Mindoro Submits 2012 First Quarter Financial Results and Provides Update on Strategic Partnership for Agata Nickel Project and Batangas Gold Drilling Plans
• Annual reports submitted; Expenditure is kept low during the negotiations on the corporate transaction
• Receipt of offers from potential strategic partners for the Agata nickel project, negotiations under way
• Gold drilling program planned at Batangas to investigate the feeder structures at Archangel, expressing interest
MELBOURNE (AUSTRALIA), May 1, 2012 - Mindoro Resources Ltd. (TSXV: MIO; ASX: MDO; FFT: OLM) (Mindoro, "the Company") is pleased to announce that it has published the Company’s Consolidated Interim Financial Statements and Management's Discussion and Analysis for the three- month ended March 31, 2012. The documents are available on the company's website, on SEDAR under the Mindoro profile and on the ASX website.
Mindoro is also pleased to announce an update regarding the search for a strategic partnership for the two-phase development of the Agata nickel project and plans to resume the Batangas gold and copper-gold drilling program.
Strategic partner for the nickel project Agata
On the 2. November 2011 announced the company's initiation of a process aimed at finding a strategic partner for the Agata nickel project. This pursues the goal of accelerating the two-phase development triad to:
1. demonstrate the feasibility of the direct shipping ore (DSO) phase of the project, obtain the permits for this phase and then set up the first production infrastructure;
2. To bring the preferred hydrometallurgical treatment process ahead of a final feasibility study (DFS) in the pilot test phase.
The company has sometimes received three tentative offers to establish a strategic partnership; These include two offerings from major retailers, including equity placements and purchase agreements with a focus on financing the development of Agata's Phase 1 DSO project, as well as an offer to fund a final feasibility study for Agata's Phase 2 nickel upgrading project, which is already in the pre-availability phase (PFS) (see 2 News Release, November 2011).
The company has continued to monitor price trends for Mindoro's potential Phase 1 DSO products. Despite a weakening of LME nickel prices since the publication of the framework evaluation and marketing study on the 2. November 2011, the DSO prices for nickel pig iron starting material have remained stable. Once funding from a strategic partner and the purchase agreements have been completed, the DSO framework evaluations will be upgraded to a feasibility study and the permits will be extended from the Environmental Compliance Certificate (ECC) to a Declaration of Mining Project Feasibility.
The Company is also making changes to the Pre-Feasibility Study (PFS) process flow sheet to focus on cheaper nickel upgrading based on atmospheric leaching. Most of Agata's mineral reserve is Saprolith, which is better suited for atmospheric leaching than HPAL preparation. The next phase will include pilot testing of the process flow sheet with emphasis on atmospheric leaching prior to the preparation of a final feasibility study, which will be reserved for concluding financing arrangements with a strategic partner.
The company is working with its financial advisor, Deloitte Corporate Finance Pty Ltd ("Deloitte"), to finalize talks and negotiate with potential strategic partners so that the DSO feasibility study and final approval process will be completed prior to development and the company will conduct pilot testing for atmospheric leaching and the preparation of a final feasibility study.
Mindoro President and CEO Jon Dugdale said, "We are in the process of concluding an agreement with a strategic partner to advance the two-phase development of the Agata Nickel Project and to take advantage of the excellent location, infrastructure and metallurgical aspects of the project. "
Gold drill program at Batangas
The company has completed the first in-depth analysis and planning for the next drill program on the Batangas gold projects. Initially, the drill program will focus on the study of the feeder structures subjecting the Kay Tanda gold resources to the Archangel MPSA property. In the first phase, a total of eight holes totaling approximately 2.000 meters will be drilled before connecting holes are made to increase the measured and indicated resources and to investigate the underlying and adjacent porphyry copper-gold targets.
In addition, the Company has commenced on the Lobo property by capturing data corresponding to the strike length of the epithermal vein structure mapped to 5 kilometers. This vein structure includes the high-grade Southwest Breccia (SWB) and other drill intersections including LB 51, which intersected several hundred meters northeast along strike by SWB on the Trend Camo 4,5 Meter with 488,38 g / t silver and 1,83% copper (see 10 News Release). February 2005), and LB 38, which intersected in the West Drift area near the old copper mine Lobo 12 meters with 7,42 g / t gold and 6,32 g / t silver. For these two epithermal foothills, no systematic drill holes have been drilled so far. The previous drilling will be re-examined and recorded before further high-grade targets are delineated and further drilling plans are prepared.
