TVI Pacific's 30.66% owned TVIRD Acquires Indirect 60% equity interest in Mt. Labo Exploration and Development Corporation
TVI Pacific's 30.66% owned TVIRD Acquires
Indirect 60% equity interest in Mt. Labo
Exploration and Development Corporation
CALGARY, AB
,
March 22, 2022
/CNW/ - TVI
Resource Development
Phils
., Inc. ("
TVIRD
"), a
Philippines
corporation in which
TVI
Pacific Inc.
(TSXV: TVI) (OTC Pink: TVIPF)
(
"TVI"
or the
"Company"
) holds a 30.66% interest, announced today that it has acquired all of the outstanding
capital stock of
SageCapital
Partners, Inc. (
"SageCapital"
), pursuant to a Sale and Purchase
Agreement (the "
SageCapital Agreement
") between
TVIRD
and a third-party resident in
the
Philippines
("
Vendor
").
SageCapital
is a holding company incorporated under the laws of
the
Philippines
, which, in turn, owns 60% of the outstanding capital stock of
Mt
.
Labo
Exploration and
Development Corporation ("
MLEDC
"), a
Philippines
mining and minerals exploration development
company whose projects are based in
Camarines Norte
,
Philippines
, and which is the owner and
operator of the
Mabilo
Project ("
Mabilo
") located in the
Camarines Norte
Province, Eastern Luzon,
Philippines
.
Highlights:
TVIRD has acquired all of the outstanding capital stock of SageCapital (the
"SageCapital
Shares"
), pursuant to the SageCapital Agreement (the
"Acquisition"
). SageCapital, in turn,
owns 60% of the outstanding capital stock of MLEDC.
MLEDC prepared a feasibility study on Mabilo in May of 2016 ("
Feasibility Study
"), which
Feasibility Study was supported by a technical report entitled "Mabilo Project National
Instrument 43-101 Technical Report" prepared by Lycopodium Minerals Pty Ltd. dated and filed
on
May 2, 2016
, with a mineral reserve and mineral resource effective date of November 2015.
RTG Mining Inc. (
"RTG"
), which holds a 40% interest in MLEDC, has filed the Technical Report
under RTG's SEDAR profile (the "
Mabilo Technical Report
"). The Mabilo Technical Report
reflects a historical Probable Mineral Reserves estimate of 7.8Mt at 2.0% Cu, 2.0g/t Au, 8.8g/t
Ag and 45.5% Fe. Metal price assumptions applied in the Mabilo Technical Report were
US$5,200
/tonne for Cu,
US$1,125
/oz for Au,
US$15
/oz for Ag and
US$65
/tonne for magnetite.
TVI considers this report no longer current and cautions that it should not be relied upon. See
"The Mabilo Project" below.
Management and the directors of TVIRD believe that the Mabilo Project has exploration
potential as it remains open, down dip and along strike.
Mabilo is covered by an approved Declaration of Mining Project Feasibility ("
DMPF
") and
Environmental Compliance Certificate ("
ECC
") for initial direct shipping ore (
"DSO"
) operations
issued by the Mines and Geosciences Bureau ("
MGB
") and the Environmental Management
Bureau, respectively, of the Department of Environment and Natural Resources (
"DENR"
) of the
Republic of the Philippines.
With an open-pit mining method contemplated at Mabilo, the lifting of the open-pit mining ban in
the Philippines
as announced by the DENR of the Republic of
the Philippines
on
December 23,
2021
, is a significant development.
Purchase of the SageCapital Shares
:
TVIRD has acquired all of the outstanding capital stock of SageCapital from the Vendor.
SageCapital, in turn, owns 60% of the outstanding capital stock of MLEDC.
The assets of MLEDC include the Mabilo Project located in the Camarines Norte Province, Eastern
Luzon,
Philippines
, as covered by Philippines Mineral Production Sharing Agreement (
"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, respectively, and including
established government approvals and relationships with key stakeholders.
"This represents yet another strategic acquisition for TVIRD," said Mr.
Cliff James
, Chairman and
CEO of TVI and Chairman of TVIRD, "While the Mabilo project is still in the early innings and there is
much work to do to determine whether the project will be capable of commercial production,
management of TVI hopes that the Acquisition, in combination with the recent acquisitions by TVIRD
of the Siana Gold Mine and the Mapawa Project, will expand TVIRD's resource base. Management
of TVIRD also considers the Acquisition to be compatible with TVIRD's ongoing consideration of an
initial public offering in
the Philippines
."
