TSX-V : TVI

Stock Quote: VSE

Price 0.05$

Change (+12.5%) +0.01

Volume 90,000

Today's Open 0.04$

Previous Close 0.04$

Intraday High 0.05$

Intraday Low 0.04$

52 Week High 0.06$

52 Week Low 0.02$

Sep 22, 2021 11:45 AM Pricing delayed 20 minutes

OTCQX : TVIPF

Stock Quote: OTC

Price 0.03$

Change (-11.68%) -0.00

Volume 4,416

Today's Open 0.03$

Previous Close 0.04$

Intraday High 0.04$

Intraday Low 0.03$

52 Week High 0.06$

52 Week Low 0.01$

Sep 22, 2021 03:20 PM Pricing delayed 20 minutes
Corporate
Presentation
Corporate Presentation Find out more about TVI through our latest Corporate Presentation GO TO CORPORATE PRESENTATION
The Balabag
Gold-Silver
Project
The Balabag Gold-Silver Project Find out more about the Balabag Gold-Silver Project WATCH VIDEO
The Canatuan
Experience
The Canatuan Experience Click here to review TVI's history of success at the Canatuan project GO TO THE CANATUAN EXPERIENCE

Email UpdatesSign up to receive email updates.

Email Address *

 
Enter the code shown above.

Agata Direct Shipping Nickel/Iron Project

Agata Nickel Laterite DSO Project

Overview

The Agata direct shipping Nickel/Iron project is managed by joint venture company Agata Mining Ventures Inc. (“AMVI”), in which TVIRD holds a 60% interest and is the operator. The remaining shares are held by Minimax Mineral Exploration Corporation and MRL Nickel Philippines Inc.

The project is located in a 4,995-hectare Mineral Processing Sharing Agreement (“MPSA”) area located in the adjacent municipalities of Tubay, Jabonga and Santiago in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, the Philippines. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan.

The project mine site is located just 3.5 km from its own deeply protected seaport which provides the opportunity for year-round shipping.

Resources & Reserves

An April 2013 NI 43-101 compliant technical report shows the project to have nickel laterite resources of 33.9 million tonnes grading 1.1% nickel and 22.5% iron in the Measured and Indicated categories and an additional 2.1 million tonnes grading 1.0% nickel and 16.3% iron in the Inferred resource category.

Please click here to see the NI 43-101 technical report dated April 10, 2013 entitled "Independent Report On the Nickel Laterite Resource Agata North, Philippines.”

The above resource formed the basis of a Mineral Reserve estimate for a Feasibility Study completed on the direct shipping operation in August 2013 which shows Proven and Probable Reserves of 9.7 million wet metric tonnes with a grade of 48% Fe with 0.9% Ni.

Please click here to see the NI 43-101 technical report dated August 30, 2013 entitled "Technical Report for the Agata North Nickel Laterite DSO Project, Mindanao, Philippines.”

Operations

Nickel laterite direct shipping ore operations began in October 2014 and AMVI has since shipped a total of 16.24 million wet metric tonnes of nickel laterite through 298 shipments as at December 31, 2020.

AMVI’s Agata operation was the first Philippine mining operation to be awarded the Titanium Award at the Presidential Mineral Industry and Environmental Awards Ceremony in November 2015 after just one year in operation. The Titanium Award recognized AMVI for exceptional implementation of its approved Environment Protection and Enhancement Program, Social Development and Management Program and its ongoing Occupational Health and Safety Program. The operation was again awarded the same Titanium Award at the 2016 Presidential Mineral Industry and Environmental Awards Ceremony, the Platinum Award at the 2017 ceremony and, most notably, has received in 2018 and again in 2019 the highest award given by the Presidential Mineral Industry and Environmental Awards Selection Committee – the Presidential Industry Award.

AMVI is proud to share the following video of its activities that was submitted as an official entry for the 2019 ASEAN Mineral Awards for which it received its first international recognition, earning a coveted first runner-up in the Mineral Distribution Category at the awards ceremony in Bangkok, Thailand. Philippine entries were chosen and screened by the Philippine ASEAN Mineral Awards Committee composed of technical experts from the Mines and Geosciences Bureau (MGB) – the lead agency appointed by a Special Task Force under the ASEAN Senior Officials Meeting on Minerals (ASOMM). Please view the link https://youtu.be/54f_jlWT3PQ.

