Mindoro Closes Private Placement; Planning Underway to Drill American Tunnels
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posted on Feb 24, 2009 03:28AM
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EDMONTON, Alberta; February 19, 2009, Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167), reports that pursuant to a private placement announced on January 14, 2009, the company has issued 3,105,233 units at a price of $0.15 per unit for gross proceeds of $465,784.95. Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to purchase one additional common share at a price of $0.30 for a period of two years from the close of the offering. The company paid finders fees of $18,405 and 122,700 Agent's Warrants in connection with the investment. Each Agent's Warrant is exercisable into one common share at a price of $0.18 for two years.
Shares issued, including any shares issued pursuant to the exercise of Purchase Warrants or Agent's Warrants, are subject to a four month hold period. Proceeds from the placement will be used for drilling Mindoro's American Tunnels gold and copper-gold prospect in the Philippines, and for general working capital.
"At a time when many companies are going into hibernation mode, Mindoro shareholders can look forward to active drilling campaigns on at least three gold and copper-gold projects during 2009,"commented Tony Climie, Mindoro's CEO. "In addition to our plans to carry out an initial drill test at American Tunnels, joint venture partner Avocet is currently drilling at the Kay Tanda gold project, and we anticipate that the first drill program under the Gold Fields joint venture will commence prior to the end of the first quarter".
An initial test of 6 to 8 drill holes totaling 1,200 to 1,500 meters is planned at American Tunnels. The drill program is designed to test both the near-surface epithermal gold mineralization and the underlying porphyry copper-gold target. The drilling will commence on a window of exposed mineralization, where artisanal miners are operating, and then extend along strike to test below what is assumed to be shallow cover. Bids for the drill program are being put out for tender and Mindoro anticipates commencing the drill program within the next four to six weeks.
GOLD - COPPER MINERALIZATION ON THE AGATA PROJECT
American Tunnels is a small erosional window through ultra-mafic cap rocks within an extensive, six kilometre trend of strong IP chargeability anomalies associated with extensive alteration, geochemical anomalies, and abundant gold and copper-gold showings. There are over 100 shallow artisanal mines and workings within the trend, but mineralization is mostly obscured by ultra-mafic cap rock of variable thickness. Where the mineralization is exposed, younger epithermal gold mineralization is telescoped into porphyry copper-gold related mineralization. Uniquely then, the drilling is targeting both epithermal gold and porphyry copper-gold mineralization. To fully explore and evaluate the large and highly prospective mineralization trend at Agata will likely require several years of drilling campaigns.
ABOUT AMERICAN TUNNELS
Epithermal Gold Target
The American Tunnels area has a long and continuing history of small scale, artisanal gold mining, which peaked with about 3000 miners in the mid 1980s. The artisanal miners are mining gold from a honeycombing of shallow (5 to 20 meters) underground workings, estimated to total more than a kilometer in extent, within an area of about 200 meters by 225 meters at American Tunnels. Free gold is also present in streams draining ultramafic cap rocks several hundred meters north of American Tunnels. There are dozens of artisanal gold workings within other erosional windows to the south.
The miners follow narrow high-grade veins, stock-works and fracture-filled zones near the top of an intrusive complex. Given the primitive mining and low-recovery processing methods, break-even is about 5 grams per tonne (g/t) gold- a general rule of thumb in Mindanao at current gold prices. Bonanza gold zones were not unusual during the high-grading in the 1980's and 1990's, and are still encountered. Mindoro's underground sampling was restricted to wall rock in mined-out areas and does not reflect the mineralization grades. It has not been possible to sample working faces due to their inaccessibility and dangerous conditions.
Small scale miners provided some grade information, of varying degrees of reliability, from more recent workings. Unfortunately, most information has been lost for ever. Recovered gold grades were reportedly in a wide range from 2 g/t gold to as high as plus 1,000 g/t gold.
Porphyry Copper-Gold Target
In the past year small scale miners were actively mining high-grade copper from shallow workings over an area of about 150 m by 50 m at American Tunnels. These were mined by manual methods and ore grading 5 percent to 15 percent copper was sent by local buyers to China for processing. Recently, lower copper prices have terminated the copper mining; gold workings are still active.
American Tunnels is characterized by a chargeability anomaly, extending over 800 meters by 300 meters, with associated resistivity and magnetic anomalies. As reported on November 17, 2008, extensive underground sampling of the copper workings gave high copper values, associated in places with high gold and molybdenum values. Maps and a cross section accompanied this news release. Mineralization is at the top of multi-phase intrusives, on the cusp of the chargeability anomaly, and is interpreted as a high-grade, late-stage concentration at the upper contact of the intrusive stocks and dykes, and derived from porphyry copper-gold mineralization below. American Tunnels is in the center of a six kilometer trend of chargeability anomalies and at a point where the chargeability is near-surface, and actually daylights.
Petrology indicates mineralization is principally within late, more-fractionated monzonite phases of a syenite, monzonite, monzodiorite and diorite intrusive complex of dykes, sills, and small stocks intruding ultramafic rocks. Mineralization is associated with complex alteration assemblages of chlorite, epidote, actinolite, biotite, sericite, magnetite and albite. Copper minerals are chalcopyrite and bornite. These features, as well as the high molybdenum values, are consistent with a porphyry copper-gold setting.
The American Tunnels is an untested high-priority drill target for both epithermal gold, and for porphyry copper-gold mineralization. The extent of alteration, abundance and strength of copper-gold showings, and of the associated IP anomalies, indicate a source of considerable potential interest. The currently planned program is an initial drill test only of a large target area.
Tony Climie, P.Geol, is the Qualified Person responsible for monitoring the supervision and quality control of Mindoro's programs and who has reviewed and verified the technical information contained in this news release.