“TVI’s explo the Ciriani u promising f confirm pre As announc with Kalo E enter into a Cirianiu g o diligence r e extend the Since Nov e density m e completed Placer Paci enabled T V understand Results hav where the
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| TSX: TVI | OTCQB: TVI | PF | April 27, | 2015 |
TVI Extends T s Due Dilig gence Prog gram at the e Cirianiu G Gold Proje ect in Fiji
CALGARY, ALBERTA - TVI Pacific Inc. (TSX
X:TVI) (OTC
CQB:TVIPF) (“TVI” or “th
he Company y”) has announced that it will be e extending it ts due diligence work prog gram at the C Cirianiu gold p project located d in the Macuata Pr rovince of no orthern Vanua a Levu Island, Fiji. Based on encourag ging results fr rom data veri ification work carried d out to date, managemen nt has determined that an a additional exp ploration prog gram including g auger soil geoche emical survey ying and poss sible confirma ation drilling would be ess sential in allo owing an inve estment decision to be made on t the project, w which is now e expected for t the fourth qua arter of 2015.
“TVI’s explo one an exceptional job of b oration team in Fiji has do better unders standing the r resource pote ential at tated Clifford James, Cha the Cirianiu u project,” st airman and C CEO of TVI.
. “While the e project look ks very promising from both a ge eological and d permitting pe erspective, w we want to go into the decis sion making p process with as mu uch confidenc ce as possible
e. This requ uires us to co onduct further exploration work of our own to confirm pre evious data an nd to potentia ally identify ad dditional areas s of mineraliz zation.”
Terms Agreement (“Agree As announc ced in news o on November r 3, 2014, TVI I entered into
- a Heads of T ement”)
with Kalo E Exploration Ltd
d. (“Kalo”), a private resou urce company y incorporate ed in Fiji, for t the exclusive right to d production on the enter into a a joint ventur re partnership p to conduct mineral exp ploration, development and Cirianiu go old project. U Under the te erms of the A Agreement, T TVI was gran nted the righ ht to conduct t a due diligence re eview of the property over a period of f 180 days. TVI has now w received ap pproval from Kalo to extend the period of this due diligence e work by ano other 180 day ys to allow for r additional w work to be don ne.
Since Nove ember 2014, TVI has carried out re-l logging, resa ampling for a assay, sampli ing for petrography, easurements, re-assay and collar resu data validation of all density me urveys. The program als so included d work carried out by completed drill holes at t the project’s Qiriyaga H Hill deposit fro om previous exploration w Placer Paci ific Ltd. from 1986 to 1993 3 and Kalo from 2009 to 20 013. All new generated da ata from the p program enabled TV VI’s team to create upda ated interpretations of ge eological sec ctions and le evel plans to
- better
understand the mineraliz zation controls and emplac cement of gold at the Qiriyaga Hill depo osit.
Results hav ve indicated that the Qiriya sit contains a low-sulphida ation style epithermal gold deposit aga Hill depos where the gold is distr ributed in volcaniclastic h host rocks m mainly as free e gold in qu uartz stockwo ork and hydrotherm mal breccia. The general gold grade appears to b be in the ran nge of 0.3 g/ /t to 5.0 g/t A Au with localized higher-grade z zones. The main style of f mineralizatio on is very fin ne hairline qu uartz stockwo ork in a silica and c hydrothermal breccia clay-chlorite a altered volcan niclastic seque ence. High-g grade, intense ely silicified h bodies occu ur in the deposit as well. The mineraliz zation is main nly gold with varying mino or amounts o of silver, lead, zinc and copper. Based on this data, the Company has a firmer r understanding of the de eposit’s resource po work in the project area.
otential and is s able to bette er plan further r exploration w
Work to da ate has found a high corre elation betwee en soil geoch hemistry, tren nch data and soil results w with the presence of gold minera alization at de epth. Also, pro ogram results s indicate that t the Qiriyaga a Hill deposit may be open to the e northeast a and possibly to the south hwest and so outheast. To test possible e extension p potential during the e extended due e diligence pe eriod, TVI plan ns to carry ou ut a grid auge er soil survey y covering an area of gement aims at expanding the areas of 3 kilometres by 2 kilome etres. By con nducting this work, manag f known mineralizati ion to increas se the resourc ce potential in n the project a area.
Following t the auger soil geochemis stry program, and subject t to Board ap pproval, TVI plans to con nduct a firmation drilling program mainly to tes e deposit to ensure continuity of limited conf st high grade e areas of the mineralizati ion, which wo ould further de-risk the pro oject. Based on the results of these programs, TVI I will be able to make a decision on whether it will proceed with the formation of a joint venture on the project in the fourth quarter of 2015.
