http://www.mb.com.ph/BSNS2006070768688.html
By MELODY M. AGUIBA

Canada-based Mindoro Resources Ltd. (MRL) is eyeing a resource of 400,000 ounces of gold in its Batangas prospect as it invests $ 4 million in exploration and pre-feasibility in the project over the next six months to one year.

MRL has struck what is called a “bonanza” vein in its Kay Tanda epithermal gold-silver prospect which signals its hitting an economically viable find, although this has to be proven more extensively through further geological and metallurgical studies.

“Most of our mineralization is low grade. We had a bonanza vein deep down but it is only over one meter or a narrow vein. We have to evaluate to define if we have an economic resource,” said Tony Climie, MRL Gold Philippines Inc. president in an interview.

“We would like to see a minimum of 300,000 to 400,000 ounces of gold so we can begin to conduct a pre-feasibility study,” he said.

Over the next year, MRL is investing $ 1 million for more exploration. It is ready to pour in within after six months $ 3 million for pre-feasibility study (PFS) if drillings indicate a viable find. It has raised fund for drilling by selling shares in Canada, Germany, and Australia.
After a PFS, it may take two more years for the company to determine if it will upgrade the project to construction and development stage.

Low grade ore has just one to five grams of gold per metric ton (MT), medium grade has maybe 10 grams and above per MT, and high grade has 30 grams of more per MT. MRL hit a high grade ore of 70 grams per MT but just over a one meter vein.

MRL is optimistic that current high price of gold, trading at over $ 625 per ounce in the market, will carry its mining prospects into production. Focusing on gold and gold-copper exploration in Asia Pacific, it operates in the Philippines, Myanmar and Indonesia.

Over the long term, MRL sees the value of its mining prospects in the Philippines found at Batangas, Surigao, and Panay Island at a gross of $ 5 to $ 10 billion. In the Philippines it also has laterite nickel and cobalt prospects.

MRl has completed 12 drill holes on Kay Tanda which is in the Archangel Project in Batangas. From its earlier planned 20 to 25 drill holes, it will step up drilling work to 40 holes. From a 100 meter spacing, it will drill on closer distance at 50 meter spacing.

“Grades of the upper stock-work zone are in line with expectations and we are optimistic that we can establish the presence of an economic open pit, heap-leach project, specially with current and anticipated gold prices. We are particularly excited by the bonanza intersection in KT-4. This is a new target type at Archangel, and we believe that we will find more of these very high grade veins,” Climie said.