Site infrastructure is excellent with local sources of labour, fresh water and power (supplemented by back-up generators). The processing plant will be located within two kilometres of the port, thereby simplifying acid transport and other logistics, as well as keeping operating costs down. Deep water for ships up to 50,000 tonne capacity occurs within 250 metres of the coastline.
A number of activities relating to the Agata Ni Processing Plant are underway and include:
-- internal project feasibility scoping including previous relevant Mindoro scoping work-- external laboratory testing at BGRIMM of a representative bulk ore sample taken from the Agata Ni deposit, including: -- crushing and grinding tests -- pre-leach thickener settling tests -- primary and secondary leaching tests -- leach residue preliminary settling and filtration tests-- establishment of laboratory and pilot testing facility (in the Philippines) -- bench-scale laboratory equipment has been installed and testwork will commence at this facility before mid-February 2013 -- pilot plant equipment has been identified and specified-- the process flowsheet has been identified and confirmed by laboratory tests-- process flow diagrams are near completion-- mass and energy balance have been developed in METSIM, using laboratory test data to calibrate the model-- environmental and leached ore storage facilities designs are well advanced-- preliminary infrastructure design is underway, including: -- port/jetty design, including reagent storage facilities -- water source identification -- road design -- process plant location and preliminary layout
An update to the NI 43-101 report prepared originally for Mindoro, together with a scoping study, are initially planned, to be followed by delivery of a full feasibility study. The feasibility study is underway and expected to be completed by the end of 2013. Pending a positive feasibility study and a decision to proceed, plant construction is expected to commence in 2014 with the commissioning/commercial production of nickel hydroxide product in Q2 of 2015, dependent on obtaining permits in a timely manner, among other things.
Pan de Azucar Pyrite Project
As described in Mindoro's news release of February 8, 2012, the Pan de Azucar pyrite project located on the Island of Panay is a drill-defined exploration target, which comprises a pyrite-rich mineralized horizon of between 10 and 40 metres in thickness and dipping at a shallow 10 to 15 degrees. The mineralized horizon is exposed at the surface. Mindoro reported it has drilled 30 holes into the mineralized horizon, showing a potential quantity of 8 million to 12.7 million dry metric tonnes with a grade range of 35% to 40% sulphur (70% to 90% pyrite). The potential quantity and grade has been determined by averaging the intercepts from the drill assays. The potential quantity and grade is conceptual in nature, because there has been insufficient exploration to define a mineral resource (including number of holes drilled) and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
TVI expects that commercializing the project may involve both the DSO export of pyrite material to China for the production of sulphuric acid and/or the self-production of sulphuric acid at the Agata Ni processing plant site. Currently there are no permits in place for the mining of the pyrite material.
Activities planned or underway for the Pan de Azucar Pyrite Project include:
-- laboratory testing of the pyrite samples as a suitable feed for a sulphuric acid plant-- additional diamond drilling to delineate resource to NI 43-101 standards-- preliminary concepts and mining plans-- confirming markets for products-- metallurgical test works-- community relations
On behalf of the Board of Directors,
Tony Climie, CEO
About Mindoro
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro has a 75% interest, and an option to acquire the remaining 25%, in the Agata Nickel Project, Mindanao, and the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVI Pacific Inc. has the option to earn up to a 60% interest in these projects by meeting the earn-in requirements outlined in the September 27, 2012 release. Mindoro also holds a 53.3% stake in ASX listed Red Mountain Mining (ASX: RMX), which has a 100% direct and indirect interest in the Batangas gold and copper-gold projects.
Tony Climie is the CEO of Mindoro Resources Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person as defined by National Instrument 43-101. Tony Climie consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty with respect to results of exploration, the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not undertake to update forward-looking statements except where required to do so by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Mindoro Resources Ltd.
Investor Relations
ir@mindoro.com
Mindoro Resources Ltd.
Australia:
Clayton Northey
+61 3 9614 5055
Canada:
CHF Investor Relations
Jeremy Hill
+1 416 868 1079 ext 238
www.mindoro.com
