Mining and Projects Update at TVI Pacific's 30.66% owned TVIRD
Mining and Projects Update at TVI Pacific's
30.66% owned TVIRD
CALGARY, AB
,
Nov. 7, 2022
/CNW/ - TVI Pacific Inc. (TSXV: TVI) (OTC-Pink: TVIPF) ("
TVI
" or
"
the Company
") is pleased to provide an update with respect to the various mines and projects held
and operated by TVI Resource Development Phils., Inc. ("
TVIRD
"), a
Philippines
corporation in
which TVI holds a 30.66% interest.
HIGHLIGHTS
:
Balabag Gold Mine
Since start-up, twenty-nine doré shipments have been completed containing 35,486 ounces of
gold (
"Au"
) and 923,981 ounces of silver (
"Ag"
) for 46,154 gold equivalent ounces.
In the current year, twenty-one doré shipments containing 27,752 ounces of Au and 697,201
ounces of Ag for 35,489 gold equivalent ounces have been completed.
Plant throughput continues to improve to an average of 2,191 tonnes per day (
"tpd"
) for
October 2022
.
Resource drilling continues with planned Phase 7 adding an approximate 4,000 meters
commencing 2023.
Bank loan repayments total
US$13.3 million
to date of the
US$28.5 million
, 5-year term loan
with China Banking Corporation (
"Facility"
).
Siana Gold Mine
Rehabilitation of the crushing and processing plant is proceeding along with mine development
and construction of tailings storage facility #6 (
"TSF6"
).
Agata Mining Ventures
Project-to-date, 371 shipments of 20.20 million wet metric tonnes of nickel laterite have been
shipped through to
October 31, 2022
.
Final shipments are planned in late
November 2022
and will thereafter cease operations.
"TVIRD continues to make good progress at both Balabag and Siana. The continuing focus at
Balabag to optimize operations is proving successful and we are confident that more improvements
will be introduced to further increase the amount of gold equivalent ounces produced and the
frequency of shipments", said Mr.
Cliff James
, Chairman and CEO of TVI and Chairman of TVIRD,
"Combined with the progress being made at the Siana Gold Mine with the rehabilitation of some key
areas of the processing plant already complete, we continue to be very excited about the future of
TVIRD and the potential value this may also bring to TVI Pacific."
TVIRD Mining Update
:
Balabag Gold Mine
TVIRD owns 100% of the Balabag Gold Mine (
"Balabag"
) which covers a 4,779-hectare Mineral
Production Sharing Agreement ("
MPSA
", MPSA No. 086-97-IX with expiry date
November 20, 2047
)
located within the Municipality of Bayog, Province of Zamboanga del Sur and Municipalities of
Diplahan and Kabasalan, Province of Zamboanga Sibugay, Mindanao, Philippines.
TVI announced on
November 22, 2019
that TVIRD had determined to advance Balabag towards
commercial production and continuous milling operations commenced in July, 2021 with the first
shipment of gold doré completed on
September 30
, 2021. Commercial production was achieved at
Balabag effective
November 1
, 2021. As at the date of this news release, Balabag has completed
29 shipments since start-up of production and 21 shipments in the current year, as indicated
below:
Since Start-up of Production:
July 2021 to Oct.31.2022
Current Year:
Jan.31.2022 to Oct.31.2022
Number of Shipments
29
21
Gold doré
(kg)
30,464
23,020
Gold
(oz)
35,486
27,752
Silver
(oz)
923,981
697,201
Gold Equivalent
(oz)
46,154
35,489
A focus to optimize the operation has continued and has thus far resulted in a significant increase in
mill throughput and plant availability, as reflected in the following table:
December 2021
Year-to-date 2021
(average)
October 2022
10 months ended
October 31, 2022
(average)
Gold
Silver
Gold
Silver
Gold
Silver
Gold
Silver
Head Grade
2.25 g/t
93.40 g/t
1.91 g/t
69.58 g/t
2.21 g/t
61.69 g/t
1.94 g/t
68.46 g/t
Recoveries
90 %
70 %
88 %
69 %
88 %
67 %
86 %
61 %
Mill throughput
1,100 tonnes per day
1,151 tonnes per day
2,191 tonnes per day
1,751 tonnes per day
Plant
Availability
70 %
76 %
92 %
86 %
Optimization works to improve plant efficiency have included:
The fabrication, installation and commissioning of a column flotation cell to upgrade the quality of
feed to the Merrill Crowe to result in improved metal recoveries.
