ASIAN EXPLORATION — Mindoro soldiers on in SE Asia

Thousands of kilometres of relatively unexplored calc-Alkaline volcanic-plutonic interfaces are the chief attribute that attracted Mindoro Resources (MIO-A) to Southeast Asia. And although many investors bailed out of the region following the revelations surrounding the Busang property, Mindoro President Anthony Climie maintains that the region is still highly prospective.

“The geological potential remains real and intact,” he says. “One of the best things about Bre-X Minerals [the now-disgraced owner of the Busang deposit] is that, once again, a 1-To-5-Million-oz. deposit is going to be an attractive and realistic target for explorers and investors.” Climie and his new company began gathering prospects in the region about a year ago, first acquiring land in Indonesia before expanding to Malaysia, Myanmar (formerly Burma) and the Philippines.

“We acquired land in different regions of Southeast Asia so as not to have all our eggs in one basket, which is important in this part of the world,” says Climie. He adds that political risk in these countries is minimal as a result of retooled mining laws and the influx of increased foreign investment.

.SIndonesia

Mindoro’s focus in Indonesia, as well as in the Philippines, is gold and gold-Copper deposits in tertiary-Magmatic arcs.

In 1996, the company acquired eight projects in the country, including six in Kalimantan and two in Sumatra. The properties are now at various stages in the approval process. The company holds preliminary exploration permits (SIPPs) on four properties but, as of yet, no contracts of work (CoWs).

Mindoro has a 100% interest in seven of those projects, whereas Falcon Ventures International (FNV-V) holds an option to earn a half interest in Taber 2, the eighth property.

On the Darit project, in the province of West Kalimantan, follow-up programs are being carried out at the Kelayu and Penampi gold prospects. At Kelayu, geochemical and geological surveys are attempting to define the extent of the gold soil anomaly, which measures 800 by 2,000 metres and shows gold values of between 31 and 1,740 parts per billion (ppb).

Also, new results led to the identification of a copper anomaly more than 1,500 metres long and up to 1,000 metres wide, containing between 200 and 380 parts per million (ppm) copper. That anomaly, which remains open to the northeast, appears to flank the gold anomaly and coincides with the central part of an intrusive complex.

Initial interpretation of data suggests the gold anomaly could be representative of an epithermal gold target, whereas the associated copper anomaly may reflect porphyry copper-style mineralization proximal to the intrusive centre.

In the Tabar 2 area, also in West Kalimantan, aeromagnetic data have revealed northwesterly-Trending faults intruded by mafic dykes. A prominent, northeasterly-Trending structural zone in the western part of the block is believed to be a possible graben structure, and an associated magnetic low is interpreted as felsic volcanics. An arc-shaped zone of high magnetic susceptibility in the north-Central part of Taber 2 represents mafic dykes.

Detailed geochemical and geological evaluations are being carried out over two previously reported stream-sediment gold anomalies on Tabar 2. The Eastern anomaly contains gold values of 50 to 200 ppb and has been defined over an area measuring 2,000 by 4,000 metres. Anomalous base metal results received from the western anomaly grade up to 0.46% copper, 238 ppm lead and 0.16% zinc in sediments. The sediments appear to be associated with the western margin of the interpreted graben and occur over a distance of 3.6 km.

Moderately anomalous values of gold (up to 61 ppb) and arsenic (up to 265 ppm) occur in sediments, suggesting a possible source of copper-gold mineralization.

In addition, the company has received a SIPP for the Kubang project in southern Sumatra. Initial work, including geochemical sampling and examinations of known gold and copper occurrences, is under way.

.SMyanmar

Mindoro has been working in Myanmar for about nine months, its objective being to seek out Besshi-Type volcanogenic massive sulphide deposits. The company’s properties there appear to contain significant gold as well, Climie says.

In spite of the widely held perception that Myanmar’s government is unstable, Climie says the situation has improved. “We’ve had no difficulties working there. We’re dealing with a country that has been isolated for decades, and we feel that more contact with the Western World will improve the situation,” he explains.

Mindoro has the right to earn a 30% interest in a project named Concession No. 11. The Myanmar government holds a half interest. A total of 386 stream sediment and 384 pan-Concentrate, heavy-Mineral samples has been collected from the concession. Analyses for three-quarters of the samples defined 12 pan-Concentrate, heavy-Mineral geochemistry anomalies. Ten anomalies have gold values ranging between 52 and 3,640 ppb. Initial follow-up work, consisting of heavy-Mineral, stream sediment and soil sampling, has been completed at nine of the 12 sites.

Strongly anomalous pan-Concentrate values of up to 27.4 grams gold per tonne were obtained over a stream length of 2 km in the Kyaukkyi area. In addition, two grab samples collected from boulders 230 metres apart assayed 4.6 grams gold and 2.3% copper, plus 18.3 grams gold, 0.72% copper and 26 grams silver.

Initial reports suggest the local geology consists of sandstone and mafic volcanics with areas of alteration and quartz veining. Additional work is under way at the gold target in an effort to define its extent and potential significance. The company has also completed an airborne electromagnetic and magnetometer survey aimed at defining massive sulphide occurrences identified by previous ground work. Preliminary interpretation outlined 12 electromagnetic conductors unrelated to known massive sulphide occurrences.

Further processing of data is under way, as is follow-up ground work.

Geochemical and airborne geophysical anomalies will be given priority once follow-up work is complete. That work will also define drill targets. Mindoro expects to begin drilling in October or November, following the monsoon season.

The Malaysian province of Sabah, which features one producing gold mine, is next on Mindoro’s priority list, though Climie says that a lack of well-defined mining regulations is delaying exploration. “Malaysia has a less-Advanced regulatory regime than Indonesia or the Philippines. They’re only now putting together new mining regulations, so things are pretty much on hold.”

.SPhilippines

Mindoro recently acquired six properties in the Philippines and is preparing to explore three of them. The company can earn a 75% interest in each property, with a private Philippine company holding the balance.

Historical gold production has been recorded on each of the properties, and artisanal miners continue to work at high-grade deposits. Senior field personnel have been hired and an affiliated Philippine company is being formed.

Exploration is scheduled to begin on three high-priority projects — Agata and Tapian, in the Surigao gold district of northeastern Mindanao, and Pan de Azucar, on Panay Island. Mindoro’s initial exploration programs will consist of stream-sediment and soil sampling, with mapping of the known prospect areas.

Climie expects Mindoro to identify drill targets at some of its Southeast Asian projects within the next three to six months, but he notes that most of the drilling will not occur until 1998.

Although the company has a 1997 budget of $2 million and about $4.4 million in its treasury, the company will “always [be] looking for financing opportunities down the road.” Climie is optimistic about Mindoro’s prospects for future financing despite the recent bailout of investors from Southeast Asia following the Bre-X scandal. “Our feeling is that quality projects will always attract financing.

“I believe most of the Canadian companies working in Southeast Asia will continue to do so, and you’re going to hea
r about new discoveries,” he predicts. “They’re not going to be 55-Million-oz. deposits [a reference to the Grasberg gold deposit in Indonesia], but they’re going to be in the range of 1 to 5 million oz.”