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BALABAG EXPLORATION UPDATE:
TVI EXPLORATION ACTIVITIES AND INFILL DRILLING AT BALABAG PRODUCE
FURTHER POSITIVE RESULTS
. Most Recent
Drilling Results Include:
o 5.40 m averaging 3.91 gpt Au, 259.08 gpt Ag or 8.38 gpt AuEq
o 4.00 m averaging 6.32 gpt Au, 106.37 gpt Ag or 8.16 gpt AuEq
o 2.70 m averaging 1.99 gpt Au, 40.23 gpt Ag or 2.68 gpt AuEq
o 2.65 m averaging 1.10 gpt Au, 52.55 gpt Ag or 2.01 gpt AuEq
. Project
Scoping Study Completion Anticipated In The Third Quarter Of 2007;
Preliminary Results Expected In Early August
. Newly
Discovered Vein Exposures Potentially Extend Mineralized Zones
o Orebody Appears Open Laterally And At Depth
TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that its Philippine affiliate, TVI Resource Development
(Phils.) Inc. ("TVIRD"), has received additional positive assay
results from the exploration infill drilling program on the Tinago-Miswi-Lalab
vein system at its Balabag Property. The Balabag Property is
located on the Zamboanga Peninsula in Southern
Philippines approximately 75 km east-northeast of
TVIRD's producing Canatuan Mine. The drill program was designed to
provide further delineation of the local epithermal gold vein system and
to determine the consistency and continuity of reported mineral
values. This news release should be read in conjunction with the
release issued on June 27, 2007, "TVI Provides Initial Balabag
Prospect Resource Estimates".
To date, assays have
been received for a total of 99 holes drilled into the Tinago-Miswi-Lalab
vein system, which have a total aggregate meterage (total depth of holes)
of 10,803.85
metres. The new data reported in this news release
includes the results of the most recent five holes for which assay
results have been received by TVIRD. The recent drilling results
are summarized in the assay table set out below.
Certain statements in
this News Release constitute forward-looking statements, including
statements respecting ongoing exploration activities and the timing of
the scoping study to assess the Tinago-Miswi-Lalab mineralized
zone. Readers should refer to the cautionary statement that appears
at the end of this News Release.
"Following our
recent announcement of a resource estimate at Balabag, we are pleased to
see more positive results from our ongoing exploration efforts and
recently completed drilling campaign," said TVI CEO, Cliff James. "The
newly discovered vein exposures potentially extend the mineralized zones.
With the veins open to depth and with the lateral extension potential it
appears that there is the opportunity 'to grow the deposit' with further
work. In addition, we expect to see preliminary results from the ongoing
scoping study in the near term. These developments are very
encouraging."
A scoping study to
assess the Tinago-Miswi-Lalab mineralized zone at Balabag is underway and
is expected to be completed in the third quarter of 2007. The
scoping study assessment is being undertaken at this stage of the project
to provide an economic analysis of the potential of the Balabag Project
becoming a stand alone, commercial mining operation based on currently
known mineral resources. It is anticipated the scoping study will lead
into a full feasibility assessment and detailed engineering of the
project.
The Balabag mineral
resource estimate, announced on June 27, 2007, which was prepared by
P.J.Lafleur Geo-Conseil Inc., is based on the 76 hole drill program
completed to the end of February, 2007. Indicated resources showed
1.37 million tonnes ("Mt") averaging 2.9 grams per tonne
("gpt") Au and 84.3 gpt Ag, or 203,700 gold equivalent ounces
("AuEqOz"), with Inferred resources amounting to 1.96 Mt
averaging 2.6 gpt Au and 55.2 gpt Ag, or 234,200 AuEqOz, using a >0.5
g/t grade group. An updated National Instrument 43-101 ("NI
43-101") Technical Report, detailing the project and Mineral
Resource estimate protocols is expected to be filed on SEDAR within the
required 45 day filing period. Readers are cautioned that such
estimates remain conceptual in nature and mineral resources which are not
mineral reserves do not have demonstrated economic viability.
