TVI Pacific Inc. Announces Closure of Milling Operations at its Canatuan Mine
- Various mine life extension and expansion opportunities are being assessed which could result in resumption of milling operations
TSX: TVI OTCQX: TVIPF
CALGARY, Jan. 20, 2014 /CNW/ - TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) ("TVI" or the "Company") announced today that TVI Resource Development Philippines, Inc. ("TVIRD"), TVI's Philippine operating affiliate, has stopped milling operations at its Canatuan mine after having exhausted its remaining stockpile, pending the results of assessing various mine life extension and expansion opportunities. It is expected that at least one more shipment of copper concentrate will be scheduled.
The Company is proud to report that:
Since completing construction in November 2008 of a sulphide production
plant at Canatuan to process the underlying sulphide orebody containing
copper and zinc, the Company has completed 38 shipments of copper
concentrate for a total volume of 195,660 dmt and 7 shipments of zinc
concentrate for a total volume of 30,548 dmt, as compared to an
initially anticipated 119,800 dmt of copper concentrate and 6,100 dmt
of zinc concentrate. Reserves mined significantly exceeded initial
reserves as a result of additional material found and mined. This
material, consisting of banded sulphides with low-grade chlorite
schists, was used in ore blending to optimize mill recoveries and was
located both inside and outside the pit shell and not included in the
original ore reserves.
- The copper and zinc operations at the Canatuan mine have provided a 5.9 year mine life as compared to an initially anticipated 5 to 6 year mine life, but actual mill throughput has been much higher than planned. Actual mill throughput in recent months was increased to approximately 3,500 tonnes per day.
The processing plant will be cleaned but equipment will not be dismantled while the Company continues to assess mine life extension and expansion opportunities, including the possible processing of mineralized waste dump material, possible new discoveries from exploration drill targets outside of the pit area, possible production of pyrite concentrates, re-processing of tails and exploitation of possible economic deposits from outside the current MPSA (Malusok and SE Malusok). TVIRD is continuing to seek regulatory approval for expansion of the current MPSA to include these deposits.
On April 10, 2013 TVI filed an updated National Instrument 43-101 (NI 43-101) technical report entitled "Independent Report on the Nickel Laterite Resource - Agata North, Philippines." The updated NI 43-101 reflects an updated and reclassified resource estimate for the Agata North nickel laterite resource. The new resource provides a robust foundation for moving forward, initially, with a direct shipping ore ("DSO") operation of high-iron limonite (upper laterite horizon), followed by atmospheric leach processing of the underlying saprolite horizon.
Highlights of the updated NI 43-101 include:
- An increase in measured and indicated resources to 33.9 million dry metric tonnes at 1.1% nickel as compared to the previous 31.8 million dry metric tonnes at 1.05% nickel;
- Inferred resources are 2.0 million dry metric tonnes at 1.04% nickel;
- Estimated contained nickel is 391 thousand tonnes.
At a cut-off grade of 44% iron, there are an estimated 7.0 million dry metric tonnes or approximately 10 million wet metric tonnes at 48.5% iron and 0.94% nickel - a DSO product grade currently much in demand in China. The joint venture is fast-tracking DSO development and is well into the permitting stage with the Environmental Protection and Enhancement Program and the Final Mine Rehabilitation and Decommissioning Plan under review by the Mine Rehabilitation Fund Committee. TVIRD continues to wait final approval of the Declaration of Mining Project Feasibility ("DMPF"), which will allow the project to move into development. Timing of receipt of this permit, however, is uncertain. The Agata high iron DSO project already has an existing Environmental Compliance Certificate ("ECC").
TVIRD has an option to earn a 60% interest in the Agata Mining Joint Venture upon commencement of commercial production subject to (i) TVIRD having expended a minimum of $2 million within 12 months of the date of the Agata Mining Option and Joint Venture Agreement ("AMVI Agreement"), and (ii) commercial production at Agata having commenced within 3 years of the date of the AMVI Agreement. Under the AMVI Agreement, TVIRD is required to fund all expenditures associated with the establishment of the Mining Operation.
An independent NI 43-101 technical report relating to the Balabag Gold-Silver project has been completed and filed on SEDAR (www.sedar.com) on August 15, 2012. Based on drilling completed to the end of June 2011, the independent qualified person estimates an indicated mineral resource of 1.78 million tonnes averaging 2.34 grams per tonne of gold and 72.3 grams per tonne of silver containing 134,262 ounces of gold and 4,148,196 ounces of silver. Readers are cautioned that such estimates remain conceptual in nature and mineral resources that are not mineral reserves do not have demonstrated economic viability.
In October 2013, the Company received the ECC for the Balabag Project, marking a critical milestone towards the start of development which may commence once approval is received of the DMPF by the Philippines Mines and Geosciences Bureau ("MGB") of the Department of the Environment and Natural Resources ("DENR"). All required documents have been submitted to the MGB. Timing as to the issuance of this required permit continues to be uncertain.
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 Philippines and Southeast Asia. TVI's affiliate, TVIRD, has to date produced copper and zinc concentrates from its Canatuan mine and is advancing its Balabag Gold-Silver project. TVI is a direct or indirect participant/operator in several joint venture projects in the Philippines and Papua New Guinea and also has an interest in an offshore Philippine oil property.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking information (referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "intend", "estimate", "scheduled", "expect", "may", "will", "should", or similar words suggesting future activities or outcomes. In particular, this news release includes forward-looking statements respecting possible mine life extension and expansion opportunities at the Company's Canatuan operations, and estimated mineral resources and development plans for both the Agata North and Balabag Gold-silver projects. Forward-looking statements relating specifically to Canatuan include, but are not limited to, the possible processing of mineralized waste dump material, possible new discoveries from exploration drill targets outside of the pit area, possible production of pyrite concentrates, re-processing of tails and exploitation of possible economic deposits from outside the current MPSA (Malusok and SE Malusok) and continuing to seek regulatory approval for expansion. Forward-looking statements relating specifically to the Agata North project include, but are not limited to, commencing development of the infrastructure for the Agata North DSO Project plans to commence direct shipping of high iron limonite ore to China, and other statements that are not historical facts. Forward-looking statements are based upon the opinions and expectations of TVI as at the effective date of such statements and, in certain cases, information received from or disseminated by third parties.
Although TVI believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by 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. These factors include, but are not limited to, such things as general economic conditions in Canada, the United States, the Philippines and elsewhere; volatility of prices for precious metals, base metals, oil and gas; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with the exploration and development of mining properties; ultimate recoverability of reserves; production, timing, results and costs of exploration and development activities; political or civil unrest; availability of financial resources or third-party financing; new laws (domestic or foreign) and the provision of all required permits; changes in administrative practices; changes in exploration plans or budgets; and availability of personnel and equipment (including mechanical problems). 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.
The forward-looking statements contained in this news release are made as of the date hereof and TVI does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable Canadian securities law. The forward-looking statements of TVI contained in this news release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which TVI, its subsidiaries and affiliates are exposed in the conduct of their business are described in detail in the TVI's Annual Information Form for the year ended December 31, 2012, which was filed on SEDAR on March 19, 2013, and is available at www.SEDAR.com.
SOURCE TVI Pacific Inc.