The Batangas drill program is scheduled to commence once a strategic partnership has been established to fund the Agata nickel project. The Company has also received a series of expressions of interest in the financing of Batangas' gold and copper-gold drilling programs and the development of Batangas gold resources towards development.
On behalf of the Board of Directors
Jon Dugdale,
President and CEO
For more information, contact Jon Dugdale, President and CEO of Mindoro's Melbourne office at + 61 3 9614 5055.
Information for investors is available by email at [email protected] or by telephone via the following contact persons:
Australia: Jon Dugdale, Tel: + 61 3 9614 5055
Canada: Jeanny So, CHF Investor Relations, Tel: + 1 416 868 1079 DW 225
Jeremy Hill, CHF Investor Relations, Tel: + 1 416 868 1079 DW 238
Germany: Robert Sarcher, Aprendo Capital, Tel: + 49.821.6089051
Website: www.mindoro.com
ABOUT MINDORO
Mindoro is a Tier 906167 company listed on the TSX Venture Exchange (MIO), the Australian Securities Exchange (MDO) and the Frankfurt Stock Exchange (WKN 1). Mindoro focuses primarily on the exploration and development of nickel, gold and copper-gold projects in the Philippines. Here, the company holds an 75% interest in the Agata nickel project, which is currently in the pre-emptive stage (November 2011). This project has NI 43 101 compliant mineral resources, which are divided into 42,76 million tonnes of measured and indicated resources with a nickel content of 1,01%, corresponding to 430.000 tonnes of nickel, and 2,435 million tonnes of inferred resources with a nickel content of 0,99% (September 2011). In addition, the Company has NI 43 101 compliant mineral resources at its Lobo (2005) and Archangel (2010) gold and silver projects at Batangas, a drill-target copper-gold-sulfur exploration target on the Pan de Azucar project in the Province of Iloilo, where the Company owns 75% ownership, and has 10's key porphyry copper-gold prospects at various stages of development.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
The company's objectives in terms of development and production are intended to convey an impression of the current expectations of the management and have a purely conceptual character. It is uncertain whether sufficient resources can be proven or whether these resources can actually be turned into economically viable production reserves. Until the completion of a feasibility study, it is not clear whether these goals can actually be achieved. Mindoro's exploration programs are under the supervision of Tony Climie, P.Geo. prepared and / or planned and carried out. Mr. Climie, as a Qualified Person as defined by National Instrument 43-101 and in accordance with the JORC Code, has reviewed and approved the exploration-related Disclosure Information disclosed in this news release. Boyd Willis (FAusIMM), as a Qualified Person under National Instrument 43-101, has reviewed and approved the information on development and metallurgical processing disclosed in this news release. All of the Company's resource estimates have been prepared in accordance with Canada's National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators / "NI 43-101" and the Canadian Institute of Mining's classification system, Metallurgy and Petroleum created. NI 43-101 is a regulation developed by the Canadian Securities and Exchange Commission which regulates the publication of scientific and technical information on commodity projects. All resource information will also be published in accordance with the provisions of the JORC Code.
This press release may contain forward-looking statements; this also includes future planning and operating activities as assessed by management, as well as expectations with regard to future production. These statements are based on current expectations and therefore involve a number of risks and uncertainties that could cause actual results or events to differ materially from those currently anticipated. These risks and uncertainties also include - without limitation - risks in connection with mine operation and exploration (e.g. operational risk with regard to development, exploration and production; delays or changes in planning in connection with exploration or development of projects or Investment costs; uncertainties related to reserve estimates; uncertainties related to exploration results; uncertainties related to estimates and projections related to production and uncertainties related to available capital). Assumptions on which such information is based could potentially prove to be inaccurate, even though they were believed to be reasonable at the time of preparation. Forward-looking statements can therefore not be considered reliable. The company undertakes no obligation to update forward-looking statements unless required by applicable law.
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