About the Cirianiu Project
The Cirianiu project covers 660 square kilometres in Macuata Province of northern Vanua Levu Island, Fiji. Between 1986 and 1993, Placer drilled 41 holes totaling 4,194 metres over the project, leading to the definition of at least six grass-roots intermediate- to low-sulfidation epithermal gold-silver targets. The most advanced exploration target is Qiriyaga Hill, where Placer drilled 27 holes totaling 2,776 metres and found near-surface gold mineralization. Since 2009, Kalo has carried out detailed exploration work at the Qiriyaga Hill target including geological mapping, contour trenching, channel sampling and 3,231 metres of angled diamond drill testing in 22 holes, with encouraging results to date.
In November 2014, TVI entered into a Heads of Terms Agreement with Kalo for the exclusive right to enter into a joint venture partnership to conduct mineral exploration, development and production on the Cirianiu gold project. Under the terms of the Agreement, TVI was granted the right to conduct a Stage One extensive due diligence review of the property that will aid the Company in making an investment decision.
Upon completion of the initial stage of work, TVI will have the option to proceed to the second stage (“Stage 2”) of the Agreement whereby it will use best efforts to conclude the material terms of a Joint Venture Agreement (“JVA”) or Shareholder Holders Agreement (“SHA”) with Kalo. Upon the completion of a JVA or SHA, TVI will initiate a major exploration program with the primary objective of establishing an NI43-101 compliant resource and delivery of a Scoping Study. The Company will have a period of two years from the date of the signing of the JVA or SHA to complete Stage 2. Upon completion, TVI would earn a 20% economic interest in the properties.
Following the completion of Stage 2, TVI will have the exclusive option to proceed to a third stage (“Stage 3”) whereby it will deliver a definitive NI 43-101 feasibility study. TVI has a period of one year to complete Stage 3 and upon completion would earn a 40% economic interest in the properties. Upon completion of Stage 3, TVI will have the exclusive option to proceed to the fourth stage of the Agreement (“Stage 4”) whereby it will initiate the development of the project. The Company will have a period of two years to complete Stage 4, provided all permits and licenses are in place, and ultimately earn a 70% economic interest in the properties upon completion.
TVI’s exploration program is being carried out under the supervision of Florinio Lazo, a senior exploration geologist with extensive experience in various commodities and exploration projects in the Asia Pacific region, and who was credited for discovering the world-class Merlin Molybdenum-Rhenium deposit for Ivanhoe Australia in 2009. Mr. Lazo will be assisted by Roberto Tan, an experienced senior exploration geologist with extensive international gold exploration experience including recent work on gold-copper systems in Fiji.
About Fiji
The Fiji Islands are located in the Southwest Pacific’s “Ring of Fire”, the active tectonic boundary between the Pacific and Indo-Australian Plates, which hosts several world-class porphyry copper-gold and epithermal gold deposits. Up to now, the bulk of historical exploration work has been conducted by Australian companies and the country remains relatively underexplored and highly prospective for new discoveries.
Mining has been an integral part of Fiji’s economy with gold representing one of the country’s largest exports. Gold production has been dominated by the Emperor gold mine, which has been in near continuous production since 1933, and has produced 7 million ounces of gold to date. Other notable deposits in the region include Namosi, one of the world’s largest undeveloped copper-gold deposits (70% owned by Australian mining giant, Newcrest Mining); the Mt. Kasi Gold Mine, which operated in the 1930s and 1940s and may be brought back online by Newcrest; and the Tuvatu gold deposit controlled by Lion One Metals, which recently received its mining lease to begin mine development and construction.
The Government of Fiji has an administration founded on British law and a comprehensive Mining Act that offers reasonable royalty and taxation structures as well as negotiable taxation concessions to foster economic development.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the production, development, exploration and acquisition of resource projects in the Asia Pacific region. TVI's track record of success includes putting the first foreign invested mine into production in the Philippines after the passage of the Philippines Mining Act of 1995. From 2004 to 2014, the Canatuan mine produced 105,200 ounces of gold, 1.8 million ounces of silver, 199,778 dry metric tonnes of copper concentrate and 30,558 dry metric tonnes of zinc concentrate.
TVI currently holds a 30.66% interest in TVIRD, a private Philippine resource company engaged in the production of nickel laterite ore at the Agata project as well as the completion of a definitive feasibility study on a nickel processing facility. Additionally, TVIRD is focused on advancing its 100% owned Balabag Gold- Silver project towards production and achieving a listing on the PSE in 2015. In addition to its interest in TVIRD, TVI also holds (i) a 26.0% equity interest in Foyson Resources Limited; (ii) a 14.4% equity interest in Mindoro Resources Ltd.; (iii) a 10% interest in the Amazon Bay Iron Sands project in Papua New Guinea; and (iv) a 100% investment in shares of TG World.
TVI Pacific Inc.
Shirley Anthony VP Corporate Communications 778.999.2771 [email protected]
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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. These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel.
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, 2014, which was filed on SEDAR on March 25, 2015 and is available under the Company's profile at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.