MUNDORO PROVIDES PROGRESS ON EXPLORATION PROGRAMS AND REPORTS $0.28 PER SHARE CASH VALUE AT END OF Q3-2013
December 3, 2013, Vancouver, BC – Mundoro Capital Inc. (TSXV:MUN,GR:NGU, www.mundoro.com) (“Mundoro” or the “Company”) is pleased to provide an update for its 2013 exploration programs in southeastern Europe and reports filing of Q3-2013 financials. This press release should be read in conjunction with the Company’s unaudited Financial Statements and the Management Discussion and Analysis for Q3-2013, which are available on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars unless otherwise stated.
Commenting on Mundoro’s exploration results CEO & President Teo Dechev summarizes:
“As of September 30, 2013, Mundoro held just over $0.28 per share which represents over $12.2 million of cash in treasury. This cash value puts Mundoro in an excellent position for the next three years to continue its successful exploration program. While the company has the ability to pursue its properties independently, we have been approached by various parties for potential joint ventures and are evaluating the benefits of partnership and the value that brings to the company and its shareholders.
In Serbia, Mundoro’s 2013 exploration programs have identified three key areas for further exploration in 2014:
- the Tilva Rosh, high grade, high sulphidation zone,
- the Zeleznik, copper-gold mineralization skarn system outcropping on surface, and
- the BJ-Dubrava corridor drill intersected chalcopyrite/pyrite mineralized clasts approximately 20 m from surface.
These are all near surface mineralized areas which do not require deep drilling and are cost effective to explore in 2014. As recently as Q4-2013, Mundoro also identified an additional area for near surface porphyry mineralization confirmed during a recent site visit by one of the world’s leading porphyry experts.
In light of the current market conditions, Mundoro is managing its cash conservatively to balance preservation of cash and a focused exploration program to deliver shareholder value.”
- Serbia Exploration Summary
Tilva Rosh Highlights from 2013 Exploration Program
- On Mundoro’s southern properties’ Savinac license, our trenching program in this area has discovered a high grade, high sulphidation zone outcropping at surface.
- Savinac license is a well-known alteration system in the Timok Magmatic Complex where Mundoro has identified several new areas of gold soil anomalies and discovered high grade gold and silver mineralization from trenching.
- Trenching results highlight the newly discovered high grade gold and silver zone:
- Trench 4 – 12 m @ 30.39 g/t Au and 171.27 g/t Ag (33.03 g/t AuEq)
- Trench 2 – 8 m @ 5.31 g/t Au and 21.07 g/t Ag (5.63 g/t AuEq)
- Trench 1 – 18 m @ 2.21 g/t Au and 29 g/t Ag (2.66 g/t AuEq)
- Mapping from this area shows that the high grade mineralization is controlled by NW normal fault dipping to south-west.
- This fault was intersected by additional trenching along strike for 200 m.
- The soil survey Mundoro completed in 2013 was designed to fill in the open soil anomalies along the 8.5 km long belt of alteration as well as follow-up on the high grade gold results received from rock and trench sampling at Tilva Rosh.
- Throughout the year Mundoro collected: 2024 soil samples, 817 rock samples, dug and sampled 818 line meters trenches and measured 853 spectroscopy specimens from outcrops and trenches in Savinac.
- Results to date have highlighted further geochemical anomalies of gold and various other indicator elements to be followed-up with trenching and detailed mapping over the 8.5 km x 3 km area in 2014.
- In 2014, the exploration program will focus on delineating the high grade zone with further trenching (lateral extent) and shallow drill testing (vertical extent), as well as following up new gold anomalies along the 8.5 km trend.
Zeleznik Highlights from 2013 Exploration Program
- In the southern part of the Zeleznik license, approximately 1.8 km north of the currently producing Majdanpek porphyry copper-gold open-pit mine, is a well-developed, coherent copper-in-soil anomalies which merit shallow drilling to test underlying porphyry and/or skarn copper-gold mineralization.
