TVI Pacific's 30.66% owned TVIRD Completes Acquisition of Siana Gold Project
TVI Pacific's 30.66% owned TVIRD Completes
Acquisition of Siana Gold Project
TSX-V:
TVI;
OTC Pink:
TVIPF
CALGARY, AB,
Sept. 20, 2021
/CNW/ - TVI Pacific Inc. (TSX-V: TVI) (OTC: TVIPF) ("
TVI
" or
the "
Company
") is pleased to announce that TVI Resource Development Phils., Inc. ("
TVIRD
"), a
Philippines
corporation in which TVI holds a 30.66% interest, has completed the acquisition of 100%
of the outstanding equity (the "
Acquisition
") of Greenstone Resources Corporation ("
GRC
") further
to the Company's announcement of
July 28, 2021
, that TVIRD had signed a binding agreement with
respect to the transaction (the "
GRC Agreement
"). GRC was previously the Philippine affiliate of
Red 5 Limited ("
Red 5
") (ASX: RED), a
Perth
, Western Australian-based gold company, and is the
owner and operator of the Siana Gold Project ("
Siana
") and the Mapawa Project ("
Mapawa
"), both
of which are located in the southern
Philippines
island of Mindanao.
Highlights:
TVIRD has completed the acquisition of 100% of the outstanding shares of GRC (the "
GRC
Shares
"), for consideration that has included a cash payment of U.S.
$19 million
and the grant,
to the Red 5 group, of a 3.25% net smelter return royalty ("
NSR
") payable on the sale of up to
619,000 oz. of gold produced from potential open-pit and underground operations at Siana. In
the GRC Agreement, the ascribed value of the NSR is U.S.
$35 million
(based on a U.S.
$1,750
/oz. Au price).
TVIRD has fully funded the cash portion of the purchase price for the GRC Shares from internal
resources. TVI is not party to the GRC Agreement or related agreements and has not been
required to make any contribution to TVIRD to support the Acquisition (as defined below).
Red 5 has previously reported a combined historical Indicated JORC Code, 2012 Edition,
("
JORC 2012
") mineral resource estimate for the Siana open pit and underground mine of 4.3Mt
@ 4.7 g/t Au and 6.8 g/t Ag and combined Inferred JORC 2012 mineral resource estimate for
the Siana open pit and underground mine of 0.5Mt @ 9.2 g/t Au and 10.6 g/t Ag (source: Red 5
2020 Annual Report). TVI is not treating this as a current mineral resource 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.
The assets of GRC include a modern 1.1 million dry tonnes per annum ("
mdtpa
") Outotec mill,
gravity and
Carbon
-in-Leach ("
CIL
") facility, and all other key infrastructure together with the
Siana, Mapawa and Ferrer tenements.
Management and the directors of TVIRD believe that the Siana and Mapawa tenements have
exploration potential with the currently defined Siana deposit open to depth and laterally and
Mapawa and Ferrer in the early stages of exploration.
TVIRD's plan is to recommence operations at Siana as soon as possible and TVIRD is
presently developing plans in furtherance of this objective.
TVIRD has been advised that all required permits are in place to restart Siana from its current
voluntary care and maintenance status, including an Environmental Compliance Certificate and
an approved Declaration of Mining Project Feasibility, both from
the Philippines
government.
The Acquisition
:
GRC owns and operates the Siana Project and the Mapawa Project, both of which are located on
the southern
Philippines
island of Mindanao.
The Acquisition includes:
1. The Siana Project, as covered by Philippines Mineral Production Sharing Agreement
("
MPSA
") No. 184-2002-XIII covering 3,289 hectares, which includes the following project
infrastructure:
A modern 1.1mdtpa Outotec mill, gravity and CIL mill facility commissioned in 2012 at a
capital cost of U.S.
$54 million
that includes a single stage SAG mill and 6 CIL tanks;
Grid power with backup 8MW diesel fired power station; and
Administration building, warehouse, mess hall, camp facilities and accommodation,
engineering building and maintenance facilities.
2. Mapawa Project, as covered by MPSA No. 280-2009-XIII covering 1,482 hectares.
3. The Ferrer Claim, as covered by the Application for Mineral Production Sharing
Agreement No. A000046 and comprising of one Block of 595 hectares.
4. Established government approvals and relationships with key stakeholders.
TVIRD has been advised that all of the mining and processing facilities and required permits are in
place for re-commencement of operations. Siana has the only modern gold plant in the region with
the potential to establish Siana as a processing centre for other nearby prospects/gold deposits.
Mining operations have been conducted at Siana since the early 1900's, with major commercial
underground mining conducted by the Philippine company, Suricon Consolidated Mining Company,
from 1938 to 1960 followed by open pit mining from 1980 to 1991. Siana had produced nearly one
million ounces of gold prior to its acquisition in 2003 by Red 5's Philippine affiliated company, GRC,
and TVIRD understands that, to date, Siana has produced a further 149,203 ounces of gold and
199,669 ounces of silver under the control of GRC.
