Sentosa Mining Limited (ASX:SEO) is pleased to announce it has signed a Memorandum of Agreement (“MOA”) specific to the Boston Gold Property, Eastern Mindanao, Philippines. The Boston Gold Property is comprised of Exploration Permit No. 000002-00 XI covering 338.86 Hectares (Figure 1).

The Property is located in the highly prospective Barangay Caatijan, Municipality of Boston, Province of Davao Oriental and is road accessible. Boston is approximately 8km northeast of the Diwalwal Gold Deposit.

The Property contains a number of surface workings and trenches completed by others. Gold mineralization appears to be part of a structurally controlled (NE Trending structures) low sulphidation epithermal system. The local geology includes intermediate volcanics, quartz veins and stockworks, andesitic quartz breccias, basalt and sandstone.

Managing Director, Mr. Dean Besserer stated, “This is the first significant step in building a quality portfolio of properties in SE Asia along a structural corridor known to produce significant multi-million ounce gold deposits such as Diwalwal and Medusa Mining’s Co-O”.

As part of Sentosa’s Due Diligence, 56 rock grab samples and 17 replicate trench/surface channel samples were collected. The trench samples collected by Sentosa were 2m continuous composite samples replicating historic samples collected by others. Samples were well marked and confirmation samples by Sentosa closely approximate previous results which reiterate the presence of high grade, continuous gold mineralization on surface. Sentosa therefore considers the work and results done by others valid.

The significant results of past exploration and Due Diligence sampling by Sentosa are included in Table 1 and are shown on Figure 2.

TABLE 1 – SIGNIFICANT GOLD RESULTS

*g/t Au = grams per tonne Gold; may not indicate true width. Grade across width was calculated using a weighted average. Trench samples were 2m continuous composite surface samples (Figure 2).

Sentosa’s plans for future exploration include an aggressive campaign including but not limited to: Mapping, rock grab sampling, soil sampling, ground and airborne geophysical surveying, mechanized trenching and sampling and drilling to test the gold mineralization for lateral extent and depth.

Rock grab samples collected by Sentosa were random grabs to test mineralization throughout the Property. All samples were sent to McPhar Geoservices (Phil.). Inc.’s prep lab in General Santos City and were analyzed in Makati, Philippines for gold by 50 gram Fire Assay with an Atomic Absorption or gravimetric finish as necessary. The results are believed to be high quality. All samples were sent and/or hand delivered to the laboratory using security seals and McPhar is ISO 9001:2001 certified. As well, Sentosa practices a regimented quality assurance (“QA”) and quality control (“QC”) program by collected at least 10% duplicate samples.

Subject to signing the definitive agreement SENTOSA will pay Eight Hundred Seventy-Five Thousand United States Dollars (US$875,000.00) and three million (3,000,000) shares of SENTOSA to the relevant Shareholder(s) upon transferring seventy percent (“70% TOTAL”) of the total issued and outstanding capital stock of Boston Minerals Mining Corp. (“BMMC”) which owns a 100% interest in the Boston Property (Exploration Permit No. 000002-00 XI covering 338.8566 Hectares situated in Sitio Napo, Barangay Caatijan, Municipality of Boston, Province of Davao Oriental (“EP2”)). Within three (3) months from First Payment Date, SENTOSA will pay One Hundred Twenty-Five Thousand United States Dollars (US$125,000.00) on transfer and delivery to SENTOSA of the ownership over shares corresponding to an additional ten percent (10%) of the total issued and outstanding capital stock of BMMC(“80% TOTAL”). Within six (6) months from First Payment Date, SENTOSA will pay Two Hundred Fifty Thousand United States Dollars (US$250,000.00) on transfer and delivery to SENTOSA of the ownership over shares corresponding to an additional two and a half percent (2.5%) of the total issued and outstanding capital stock of BMMC (“82.5% TOTAL”). Within twelve (12) months from the First Payment Date, SENTOSA will pay Seven Hundred Fifty Thousand United States Dollars (US$750,000.00) on transfer and delivery to SENTOSA of the ownership over shares corresponding to an additional seven and a half percent (7.5%) of the total issued and outstanding capital stock of BMMC (“90% TOTAL”).

SENTOSA shall have, at its sole discretion, the exclusive option to acquire an additional five percent (5%) of the total issued and outstanding capital stock of BMMC for One Million United States Dollars (US$1,000,000.00), which exclusive option Sentosa can exercise so long as Sentosa remains a shareholder in BMMC and within twelve (12) months from the completion of a final feasibility study in respect of the EP 2 area. The remaining 5% interest in the property is free carried. A finders fee payable to a third party is subject to signing the definitive agreement.

In addition, Sentosa continues to evaluate acquisition targets in SE Asia and have signed a second agreement with an (unnamed) party in the Philippines whereby Sentosa has a 60 day exclusivity to assess a property located in Eastern Mindanao.  As per the agreement, Sentosa is currently conducting a 1 week confirmation sampling program and legal evaluation as part of a normal due diligence process.

For further information, please contact:

Mr Jay Stephenson
Company Secretary
Sentosa Mining Limited
+61 (0)8 9228 0703
info@sentosmining.com

Mr Dean Besserer
Managing Director
Sentosa Mining Limited
+61 (0)4 8787 7007
+001 780 916 5782
dbesserer@sentosmining.com 

Figure 1 – General Location

FIGURE 2 – SIGNIFICANT RESULTS – BOSTON GOLD PROJECT

Competent Persons Statement

The geological information contained in this ASX release relating to Exploration Results, Mineral Resources, or Ore Reserves has been compiled by Mr. Dean Besserer. Mr. Besserer is a Member of AIG and Mr. Besserer has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.