CHINA EXPLORATION UPDATE:
TVI PACIFIC ANNOUNCES AWARD OF EXPLORATION LICENCE IN CHINESE
GOLDEN TRIANGLE
. Exploration
Licence Area on Strike From Producing Third-Party Mine
. Confirms TVI's Wholly Foreign Owned Enterprise Can be Awarded
Exploration Rights in China
TVI Pacific Inc.
(TSX: "TVI" or the "Company") announced today that
the Ministry of Land and Resources in Beijing has awarded an exploration
licence to TVI's wholly-owned subsidiary, Hunan
Pacific Geological Exploration Inc. ("HPGEI"). The 5.23
square kilometre exploration licence is located
within the Golden Triangle region of south-west China.
The Golden Triangle is a metallogenic province
hosting many Carlin-style gold deposits, including Sino Gold's Jinfeng (Lannigou) deposit,
where production has now started. HPGEI has approximately 2,400
square kilometres of land under application in China in the Golden Triangle
and in the Tibet Autonomous Region.
The exploration
licence is along strike from a small producing mine where a stratabound, replacement, Carlin-style gold
mineralisation target horizon has been identified. This mine
operates under a mining licence that is adjacent to HPGEI's
exploration licence. The producing mine hosts a drill target and HPGEI
has signed a letter of intent with the mine owners to negotiate the joint
exploration and development of the mine.
"TVI believes
that the lands covered by this exploration licence are geologically
prospective, with potential for a Carlin-style discovery," said TVI
Pacific Inc. CEO, Cliff James. "The receipt of the exploration
licence demonstrates that foreign-owned companies in China,
including TVI's Wholly Foreign Owned
Enterprise, can be awarded exploration rights as well as Chinese
companies."
TVI believes that the
newly granted exploration licence and its Wholly Foreign Owned Enterprise
status add value to its portfolio of exploration prospects in China. TVI
is currently reviewing strategic options regarding its exploration
activities in China
and has received several expressions of interest regarding HPGEI and its
exploration prospects.
Technical discussion
HPGEI geologists have
identified both Carlin and epithermal vein-style gold mineralisation on
the exploration licence. The gold mineralisation within the area is
mainly of Carlin, replacement style. It is hosted in a favourable stratigraphic horizon that represents the main target
in the area. The most important gold mineralisation lies within a
30-meter thick stratabound lens of altered and
mineralised calcareous sandstone and breccia,
in contact with an unaltered, barren, limestone unit. Strike and dip
extensions to the mineralisation have been identified and determined the siting of the exploration licence. The local presence
of epithermal, vein-style gold and the particularly widespread
distribution of silicified calcareous units or
"jasperoids", are geologically
anomalous for this metallogenic province, and
represent a second type of exploration target within the area covered by
the exploration licence.
The exploration
licence is in an area along strike from a producing underground mine, and
HPGEI's systematic channel sampling at uniform
one-metre intervals has returned results considered encouraging by TVI. Prior
to filing the exploration licence application in 2005, HPGEI collected 61
channel samples. Results ranged from 0.01 grams per
tonne ("gpt") to 13.6 gpt gold ("Au") with an average of 1.95 gpt Au. This release should be read in
conjunction with the release issued on August 10, 2005, "TVI
Pacific's Chinese Subsidiary Files Exploration Licence Applications to
Secure Potential Along Strike Extensions to Drill - Target in the Golden
Triangle."
Results from 53
composite channel samples, taken from the target horizon, averaged 2.25 gpt Au and include the following:
. 8m @ 7.4 gpt Au across a silica-clay-pyrite altered calcareous
sandstone inside the main adit to the small
underground operation.
. 9m @ 2.85 gpt Au across the same
silica-clay-pyrite altered calcareous sandstone unit located
approximately 5m stratigraphically higher than
the first channel, above the main adit.
. 8m @ 3.47 gpt Au across an inferred,
altered and mineralised subvertical structure
5m wide.
Readers are invited
to consult the maps associated with this news release (posted on TVI's website, at www.tvipacific.com) for the
location of the exploration licence as well as the location of samples.
The small producing mine adjacent to the lands covered by the HPGEI
exploration licence operates under a mining licence allowing the licence
holder to mine up to 50 tonnes per day. TVI has been advised that
an application can be made to increase these levels as discoveries are
made and the reserve/resource base increases.
About TVI Pacific
Inc. (TSX: TVI)
TVI Pacific Inc. is a
publicly traded Canadian mining company focused on exploring for and
producing precious and base metals within district scale systems in the Philippines
and other Asian countries. TVI holds its interest in the Canatuan Mine and its other Philippine assets through
its affiliate, TVI Resource Development (Phils.)