As previously
announced, continuing exploration work by TVIRD has identified two new
vein occurrences which occur up to 150 metres east of
previously interpreted mineralized zones at Balabag. Recent
drilling has also indicated the presence of structures and economic grade
mineralization at depth; however these intercepts are far apart and would
require additional infill drilling for resources to be
substantiated. Further data collection, including the continued
assaying of trench samples, is anticipated to yield additional results
which are expected to be the subject of a future news release complete
with tables, updated images and maps.
TVIRD's 2007/08
exploration program will focus on expanding the Balabag gold deposit and
on up-grading the Inferred resource to the Measured and Indicated
resource categories. A minimum infill drilling program (25-m spacing) of 5,000 meters for
the Balabag Property commenced January 9, 2007 and will likely be
extended during the second half of 2007. Drilling services have been
provided by TVI's Subsidiary, Exploration Drilling Corporation
("EDCO").
Latest Assay Results
For the purpose of
calculating gold equivalent values a gold price of US$ 650 per oz and
silver US$ 13.50 per oz were used. Au and Ag equivalent
calculations reflect gross metal content and have not been adjusted for
metallurgical recoveries. True widths are approximately 85% of the
reported lengths.
ADDITIONAL
INFORMATION
Technical Review -
Tinago-Miswi-Lalab Vein System
The Balabag Property
is centred on a 1.5 km
by 1 km
structurally controlled area consisting of a series of vein bodies
occurring in tuffaceous agglomerate and andesitic rocks, bordered to the
north and south by NW-SE regional faults displaying sinistral
displacement and inducing dilational jogs along a prominent fracture set.
Data collected to date suggests an en echelon system of sigmoidal veins
that are stacked together running east-westerly and gently dipping to the
north. The vein system also shows post mineralization faulting that
slightly offsets the veins. At Balabag, gold mineralization mainly occurs
within quartz carbonate ferrigenous veins hosted in the tuffaceous
agglomerate. This volcanic assemblage lies some three km to the east of a
local dioritic intrusive where copper anomalies have been reported in the
past. Such intrusives are often associated with epithermal gold deposits
around the Pacific Rim.
The Tinago vein
appears to be the largest and most strongly mineralized structure. The
mineralization appears to be the strongest from section 4E to 4W (some
400m along strike) where the vein swell is greatest. Latest
interpretation based on detailed mapping and infill drilling suggests
that the Miswi vein is likely the eastern extension of the Tinago system
that appears truncated and displaced by faulting. The Miswi vein remains
open to the east and at depth. The Lalab vein system appears to be
smaller and thinner, somewhat sub-parallel to the Tinago vein. The Tinago
and Lalab veins remain open to the west and at depth, yet appear to
decrease progressively further west.
Concession Status
TVIRD holds an option
on the Balabag Property which was granted under an agreement with
Zamboanga Minerals Corporation ("ZMC"). Balabag lies
approximately 75 km
east-northeast of the TVIRD's mining operation at Canatuan and
immediately adjacent to the extensive tenement applications filed by
TVIRD in early 2005, which cover an area of 1,257.12 km2. The
Mineral Production Sharing Agreement ("MPSA") under which ZMC
obtained its rights to the Balabag property covers an area of 47.79
km2. The agreement between TVIRD and ZMC provides TVIRD with an
exclusive period, ending in May 2008, to assess the mineral potential of
the property. Should TVIRD so elect, the property may be purchased
for US$350,000 with ZMC retaining a 2.5% net smelter royalty on the
property.
A technical report
(prepared in accordance with NI 43-101) setting out additional details
relating to the prior sampling program at Balabag was filed (on SEDAR)
with certain securities regulatory authorities in Canada on September 27,
2005. Additional information concerning the geology, mineral
occurrences and nature of mineralization found at Balabag is also set out
in the September 27, 2005 report.
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 Asia.
In the Philippines,
TVI's most advanced project, the Canatuan Mine (the first
foreign-invested, new, mining project in the Philippines since the
passage of the Philippine Mining Act of 1995), began mining and milling
operations in mid-2004, producing gold and silver dor� through its
affiliate TVI Resource Development (Phils.) Ltd.