The introduction of a lead acetate dosing regime to improve the dissolution of both gold and
silver. An oxygen generator is expected to also be installed to further increase the efficiency of
the cyanidation process.
Improvements in the powerhouse ventilation and insulation to prevent damage to the electronics
and alternator windings of the gensets from moist air flowing through from the smelting room
and assay laboratory.
The testing of polyurethane screens to further increase the capacity of the carbon-in leach
(
"CIL"
) circuit's carbon interstage screens.
The tailings storage facility (
"TSF"
) is being constructed in stages to accommodate both the
increased throughput and progressively increasing resources as they may be defined. Ongoing
placement of Zone 3 is proceeding together with construction of the Stage 3 spillway.
TVIRD is continuing also to finalize a Phase 7 exploration program that includes additional in-fill,
step-out and vein extension resource drilling and follow-up mapping of Balabag and its immediately
surrounding area. This program is expected to commence in 2023 and is currently estimated to
include 27 drillholes for a total meterage of 3,975 meters. The primary focus of this program will be
to more thoroughly explore and further define resources within an expanded ultimate pit and is to
include lateral and down dip continuity of the West Tinago vein system, the southeast extension of
South Tinago stockwork zones and the down dip continuity of the East Miswi and Lalab vein system.
Phase 5A, Phase
5B
and Phase 6 drilling results, which have included 11,094 meters drilled over
101 drillholes, have not yet been included in the most recent Mineral Resource estimate presented in
the NI 43-101 Technical Report entitled "NI 43-101 Exploration Results and Mineral Resource
Update Report on the Balabag Gold-Silver Project" and filed under the Company profile on SEDAR
on
July 20
, 2021. That Technical Report, dated
July 19, 2021
, has been based only on drill results
collected through to completion of the Phase 4 drilling program in December 2020.
TVIRD has thus far made seven (7) payments against the Facility, each in the amount of US
$2.2
million
and each including an approximate US
$0.2 million
of interest, bringing the total principal
repaid to date against the US
$28.5 million
Facility to US
$13.3 million
. The purpose of the Facility
has been to finance development activities at Balabag.
Siana Gold Mine:
TVIRD owns 100% of Siana through its 100%-owned subsidiary, Greenstone Resources
Corporation (
"GRC"
). The mine covers a 3,289-hectare MPSA (MPSA No. 184-2002-XIII) in
addition to 100% of the neighboring 1,482-hectare MPSA No. 280-2009-XIII for the Mapawa Project
and the Ferrer Claim (as covered by the Application for Mineral Production Sharing Agreement No.
A000046 and comprising of one Block of 595 hectares).
With all required permits in place for re-commencement of operations, rehabilitation of the
processing plant at Siana is proceeding and includes the restoration and repair of the plant
equipment. To date, rehabilitation works have been completed as they relate to the crushing plant
and the reagent circuit while work continues with the grinding circuit, the CIL and detoxification area,
the elution and electrowinning area, and the power plant. The crushing plant is now undergoing early
testing and commissioning using the ore stockpile and the filling of the CIL and detox tanks with
water has also already commenced in preparation for the tank hydrotesting and air compressor
pressure testing. Air and water supply commissioning is already ongoing.