Exploration

From October 2014 to April 2015, TVIRD completed a 16,768-metre, 986-hole drill program to validate and increase the existing resources previously disclosed in April 2013. A Philippine Mineral Reporting Code report was completed on the project to support the project's valuation.

For more information, please visit TVIRD’s website at www.tvird.com.ph.

Agata Limestone Project

Agata Limestone Project

Overview

The Agata project is held by Agata Mining Ventures Inc. (“AMVI”), a joint venture company in which TVIRD holds a 60% interest and is the operator.

The project is located in a 4,995-hectare Mineral Processing Sharing Agreement (“MPSA”) area located in the adjacent municipalities of Tubay, Jabonga and Santiago in Agusan del Norte province. It is accessible by land (approximately 1.5-hours driving time) from the provincial capital of Butuan.

The project is situated to the south of TVIRD's current Agata direct shipping Nickel/Iron project site and immediately adjacent to the causeway facilities that were built to support the current Nickel/Iron operations.

Exploration

AMVI completed an initial 17-hole drill program between November 2014 and April 2015 aimed at establishing an initial resource estimate at the project. Drill results confirmed the presence of a high-purity recrystallized limestone deposit covering an area of 600 metres by 650 metres. Significant intercepts yielded between 80% to 100% CaCO3. The Resource estimate is not compliant with NI 43-101 but the results have been used as the basis for a technical report compiled to Philippine Mineral Reporting Code standards which was completed in August 2015.

Further evaluation of potential limestone sites has continued and drilling in the area of San Vicente was completed in June 2018 with 10 holes with a meterage of 1,109 meters. Other potential sites have included areas located south of the Payong-payong in Tinigbasan, Tagpangahoy, and Binuangan.

Development

As of December 31, 2020, AMVI was continuing to evaluate the feasibility of commencing a limestone direct shipping ore (“DSO”) operation or producing hydrated lime and a higher value ground calcium carbonate product marketable to the paper and plastics industries in Asia. Application for the Environmental Compliance Certificate (“ECC”) commenced in February 2020 and receipt is expected in Q1 2021. Endorsements from the required Local Government Unit (“LGU”) have been received and the balance of the permitting process is continuing and is expected to be completed in 10 to 12 months from the current date.

For more information, please visit TVIRD’s website at www.tvird.com.ph.

Balabag Gold-Silver Project

Overview

Please click here to see the Balabag project site live as at August 12, 2021.

The following is a time progression of development of the Balabag Gold Project from January 2020 through to July 6, 2021:

Aerial view of Mill Plant Site of the Balabag Gold Project in August 2019.
Aerial view of Mill Plant Site of the Balabag Gold Project on January 27, 2020.
Aerial view of Mill Plant Site of the Balabag Gold Project on May 16, 2020.
Aerial view of Mill Plant Site of the Balabag Gold Project on July 6, 2021.

TVIRD owns 100% of the Balabag project. The project covers a 4,779-hectare Mineral Production Sharing Agreement (“MPSA”, MPSA No. 086-1997-IX) located within the Municipality of Bayog, Province of Zamboanga del Sur and Municipalities of Diplahan and Kabasalan, Province of Zamboanga Sibugay, Mindanao, Philippines. The term of the MPSA was extended on March 19, 2021, by the Department of Energy and Natural Resources (“DENR”) for an additional twenty-five (25) year period through to November 20, 2047, following receipt of a passing grade on the Tenements, Social, Health, Environmental, Social (“TSHES”) audit. The project is situated approximately 75 kilometers (47 miles) east-northeast of TVIRD’s Canatuan mine.

TVI Pacific announced on November 22, 2019, that TVIRD had officially determined to advance its Balabag gold and silver mining project towards commercial production and has progressed to the stage at July 26, 2021 of feeding mineralized material from its low-grade run of mine (“ROM”) mineralized stockpile through the plant on a test basis in preparation for the commencement of continuous milling operations. The current focus is to continue stabilization of the mill operation to its planned daily throughput rate and optimization of the plant parameters to improve performance in addition to final completion of Stage 1 of the tailings storage facility (“TSF”). The production decision followed the closing and first drawdown by TVIRD, announced on October 22 and October 24, 2019, respectively, of a US$28.5 million term loan facility (the “Facility”) with China Banking Corporation. The Facility has been provided specifically to finance construction of infrastructure at the Balabag project and is expected to be sufficient to enable Balabag to become operational while the remaining capex until the end of mine life will be funded by the Balabag operations. Prior to the first drawdown, TVIRD funded development works with internally generated funds which equate to approximately US $14.5 million, including the cost of Canatuan equipment that has been decommissioned, fully rehabilitated and re-installed at Balabag to reduce overall capital expenditures.

