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Prior extensive pre-feasibility and engineering works have been conducted on the Mindoro properties. These reports can be accessed on Mindoro's website at www.mindoro.com or under Mindoro's profile on SEDAR at ww.sedar.com.
Map 1: Philippines: Agata (Island of Mindanao) and Pan de Azucar Mining (Island of Panay) Project Locations
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AGATA MINING PROJECT
Map 2: Agata Mining Project - Site Layout
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The Agata mining project, located on the Island of Mindanao, includes the following opportunities:
-- a near-term high iron laterite DSO operation-- a near-term limestone DSO operation-- a medium-term lime production facility-- a medium-term nickel processing plant project
Historical estimates of mineral resources and mineral reserves at Agata are set out in the technical report entitled "Technical Report for the Agata Nickel Laterite Project, Mindanao, Philippines" dated 20 December 2011 prepared by Ausenco for Mindoro (the "Agata Report"). Key assumptions, parameters and methods used to prepare the historical estimates are set out in the Agata Report, which uses the categories required by NI 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
The historical drilling by Mindoro referenced in the Agata Report was 682 drill holes for 12,252 metres in the main Agata North resource and 199 holes for 2,605 metres in Agata South resource.
High Iron and Limestone DSO Operations/Lime Production Facility
Both the high iron DSO and the limestone DSO operations are near-term opportunities that have the potential to generate strong cash flows beginning in late 2013 (contingent on, among other things, receipt of permits in a timely manner). The high iron laterite and limestone deposits occur up to 1 kilometre from the coast, which is expected to positively impact transportation costs due to the close proximity of the mine pit to the port.
The upper portions of the laterite profile comprise the ferruginous zone and limonite zone, both rich in iron. It is estimated that there are approximately 7 million wet metric tonnes (wmt) of high iron material with iron grades ranging between 45% and 52%. These historical estimates are set out in the Agata Report referred to above. The deposit is expected to be developed as a surface mining operation with the high iron material most probably sold to the Chinese iron ore market.
Beneath the ferruginous and limonite zone is the higher nickel grade saprolite zone, which will be the dominant feed for a new nickel processing facility currently under consideration by the Project Execution/Technology Development team. The high iron DSO operation would be expected to generate early cash flow until the nickel processing plant is built and becomes operational, but shipments are expected to continue after this until the high iron material is exhausted. The high iron DSO operation already has an existing Environmental Compliance Certificate (ECC); however, other permits such as a port permit and a Declaration of Mining Feasibility are also required.
The limestone occurring at the coast is a massive recrystallized limestone of very high purity levels with calcium carbonate (CaCO3) of greater than 95% according to the Agata Report. Five (5) holes were drilled into the limestone horizon by Mindoro but the number of holes drilled is not considered sufficient to classify a mineral resource.
