Update of Mining Activities at TVIRD's 60% owned Agata Nickel/Iron Mine, Agata Mining Ventures Inc.
Update of Mining Activities at TVIRD's 60%
owned Agata Nickel/Iron Mine, Agata Mining
Ventures Inc.
CALGARY, AB
,
May 18, 2022
/CNW/ - TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) ("
TVI
" or
"
the Company
") is pleased to provide an update with respect to mining activities at the Agata
nickel/iron mine, Agata Mining Ventures Inc. (
"AMVI"
), a joint venture company in which TVI
Resource Development Phils., Inc. ("
TVIRD
") holds a 60% interest and is operator. TVIRD is a
Philippines
corporation in which TVI holds a 30.66% interest.
Highlights:
The Agata direct shipping nickel/iron mine is currently expected to cease operations in
October
2022
unless additional resources are discovered resulting from an ongoing exploration program
that is currently underway.
Excessive rainfall, declining ore grades and continuing lockdowns in
China
resulting from their
strict Covid Zero policy have impacted AMVI's current ability to ship.
The infrastructure of the Agata direct shipping nickel/iron mine will remain available to the
potential Agata Limestone project when that project moves ahead.
Through to
April 30, 2022
, AMVI has shipped a total of 19.33 million wet metric tonnes of nickel
laterite ore through 355 shipments, equal to almost two times the original proven and probable
reserves of 9.7 million wet metric tonnes of nickel laterite ore developed in 2013.
Agata Nickel/Iron Mine:
TVIRD holds a 60% interest in and is operator of the Agata direct shipping nickel/iron mine, AMVI,
which commenced operations in October 2014. AMVI is situated in a 4,995 hectare Mineral
Production Sharing Agreement (
"MPSA"
, MPSA No. 134-99-XIII) area located in the adjacent
municipalities of Tubay, Jabonga and
Santiago
in Agusan del Norte province, Philippines. The term
of the MPSA had been set to expire on
May 26, 2024
but was renewed on
October 18, 2021
, by
the Department of Environment and Natural Resources for an additional twenty-five (25) year period
through to
May 26
, 2049. The mine site is located 3.5 km from AMVI's private port, which is
strategically located within proximity to main markets in Asia.
Through to
April 30, 2022
, AMVI has completed a total project-to-date of 355 shipments of 19.33
million wet metric tonnes of nickel laterite. This has included 161 shipments of high iron ore and 194
shipments of saprolite. Completed shipments represent almost 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
).
With decreasing ore grades and increasing haul distance from the mine to the port, AMVI is carefully
managing the remaining shipments. These are further challenged by the continuing Covid-related
lockdowns in
China
together with the recent excessive rainfalls in the area of AMVI. In the longer
term, the Agata nickel/iron mine is approaching its end, as indicated by the declining grades. It is
currently expected that the Agata nickel/iron mine will continue to ship through to
September 2022
,
at which time the mine is expected to cease operations unless additional resources are discovered
through the ongoing exploration program that is currently underway.
Exploration is continuing within the MPSA with a focus to further extend mine life as well as reviewing
several potential nickel laterite projects, near to AMVI, for possible acquisition.
Agata Limestone Project:
The Agata Limestone project is also held by AMVI and is located in the same MPSA that has been
extended to
May 26
, 2049. The Environmental Compliance Certificate (
"ECC"
) 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.
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.
The Agata Limestone project is currently judged to be 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.
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. 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 AMVI. The Balabag gold/silver mine commenced
shipping in
September 2021
and through to the date of this news release has shipped 24,770 gold
equivalent ounces through 16 shipments.
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 plans to cease
operations at the Agata nickel/iron mine; (2) statements related to possible acquisition of potential
nickel laterite projects; (3) statements related to possible plans for the Agata Limestone project to
proceed; (4) statements related to activities intended to restart the Siana gold mine; (5) statements
related to development of the Mabilo project.
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 or any similar public health crises; 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, 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/May2022/18/c3784.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 12:33e 18-MAY-22