On May 12, 2020, TVI Pacific announced that TVIRD had completed its seventh and final drawdown under the Facility provided by China Banking Corporation to bring the total drawn to date equal to the total of the available Facility at US $28.5 million. TVI Pacific does not currently have any spending commitments with respect to Balabag. TVIRD is not funded by new shareholder capital or shareholder loans and TVIRD does not have the contractual right to compel TVI Pacific to provide any funding. As mentioned previously, it is expected that the Facility described above to finance construction of infrastructure at the Balabag project will be sufficient to enable Balabag to become operational while the remaining capex until the end of mine life will be funded by the Balabag operations. TVIRD made its first repayment against the Facility in the amount of US $2.2 million in April 2021.

Resources

TVI has filed on SEDAR on July 20, 2021, the updated NI 43-101 Technical Report entitled “NI 43-101 Exploration Results and Mineral Resource Update Report on the Balabag Gold-Silver Project”. The report was prepared by Mr. Jaime C. Zafra, BSGeo. PGeo. FAusIMM, an independent consultant with significant experience in the style of gold and silver deposition in the Philippines and other epithermal gold-silver deposits in Laos, Indonesia and Papua New Guinea. Mr. Zafra is a Fellow of the Australasian Institute of Mining and Metallurgy.

In addition to a site visit to examine mineralization in the explored areas and to review the drilling and sampling conducted as well as the assaying of gold and silver procedures, Mr. Zafra has relied on historical exploration data provided by TVIRD and on an earlier NI 43-101 report on resource estimates authored by P.J Lafleur of Geo-Conseil Inc. in 2007 and an updated resource report prepared by C.P. Smyth of Georeference Online Ltd. (“Georeference”) in 2012, both of which are filed on SEDAR under the Company's profile. The 2007 Lafleur and 2012 Georeference technical reports are no longer current and should not be relied upon. A total of 382 diamond drillholes, through to completion of Phase 4 drillingand with a cumulative meterage of 41,161.60 meters, was entered into the Balabag Project database as of December 2020 and has been used to update the resource model as presented in this updated NI 43-101 Technical Report. This represents a further 109 drillholes that have been added to the Balabag Project database since the NI 43-101 technical report produced by Georeference.

Together with the diamond drilling, detailed geological mapping and outcrop sampling have confirmed the presence of mineralized bodies within the east-west trending epithermal vein system in Balabag. Three major quartz vein systems have been identified in the area: Tinago-Unao-Unao-Yoyon to the north; Miswi in the east; and Lalab to the south.

The mineral resource was estimated using a conventional geostatistical block modeling approach constrained by mineralization wireframes. Geostatistical analysis, capping, variography and estimation were conducted on the in-situ gold and silver data.

The estimated Measured and Indicated Mineral Resource for the Balabag Gold-Silver Project using a cut-off grade of 0.4 g/t AuEq is 4.35 million tonnes at 1.79 g/t Au and 43.08 g/t Ag for 2.36 g/t AuEq. This is equivalent to an approximate 331,000 AuEq oz at metal prices of US$1,500/oz Au and US$20/oz Ag. The estimated Inferred Resource is 141,000 tonnes at 2.78 g/t Au and 64.11 g/t Ag for 3.63 g/t AuEq, using a cut-off grade of 0.4 g/t AuEq

The overall Mineral Resource as of May 15, 2021, is presented in the following table.

 

Category

 

Tonnage

 

Au

(g/t)

 

 

Ag

(g/t)

 

 

AuEq

(g/t)

 

 

AuEq

(oz)

 

Measured

3,016,143

1.80

50.80

2.48

241,000

Indicated

1,338,029

1.74

25.69

2.08

90,000

Total

4,354,172

1.79

43.08

2.36

331,000

Inferred

140,919

2.78

64.11

3.63

16,000

The foregoing is a summary only of information contained in the full Updated NI 43-101 and represents an estimate; actual results may differ materially.  Readers should refer to the full Updated NI 43-101 for more detail concerning the information summarized in this news release. 