Dewatering and waste stripping of the Siana pit are proceeding together with TSF6 road
construction, excavation and embankment placement works. Construction of TSF6 forms part of the
critical path to the restart of operations. The ore stockpile currently approximates 350 thousand
tonnes.
The TVIRD Exploration team has also commenced a review of past drilling data of GRC that
includes a total of 558 drillholes with an aggregate of 80,705.33 meters total meterage. Of the total
drillholes included in the drill database file, only 504 drillholes have complete log data in the database
which equates to 77,789.71 meters.
Agata Direct Shipping Nickel/Iron Mine:
Further to the Company's announcement of
May 18, 2022
, that the Agata direct shipping nickel/iron
mine is currently expected to cease operations in
October 2022
, TVIRD, the operator of Agata
Mining Ventures Inc. (
"AMVI"
), a joint venture company in which TVIRD holds a 60% interest, has
confirmed that the final shipments are to be completed through mid to late November 2022. TVIRD
is continuing to review several potential nickel laterite projects, near to AMVI, for possible acquisition
and the Assay Laboratory at site is being used for the purpose of analyzing samples gathered from
these properties but as at the current date the expectation is that AMVI will cease operations
following completion of its final shipments in
November 2022
.
Through to
October 31, 2022
, AMVI has completed a total project-to-date of 371 shipments of
20.20 million wet metric tonnes of nickel laterite. This has included 165 shipments of high iron ore,
202 shipments of saprolite, 1 shipment of low iron ore and 3 shipments of low saprolite. Completed
shipments exceed by more than two times the proven and probable reserves of 9.7 million wet
metric tonnes of nickel laterite ore with a grade of 48% Fe and 0.9% Ni that had been reported in
the National Instrument 43-101 compliant Feasibility Study entitled "Technical Report for the Agata
North Nickel Laterite DSO Project, Mindanao,
Philippines
" (
"Feasibility Study"
), dated
August 30
,
2013 and filed under the Company's SEDAR profile on
September 10
, 2013. The Feasibility Study
was prepared under the direction of
Dallas Cox
, an independent qualified person, with contributions
from
Mark Gifford
and
Michael Conan-Davies
; independent qualified persons as defined by National
Instrument 43-101 (
Canada
).
The term of the 4,995 hectare MPSA (MPSA No. 134-99-XIII) held by AMVI is valid through to
May
26
, 2049.
TVIRD's Mabilo Project:
On
January 31, 2022
, TVIRD obtained control of SageCapital through the acquisition of all of its
outstanding capital stock. This acquisition has further provided TVIRD an indirect 60% equity
interest in Mt. Labo Exploration and Development Corporation (
"MLEDC"
), as held by SageCapital.
MLEDC is a
Philippines
mining and minerals exploration development company and the owner and
operator of Mabilo.
Mabilo is located in Camarines Norte Province, Eastern Luzon,
Philippines
, one of the major
traditional gold mining centers in
the Philippines
and is covered by Philippines MPSA MLC-MRD V-
459 Amended (Renewal) and two (2) additional blocks with an existing Exploration Permit (EP-019-
202-V), covering 3,484.2 hectares and 165.9 hectares. With a near-surface deposit, Mabilo has
potential for direct shipping ore (
"DSO"
) and it is contemplated that mining will use an open-pit
mining method prior to moving to a primary concentrate production through construction of a plant.
Both the Declaration of Mining Project Feasibility for initial DSO operations and the Environmental
Compliance Certificate were approved in 2020. The Mabilo mineralized deposit is classified as a
copper-gold-iron skarn deposit that offers potential for multi-metal products, namely copper, gold
and silver, with by-products magnetite (Fe
3
O
4
) and pyrite (FeS
2
).
TVIRD is currently proceeding with various organizational, community-related, permitting and site
clean-up matters while considering next steps at Mabilo.