("TVIRD"). 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 Norwest study addresses the
copper-zinc bearing massive sulphide zone, or lower portion of the
Canatuan Deposit. Construction of the Sulphide Project at Canatuan
is now underway. In addition, TVIRD holds a 2.5% NSR on the
Philippine-based Rapu Rapu project operated by Lafayette Mining
Ltd. Exploration in the Philippines is being conducted at Canatuan,
in an effort to expand TVIRD's mineral resource base and to find new
deposits, at Balabag and at other areas which management of TVI view as
compelling exploration properties.
In China, TVI's
wholly-owned Chinese subsidiary, Hunan Pacific Geological Exploration
Inc. ("HPGEI"), was the first foreign mining company to be
granted both WOFE status and a Qualified Explorer License. The
exploration program in China is focused primarily within the Golden
Triangle area, a prospective metallogenic region in China's south-western
provinces of Yunnan, Guizhou and Guangxi Autonomous Region, and
prospective areas in the Tibet Autonomous Region. HPGEI has 2,394
km2 of land under application in China in the Golden Triangle and in the
Tibet A.R.
TVI also has a
Drilling Segment consisting of Exploration Drilling Corporation
("EDCO"), a wholly-owned subsidiary of TVI Pacific Inc. based
in the Philippines, and Hunan Pacific Drilling ("HPD"), a
segment of HPGEI based in China, which generates revenue from contract
drilling.
-30-
For further
Information on this News Release please contact:
Clifford M. James, President and CEO
Paul Moon, Director, Corporate Communications (403) 265-4356
Carl L. Caumartin
BSc, P.Eng., MBA, Vice President, Exploration of TVI Pacific Inc. is
serving as TVI's "Qualified Person" (as contemplated by
National Instrument 43-101 (Standards of Disclosure for Mineral
Projects)), for purposes of the Balabag exploration project. Mr.
Caumartin has reviewed and approved this news release and has verified
the data, including sampling, analytical and test data, set out in this
news release. The Canatuan Assay Lab, Philippines, an accredited
laboratory, performed the sample preparation and assaying for the current
sampling phase (since the beginning of 2007) of the exploration project
at Balabag. Gold analysis was by 50 gm fire assay fusion; where gold
values were greater than 3 ppm assay values were by gravimetric finish
and by AAS where the values were less than that threshold. Silver was
determined by AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate
results were included in the analytical report. A blank and a standard
sample were included for each batch of 50 samples for quality control. A
replicate assay was done on every 20th sample and certified reference
materials were used in every 20 samples. As part of the laboratory's
internal QA/QC, TVIRD is routinely submitting duplicate samples to McPhar
laboratory of Manila, Philippines, an ISO 9001/2000 accredited
laboratory, on average every 20th sample.
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 by 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 filing of an updated technical
report relating to the mineral resource estimate for the Balabag prospect
and the completion of the scoping study to assess the Tinago-Miswi-Lalab
mineralized zone, is based upon advice received to date from the author
of those reports, the Company's experience with prior technical reports
prepared in relation to Philippines mining properties, filing deadlines
prescribed by National Instrument 43-101, results of prior exploration
activities at Balabag, timing expectations relating to completion of the
next phase of the exploration program at Balabag and the results of that
program, prior experiences with scoping studies undertaken in respect of
Philippines exploration properties, the current exploration plan
developed by the Company and the Company's current budget and overall
strategy for exploration in the Philippines, the plans, budget and
strategy of which are all subject to change. Forward-looking information
concerning the possible development of the Balabag prospect and
additional exploration activity at Balabag is based upon the Company's
experiences with the development of the Canatuan mine in the Philippines,
the current exploration plan developed by the Company and the Company's
current budget and overall strategy for exploration in the Philippines,
the timing of completion of various elements of the exploration plan and
the proposed scoping study, the plans, budget and strategy of which 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 (including exploration
activities) 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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