Several methods were used to determine the resource category in the updated NI 43-101 Technical Report.  Blocks generated within 25 to 50 meter-drill-spacing were classified as Indicated Resource while blocks within 25 meter-drill-spacing were coded as Measured Resource.  The average drill spacing in the Balabag project is within 25 to 50 meters and the majority of the resource blocks fall within the Measured and Indicated categories.  Inferred blocks were generated in areas with significant gold intercepts, where more drilling is required to better define a resource category.

The Company wishes to clarify also that in making the decision to put Balabag into production, TVIRD, a Philippine corporation that the Company does not control, relied exclusively on technical and economic analysis prepared under Philippine regulations and did not rely on TVI's updated Technical Report of October 18th, 2019, or any feasibility study classifying mineral reserves prepared in accordance with NI 43-101.  Historically such projects have a much higher risk of economic and technical failure.

Please click here  to see the NI43-101 technical report dated July 19, 2021 entitled "NI 43-101 Exploration Results and Mineral Resource Update Report on the Balabag Gold-Silver Project”

Development

As reported earlier, TVI Pacific announced on November 22, 2019, that TVIRD has officially determined to advance its Balabag gold and silver mining project towards commercial production and has progressed to the stage at July 26, 2021 of feeding mineralized material from its low-grade ROM mineralized stockpile through the plant on a test basis in preparation for the commencement of continuous milling operations.  The current focus is to continue stabilization of the mill operation to its planned daily throughput rate and optimization of the plant parameters to improve performance in addition to final completion of Stage 1 of the tailings TSF.  This follows receipt in October 2013 of the Environmental Compliance Certificate (“ECC”) and in April 2016 the Declaration of Mining Project Feasibility (“DMPF”) as well as the Special Tree-Cutting and Earth Balling Permit from the Forest Management Bureau (“FMB”) of the DENR in May 2018.  

TVIRD awarded the contract in 2019 to undertake a design review and to provide construction supervision services for the Balabag TSF to GHD Pty Ltd, one of the world's leading professional services companies operating in the global markets of water, energy and resources, environment, property and buildings, and transportation and work is progressing.

Development work is proceeding under the direction of Mr. Yulo Perez, President of TVIRD, who previously led mine development works and operations at TVIRD's successful Canatuan mine Phases 1 (Gold/Silver) and 2 (Copper/Zinc) as Vice-President of Operations and Chief Operations Officer of TVIRD.  Mr. Perez helped contribute to the receipt by TVIRD of multiple awards from the Philippine government and leading mining industry associations.

Mineralized material continues to be fed from the low-grade ROM mineralized stockpile on a test basis in preparation for the commencement of continuous milling operations.  An approximate 92,800 tonnes of mineralized material is on the ROM mineralized stockpile, in-pit stockpile, and crushed mineralized stockpile as at July 26, 2021, much of which is low to marginal grade and was mined to expose the higher-grade mineralized resource during waste stripping and bench forming.  The stockpiles have an average grade of 1.37 g/t gold and 47.82 g/t silver for an approximate 1.94 g/t gold equivalent at metal prices of US$1,700/oz for gold and US $20/oz for silver.  

Plant commissioning works have included the first discharge of tails to Stage 1 of the TSF with tailings lines 1 and 2 now operational following a realignment of pipes and hydrotesting.  The Merrill-Crowe circuit has been fully commissioned using the barren stripping solution as feed while improvements in the gold room and elution system continue to be completed together with adjustments in the reagents and tails detoxification area and the carbon in leach (“CIL”) area, including servicing of the carbon transfer pump in preparation for full operation.  The loading of carbon in the CIL circuit is ongoing.  The installation and hydrotesting of the remaining fuel tanks 3 and 4 in the tank farm is proceeding.

The earth-filled TSF continues to be the critical path to bringing the Balabag Mine online commercially with first doré production.  The TSF is being constructed in stages to accommodate tailings deposition from mill plant processing.

