Mindoro Resources has received more impressive results from drilling at its Kay Tanda epithermal gold-silver prospect in the Philippines.

It is anticipated that more high grade zones will be encountered within the large area of mineralization outlined at Kay Tanda. Since these zones fall within the area that is already being evaluated for an open pit operation, they will not be pursued by detailed drilling.

Their significance is that they indicate a robust mineral system with potential for high-grade underground mining below the proposed open-pit and that they will raise the average final open pit head grade. High grade zones encountered below the proposed open pit level will be evaluated in more detail by drilling and underground exploration.

KTDH-19 was a step-out, low-angle hole on the western part of Kay Tanda. Results included 1 metre of 643 grams/tonne silver as well as low-grade gold mineralization deeper in the hole.

Epithermal gold-silver mineralization at Kay Tanda is associated with extensive and intense quartz stockworks, veins and hydrothermal breccias, with accompanying base metal sulphides.

At a cut-off 0.3 grams/tonne gold, the immediate exploration target is from 35 to 40 million tonnes of open-pitable material at a grade of 0.76 to 0.80 grams/tonne gold and 2.4 to 2.8 grams/tonne silver, containing between 860,000 and 1 million ounces of gold and 2.7 million to 3.6 million ounces of silver. This target may be revised upwards as extension drilling continues. At a cut-off at 0.5 grams/tonne gold, the immediate exploration target is from 15 to 20 million tonnes of open-pitable material at a grade of 1.1 to 1.4 grams/tonne gold and 3.0 to 3.4 grams/tonne silver, containing from 530,000 to 900,000 ounces of gold and from 1.45 to 2.2 million ounces of silver.

Kay Tanda is being evaluated for its open-pit, heap leach potential. Initial metallurgical test work has produced excellent results.