Mindoro Resources says it has secured an Aus$1 million loan facility from Red Mountain Mining to fund drilling at its Archangel prospect within the Batangas project on Luzon Island. The initial drill program will target the potential high-grade gold feeder zones within the Kay Tanda resource area of the project.
Mindoro will draw $200,000 from the facility for this program, with the results to assist planning the next stage of systematic resource definition and resource expansion drilling. Indodrill Philippines has been contracted for the 2800 metre program which is scheduled to be completed in late September.
One of the feeders to be tested is in the northern section of Kay Tanda which returned a previous intersection of 52 metres @ 11.5 grams/tonne gold from 84 metres in 2006.
Red Mountain has also signed the purchase contract for Mindoro’s Batangas and Taipan San Francisco gold and copper-gold assets in the Philippines, pending completion of due diligence to the satisfaction of both parties. Red Mountain will pay Mindoro 100 million shares for the assets, or a 65% majority stake.
Mindoro’s president Jon Dugdale says, “Signing the gold assets Share Sale Agreement and subsequently the loan facility with RMX means we can now commence drilling, targeting potential high-grade gold feeder zones at Batangas. We look forward to completing the transaction and, through our potential majority shareholding in RMX, growing the resource base and commencing a development scoping study at Batangas.”
The Batangas gold project has an NI 43-101 mineral resource of 393,000 ounces, of which Archangel hosts an indicated 9.9 million tonnes @ 1.1 grams/tonne gold.
Meantime, the company has scheduled a shareholder meeting to seek approval for the investment in Mindoro by mine and processing plant operator, TVI Pacific. The meeting will be held on September 26 in Calgary, Canada.