Project development continues to move forward as evidenced in the following photos:

Views of the Process Plant on July 21, 2021, where the current focus is to continue stabilization of the mill operation to its planned daily throughput rate and optimization of the plant parameters to improve performance. Mineralized material continues to be fed from the low-grade ROM mineralized stockpile on a test basis in preparation for the commencement of continuous milling operations.
Views of the Balabag process plant on June 22, 2021.
The CIL tanks have been loaded with activated carbon since June 2021 and leaching at the CIL tanks is ongoing.
External view of the Gold room on January 19, 2021.
Equipment installation in the gold room on February 28, 2021, where hydrotesting, dry runs and equipment final testing has been performed and the rectifier and oven are now 100% operational.
Furnace smelting test in the Gold Room in June 2021.
Views of the Assay and Met Lab on April 6, 2021. All drill core samples are currently analyzed at TVIRD’s Balabag Mine Laboratory, an independent laboratory that is currently undergoing the ISO certification process. Sampling procedures are strictly followed in accordance with industry standards and to implement and monitor the laboratory’s internal QA/QC program. Assaying is done by fire assay method wherein gold is analyzed by fire assay with an Atomic Absorption Spectroscopy (“AAS”) finish on 50 gram samples while silver is analyzed using a triple Acid digest (HN03, HCl, and HCl0 4) AAS finish on a 1 gram sample. Any sample assaying greater than 5 g/t Ag is re-run by fire assay method with gravimetric finish.
In addition to the Certified Reference Materials (“CRM”) or standards inserted by the Balabag Fire Assay Laboratory during the analysis of samples, the TVIRD geology department has continued to insert CRMs or standards, duplicates and blank samples into the sample stream at a frequency of one in twenty to monitor quality control. The CRMs are purchased from OREAS, an Australian-based company recognized as the world leader in certified reference materials for the global mining industries.
View of the TSF on October 19, 2020.
View of the TSF on June 14, 2021.
Ongoing construction of the TSF on July 6, 2021. The TSF is being constructed in stages to accommodate tailings deposition from mill plant processing and continues to be the critical path to bringing the Balabag Mine online commercially with first doré production.
Views of the main spillway of the TSF on July 26, 2021.

Exploration

TVIRD commenced its own drilling program at Balabag in November 2005 and has continued exploration through to the current date, completing 382 drill holes with a total meterage of 41,161.60 meters as of December 31, 2020, inclusive of the Phase 4 drilling program that was completed in December 2020 and included 35 drill holes and a total meterage of 2,866.50 meters drilled at Lalab, Miswi, Tinago and Mossad areas. A further 16 drillholes have been completed in 2021 through Phase 5A drilling with a total meterage of 2,155.45 meters, for which results continue to be analyzed. Initial drilling in 2005 and 2006 was set at 50 meter intervals but from 2007 onwards the drill hole spacing was reduced to 25 meters in order to upgrade the resource into the indicated and measured category.

Year

No of Drill holes

Meterage

2005

2

131.30

2006

57

6,822.10

2007

42

4,021.30

2010

54

7,595.15

2011

118

13,185.60

2012

5

1,179.60

2013

18

1,220.55

2018

12

1,068.10

2019

15

1,211.95

2020

59

4,725.95

TOTAL

382

41,161.60

The resource drilling from October 2018 to December 2020 within Balabag Hill targeted the vein system extensions at the Lalab, Miswi and Unao-Unao areas. The drilling program was carried out in Phases:

  • Phase 1 drilling aimed to increase the resource at the Lalab area. A total of twelve (12) drillholes with an aggregate meterage of 1,068.10 meters were drilled. Drillholes were oriented on a NW direction to intersect the true width of the vein. Four (4) sub-vertical veins were encountered during drilling.
  • Phase 2 drilling with fifteen (15) drillholes and an aggregate meterage of 1,211.95 meters focused on Miswi veins particularly on the up dip and down dip portions of the holes that were drilled along the Duala tunnel.
  • Phase 3 drilling focused on the up dip and down dip portions of the Monding mineralized veins at the Unao-unao area. Twenty-four (24) drillholes with a total meterage of 1,859.45 meters were drilled.
  • Phase 4 drilling with 35 drillholes having an aggregate meterage of 2,866.50 meters targeted the shallow and possible deeper mineralized veins in the Lalab, Miswi, Tinago and Mossad areas and has suggested potential for defining the extension of gold and silver mineralization towards the western side of the deposit at Tinago and at deeper levels of the Lalab and Miswi areas