Red 5 has previously published underground and open pit mineral resource and mineral reserve
estimates for Siana and mineral resource estimates for Mapawa. These estimates were prepared
using
JORC 2012
. No estimates for either Siana or Mapawa have been prepared using the 2014
definition standards published by the Canadian Institute of Mining Metallurgy and Petroleum ("
CIM
2014 Standard
") and no technical report supporting this estimate has been prepared in accordance
with NI 43-101. A "Qualified Person" (as defined in NI 43-101) has not done sufficient work to
classify any of these mineral resource or mineral reserve estimates as current. As a result, the
Company is treating the mineral resource and mineral reserve estimates as historical in nature and
not current mineral resources or mineral reserves, and they should not be relied upon. There are
certain differences between the JORC Code and the CIM 2014 Standard described further below.
Red 5 announced on
February 23, 2016
, that Mining One Pty Ltd had completed a JORC 2012
underground mineral resource and reserves estimate using a 2.4 g/t gold cut-off that has been
subsequently reviewed annually by Red 5 and most recently confirmed in their Annual Report at
June
30, 2020
(the "
Red 5 2020 Annual Report
"). As summarized in the Red 5 2020 Annual Report, the
Siana open pit and underground mine have at
June 30, 2020
, a combined Indicated JORC 2012
mineral resource estimate of 4.3Mt @ 4.6 g/t Au and 6.8 g/t Ag and combined Inferred JORC 2012
mineral resource estimate of 0.5Mt @ 8.9 g/t Au and 10.6 g/t Ag. Red 5 has further reported in the
Red 5 2020 Annual Report that Mapawa has an indicated JORC 2012 open pit mineral resource
estimate of 3.3Mt @ 1.0 g/t Au and 3.5 g/t Ag and inferred JORC 2012 mineral resource estimate
of 5.6 Mt @ 1.0 g/t Au and 2.5 g/t Ag, reported on a dry tonne basis based on a 0.7 g/t gold cut-off
and taking into account historic mining depletion. Mapawa is located 20 kilometers north of Siana
and has the potential to be developed as a satellite source of mineralized feed for the Siana
processing plant.
As noted above, TVI is not treating the estimates reported for Siana and Mapawa as current mineral
resources and the estimates should not be relied upon as a Qualified Person acting in compliance
with NI 43-101 reporting requirements has not done sufficient work to classify these estimates as
current resources and has not verified this information. The historical estimates are believed to be
based on reasonable assumptions, and neither the Company nor the Qualified Person responsible
for the scientific and technical content of this news release has any reason to contest their relevance
and reliability.
Additional information related to Siana and Mapawa may be found on the TVIRD website at
https://tvird.com.ph/
.
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 and is presently
assessing the GRC resource model, mine development and production plan for Siana in order to
develop its own plan in furtherance of a potential recommencement of operations. 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.
"The Siana Gold Project represents an exciting addition to TVIRD's portfolio of projects", said Mr.
Cliff James
, Chairman and CEO of TVI and Chairman of TVIRD, "With our now having finalized this
acquisition, TVIRD can turn its attention to developing its own plan in furtherance of a potential
recommencement of operations. We are confident that TVIRD's experience aligns well with the
operational and regional requirements of both Siana and Mapawa and look forward to sharing
developments with our public as we move these projects forward."
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.
JORC Reconciliation
The mineral resources and ore reserves detailed above were classified using the JORC Code and
reported by Red 5 as per regulations under the JORC Code. In the Company's view, there are no
material differences between the confidence categories assigned under the JORC Code and the
equivalent confidence categories in the CIM 2014 Standard. Certain terminology from JORC 2012
is different to that used under CIM 2014 Standard. The JORC Code uses the term "Ore Reserves",
which is equivalent to "Mineral Reserves" using the CIM 2014 Standard. The CIM 2014 Standard
uses the term "Proven Mineral Reserves", which is equivalent to "Proved Ore Reserves" under the
JORC Code. Additionally, NI 43-101 reporting requirements do not allow for "Inferred Mineral
Resources" to be added to other Mineral Resource categories and must be reported separately.
The Inferred Resource category estimates above under JORC 2012 were reported separately in
each instance. The Company will consider retaining Qualified Person(s) acting in compliance with NI
43-101 reporting requirements to complete a formal review of the Red 5 mineral resources and ore
reserves.
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 project in addition to 60% interest in Agata Mining Ventures Inc. ("
AMVI
"), a direct
shipping Nickel/Iron operation that commenced in
October 2014
and in which TVIRD is operator.
AMVI has shipped a total of 18.03 million wet metric tonnes of nickel laterite ore through 331
shipments through to
August 31, 2021
.
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 and a 2.95% equity
interest in Integrated Green Energy Solutions Ltd., a publicly listed company incorporated in
Australia
with shares listed on the ASX (but currently suspended since
January 2020
and subject to
an order for winding up, for which a liquidator has been appointed). TVI's other holdings include 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) reference to a gold production volume of
619,000 oz. and a gold price of U.S.
$1,750
upon which the NSR is to be based, both of which
may not be realized; (2) statements related to exploration at Siana and Mapawa, both of which are
not guaranteed and require further review and analysis by TVIRD to review and determine and
may be affected by factors beyond the control of TVIRD; (3) the stated Indicated and Inferred
JORC 2012 mineral resource estimate for the Siana open pit and underground mine, as well as
the JORC 2012 open pit mineral resource for the Mapawa Project as included in the Red 5 2020
Annual Report, for which actual volumes produced may vary. The estimation of mineral reserves
and mineral resources is inherently uncertain and involves subjective judgments about many
relevant factors; and, (4) any reference to when mining and processing operations at Siana may
recommence.
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; (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/September2021/20/c7301.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 07:42e 20-SEP-21