Ltd. ("TVIRD"). TVI's most advanced
project, the Canatuan Mine, currently produces
gold and silver dor�.
In 2006, TVIRD
received a completed NI 43-101 feasibility study on the Canatuan sulphide project prepared by Norwest
Corporation. The report has been filed with certain securities
regulatory authorities in Canada
and is available through the SEDAR website at www.sedar.com. The Canatuan sulphide project includes a copper-zinc
bearing massive sulphide zone underlying the gossan
zone currently being mined at Canatuan. Construction
activities for the sulphide project, including engineering and dam
construction, are underway and TVI plans to be in production in
mid-2008. The Company is currently arranging financing for the
sulphide project.
TVIRD also holds a 2.5% net smelter royalty on the Philippine-based Rapu Rapu project operated
by Lafayette Mining Ltd. as well as other significant land positions in
the Philippines.
TVIRD is focusing its exploration efforts on expanding the mineral
resource base near the Canatuan Mine and on the
Balabag project, for which TVI recently
released a resource estimate that has been filed on SEDAR.
TVI's drilling business operates a fleet of 21
drill rigs, providing contract drilling services to TVI's
exploration projects and to third parties. The drilling business provides
TVI with priority access to drilling equipment at low costs and the
opportunity to generate cash flow from third party contracts.
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Further
Information: Clifford M. James, President and
CEO (403)
265-4356
Paul Moon, Director, Corporate Communications (403) 265-4356
Glenn Sheldon,
President of HPGEI and AUSIMM member, is serving as TVI's
"Qualified Person" for purposes of National Instrument 43-101 -
Standards of Disclosure for Mineral Deposits ("NI-43-101") on
this project and has reviewed this News Release and verified the data set
out herein. Mr. Sheldon is a geologist and has more than 15 years
of relevant experience in the metalliferous
mining and exploration industry.
All samples collected
were a minimum weight of 2
kg. All samples were sent complete to the
Northwest Nonferrous Geological Research Institute Laboratory in Xian City, Shaanxi,
China. This
laboratory has international ISO9001-2000 and domestic GB/T19002-2000
accreditation and was the same laboratory used by Sino Gold Limited for
the Jinfeng (Lannigou)
resource drilling campaign in 2003 and 2004. All sample preparation was
conducted at this laboratory. A 50 gm pulp was prepared for each sample
and fire assay used for the decomposition pre-treatment with the final
determination conducted by AAS/ICP-MS. Standards, duplicates and
blanks were used for all batches and all returned values within
reasonable limits.
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" and similar
expressions. Forward-looking statements 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 provided or
disseminated by third parties. Although the Company believes that
the expectations reflected in such forward-looking statements are based
upon reasonable assumptions, and that information obtained from third
party sources 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 such forward-looking statements. These
factors include, but are not limited to, such things as the volatility of
prices for precious metals and base metals, commodity supply and demand,
fluctuations in currency and interest rates, 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 and changes in exploration plans or
budgets. 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. Forward-looking information
respecting the anticipated timing of negotiations with the owners of the
mine adjacent to the HPGEI exploration licence (respecting joint
exploration and development of such mine) is based upon the letter of intent
signed with the third-party mine owners and discussions to date with the
third-party mine owners. Forward-looking information respecting the
anticipated timing of production from the sulphide zone underlying the gossan reserves at Canatuan,
is based upon the status of the Company's efforts to obtain financing for
the sulphide project, the status of TVIRD's
program to source equipment for the expansion of the Canatuan
mine, progress made to date in the construction of the sulphide plant at Canatuan, management's experiences with the
construction of the gossan processing facility
at Canatuan, the current business plan
developed by the Company and the Company's current budget and overall
strategy for the Canatuan mine, which plans,
budget and strategy are all subject to change. The forward-looking
statements of the Company contained in this News Release are expressly
qualified, in their entirety, by this cautionary statement. Various
risks to which the Company is exposed in the conduct of its business are
described in detail in the Company's Annual Information Form for the year
ended December 31, 2006, which was filed on SEDAR on March 29, 2007 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.
The Toronto
Stock Exchange has neither approved nor disapproved of the information
contained herein.
2000, 736 - 6 Avenue S.W.
Calgary, Alberta T2P 3T7
Tel: (403) 265-4356 Fax: (403) 264-7028
Website:
http://www.tvipacific.com E-mail:
tvi-info@tvipacific.com
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