We have an extensive 352 square kilometre (136 square mile) package of tenement applications surrounding the Canatuan mine that make up the Greater Canatuan Tenement Area (GCTA). Volcanogenic massive sulphide deposits, like Canatuan, rarely occur in isolation. Exploration on the properties suggests 40+ kilometres (25+ miles) of the same type of geology that hosts the Canatuan orebody.  We believe that similar Canatuan-style deposits exist within the GCTA and that there is a potential for discovering extension developments.  Any mineable ore located in this area could be economically transported to the existing Canatuan plant for processing, which would extend the life-of-mine. 

Exploration Permit Application (EXPA) 61

In January 2010, we established a partnership and strategic alliance with DMCI-CERI, a subsidiary of DACON Corporation. In February 2010, the partners signed a joint venture agreement to conduct exploration, development and production of mineral deposits in EXPA 61 located within the GCTA.  Potential prospects identified lie within a 15 kilometre (9.3 mile) radius trucking distance of the current Canatuan sulphide plant.  Under the joint venture agreement, we hold a 70% interest and act as the operator, while DMCI-CERI holds the remaining 30% interest.    

In June 2010, the partners finalized an initial work program for EXPA 61 and initiated three main activities: (a) obtain free prior informed consent from the affected indigenous communities in the area; (b) complete an airborne geophysical survey; and (c) complete the application for the Exploration Permit.  We have successfully secured the endorsement of the local council and municipal authorities for the program and completed the airborne geophysical survey.  

The Exploration Permit application for EXPA 61 has been submitted to the government to authorize exploration and drilling on the anomalies and prospects identified to date. However, the application process was halted by the moratorium on new permit applications imposed by the Secretary of the Department of the Environment and Natural Resources in 2011. This process may be further slowed by the Department’s backlog of applications once the President of the Philippines provides the authority to the Secretary to renew the permit granting process.

Malusok & SE Malusok

In January 2012, we completed the Free Prior Informed Consent Process for a new Mineral Production Sharing Agreement (MPSA) in proximity to the Canatuan mine. Approval of the FPIC process was granted by the National Commission on Indigenous Peoples and all documents were immediately forwarded to the Mines and Geoscience Bureau for review and granting of the MPSA permit required to advance exploration activities. 

This property, Malusok and SE Malusok, is where TVI previously identified potential mineralization during an early-stage surface exploration program. Once the approved MPSA permit has been issued, TVI will be authorized to carry out an advanced exploration program on the property area.

Initial interpretation of the airborne geophysical data completed earlier in 2011 has revealed an anomaly related to a known volcanogenic massive sulphide prospect at Malusok, as well as several other anomalies requiring detailed follow-up.