- To date the Company has completed 716 soil samples as well as initial reconnaissance mapping and rock sampling.
- A highlight of results to date are:
- Two Cu-Au-Mo in soil anomalies with values >200 ppm to 2000 ppm Cu;
- The western anomaly is 600 m x 450 m and is open to the north and south, and
- The eastern anomaly is 300 m x 300 m dipping under limestone cap to the north.
- Copper-magnetite skarn outcrop sample this year returned 1% Cu and 1.47 g/t Au
- Two Cu-Au-Mo in soil anomalies with values >200 ppm to 2000 ppm Cu;
- The two soil anomalies are considered targets for porphyry and related skarn mineralisation. The surface dimensions of the western anomaly are sufficiently large to be underlain by a mineralised body of potential interest.
- In 2014, the exploration program will focus on drill testing the two copper-in-soil anomaly targets for porphyry copper and/or proximal copper skarn mineralization.
BJ- Dubrava Corridor Highlights from 2013 Exploration Program
- Mundoro’s scout drill program identified a mineralized zone along the strike continuation between the Bor Mine and Reservoir/Freeport McMoRan’s Timok JV.
- The scout drill program totaled 3,226 m drilled in five holes; three of them in Borsko Jezero (BJ-01, BJ-03 and BJ-05), one in Dubrava (BJ-04) and one in Sumrakovac (BJ-02).
- Two drill holes (BJ-04, BJ-05) were drilled in the BJ-Dubrava corridor area and were designed to drill test along strike continuation between the Bor deposits and the newly discovered Timok JV (Reservoir Minerals/Freeport McMoRan) high grade Cu-Au mineralization.
- Drill hole BJ-04, starting from 22 m, intersected Cu-Au mineralization of:
- 28 m @ 0.2% Cu, 0.25 g/t Au (0.36% CuEq.)
- including 7m @ 0.5% Cu, 0.69 g/t Au (0.94% CuEq.)
- 28 m @ 0.2% Cu, 0.25 g/t Au (0.36% CuEq.)
- Drill hole BJ-05, starting from 377 m, intersected Au mineralization:
- 1 m @ 1.69 g/t Au; and
- 11 m @ 0.53 g/t Au,
- including 1 m @ 1.24 g/t Au and 2m @ 1.05 g/t Au.
- BJ-04 area of mineralization is within short trucking distance of approximately 2 km from the Bor processing and smelting facility.
- The other three drill holes (BJ-01, BJ-02, and BJ-03) were designed to test audio-magneto-telluric (AMT) geophysical anomalies. These drill holes provided valuable technical information which will guide future exploration within the Timok licenses as a whole.
- In 2014, the exploration program will focus on delineating the mineralized zone of mineralized clasts.
- Bulgaria Exploration Program
- The Zvezda license covers an area of 161 sq.km., which is located in southeastern Bulgaria and is designated as brownfields exploration due to:
- its proximity to a producing gold mine directly adjacent and north of the license, and
- historical mine workings in the area for lead zinc and silver mineralization.
- As a result, Mundoro is also completing historical data compilation for the Zvezda license to incorporate all the results of the historical mine workings as well as known historical resources that are not 43-101 compliant.
- In Mundoro’s 2013 exploration program, the company collected: 143 stream sediment, 418 rock samples, and 710 soil samples. Initial results have highlighted an area of gold and silver bearing quartz veins located in the central part of the license.
- The veins are up to 1 m wide over an area of 800 m x 300 m and can be followed up discontinuously for up to 130 m.
- The highest gold result returned from rock sampling of the quartz veins is 5.12 g/t Au.
- An additional 12 samples returned between 1 to 3.5 g/t Au from different intervals of the veins.
- Trenching has been completed over an area of hydrothermally altered rocks containing visible copper-oxide mineralization. A total of 370 m has been trenched with 128 channel samples collected. Results are pending.
- In 2014, the exploration program will focus on further mapping, sampling and trenching the two key areas at Zvezda and Byalo licenses as well as initial drill testing.
