Mindoro JV partner to begin drilling at Lobo project

2009-01-29 09:24 ET - News Release

An anonymous director reports

MINDORO REPORTS PROGRESS ON THE BATANGAS JOINT VENTURES

Mindoro Resources Ltd. has released an update on the status of its Batangas project joint ventures with a member of the Gold Fields group of companies and with Avocet Mining PLC.

On Sept. 3, 2008, Mindoro reported that a non binding letter agreement had been signed with a member of the Gold Fields group of companies, establishing the basic commercial framework, whereby Gold Fields may earn up to a 75-per-cent interest in each of Mindoro's El Paso, Lobo and Talahib porphyry copper-gold projects located in the Batangas province of southern Luzon, the Philippines. Gold Fields was granted a 90-day period within which to conduct further due diligence. In late November, 2008, Gold Fields advised it was working on a draft of the formal joint venture agreement and Mindoro agreed to an extension of the terms under the letter agreement. Mindoro recently received the draft of the formal joint venture agreement which it is now reviewing.

Planning for the 2009 field programs is well under way. Gold Fields has advised that it anticipates the first drill program will commence on the Lobo porphyry copper-gold project prior to the end of the first quarter.

On Sept. 23, 2008, Mindoro reported that a memorandum of understanding had been signed with Avocet Mining PLC, a London-based AIM-listed (Alternative Investment Market) gold producer, which will allow Avocet to earn up to a 75-per-cent interest in Mindoro's Archangel project, also in the Batangas province. Archangel includes the Kay Tanda epithermal gold-silver resource as well as several porphyry copper-gold prospects.

Avocet has advised that fieldwork has been ccontinuing since October, and includes geological mapping of structures hosting high-grade epithermal veins at depth, preparation of access roads and drill pads, and support of Mindoro's community relations programs. Avocet has contracted Indodrill Philippines Inc. to conduct an initial minimum 1,500 metres of diamond drilling at Kay Tanda.

Indodrill is an independent contractor with considerable experience in man portable diamond drilling in Southeast Asia. Avocet advises that the rig is enroute to site and expected to arrive within the week. Additional information regarding the drill program will be released once the rig has arrived on site and the drilling has started.

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