Mindoro Resources Ltd. (CVE:MIO) (ASX:MDO) saw its shares soar 44.4 per cent Friday, after it announced preliminary results of the first drill hole at its Archangel gold project at Batangas in the Philippines.
Shares of the company were trading at 6.5 cents as at about 2:50 p.m. ET.
The company said diamond drill hole KT 191-12 intersected 26.2 metres at 4.07 grams per tonne (g/t) gold, including six metres at 6.12 g/t gold and 8.8 metres at 5.36 g/t gold. Mindoro said these intersections are part of a broader interval of 39.25 metres at 3.08 g/t gold, using a 0.5 g/t gold cut-off.
“We are very pleased with the results from the first new drill hole at Archangel,” said Mindoro president and CEO Jon Dugdale.
“The thick higher-grade intersection in KT-191-12 conforms with the up-flow or ‘feeder’ zone interpretation and opens the way to potentially extending the resource with further drilling.”
Mindoro said the “well-developed gold mineralization” intersected by KT 191-12 is associated with chalcedonic quartz vein stockworks and hydrothermal breccias within an interpreted up-flow or "feeder" zone.
The company noted that this is the first drill hole of an initial three to five drill hole program to test interpreted higher-grade "feeders" or up-flow zones within the Kay Tanda resource area at Archangel.
The program is being funded via a drawdown loan facility from Red Mountain Mining Ltd. (ASX:RMX) and will run until completion of the transaction, anticipated by late September, at which time the loan is expected to be discharged through conversion to a Red Mountain inter-company loan.
Mindoro said “encouraging results” from this first phase of drilling suggests that a systematic program of resource definition and extension drilling should follow.
A total of 414.6 metres have been completed since the program commenced on August 5, despite inclement weather conditions at times.
The company said that the second drill hole of the program KT 192-12, testing an interpreted feeder at the eastern side of the Kay Tanda resource, has now been completed at a downhole depth of 267 metres.
The angled hole was designed to test the vicinity of previous drill hole KTDH-04, which intercepted 52 metres of 11.5 g/t gold in 2006, that is interpreted to have drilled down a sub-vertical hydrothermal breccia up-flow or "feeder" zone.
Mindoro noted that the drill hole intersected the mineralised stockwork associated with the majority of the current Kay Tanda resource. Results are not yet available for this hole.
The third drill hole of the current program, KT-193-12 has commenced, testing the west Kay Tanda zone - formerly Pulang Lupa.
Separately, the company said TVI Pacific Inc. (TSE:TVI) has agreed to extend the closing date for the first tranche of a proposed $3.155 million private placement in Mindoro announced in July, to September 7.
In July, Mindoro entered into an agreement with TVI for the private placement as well as proposed joint ventures to earn 60 per cent in, and operate, two Agata nickel projects to direct shipping ore production and complete a nickel processing project definitive feasibility study. TVI will also have the option to form a joint venture over the Pan de Azucar sulphide project within 12 months.
Additionally, it said director and vice chairman of Mindoro, Howard Walker, is retiring from the company’s board to pursue other private business interests.
Mindoro Resources is focused on nickel, gold and copper-gold exploration and development in the Philippines where its 75 per cent interest Agata nickel project has NI 43-101 mineral resources that include measured and indicated resource estimates totalling 42.76 million tonnes at 1.01 per cent nickel, for 430,000 tonnes contained nickel, and inferred resource estimates totalling 2.435 million tonnes at 0.99 per cent nickel.
In addition the company has NI 43-101 mineral resource estimates on its 100-per-cent owned Batangas projects, which hold an indicated resource of 393,000 gold ounces.
Archangel has indicated resources of 9.8 million tonnes at 1.1 g/t gold and Lobo has indicated resources of 270,000 tonnes at 6.49 g/t gold.
Further, the company has a drill-defined copper-gold-sulphur exploration target on its 75-per-cent interest Pan de Azucar project in Iloilo, Philippines as well as 10 key porphyry copper-gold prospects at varying stages of advancement.