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EDMONTON, ALBERTA, March 02, 2011 - Mindoro Resources Ltd. (TSXV: MIO; ASX: MDO; Frankfurt: WKN 906167) (the �Company�) is pleased to announce the release of the Company's Audited Financial Results as well as its Management's Discussion and Analysis for the three and twelve month periods ended 31 December 2010.
The documents are available on the Company's website (www.mindoro.com), with Mindoro's filings on Sedar (www.sedar.com) and the ASX website (www.asx.com.au).
All dollar values are Canadian Dollars unless otherwise stated.
OVERVIEW OF FOURTH QUARTER ACTIVITIES
Finance
- Consolidated loss after tax for the three months ended 31 December 2010 - $0.3 million (for the twelve months ended 31 December of $3.3 million).
- Gross proceeds of A$8 million received from subscriptions to a prospectus offering in Australia for 40 million CHESS Depository Interests (CDIs) and gross proceeds of C$2 million concurrently received from a private placement of 10 million shares to the IFC, a member of the World Bank Group. Mindoro commenced trading on the ASX (ASX:MDO) on 7th December 2010.
- As of 31 December 2010, the Company�s cash position was $9.9 million ($0.6m at 31 December 2009) and working capital balance of $9.4 million ($0.4 million at 31 December 2009).
Agata Nickel Project Development Strategy
The Company is progressing a two stage development strategy including thermally upgraded direct shipping ore followed by a low operating-cost nickel processing operation based on established acid leaching technology.
On October 6th 2010 the Company announced the results of the Agata Nickel Project Scoping Study that provided a preliminary assessment of the economics of three processing options, including a base case High Pressure Acid Leach (HPAL) � Atmospheric Leach (AL) and Saprolite Neutralisation (SN) project ($2.50/lb Opex for 27,000t Nickel pa; 1.3Bn Capex) and an atmospheric leach only case ($3.25/lb Opex for 14,300t Ni pa, 740m Capex). The Company is currently examining a smaller scale approach to the base case processing project, based on the current Agata resource and results of the metallurgical testing program (see below). A preliminary economic assessment into the preferred development model is scheduled for completion Q1 2011, prior to the commencement of a pre-feasibility study.
On December 13, 2010 the Company announced the results from a comprehensive bench scale test work program on Agata samples by SGS Lakefield Oretest [a NATA accredited laboratory] in Perth. The hydrometallurgical test results demonstrated exceptionally fast leaching rates with high nickel and cobalt recoveries. HPAL testing extracted approximately 98 percent of the nickel and 95-96 percent of the cobalt from limonitic material within 20 minutes. This leaching rate is 50 percent faster for HPAL processing than previously assumed in the scoping study announced on October 2, 2010. Based on these results a second stage of testing was initiated in February 2011 with SGS Lakefield Oretest at their Canadian laboratory. The results of this testing will form the basis of the planned pre-feasibility study due to commence early in the second quarter of 2011.
In parallel with the acid leach processing work described above the Company has been progressing a preliminary direct shipping ore (DSO) study which will allow the Company to develop an economic model around this stage of the project as part of the preliminary economic assessment. In addition, on the 13th of October 2010 the Company announced it had completed a concept study through Hatch Associates Pty Limited, Perth, into thermal upgrading of nickel lateritic material at Agata. Based on the concept study the Company commenced bench-scale thermal upgrading testing, also at SGS Lakefield Oretest in Perth, the results of which are due by the end of the first quarter 2011. The Company is undertaking further review of markets for both DSO and thermally upgraded laterite product, and the capital and operating costs for their production, before incorporating this stage of the project into the planned pre-feasibility study.
Suriago Regional Exploration Target Drilling
A drilling program to convert a significant proportion of the regional Exploration Target to mineral resources commenced in the first week of August 2010. By year�s end the Company had drilled a total of 309 holes for 3,458m of a planned 7,000m to 10,000m program.
On October 14th 2010 the Company announced the initial results from the Tapian and Canaga targets, that included results of potential economic interest but erratically distributed.
On January 12th and 24th 2011 the Company announced strong drill results of potential economic interest from the Bolobolo and Karihatag nickel targets located immediately to the south of Tapian. Highlights of the drilling include from Bolobolo: BBL-04: 7.30m @ 1.26% Ni from 1m, BBL-03: 7.15m @ 1.22% Ni from 3.8m and BBL-05: 6.45m @ 1.46% Ni from 2.7m and from Karihatag: KL-20: 6.60m @ 1.04% Ni from 1.6m, KL-21: 5.00m @ 1.00% Ni from 4.25m and KL-012: 4.90m @ 1.08% Ni from 7.75m and from Tapian: TML-05: 5.9m @ 1.17% Ni from 2.35m. Infill drilling is planned to continue on the Bolobolo and Karihatag targets to 50m x 50m centers for resource calculation prior to testing other targets such as San Jose and Villariza.
Copper Gold Exploration
At Pan de Azucar prospect located near Panay Island, central Philippines, the Company announced commencement of a 1,000 m drill program to further evaluate the potential of the Valderama massive pyritic sulphide body where promising gold, copper, silver and zinc values were intersected by Mindoro in two previous drill programs.
At Batangas, Luzon, Gold Fields limited has the right to earn up to a 75% interest in each of the El Paso, Lobo and Talahib porphyry copper-gold projects. In December, 2010 the Company announced that Gold Fields had commenced drilling at Lobo, testing high-grade epithermal gold targets as well as gold-copper porphyry targets. Approximately 2,200 meters of drilling is planned initially. |