Mundoro Announces Interim Results for First Quarter, 2005
Thursday May 12, 8:40 am ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 12, 2005) - Mundoro Mining Inc. (TSX:MUN - News) announces that the Company's interim financial and operating results for the quarter ended March 31, 2005 have been filed on the SEDAR system. The highlights provided in this release should be read in conjunction with the Company's unaudited interim financial statement and Management Discussion and Analysis for the first quarter, which is available on SEDAR at http://www.sedar.com. All dollar amounts are in Canadian dollars.
Operations Update
Early in the quarter, Mundoro reported a new resource estimate for the Zone 1 deposit at the Maoling project in China by AMEC Americas Limited, resulting from an aggressive program of diamond drilling during 2004. The revised estimate shows Indicated Resources of 81.6 million tonnes grading 1.2 grams per tonne or 3.0 million ounces gold using a 0.75 grams gold per tonne cut-off grade, an increase of approximately 1.9 million ounces over earlier estimates. In the new estimate Inferred Resources amount to 45.3 million tonnes at a grade of 1.0 gram gold per tonne for 1.4 million ounces.
Metallurgical testing has indicated average gold recoveries of 94% using conventional milling / CIL processing methods. AMEC is now conducting a pre-feasibility study on Zone 1's Indicated Resource that is expected to be completed in the second quarter of 2005, for a potential open-pit mining operation.
Mundoro has resumed field activities at Maoling that include additional diamond drilling, baseline water sampling and geotechnical studies to supplement data for full feasibility study and to further delineate and expand Zone 1. Work is also planned to delineate, upgrade and expand the Zone 4 deposit, where a further 55.0 million tonnes grading 1.2 grams gold per tonne (2.1 million ounces) of Inferred Resource represents additional opportunity for the project.
Also during the quarter, the Company appointed Mr. Robert van Doorn as President. Mr. Colin McAleenan was appointed Chairman of the Board and retains the position of Chief Executive Officer. Mr. Frank Crerie, a founding director, has stepped down as Chairman but continues to serve as a Director, and Mr. Patrick Downey P.Eng. joined the Company as a Director.
Financial Highlights:
- The consolidated loss for the quarter under Canadian GAAP was $1,178,898 or $0.04 per share compared with a loss of $1,047,586 or $0.04 per share during the same quarter of 2004.
- Mineral exploration costs for the quarter were $366,170 compared with $658,386 during the same quarter of 2004. All of the exploration costs were expended on the Maoling Gold Project, China.
- During the quarter, the Company raised $436,737 from the exercise of warrants and $24,750 from the exercise of stock options, resulting in a total of 26,419,728 shares issued as at March 31, 2005. Subsequent to the end of the quarter to April 30, 2005, the Company raised an additional $759,218 from the exercise of warrants and $144,000 from the exercise of stock options, resulting in a total of 27,102,102 shares issued. A total of 1,309,459 warrants and 3,753,500 options remain outstanding, representing potential additional cash resources of $6,471,565 if exercised.
- Income from interest in the quarter amounted to $44,898.
- The Company ended the quarter with $6,616,483 in working capital, compared with $6,937,915 at the end of 2004.
- The Company's 'Initial' Annual Information Form (AIF), filed pursuant to qualifying for POP-issuer status, was receipted by the British Columbia Securities Commission on April 18, 2005, and is available on SEDAR at http://www.sedar.com.
About Mundoro Mining Inc.
Mundoro Mining Inc. is a well-financed resource company focused on the exploration and development of the large-scale, pre-feasibility stage Maoling gold deposit in Liaoning Province, China. The Company has a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government, and has been aggressively exploring the 20 square kilometer exploration license area. Thus far, three deposits that outcrop at surface have been outlined with Indicated Resources of 81.6 million tonnes at 1.2 grams/tonne (3.0 million ounces of gold) and Inferred Resources of 100.4 million tonnes at 1.1 grams/tonne (3.5 million ounces). The resource estimates calculated by AMEC Americas Ltd. are presented using a 0.75 grams gold per tonne cut-off grade. Disseminated, free-milling gold mineralization at Maoling occurs within a sequence of altered phyllitic metapelite to meta-siltstone and is associated with sheeted quartz vein sets an!
d 3-5% disseminated sulphide mineralization. Metallurgical testing has indicated gold recoveries averaging 94% using conventional milling / CIL processing methods. AMEC is now conducting a pre-feasibility study using this processing method in conjunction with an open-pit mining operation on the Indicated Resources of Zone 1.
The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
Mundoro Mining Inc.
