August 27, 2012, Vancouver, BC – Mundoro Capital Inc. (TSX-V: MUN) (“Mundoro” or the “Company”) announces the filing of the Company’s financial results for the quarter ended June 30, 2012. The highlights provided in this release should be read in conjunction with the Company’s quarterly financial statements and Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in U.S. dollars unless otherwise stated.
The Company’s loss for the six months ended June 30, 2012 was $1,926,078 ($0.05 per share) compared to a loss of $1,237,645 ($0.03 per share) for the six months ended June 30, 2011 which included a loss from discontinued operations of $198,300. The loss for the first six months of 2012 was principally attributable to the following: expenditures on project exploration and evaluation of $1,032,029 in 2012 compared to $287,550 in 2011; and, expenditures for corporate expenses of $671,628 compared to $348,080 in 2011. The non-cash items were: foreign exchange gain of $56,750 compared to a loss of $441,882 in 2011; share-based payment expense of $68,054 compared to $4,900 in 2011; and, depreciation of $7,822 compared to $Nil in 2011. The Company maintains a low share count of 37.9 million shares and at June 30, 2012 held $7.5 million in cash and cash equivalents with a further $9.8 million in short-term investments.
Mundoro’s CEO & President, Teo Dechev added: “Mundoro is well positioned to execute on its exploration and development strategy in South Eastern Europe and Mexico with a strong team, quality properties in proven mineral belts, a strategic alliance with a well-respected mining investor and the capital necessary to funds these properties. The Company continues to be cash conscious and cost effective in its approach to exploration and development opportunities.”
Serbia Exploration Program Update
During the quarter, the Company, through its wholly-owned subsidiary, Stara Planina Resources EAD (“SPR”), received approval from the Serbian government for an additional mineral exploration license in the Republic of Serbia (“Serbia”): Topla. The Company now has seven mineral exploration licenses, held 100% by SPR, and has an additional application with the Ministry of Environment, Mining and Spatial Planning. The seven license areas are a total of 499 square kilometres (49,900 hectares) and are located in northeastern Serbia approximately 100 kilometres east of Belgrade.
Stream sediment sampling was completed over the first five license areas (Rakova Bara, Glozana, Osanica Bukovska and Zeleznik) and returned encouraging anomalous Au results. Two areas one in Zeleznik 6 km X 2 km and one in Glozana 4.5 km X 3 km returned continuous anomalies from 20 to 378 ppb Au (See Figure 1). Both areas are northern and southern continuation of the known Blagojev Kamen ore field which represents a 10 km long Au bearing trend. With the current results, the gold bearing trend is traced for over 17 km by 2-4 km wide.
Blagojev Kamen zone is located between two magmatic complexes — Timok to the East and Neresnica granitoid to the West. Greenrocks of the zone emplace all significant gold and tungsten deposits of Blagojev Kamen ore field. Gold has been mined in Blagojev Kamen since 1900; however traces in upper auriferous quartz veins indicate a much earlier exploitation. Mineralized quartz veins, contain pyrite, galena, sphalerite, chalcopyrite, and pyrrhotite. Gold is native, partly in sulphides as well. The stockwork-impregnated gold is a specific morph-structural type of gold mineralization, formed in plagiogranites of the Grabova reka where it averages 3 g/t. Common occurrences are single veins or systems of parallel veins in faults zones, varying in size and steeply dipping. Ore emplacements have lengths and thicknesses varied in strike and dip, often wedging out, and non-uniform in ore distribution, from 2 to 150 g/t, or 8-25 g/t Au on average. The longest ore veins discovered to date are up to 200 m in strike and up to 150 m in width. Veins are generally not exceeding 1 m in thickness, though some reach 2.5 m or more in local lenticular bodies.
The company is planning a follow-up exploration program over the gold anomalous areas at the Zeleznik and Glozana licenses while stream sediment sampling is underway over Borsko Jezero and Topla areas along with rock sampling over known mineralization at these areas.
