A combined limonite and saprolite exploration target has been established for Mindoro Resources’ northern Surigao projects of from 50 to 70 million dry metric tonnes (DMT) in a grade range of 0.9% to 1.2% nickel and 28% to 32% iron.
This is in addition to Mindoro's Agata North Project, which has an indicated and measured resource of 26.92 million DMT at 1.11% nickel and 0.06% cobalt, containing 657 million pounds of nickel and 24 million pounds of cobalt, and an additional 3.79 million DMT in the inferred category, containing 89 million pounds of nickel and 2 million pounds of cobalt.
The Surigao projects are in an important nickel producing district.  The Agata North project contains major strategic nickel laterite resources with strong competitive advantages, including excellent infrastructure, close proximity to the ocean and markets, abundant limestone on site and potential for establishment of a world-class nickel and cobalt processing operation.
After mapping north of the Agata Project indicated the potential for extensive additional nickel laterite mineralization, Mindoro conducted a program of hand auger drilling to establish nickel laterite areas at least three metres thick and around 1% nickel. The auger is capable of penetrating only part of the upper limonite horizon and, rarely, the higher-grade saprolite horizon below.
A total of 125 hand auger holes were drilled and 438 samples assayed. Thicknesses and nickel grades within an economically relevant range were utilized in deriving the exploration target. A conservative doubling of the thickness achieved by hand augering was utilized for thickness estimates.
Most of the laterite areas are within 2-3km of the ocean and limestone, important for any acid processing technologies, is abundant on the projects. The exploration target covers about 900 hectares and the Agata North resource about 300 hectares.
Detailed drilling will be required to move the target into NI 43-101-compliant resources.
This large exploration target substantially augments Mindoro's plans to evaluate the feasibility of establishing a local processing plant. The company has commissioned an independent study of development and processing alternatives, and this expected to be completed this month.
The study will also evaluate the merit of a two phase development - Phase 1 selective production of direct shipping ore (DSO) of medium to higher grade material, greater than 1.4% nickel, from Agata North to supply feedstock for processing plants, followed by a major Phase 2 processing operation.
The Surigao region is emerging as a major nickel producing district and there are at least 10 DSO nickel laterite mines in production or being developed.
There are two main nickel laterite belts in the Surigao district - an eastern coastal belt held by a variety of companies and a western coastal belt, which is largely controlled by Mindoro.
www.mindoro.com