SULPHIDE PROJECT UPDATE:
TVI PACIFIC FILES UPDATED NI 43-101 TECHNICAL
REPORT REGARDING SULPHIDE PROJECT AT CANATUAN, PHILIPPINES
TVI Pacific Inc.
(TSX: "TVI" or the "Company") announced today that it
has received an updated National Instrument 43-101 ("NI
43-101") report (the "Updated Report") respecting the
Sulphide Project at the Canatuan mine, located
in the Philippines. A copy of the Updated Report has been filed
with certain securities regulatory authorities in Canada
and is available on the SEDAR website at www.sedar.com. The Updated Report,
entitled 43-101 Technical Report for the Sulphide Resources at the Canatuan Project of TVI Pacific Inc. and dated April
5, 2008, was prepared by P.J. Lafleur G�o-Conseil Inc. ("PJLGCI"), an independent
consulting group providing specialized services to the mining and
geosciences industries.
The Updated Report
presents incremental improvements to the previous feasibility study
prepared by Norwest Corporation, entitled Independent Technical Report on
the Canatuan Massive Sulphide Project,
Philippines ("Norwest Report" - filed on SEDAR on July 13,
2006), as a result of new drilling data (collected by TVI Resource
Development (Phils) Inc. in 2006), resource
estimates and cost and metals prices. The Updated Report confirms
management's view of the economics of the sulphide project at Canatuan, recommends that TVI Resource Development (Phils) Inc. proceed with its plans to complete the
sulphide plant and assumes commissioning of the plant in September 2008
and full production by the end of 2008.
Significant
information and assumptions (base case cash flow model) set out in the
Updated Report include the following:
The foregoing is a
summary only of information contained in the Updated Report. Readers
should refer to the full Updated Report for additional details concerning
the information summarized in this news release. For example, the
Updated Report includes additional information relating to data
verification, the interpretation of exploration information, a summary
description of the geology of the Canatuan area
and details of additional assumptions, parameters and methods used to
estimate mineral reserves at Canatuan. The
information set out in the table above and detailed in the Updated Report
represents an estimate only and actual results may differ materially.
"We are very
pleased with the results of the updated report on the sulphide project at
Canatuan," said Clifford M. James, TVI
President and CEO. "The significant improvement in the sulphide
project's net present value and estimated future cash flows noted in the
report is a direct result of an improved pricing environment for base
metals in general, as well as refinements made to prior studies of the
sulphide project at Canatuan. Along with
the recommendation in the updated report to complete our construction
activities at Canatuan, it suggests that we
continue to explore the 37,000 hectare area immediately
surrounding the Canatuan mine as it continues
to represent an opportunity for the discovery of additional economic
mineral resources."
Additional
Information
The main objective of
PJLGCI was to produce an updated and optimized 43-101 technical report on
the Canatuan sulphide mineral resources
incorporating new information which included additional definition
drilling results, current costs and metal prices. A new resource
estimate was derived using Ordinary Kriging
estimation techniques to acquire grade models for various mineral
elements, including the four payable metals shown in the table below and
certain other penalty elements found in the deposit (penalty elements are
those commonly found in sulphide concentrates which add to smelter costs).
This in turn has significantly enhanced overall mine planning for the
sulphide project.
The infill drilling
completed by TVI Resource Development (Phils) Inc. in late 2006 not only
confirmed the grade and tonnage reported in the Norwest Report, but
improved the classification of mineral reserves (using CIM Definition
Standards). In addition, advanced metallurgical testing has
confirmed the feasibility of the process to extract metals from the
sulphide ore at Canatuan. These results were also used to optimize
the mill design to ensure the production of commercial grades of copper
and zinc concentrates, while minimizing the report of penalty elements. Using
5% mining dilution and 95% mining recovery in ore, the total sulphide
reserves, in the proven and probable categories, are estimated at 3,034
Mt averaging 1.35% Cu, 1.05% Zn, 0.75 gpt Au and 36 gpt Ag. The
Updated Report concludes that the optimized pit to extract this ore would
also contain 4.357 Mt of waste for an average stripping ratio of 1.4.
Several parameters,
for pit optimization and mine plan scheduling, were used in the Updated
Report to generate cash flow models reflecting adjusted mining, milling
and operating costs (largely due to changing foreign exchange rates) and
increasing labour, commodities and consumable prices. Sensitivity
analyses were performed to test the economics of the sulphide project in
four pricing forecast scenarios as summarized in the following table.
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.
The Company's interest in the Canatuan Mine and its other Philippine
assets are held through its affiliate, TVI Resource Development (Phils.) Ltd.
("TVIRD"). TVI's most advanced project, the Canatuan
Mine, currently produces gold and silver dor�. On March 13, 2008,
the Company signed a definitive US$15 million bridge financing agreement
with an arms length party for the purpose of providing working capital
funding for TVIRD, including funds to restart construction of the sulphide
project at Canatuan. TVIRD has been advised that a majority of the
conditions contemplated by the loan agreement have been fulfilled and the
parties are waiting only for the completion of the registration process
and the signing and delivery of related loan documents to enable first
drawdown to proceed.
-30-
Further
Information: Clifford M. James, President and CEO (403)
265-4356
Paul
Moon, Director, Corporate Communications (403) 265-4356
Mr. Pierre-Jean
Lafleur, P. Eng. of P.J. Lafleur G�o-Conseil Inc., has served as the
"Qualified Person" (for the purposes of National Instrument
43-101 - Standards of Disclosure for Mineral Deposits) in respect of the
NI 43-101 technical report for the Canatuan sulphide resources. Mr.
Lafleur has reviewed this news release at the request of TVI. Mr.
Lafleur is independent of TVI Pacific for purposes of National Instrument
43-101.
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
|