Mexico Exploration Program Update
During the quarter, the Company conducted reconnaissance geological, geochemical and geophysical programs with the objective to define drill targets. Mundoro’s systematic exploration program has identified a drill target at the Camargo concession. The Camargo concession is located 480 kilometers north of Durango City and covers 22,100 hectares. This property lies within the Sierra and Llanuras del Norte physiographic province. This province is made up of Tertiary volcanic, intrusive and Cretaceous, Tertiary and Quaternary sedimentary rocks. Work completed on the Camargo concession includes: ‘Aster’ alteration imagery (property wide), geochemical surveys (rock–60 samples; stream sediment-32), geophysical surveys (Induced polarization–21.5 line kilometers; Ground magnetic–35.8 line kilometers) and geological mapping (1: 10, 000 Scale– approximately 5000 hectares). Drilling permit is underway with the expectation of drilling program to commence in Q4-2012.
Subsequent to the quarter, the Company executed, through its 100%-owned subsidiary Mundoro de Mexico S.A de C.V, a definitive option agreement for the Centauro Gold Property (“Centauro”) located in Chihuahua State, Mexico. The Centauro Property is located in the Sierra Madre Occidental, in southern portion of Chihuahua State, Mexico, about 280 km south of Chihuahua City. It consists of 9 easily accessed, adjacent exploration licenses covering 33.1 sqkm. Centauro’s area of interest is a series of gently rolling hills, covering 2.5 km by 1.5 km, about 100 meters to 200 meters above the surrounding flat plain. The Centauro Property is believed to be a high level epithermal environment. Detailed work will be conducted on the Property in order to define the epithermal model and localize the feeders and plumbing system that could lead to better gold intersections at depth. Mundoro will conduct an exploration program in the second half of this year in preparation for a deep drilling program in the first half of 2013. This year’s field program will include but not limited to: detailed geological mapping and sampling on traverses on at least 100 meters spacing, re-logging of drill core to focus on alteration and structural features, establishing the andesite-conglomerate contact attitude, TerraSpec analysis of surface samples and the drill core, trenching and compilation, and re-interpretation of all available data.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a Canadian based company which operates as a mineral acquisition, exploration, development and investment company. The Company’s target areas are the Tethyan belt in South Eastern Europe and the Mesa Central Belt in Northwestern Mexico, both of which are prolific mineral belts the Company believes have strong exploration and development potential. The Company maintains an interest in the Maoling Gold Project through its 5% interest in Mundoro Mining Inc.
For the Maoling Gold Project, the Pre-Feasibility Study(“PFS”) described herein was prepared to broadly quantify the Maoling Zone 1 deposit’s capital and operating cost parameters, and to further the development of the project. It was not prepared for use as a valuation of the deposits, nor should it be considered to be a final feasibility study. The information contained in the PFS reflects various technical and economic conditions at the time of writing that can change significantly over relatively short periods of time. Reserves quoted were prepared by AMEC Americas Ltd. under the direction and oversight of Mr. Mark Pearson P.Eng. of Vancouver, BC, an ‘Independent Qualified Person’ as defined by National Instrument 43-101. Resource estimation for the Zone 1 area in 2006 was carried out in the Brisbane, Australia office of Golder Associates Pty Limited, an international earth sciences consulting group under the direction and oversight of Dr. Andrew Richmond, MAusIMM, an ‘Independent Qualified Person’ as defined by NI43-101. The Zone 4 Resource Estimate (2001) was prepared by AMEC Americas and is reviewed in a technical report prepared by Peter Lewis, Ph.D., P.Geo.
For the Cuencame Property, the Technical Report was prepared by Alain-Jean Beauregard, P. Geol., FGAC, AEMQ, an ‘Independent Qualified Person’ as defined by National Instrument 43-101, and an employee of Geologica GroupeConseil Inc., who consented to the filing of the Technical Report prepared for Mundoro Capital Inc. titled “NI 43-101 Technical Evaluation Report on the Cuencame Concessions”, dated September 20, 2011 with the securities regulatory authorities.
NI43-101 compliant technical reports for the pre-feasibility study and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.
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 Mundoro Capital Inc. at +1-604-669-8055.