Agata Limestone Project:
The Agata Limestone project is also held by AMVI and is located in the same MPSA as the Agata
Direct Shipping Nickel/Iron Mine that has been extended to
May 26
, 2049. The Environmental
Compliance Certificate for the Agata Limestone project was received on
June 1, 2021
and is valid
through to
May 31
, 2026. Endorsements from the required local government have been received for
the project and the balance of the permitting process is continuing.
As at the current date there is no change in status of the Agata Limestone project and it continues to
be judged currently of lesser importance to TVIRD, given its size and potential value, when
compared relative to the growing number of important projects now held by TVIRD, including the
operating gold and silver mine at Balabag, the restart of the Siana gold mine and the development of
the Mabilo project.
As announced previously it is expected that, if the Agata Limestone project is to proceed, it will
benefit from the use of the same infrastructure that has been developed to operate the Agata
nickel/iron mine, including all administration buildings and offices, the laboratory, maintenance
facilities, site roads and the port.
Other Projects Update:
As reported earlier, TVIRD owns the rights to an additional 26 tenements that it has prioritized for
purposes of further exploration. These additional tenements are located primarily in the regions of
Zamboanga and Caraga in the Philippines.
Various activities planned in the current year for those tenements identified as a key priority have
commenced, including scout and definition drilling, ground verification of anomalies and grid soil
sampling, geological and tunnel mapping and sampling.
One area of key focus has been the Main Malusok prospect where reconnaissance mapping and
sampling is proceeding in the north-eastern side of the prospect. To date, forty-three (43)
abandoned tunnels have been identified in Main Malusok. Detailed underground mapping has also
being performed on the identified mine-workings at southeast Malusok Areas 3 & 4 where a further
sixty-two (62) tunnels have been located, fifteen (15) of which have been mapped in detail to date.
Qualified Persons
The Qualified Person responsible for the scientific and technical content of this press release is Mr.
Michael James Bue, Bsc.
Eng, M.Eng, P.Eng. Mr. Bue has acted as the Qualified Person in
compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("
NI 43-
101
") reporting requirements by virtue of his membership in the Professional Engineers of
Ontario
and Canadian Institute of Mining and Metallurgy and has confirmed compliance of this press release
with NI 43-101 requirements.
About TVI Resource Development Phils., Inc.
TVIRD, a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining
company that focuses on the acquisition, exploration, development and production of resource
projects in the Philippines. TVIRD owns 100% of the Balabag gold/silver mine, 100% of the Siana
gold mine and Mapawa project, a 60% indirect interest in the Mabilo project, and a 60% interest in
Agata Mining Ventures Inc. Balabag has shipped 46,154 gold equivalent ounces through 29
shipments to the date of this news release and AMVI has shipped a total of 20.20 million wet metric
tonnes of nickel laterite ore through 371 shipments through to
October 31
, 2022.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on mining projects in
the Philippines
, one
of the most prolifically mineralized countries in the world. TVI currently holds a 30.66% equity
interest in TVIRD, a
Philippines
corporation. Through TVIRD, TVI has ownership in a currently
producing gold mine and a nickel/iron mine. Funded by these producing mines, two recent corporate
acquisitions by TVIRD have provided potential for many additional immediate opportunities. The first
of these opportunities expected to come onstream is the Siana gold mine at which equipment is
currently being rehabilitated with a plan to restart operations. TVI has a long history of being able to
successfully bring on mines in
the Philippines
at much lower than standard industry capital costs.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain information set out in this News Release constitutes forward-looking information. Forward-
looking statements are often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might",
"should", "believe", "scheduled", "to be", "will be" and similar expressions. Forward-looking
statements in this News Release are based upon the opinions and expectations of management of
the Company as at the effective date of such statements. Although the Company believes that the
expectations reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that those expectations will prove to have been correct.
Forward-looking statements are subject to certain risks and uncertainties (known and unknown)
that could cause actual outcomes to differ materially from those anticipated or implied by such
forward-looking statements.