On
December 23, 2021
, the DENR announced under DENR Administrative Order (
"
DAO"
) No.
2021-40 the lifting of the open-pit mining ban in
the Philippines
together with several other surface
mining methods that had been in place for the extraction of copper, gold, silver and/or complex ores
in
the Philippines
under the previously issued DAO No. 2017-10. This development is highly
significant because it is contemplated that mining at Mabilo will use an open-pit mining method.
Mt. Labo Exploration and Development Corporation
:
MLEDC was incorporated in
the Philippines
and registered with the Securities and Exchange
Commission on
February 26, 1980
, to engage primarily in the business of mining, exploration and
processing of metals and other mineral products. MLEDC commenced operations on its Nalesbitan
Mine in
June 1989
and those operations continued until
October 1990
, at which time mining
operations were suspended. The Nalesbitan Mine is located 15 kilometers west of Mabilo and is
included in the Mabilo MPSA.
MLEDC commenced work on Mabilo in July 2013. Mabilo is a brownfield project and is held and
operated 100% by MLEDC, a corporation owned by SageCapital (60%) and by RTG, through SRM
Gold (40%). RTG is an
Australia
-based mining and exploration company with a principal listing on
the Toronto Stock Exchange (TSX:RTG) and a secondary listing on the Australian Stock Exchange
(ASX:RTG).
The Mabilo Project:
The Mabilo Project is located in Camarines Norte Province, Eastern Luzon,
Philippines
, one of the
major traditional gold mining centers in the Philippines. The Mabilo Project area is easily accessed
from the nearby town of Labo, using a 15 km all-weather road. With a near-surface deposit, Mabilo
has potential for DSO and it is contemplated that mining will use an open-pit mining method. 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 (Fe3O4) and pyrite
(FeS2).
MLEDC undertook its first drilling program in 2012 designed to target the seven magnetic anomalies
identified by ground magnetics survey. The second drilling program followed in 2013 to 2015 during
which time 112 drillholes were completed with a total meterage of 19,542 meters. The MGB
validated in
March 2018
the
June 2015
Final Exploration Report submitted with the application for a
DMPF and the corresponding ECC and DMPF for initial DSO operations were approved in 2020.
On
November 5, 2015
, RTG announced that a Mineral Resource estimate had been prepared by
independent resource consultancy, CSA Global Pty Ltd ("
CSA Global
"), which was later
incorporated into the Feasibility Study.
The following Mineral Resource estimate is based on data obtained from 99 diamond drillholes
(18,201 meters) completed as of the end of
September 2015
and a 0.3 g/t Au or 0.3% Cu grade
cut-off. Holes were drilled on a nominal 40 meter by 40 meter drill pattern along strike, with infill to a
nominal 20 meter by 20 meter in parts.
Classification
Million Tonnes
Cu %
Au g/t
Ag g/t
Fe %
Cu Metal
(Kt)
Au Oz
('000s)
Fe Metal
(Kt)
Indicated
8.9
1.9
2.0
9.8
45.6
169.3
577.6
4,034.5
Inferred
3.9
1.5
1.5
9.1
29.0
58.0
184.9
1,134.1
Total
12.8
1.8
1.9
9.6
40.5
227.3
762.5
5,168.6
On
May 2, 2016
, RTG filed the Mabilo Technical Report prepared by Lycopodium Minerals Pty Ltd.
that is based on the results of a Feasibility Study completed on the Mabilo Project and reported:
Probable Mineral Reserve Estimate
Ore
Waste
Strip
Ratio
Class
Type
Mt
Fe %
Au g/t
Cu %
Ag g/t
Mt
Gold cap
0.351
40.1
3.11
0.38
3.26
Probable
Supergene
0.104
36.5
2.20
20.70
11.90
77.13
10.0
Oxide Scarn
0.182
43.6
2.52
4.17
19.90
Fresh
7.155
45.9
1.97
1.70
8.73
TVI is not treating either the Mineral Resource estimate or the Probable Mineral Reserve estimate
as current under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (
"
NI 43-
101"
) as a qualified person has not done sufficient work to classify the historical estimate as current,
and the estimates should not be relied upon. Though historical, the estimates are fairly recent and
were prepared to NI 43-101 standards, and TVIRD thus has no reason to believe they are not
reliable within the context that they were initially prepared.
