Mindoro receives favorable economic assessment for Agata Nickel Project

 EDMONTON, ALBERTA, March 29, 2011 - Mindoro Resources Ltd. (TSXV: MIO; ASX: MDO; Frankfurt: WKN 906167) (Mindoro) is pleased to announce the release of the Agata Nickel Project Preliminary Economic Assessment (PEA).

The PEA has been reviewed by independent international consulting group Golder Associates Pty Ltd. The PEA financial model demonstrates low operating cost potential and a high Net Present Value (NPV) based on hydrometallurgical processing of the Agata resource. Based on the encouraging results of the PEA the company will immediately commence a pre-feasibility study on the Agata Nickel Project.

The PEA financial model is based on a mining inventory derived from the Agata resource, processed at a rate after ramp up of 1.8 million tonnes producing 18,000 tonnes of nickel per annum in intermediate product for 15 years via a combination of proven hydrometallurgical technologies: High Pressure Acid Leach (HPAL) – Atmospheric agitated tank Leach (AL) and Saprolite Neutralisation (SN). A summary of the PEA financial model is presented below. The currency is US dollars and all net present values (NPVs) are at a 10% discount rate.

· Installed capital cost estimate, including 30% contingency, $906 million.
· After tax cash flow @ $10/lb Ni $173 million per annum.Payback 5.2 years from
· Cash operating cost $2.61/lb Ni no credits or $1.65/lb Ni with cobalt and
power (acid plant) credits.
· Mining inventory of 26.1 million tonnes; processed 25.4 million tonnes.
· Processing rate 1.8 million tonnes per annum after ramp up. Mine life 15 years
based on Agata only.
· Nickel production after ramp-up 18,000 tonnes of nickel per annum in mixed
hydroxide product (MHP), 77% nickel value payable (50% of cobalt value payable,
@ Ni price x 1.66) based on recent contracts.

On the basis of the results of the preliminary economic assessment the company will immediately commence a pre-feasibility study into the Agata Nickel Project. The lead consulting group has been appointed and will be announced in a separate release.

“The Agata preliminary economic assessment indicates a high value, low operating cost nickel project based only on the current resource. Definition of further resources from the regional drilling program will enhance the economics of the project through additional mine life and/or expanded production capacity”, said Mindoro’s President and Chief Executive Officer Jon Dugdale. “Based on the positive results from the preliminary economic assessment the company will immediately commence a pre-feasibility study on the Agata project”.

A scoping study into direct shipping of higher grade zones within the Agata resource was also completed as part of the preliminary economic assessment. The study examined three production scenarios, all of which are economically viable. However, due to the relatively low margins and current market uncertainty associated with “direct shipping ore” (DSO), the company is not planning to pursue a stand-alone DSO at this stage, but is examining the potential for thermal upgrading to enhance the value of the shipped product. The early results from thermal upgrading tests in progress at SGS-Lakefield in Perth, supervised by Hatch Associates Pty Ltd, are positive, and the company has committed to further, larger scale testing at a Mines and Geosciences Bureau (MGB) based testing facility in the Philippines. Positive results from this work and preliminary economic and marketing studies, will allow completion of a feasibility study into the early production stage of the project.

The preliminary economic assessment has been completed by Golder Associates Pty Ltd under the direction and supervision of Peter Onley, an independent qualified person with independent international consulting group Golder Associates Pty Ltd and Tony Showell, an independent qualified person with Battery Limits Pty Ltd. Golder Associates Pty Ltd has reviewed the geology, mining, metallurgy, process design, residue and water management inputs into the preliminary economic assessment and Peter Onley and Tony Showell have authorised the technical information detailed in this release. The NI 43-101 technical report will be filed on SEDAR within 45 days. (Mindoro Resources Limited)


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