The Phase 5A drilling program commenced in the second week of March 2021 and has now been completed.  Sixteen (16) holes were drilled with the focus to prove and test the potential deeper orebodies at Lalab, Miswi and West Tinago area, and the results are currently being analyzed.  The focus of the Phase 5A drill program was to test and prove the potential deeper mineralization at Lalab, Miswi and West Tinago as well as the shallower lateral extension of West Tinago and shallow Daguman prospect located to the north of Balabag Hill.  Equipment continues to be onsite for commencement of a further Phase 5B drilling program that will continue to test both shallow targets near the main deposits and potential orebodies near surface laterally and those defined at depth and laterally.    

The drill program has been focused on the understanding of quartz vein characteristics, alteration associated with mineralization, host lithology and structural control on mineralized quartz veins and gold-silver assay grades.  Based on this detailed review, the crosscutting relationships of the different quartz veins, vein breccias and stockworks provided, a clearer picture in terms of sequence or stages of quartz deposition and alterations related to mineralization were identified.  Ranges of gold and silver grades on the different quartz veins and breccias were also determined that gave information as to what types of quartz veining are giving higher grades.

Test pitting and trenching have also been performed to provide additional data.  Test pitting has been conducted to determine if gold values define a vertical zonation along projected vein zones.  The test pits were also used to correlate the intensity of weathering and oxide minerals with gold values at identified projected vein zones.

Test pitting was initiated after several surface samples returned anomalous gold values.  The test pits have 1 meter by 1 meter dimension and the maximum depth was 3 meters.  Samples are collected by creating a channel (10 cm wide and 10 cm deep) on two opposite walls of the test pit.  Samples are collected for every meter downwards.

Trenching along the projected strike of the Tinago, Lalab and Miswi veins was implemented to probe vein continuity.  The trenches were spaced approximately 50 meters apart and oriented almost perpendicular (NW to SE) to the general trend of the veins.  A total of 33 trenches with a total length of 1,066 meters were excavated.  Channel samples were taken along the trench at 1 meter intervals.

Mapping and sampling of former small-scale miners’ underground workings has also been conducted by TVIRD in Tinago, Unao-Unao, Lalab and Miswi.  This exploration program was initiated to measure the correct attitudes of the veins, verify their width and strike continuity as well as to collect vein samples.  Samples were taken perpendicular to dip, and therefore reflect true widths.  Channel spacing on vein is 1.5 meters.  A total of 89 small-scale mine tunnels were rehabilitated, mapped, and sampled.  Small-scale miners were evicted from Balabag following the issuance and implementation of a cease and desist order in October 2012 by the Philippine Environmental Management Bureau and the Mines and Geosciences Bureau against illegal mining activities in the region.

For more information, please visit TVIRD’s website at www.tvird.com.ph.



Siana Gold Project

Overview

On July 28, 2021, TVIRD signed an investment agreement to acquire 100% of the outstanding equity in Greenstone Resources Corporation (“GRC”), the owner and operator of the Siana Gold Project (“Siana”) and the Mapawa Project (“Mapawa”), both of which are located in the southern Philippine island of Mindanao.  Prior to the acquisition by TVIRD, GRC was the Philippines affiliate of Red 5 Limited (“Red 5”) (ASX: RED), a Perth, Western Australian-based gold company, the shares of which are listed on the Australian Securities Exchange.

The assets of GRC include:

  1. The Siana Project, as covered by Philippines MPSA No. 184-2002-XIII covering 3,289 hectares, which includes the following project infrastructure:
  • A modern 1.1mtpa Outotec mill, gravity and CIL mill facility commissioned in 2012 at a capital cost of U.S. $54 million that includes a single stage SAG mill and 6 CIL tanks;
  • Grid power with backup 8MW diesel fired power station; and,
  • Administration building, warehouse, mess hall, camp facilities and accommodation, engineering building and maintenance facilities.
  1. Mapawa Project, as covered by MPSA No. 280-2009-XIII covering 1,482 hectares.
  1. The Ferrer Claim, as covered by the Application for Mineral Production Sharing Agreement No. A000046 and comprising of one Block of 595 hectares.
  1. Established government approvals and relationships with key stakeholders.

