 quartz-sericite-alunite alteration.

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

Australian-based Delta Gold is funding the drill program as part of a deal inked in April to earn a 65% interest in the Pan de Azucar project. The 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.