It’s been a busy summer in the corporate offices of Mindoro Resources (MIO-V) and now the company has some stellar results from the field to throw into the mix.
While the past few months have been more about private placements and joint ventures, the company now has results from its first diamond drill hole at the Archangel gold project which is part of its larger Batangas projects in the Philippines.
The assay returned 26.2 metres grading 4.07 grams gold from 19.4 metres down hole including 6 metres grading 6.12 grams gold from 19.4 metres and 8.8 metres grading 5.36 grams gold from 36.8 metres down hole.
The results were sound enough to send Mindoro shares up 3¢ or 67% to 7.5¢ on 1.75 million shares traded midday in Toronto.
Mindoro says the mineralization intercepted by the hole is associated with chalcedonic quartz vein stockworks and hydrothermal breccias within an interpreted feeder zone.
The hole was the first of an inaugural three to five drill hole program aiming to test what it believes are higher-grade feeders zones within the Kay Tanda resource area at Archangel.
The program is being funded by a drawdown loan from Red Mountain Mining. That loan is part of a transaction between the companies that will see Red Mountain acquire Batangas along with Mindoro’s Tapain San Francisco assets in exchange for shares in Red Mountain.
When completed the deal will see Mindoro hold between 55% and 65% of Red Mountain shares, and Red Mountain will hold 100% of Batangas.
The loan currently being used to fund drilling will be converted to an inter-company once the transaction is completed at the end of September.
The company also had news on its other key deal of the summer. It announced that TVI Pacific (TVI-V), a Philippines based miner, agreed to extend the closing date for the first tranche of the proposed private placement to September 7 and that it extended its shareholders meeting to approve the second tranche of a private placement to October 9.
In July Mindoro announced that TVI was doing a private placement in Mindoro worth $3.16 million and that the companies would joint venture to fund the Agata Nickel project. TVI also would have the option to form a joint venture over the Pan de Azucar sulphide project.
Mindoro currently has a 75% interest in Agata which has measured and indicated resources if 42.76 million tonnes grading 1.01% nickel, for 430,000 tonnes contained nickel, and Inferred resource estimates totaling 2.435 million tonnes at 0.99% nickel.
Batangas currently has 393,000 oz. gold outlined from indicated resources. Those ounces come out of Archangel, which has indicated resources of 9.9 million tonnes grading 1.1 grams gold and Lobo, which has indicated resources of 270,000 tonnes grading 6.49 grams gold.
Be the first to comment on "Mindoro gets the grade"