Mindoro increases resource estimate at Kay Tanda

Vancouver – Results from the latest drill program at Mindoro Resources’ (MIO-V) Kay Tanda gold-silver project in the Philippines have upped the project’s resource estimate by 34% in grade and 22% in ounces.

Mindoro used the latest 14 drill holes, totaling 2,041 metres, to provide the first resource estimate update since early 2008. The total number of drill holes at Kay Tanda now stands at 200, with 160 reverse circulation and 40 diamond drill holes.

The Kay Tanda site is part of the Archangel Project, which is located in the Batangas District of Luzon Island. The area contains oxide, transitional and sulphide material, which is reflected in the resource estimate.

Oxide material at Kay Tanda now stands at 4.25 million measured and indicated tonnes grading 0.75 gram gold per tonne and 6.42 grams silver per tonne, plus 680,000 inferred tonnes grading 0.57 gram gold and 3.04 grams silver. For transitional material the measured and indicated resource is 2.46 million tonnes grading 1.22 grams gold and 3.92 grams silver, with 537,000 inferred tonnes grading 0.97 gram gold and 2.57 grams silver. For fresh material, there are 3.17 million measured and indicated tonnes grading 1.37 grams gold and 2.35 grams silver as well as 2.52 million inferred tonnes grading 0.84 gram gold and 1.23 grams silver.

In total, the measured and indicated resource comes in at 9.88 million tonnes grading 1.06 grams gold and 4.5 grams silver, for 337,500 oz. gold and 1.43 million oz. silver. The inferred resource stands at 3.74 million tonnes grading 0.81 gram gold and 1.75 grams silver.

Drill holes to date have encountered low grade gold and silver in a near-surface, flat-lying to gently dipping, blanket-like zone of stockwork mineralization, with higher grade feeder zones at deeper levels. Epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense quartz stockworks, veins and hydrothermal breccias, with accompanying base metal sulphides.

The resource has been defined over a one-kilometre strike length and remains open to the northeast and southwest. It sits within a 6-km corridor of anomalous stream sediment, soil and rockchip geochemistry and induced polarization chargeability.

The 14-hole drill program was actually conducted by Avocet Mining, listed on the London AIM exchange under UVM, but the company is no longer involved in the project. The drilling was done under a memorandum of understanding, whereby Avocet was to drill a minimum of 1,500 metres of diamond drilling as part of a six-month due-diligence program. The program was twice extended while Avocet exceeded the required amount of drilling. Upon completion of the drilling however, Mindoro announced in a press release dated September 14 that Avocet will no longer be part of the project.

In the press release Mindoro stated “While Mindoro appreciates the time and expense Avocet has invested in the Kay Tanda project over the past year, it also notes that interest in gold and base metals projects in the Philippines has increased considerably since the memorandum of understanding was signed in 2008. In particular, various agencies from China have been aggressively seeking to acquire resources in the Philippines.” Mindoro went on to say it had not entered negotiations for a joint venture or to sell the project because of the partnership with Avocet, but that it would immediately begin doing so.

Mindoro acquired the Batangas project, which includes Archangel, in 2000 from Egerton Gold Philippines, a private Philippines company. Mindoro has the right to earn a 75% interest in the project though exploration expenditures, shares issuances, and by taking Archangel or Lobo (the other project at Bantangas) to the feasibility stage. The company has also signed a letter of intent to acquire the remaining 25% interest.

Mindoro has several other projects in the Philippines at various stages of development.

Mindoro’s share price was up 3¢ on the news to close at 20¢. The company’s 52-week share price range is between 9¢ and 22¢; the company has 107.7 million shares outstanding.