Forward-looking statements are based upon the opinions and expectations of management of the
Company as at the effective date of such statements and, in certain cases, information supplied by
third parties. Although the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions and that information received from third
parties is reliable, it can give no assurance that those expectations will prove to have been
correct.
Forward-looking statements are subject to certain risks and uncertainties (known and
unknown) that could cause actual outcomes to differ materially from those anticipated or
implied and should not be read as guarantees of future performance or results.
These
factors include, but are not limited to, such things as: (i) general economic conditions in
Canada
,
the Philippines
and elsewhere; (ii) volatility of prices for precious metals, base metals, and other
commodities; (iii) commodity supply and demand; (iv) fluctuations in currency and interest rates;
(v) inherent risks associated with the exploration and development of mining properties, including
but not limited to geological characteristics, metallurgical characteristics of the mineralization, the
availability of equipment and facilities necessary to complete development and the ability to
develop adequate processing capacity; (vi) the cost of consumables and mining and processing
equipment; (vii) unforeseen technological and engineering problems; (viii) ultimate recoverability
of reserves; (ix) production, timing, results and costs of exploration and development activities; *
political factors, political stability or civil unrest, including but not limited to acts of sabotage or
terrorism; (xi) availability of financial resources or third-party financing; (xii) changes in laws or
regulations (domestic or foreign); (xiii) changes in administrative practices; (xiv) changes in
exploration plans or budgets; (xv) the availability of skilled labour; (xvi) the failure of parties to
contracts with the Company and TVIRD to perform as agreed, including its joint venture partners;
(xvii) the impact of the COVID-19 pandemic; and (xviii) extreme weather conditions and forces of
nature (i.e. typhoons, heavy rains, earthquakes, and the like) that may disrupt operations and
explorations.
Forward-looking statements regarding TVIRD's Balabag operations, ongoing construction of
additional stages of the Balabag TSF, the results of completed and possible future exploration
activities, and forward-looking statements regarding rehabilitation and construction works at Siana,
are based upon, but are not limited to, TVIRD's past exploration, operations, construction and
project development experience in the region and in such terrain, current and previous exploration
activities, discussions with third parties, the availability of financing and TVIRD's overall plans,
budget and strategy for Balabag and Siana (which are all subject to change).
The Company wishes to clarify that in making the decision to put Balabag into production, TVIRD,
a Philippine corporation that the Company does not control, relied exclusively on technical and
economic analysis prepared under Philippine regulations and did not rely on any feasibility study
classifying mineral reserves prepared in accordance with NI 43-101. Historically such projects
have a much higher risk of economic and technical failure.
The Company does not have control over TVIRD nor does it have any involvement in the
management or decisions of TVIRD or control over financial reporting and internal controls of
TVIRD. The Company relies on the internal controls and financial reporting controls of TVIRD and
their failure to maintain effectiveness or comply with applicable standards may adversely affect
TVI.
Accordingly, readers should not place undue reliance upon the forward-looking statements
contained in this material change report and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.
Various risks to which the Company is exposed in the conduct of its business (including mining
activities) are described in detail in the Company's Annual Information Form for the year ended
December 31, 2021
, which was filed on SEDAR on
April 28, 2022
and is available under the
Company's profile at
www.SEDAR.com
.
The forward-looking statements contained in this News Release are made as of the date hereof
and the Company does not undertake any obligation to update or to revise any of the included
forward-looking statements, except as required by applicable securities laws in force in Canada.
The forward-looking statements contained herein are expressly qualified by this cautionary
statement.
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.
SOURCE
TVI Pacific Inc.
View original content:
http://www.newswire.ca/en/releases/archive/November2022/07/c9787.html
%SEDAR: 00001837E
For further information:
Patrick Hanna, Chief Financial Officer, TVI Pacific Inc., Phone: 403-265-
4356, E-mail: [email protected]
CO: TVI Pacific Inc.
CNW 07:00e 07-NOV-22