Drill keeps turning at Pan de Azucar

Vancouver – The latest drill results from a ongoing drill program by Mindoro Resources (MIO-V) continue to return encouraging copper-gold values from the Valderama Hill zone on the Pan de Azucar property in the Philippines.

The Edmonton-based junior set its sights on two large induced polarization geophysical anomalies during the panned 950-metre program. The first three holes were collared on the 1,600-by-200-metre Valdermara Hill anomaly, with hole 3 returning 37.1 metres grading 0.8% copper and 1.87 grams gold per tonne from 53.4 metres down-hole.

Moving 50 metres west of the promising intercept, hole 5 failed to cut any significant mineralization, while hole 6, collared 50 metres to the east intersected massive, pyritic sulphides from 13-to-47.5 metres down-hole yielding a 41.5-metre section running 1.2 grams gold and 0.12% copper from 6 metres down-hole.

Stepping out another 40 metres to the east, hole 7 cut altered andesites, with zones of intense clay-pyrite-silica alteration and breccias to end of hole at 66 metres. A 4.7-metre section returned 0.5 gram gold and 1% copper from 29.5 metres down-hole.

Hole 8 is being drilled 200 metres to the north. Massive pyritic sulphides were encountered at 55 metres down-hole through to its current depth of 95 metres. Assay results are pending.

Collared 50 metres west of hole 8, hole 9 intersected altered andesites, massive and semi-massive pyrite, and silica-pyrite hydrofractured breccia. A 2.7-metre section returned 1.97 gram gold and 2.2% copper from 20.4 metres down-hole.

The Valderama Hill zone marks a high-sulphidation pyritic sulphide system that has been overprinted locally by low-sulphidation mineralization.

The fourth hole of the program targeted an area 700 metres west of Valderama Hill, dubbed Asparin Hill. The hole cut altered andesitic to dacitic volcanics with hydrothermal breccias and pyrite mineralization, but failed to return any significant values.

Located on the island of Panay, Pan de Azucar covers 10.8 sq. km and is distinguished geologically by dacitic and andesitic porphyries surrounding a depression measuring 2 km long by 2 km wide. Underlying the depression are pyroclastic and flow deposits exhibiting quartz-sericite-alunite alteration.

Although intense weathering has rendered rock sampling unreliable, gossan samples nevertheless run up to 2.3 grams gold, whereas shallow auger samples yield up to 6 grams. Soils in the area are also anomalous in gold, as well as copper.

Drilling will continue into December targeting the northern part of the Valderama Hill zone.

Australian-based Delta Gold is funding the drill program as part of a deal inked in April to earn a 65% interest in the Pan de Azucar project. The deal calls for Delta to spend A$4.5 million on exploration over four years to earn 45%. The junior can earn an additional 10% by completing a bankable feasibility study within the following three years, and another 10% by paying half of the gross value of the reserves outlined to a minor Philippine partner. Assuming all goes as planned, Mindoro would be left with a 25% participating stake, which can be converted to a 2% net smelter return royalty (NSR). Also, the company is expected to relinquish operatorship within the first year of the agreement.

In Indonesia, poor drill results has prompted Australian-based Newcrest International to drop Mindoro’s Tiris project in Sumatra. The six-hole program tested the Harimau gold-silver target, but failed to return any significant values. Mindoro has no further exploration plans for the project.