Medoro Resources Announces 2005 Year-End Results

Medoro Resources Announces 2005 Year-End Results, Lo Increible Update

 

    TORONTO, April 27 /CNW/ - Medoro Resources Ltd. (TSX-V/AIM: MRL)

announced today results for the year ended December 31, 2005, as well as an

update on the status of its proposed acquisition of the Lo Increible 4A & 4B

exploration properties located in the El Callao area of the State of Bolivar,

Venezuela.

    For the year ended December 31, 2005, Medoro reported a net loss of

$11.0 million or $0.10 per share as compared to a loss of $10.3 million or

$0.15 per share in the previous year. The 2005 loss largely reflects the

writedown of the Pestarena property and a provision for the potential     

non-collectability of amounts receivable. At December 31, 2005 the company had

cash and short-term investments of $5.3 million and no debt. Subsequent to the

end of the year, the company completed a private placement for net proceeds of

$9.3 million.

    As previously announced, the company has agreed to acquire the Lo

Increible 4A and 4B properties, totaling 2,216 hectares, located immediately

north of, and adjacent to, Crystallex International Corporation's La Victoria

property. A new, independent NI-43-101 Technical Report prepared by Mayes

Consulting Ltd. dated April 24, 2006 has been received and filed on SEDAR

(www.sedar.com).

    Highlights of this report include an indicated resource of 406,000 ounces

contained within 3.4 million tonnes grading 3.7 grams per tonne (g/t) gold

plus an additional 557,000 ounces classified as inferred resource contained

within 4.8 million tonnes at a gold grade of 3.6 g/t, all based on a 1.0 g/t

cutoff. The report also highlights the excellent exploration potential of the

property and the company intends to proceed expeditiously with the recommended

15,000-metre, $2.2 million program to upgrade and expand the current

resources. Haywood Securities has been retained by the Board of Directors to

provide an independent valuation and shareholders will be asked to vote on

this acquisition at a special meeting to be held on May 19, 2006.

 

    Medoro Resources is a gold exploration and development company focused on

acquiring properties of merit for potential joint ventures with senior

producers.

 

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

 

  

    For further information: Peter Volk, Secretary, [phone],

pvolk(at)medororesources.com

    (MRL.)