Oct 22 2013
Mindoro Resources Ltd. ("Mindoro", or "the Company") advises that its joint venture partner, TVI Pacific Inc., has provided the following update on the Agata high iron direct shipping ore ("DSO") project located in Agusan del Norte, Mindanao, the Philippines.
Mindoro currently has a 75% interest in the Agata DSO project and an option to acquire an additional 25% interest (see press release dated September 23, 2013). TVI is operator and may earn 60% interest in the project by achieving a DSO operation with Mindoro carried to production.
Port Loading Facility and Infrastructure
Further to development plans and initial pre-development activities announced as being underway on February 13, 2013, all land required for the road network has now been acquired in coordination with the local government, while 90% of land required under the current design of the Port facility has been acquired. The planning and design of port construction, roads and other infrastructure is proceeding.
Most roads and ramps currently constructed are temporary and predominantly confined to within the pit. Further refinements have also been made to the pit design to consider non-contiguous mining areas, zones less than 1.5 meters thick, and areas on slopes considered too steep to mine.
The Port design, consisting of a causeway, will allow for two barges to be moored and loaded simultaneously. The causeway will also serve as a temporary ramp for the delivery of equipment, construction and heavy lift materials. The current design is under review to decrease capital cost.
Permitting Status
The Agata DSO Project is well into the permitting stage with the Mining Feasibility Studies and the Final Exploration Report being reviewed by the Mines and Geosciences Bureau. The Environmental Protection and Enhancement Program and the Final Mine Rehabilitation and Decommissioning Plan will soon be submitted for reviewed by the Mine Rehabilitation Fund Committee, followed by the Contingent Liability and Rehabilitation Fund Committee. Final approval of the Declaration of Mining Project Feasibility is then expected to follow, which will allow the project to move into development. The Agata high iron DSO project already has an existing Environmental Compliance Certificate.
DSO Market
The region in which the Agata DSO Project is situated, in north-eastern Mindanao, hosts approximately fifteen DSO operations at present that cumulatively exported 17.3 million wmt and 19.2 million wmt in 2011 and 2012, respectively. Discussions are underway with off-takers who have expressed interest in the Agata DSO product.
Mindoro and TVI Joint Ventures
Mindoro and TVI have signed four joint venture agreements, previously announced on October 1, 2012, relating to the Agata and Pan de Azucar projects located in the Philippines on the islands of Mindanao and Panay, respectively. The joint ventures present Mindoro with multiple growth opportunities for near-term and medium-term cash flow generating potential. Under the agreements, TVI has the ability to earn up to a 60% interest and will act as operator of the projects.
In addition to the DSO project, opportunities at Agata include:
- near-term high iron (Fe) laterite direct shipping ore (DSO) operation
- near-term limestone DSO operation
- medium-term lime production facility
- medium-term nickel processing plant project
The National Instrument 43-101 Compliant Mineral Resource estimate released on April 10, 2013 (available on www.sedar.com and www.mindoro.com) shows the Agata DSO project to have reported Proven and Probable Reserves of 9.70 million wmt grading of 48% Fe with 0.9% Ni.
On behalf of the Board of Directors,
Tony Climie, CEO