Qualified persons have not done sufficient work under NI 43-101 to verify the results of the
Feasibility Study or to render it current and complete under NI 43-101, and therefore details of the
Feasibility Study are not included in this news release. TVIRD currently does not plan to conduct
any work to verify the historical estimates other than using them to guide its exploration, resource
modeling and possible development work. At the appropriate time, TVIRD plans to assess the mine
development and production plan as included in the Feasibility Study in order to develop its own plan
for further exploration and possible development. TVIRD is evaluating steps that would be required
to upgrade or verify the foregoing historical estimates as current under NI 43-101 standards, which
would include a review of past drill results and Quality Assurance/Quality Control procedures applied
as well as possibly resource modeling with the involvement of a qualified person.
Mr.
Michael James Bue, Bsc.
Eng, M.Eng, P.Eng, a "qualified person" for the purposes of NI 43-101
has reviewed the Mabilo Technical Report on behalf of TVI. To the best of the knowledge,
information and belief of TVI, there is no new material scientific or technical information that would
make the disclosure of the Mineral Resources in this release inaccurate or misleading. Revisions to
the Mabilo Technical Report are required to reflect current technical advances, environmental
standards and economic parameters. As a result, TVI considers the Feasibility Study and
accompanying Mabilo Technical Report to be no longer current and should not be relied upon.
The scientific and technical content of this news release has been sourced from publicly available
documents filed under RTG's SEDAR profile (that may be accessed at
https://www.sedar.com/
) and
ASX profile (that may be accessed at
https://www2.asx.com.au/markets/company/RTG
).
Additional information related to the Mabilo Project may be found on the TVIRD website at
https://tvird.com.ph/
.
Qualified Person
The Qualified Person responsible for the scientific and technical content of this news release is Mr.
Michael James Bue, Bsc.
Eng, M.Eng, P.Eng. Mr. Bue has acted as the Qualified Person in
compliance with 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 news 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 has a pool of highly competent managers, technical personnel
and skilled workers with previous experience in gold-silver operation and owns 100% of the Balabag
gold/silver mine, 100% of the Siana gold mine and Mapawa project, and a 60% interest in AMVI, a
direct shipping Nickel/Iron operation that commenced in
October 2014
and in which TVIRD is
operator. Balabag has shipped 17,939 gold equivalent ounces through 12 shipments to the date of
this news release and AMVI has shipped a total of 18.84 million wet metric tonnes of nickel laterite
ore through 346 shipments through to
February 28, 2022
.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the acquisition of resource projects in
the
Asia Pacific
region. TVI currently holds a 30.66% equity interest in TVIRD, a
Philippines
corporation, a 14.4% equity interest in Mindoro Resources Ltd. and a 100% investment in shares of
TG World Energy Corp. As at the date of this announcement, TVI has 656,987,039 outstanding
common shares and 696,887,039 fully diluted including the currently issued outstanding options of
39,900,000.
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.
The forward-looking
statements contained in this News Release include: (1) statements related to exploration potential
of Mabilo, which is not guaranteed and requires further review and analysis by TVIRD and may be
affected by factors beyond the control of TVIRD; (2) the stated total Mineral Resource and
Probable Mineral Reserves of Mabilo, for which actual volumes produced may vary (the estimation
of mineral reserves and mineral resources is inherently uncertain and involves subject judgments
about many relevant factors).
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 and, in certain cases,
information supplied by third parties. 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 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 and legislative changes that may impact the mining industry and TVIRD's ability to obtain
or retain required permits, perform required exploration, complete development or operate any
mine or project; (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 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.
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 news release 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, 2020
, which was filed on SEDAR on
April 28, 2021
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/March2022/22/c7400.html
%SEDAR: 00001837E
For further information:
Patrick Hanna, CPA, CMA, Chief Financial Officer, TVI Pacific Inc.,
Phone: 403-265-4356, E-mail: [email protected]
CO: TVI Pacific Inc.
CNW 07:00e 22-MAR-22