Siana is located in Tubod, Surigao del Norte, approximately 35 kilometers from Surigao City and near to Lake Mainit, while Mapawa is located 20 kilometers north of Siana and has the potential to be developed as a satellite source of ore feed for the Siana processing plant.

Siana produced nearly one million ounces of gold prior to its acquisition in 2003 by Red 5's Philippine affiliated company, GRC.  GRC commenced exploration work on Siana in 2004, completed a project feasibility study in 2009 and received all necessary permits to construct and operate by 2009.  Construction at the mine site commenced in 2010 and the inaugural gold pour was achieved by GRC in February 2012.  TVIRD understands that, to date, Siana has produced 149,203 ounces of gold and 199,669 ounces of silver, in addition to nearly one million ounces of gold prior to its acquisition in 2003 by GRC.

Uncertainty surrounding the mining policy in the Philippines and difficulty obtaining environmental permit approvals led Red 5 to suspend mining and processing activities at Siana and to place the site on temporary standby in April 2017.  Ongoing activities through suspension have included dewatering of the open pit, infrastructure maintenance and monitoring of geotechnical issues.

Red 5 has advised TVIRD that GRC has spent over U.S. $200 million, to date, in its efforts to develop Siana.  TVIRD has also been advised that all of the mining and processing facilities and required permits are in place for re-commencement of operations.  Siana has the only modern gold plant in the region with the potential to establish Siana as a processing center for other nearby prospects/gold deposits.

RESOURCES

Red 5 has previously published underground and open pit mineral resource and mineral reserve estimates for Siana and mineral resource estimates for Mapawa.  These estimates, detailed below, were prepared using the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code" or "JORC 2012").  No estimates for either Siana or Mapawa have been prepared using the 2014 definition standards published by the Canadian Institute of Mining Metallurgy and Petroleum ("CIM 2014 Standard") and no technical report supporting this estimate has been prepared in accordance with NI 43-101.  A "qualified person" (as defined in NI 43-101) has not done sufficient work to classify any of these mineral resource or mineral reserve estimates as current.  As a result, the Company is treating the following estimates as historical in nature and not current mineral resources or mineral reserves, and they should not be relied upon.  There are certain differences between the JORC Code and the CIM 2014 Standard described further below. 

Red 5 announced on February 23, 2016 that Mining One Pty Ltd had completed a JORC 2012 underground mineral resource and reserves estimate using a 2.4 g/t gold cut-off that has been subsequently reviewed annually by Red 5 and most recently confirmed in their Annual Report at June 30, 2020.  Further to the ASX announcement released by Red 5 on January 11, 2016, the database for the Siana resource estimate included 109 holes and approximately 47,300 meters in addition to 79 historic holes drilled by Suricon between 1980 and 1990 for approximately 10,600 meters.  The database also includes a further 10,417 grade control channel samples conducted by GRC prior to April 2013.

The Red 5 2020 Annual Report at June 30, 2020 reports the JORC 2012 underground mineral resource and reserves estimate to be:

In the Red 5 Annual Report at June 30, 2020, and due to what Red 5 has reported as pending construction of additional tailings storage capacity, no updated JORC 2012 reserve estimate is reported for the Siana open pit as at that date. As such, Red 5 has reported the open pit mineral resource and reserve estimate at June 30, 2020 to be:

In summary, and further to the above tables as included in the Red 5 2020 Annual Report, the Siana open pit and underground mine have at June 30, 2020, a combined Indicated JORC 2012 mineral resource estimate of 4.3Mt @ 4.6 g/t Au and 6.8 g/t Ag and combined Inferred JORC 2012 mineral resource estimate of 0.5Mt @ 8.9 g/t Au and 10.6 g/t Ag.  TVI is not treating this as a current mineral resource under NI 43-101 as a qualified person has not done sufficient work to classify the historical estimate as current, and the estimates should not be relied upon. 

Mining One Pty Ltd, with offices in Australia, China, Indonesia and Canada, has extensive experience in the Philippines, Papua New Guinea, Indonesia, Africa, South America and China and with underground and open pit mines across a broad range of commodities. They are involved in planning, supervision, project management, studies, geology, contracts, financing and corporate assistance and advice and their clients have included, among others, BHP, Rio Tinto, Glencore. Alcoa, Anglo American, Anglo Gold Ashanti, Barrick.

