Mindoro Resources Ltd. today announced that Agata Mining Ventures Inc., a joint venture company in which Mindoro holds a 40% interest and TVI Resource Development (Phils.), Inc. holds a 60% interest and is the operator, has completed an initial 17-hole drill program at the Agata limestone project located in northern Mindanao, the Philippines.
Drill results have now confirmed the presence of a high-purity recrystallized limestone deposit covering an area of 600 metres by 650 metres. These results will form the basis for an initial NI43-101 compliant report expected for completion in the third quarter of 2015.
"The presence of high-purity metamorphosed limestone could represent another potential source of future cash flows at the Agata project using the same infrastructure already established for the nickel laterite direct shipping ore operations," stated Luis Santos, Interim CEO of Mindoro. "This may serve to further enhance AMVI's underlying value and Mindoro's 40% interest."
Exploration Program Summary
The Agata limestone project is situated to the south of AMVI's current Agata nickel laterite DSO operation and in close proximity to the causeway facilities that were built to support operations. The project consists of a number of separate deposits, of which only one - the Payong Payong deposit covering approximately 27.7 hectares - has been drilled to date. Other deposits occur nearby and will be explored in stages in the future.
AMVI commenced exploration activities focusing on the Payong Payong deposit in early November 2014 (see news on November 27, 2014). The exploration program included a detailed review and verification of previous work carried out in 2011 by Mindoro Resources Ltd. ("Mindoro"), TVIRD's joint venture partner in AMVI, as well as more detailed surface mapping and sampling of the area.
A total of 17 drill holes were completed at 100-metre to 200-metre spacing and core samples exhibited white to grey metamorphosed limestone. The mineralized units comprise intercalating layers of metamorphic rocks and lenses of re-crystallized limestone with assay results ranging from 80% to 100% CaCO3. Significant intercepts above 90% CaCO3 cut-off grade yielded an average of 97% CaCO3.
A preliminary assessment of the drill data suggests that the metamorphosed limestone is relatively clean with minimal to negligible impurities of iron and other base metals. Clay materials occur as fracture fills but can be easily removed through washing.
A model will be produced based on the drillhole data in order to come up with a resource estimate of the limestone prospect. Based on these results, an NI43-101-compliant resource report will be completed in the third quarter of 2015.
Upon completion of the technical report, AMVI may conduct further drilling programs and undertake process test work to determine future mining and processing options. Due to the project's close proximity to the causeway where materials will be shipped, potential operations could benefit from low transport and handling costs.
Source: http://www.mindoro.com/