- Mexico Exploration Program
In Mexico, work by Mundoro was focused on maintaining the licenses in good standing, reducing non-strategic land holdings and preparing Centauro, Camargo and the rest of the package for joint venture opportunities with third parties.
- Mundoro expects minimal expenditures in 2014 as the focus will be the Serbian and Bulgarian properties.
Sampling, Analysis and Quality Assurance and Control (QAQC)
Drillhole orientations were surveyed at approximately 50 m intervals. Drill core was collected from drill sites by the Company’s geologists and processed and sampled at the Company’s core shed according to industry best practice standard procedures. Samples were collected as half PQ or HQ core at 1 m lengths from mineralised intervals and 3 m lengths from none mineralised intervals. Where necessary the sampling lengths were adjusted to reflect the geological boundaries, occasionally with maximum length up to 5 m.
All samples are assayed using 50 gram fire assay with atomic absorption finish and ME-ICP61 by ALS Romania. The entire sample was crushed to 2 mm, then split off a 1 kg sample and pulverized the split to better than 85% passing 75 microns. Quality Assurance and Quality Control procedures include the systematic insertion of standards, duplicates and blanks into the sample streams. Duplicate core samples are taken every 25 samples and standards and blanks are inserted after every 20th sample. All data collected from detailed logging and assay results from the laboratories are routinely verified and entered in an Access data base.
Copper equivalent (CuEq%) is calculated using the formula CuEq = (%Cu) + [(g/t/Au) x (1/31.1035) x ($/ozAu)] ÷ [(22.0462) x ($/lbCu)]. Gold Equivalent (“AuEq.”) is calculated using the formula AuEq = (g/t/Au) + [(%Cu) x (22.0462) x ($/lbCu)] ÷ [(1/31.1035) x ($/ozAu)]. Metal prices used are: gold price of US$1300/oz, copper price of US$3/lb, and silver price US$20/oz. All thicknesses from intersections from drill holes are down-hole drilled thicknesses or outcrop sample length thickness.
The technical information of this Press Release has been reviewed and approved by Mr. G. Magaranov, P. Geo., the Qualified Person as defined by National Instrument 43-101.
Grant Stock Options
The Board approved a grant of 852,500 stock options to directors, officers, employees and contractors of the Company. The options will be granted December 2, 2013 at a price of $0.30 per share which is 67% premium to the closing price on November 29, 2013. The options are exercisable for a period of five years.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a well-funded, Canadian based, company focused on mineral acquisition, exploration, and development. Our primary focus is advancing our properties on the Tethyan Belt in Southeastern Europe. Mundoro has methodically acquired a district-scale land position on this prolific mineral belt which hosts significant Gold-Copper porphyry and related epithermal deposits. Our strong project pipeline, which also includes assets in Mexico and China, is positioned to drive long-term, sustainable growth in order to attain production and shareholder return.
Caution Concerning Forward-Looking Statements
Information included, attached to or incorporated by reference into this News Release may contain forward-looking statements. All statements, other than statements of historical fact, included or incorporated by reference in this News Release are forward-looking statements, including, without limitation, statements regarding activities, events or developments that the Board expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. The material assumptions that were applied in making the forward looking statements in this News Release include expectations as to the Company’s future strategy and business plan and execution of the Company’s existing plans. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. We caution readers of this News Release not to place undue reliance on forward looking statements contained in this News Release, which are not a guarantee of performance and are subject to a number of uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include general economic and market conditions, changes in law, regulatory processes, the status of Mundoro’s assets and financial condition, actions of competitors and the ability to implement business strategies and pursue business opportunities. The forward-looking statements contained in this News Release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this News Release are made as of the date of this News Release and the Board undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. Shareholders are cautioned that all forward-looking statements involve risks and uncertainties and for a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company’s filings with the Canadian securities regulators available on www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact Teo Dechev, CEO, President and Director of Mundoro Capital Inc. at +1-604-669-8055 or Michelle Roth, Roth Investor Relations at +1-732-792-2200.