Apr 13 2015
Mindoro Resources Ltd. today announced that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which Mindoro holds a 40% interest, completed three shipments of high-iron/low nickel direct shipping ore ("DSO") during March 2015, for expected gross proceeds of US$1.93 million, from the Agata nickel laterite project located in northern Mindanao, the Philippines.
AMVI expects to complete four DSO shipments in April, subject to weather conditions, consisting of two shipments of high iron/low nickel limonite and two shipments of higher grade nickel saprolite. The anticipated increase in shipments reflects the completion of production ramp up activities that included causeway expansion and stockpile area development work.
"We look forward to the anticipated increase in shipment capacity in April and to potentially realizing higher selling prices from the saprolite DSO, which has higher nickel content than the limonite ore," stated Penny Gould, CEO of Mindoro. "AMVI's plans to ramp up operations to ship over 2.5 million wet metric tonnes of nickel laterite in 2015 would make the Agata project one of the largest DSO operations in the Philippines and potentially add significant value to Mindoro's 40% interest in the project."
March Shipment Summary
The shipments of limonite ore completed in March 2015 represent the eighth through tenth shipments completed by AMVI since operations commenced in October 2014. Shipment details and expectations of gross revenues to be received (subject to final assays and price adjustments) are as follows:
- Eighth shipment totalling 54,231 wet metric tonnes (wmt) of ore containing 0.92% nickel and 48.10% iron was completed on March 13, 2015, for expected gross revenue of US$678,000.
- Ninth shipment totalling 48,961 wmt of ore containing 0.90% nickel and 48.01% iron was completed on March 20, 2015, for expected gross revenue of US$612,000.
- Tenth shipment totalling 51,250 wmt of ore containing 0.90% nickel and 48.60% iron was completed on March 27, 2015, for expected gross revenue of US$641.
AMVI has now completed a total of 10 shipments containing 528,757 wmt of limonite DSO for total gross proceeds of US$7.04 million.
About the Agata DSO Project
The Agata DSO project is held by AMVI, a joint venture company owned 40% by Mindoro and 60% by TVI Resource Development (Phils.), Inc., who is operator of the project.
The Agata DSO Project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The Agata DSO Project is well located and is expected to benefit from its deep protected seaport, the opportunity for year-round shipping and its proximity to main markets in Asia.
An initial offtake agreement was signed by AMVI in June 2014 with Tewoo Hoperay (Singapore) Pte. Ltd. ("Tewoo") for the sale of one million WMT of high-iron/low nickel limonite DSO, and a second agreement was signed in August 2014 to sell 500,000 WMT. Advance payments of US$3 million have been received by AMVI against both agreements to fund initial operating costs. These advance payments are being offset on a per WMT basis over time. A third offtake agreement was signed by AMVI with Tewoo on December 15, 2014, to make two 55,000 WMT shipments of saprolite DSO in 2015.
AMVI plans to continue to mine and make shipments of both low and high grade limonite and saprolite DSO in order to ensure that a blended higher selling price is obtained.
An NI 43-101 compliant mineral resource estimate released on April 10, 2013 shows the Agata DSO project to have reported Proven and Probable Reserves of 9.7 million wet metric tonnes with a grade of 48% Fe with 0.9% Ni. The report is available for viewing on http://www.sedar.com and www.mindoro.com.