Siana Open Pit and Underground Feasibility Study Results

Red 5, together with GRC, has engaged various mining engineering firms since 2009 to complete numerous Feasibility Studies that have been publicly disclosed.  These studies were prepared using the JORC Code.  Qualified persons have not done sufficient work under NI 43-101 to verify the results of these studies or render them current and complete under NI 43-101, and therefore details of these reports are not included here.    

TVIRD is presently assessing GRC's mine development and production plan for Siana in order to develop its own plan in furtherance of a potential recommencement of operations.

Mining History at the Mapawa Gold Project:

GRC also holds a 100% interest in Mapawa under MPSA No. 280-2009-XIII covering 1,482 hectares and located as well in Surigao del Norte, Philippines.  Mapawa is located 20 kilometers north of Siana and has the potential to be developed as a satellite source of ore feed for the Siana processing plant.  Red 5 reported in the 2016 Annual Report that Mapawa hosts a known gold porphyry system with a number of significant gold occurrences throughout the project area and thereby considered the area to have significant potential. 

Red 5 announced on June 14, 2016 that an inaugural JORC 2012 mineral resource estimate had been completed for Mapawa by Optiro Pty. Ltd., an independent group of Australian geological consultants who reported the following on a dry tonne basis based on a 0.7g/t gold cut-off and taking into account historic mining depletion:

Red 5 reported that the Mapawa JORC 2012 mineral resource estimate was calculated based on a total of 78 diamond core drill-holes totaling 13,798 meters of drilling, comprising 5,628 meters of historical drilling completed by Suricon and 8,170 meters of additional diamond drilling completed by GRC. 

Opitro Pty. Ltd. Is an advisory services firm with extensive geological, mining engineering, metallurgical and financial expertise that provides strategic, independent advice to mining and exploration companies, their advisors and investors. Their consultants are recognized competent persons under JORC and other international standards and have published numerous reports supporting listings on the ASX, TSX, LSE, NYSE and various other stock exchanges around the world.

 

As noted above, TVI is not treating the estimates reported for Siana and Mapawa as current mineral resources as a qualified person acting in compliance with NI 43-101 reporting requirements has not done sufficient work to classify these estimates as current resources, has not verified this information and these estimates should not be relied upon  The historical estimates are believed to be based on reasonable assumptions, and neither the Company nor the qualified person responsible for the scientific and technical content of the summary provided here has any reason to contest their relevance and reliability. 

TVIRD currently does not plan to conduct any work to verify the historical estimates other than using them to guide its exploration, resource modeling and possible development work. 

TVIRD is presently assessing the GRC resource model, mine development and production plan for Siana in order to develop its own plan in furtherance of a potential recommencement of operations.  TVIRD is evaluating steps that would be required to upgrade or verify the foregoing historical estimates as current under NI 43-101 standards, which would include a review of past drill results and Quality Assurance/Quality Control procedures applied as well as possibly resource modeling with the involvement of a qualified person.  

Additional information related to Siana and Mapawa may be found on the TVIRD website at https://tvird.com.ph/.

HISTORICAL OPERATIONS

Siana is located in Tubod, Surigao del Norte, approximately 35 kilometers from Surigao City, and is covered by MPSA No. 184-2002-XIII that extends over 3,289 hectares of land near Lake Mainit.  The MPSA was granted on December 11, 2002 and registered with the Philippine Mines and Geoscience Bureau ("MGB") on December 27, 2002 for a term of 25 years.  Siana is located along the Surigao Valley Fault, a major mineral structure, which is a part of the major Philippine Fault or Rift Zone.  The Rift Zone constitutes multiple epithermal gold and porphyry-type copper-gold mineral deposits.

Mining operations have been conducted at Siana since the early 1900's, with major commercial underground mining conducted by the Philippine company, Suricon Consolidated Mining Company ("Suricon"), from 1938 to 1960 followed by open pit mining from 1980 to 1991.

Siana had produced nearly one million ounces of gold prior to its acquisition in 2003 by Red 5's Philippine affiliated company, GRC.  GRC acquired 100% of Siana in 2003, commenced exploration work on Siana in 2004, completed a project feasibility study in 2009 and received all necessary permits to construct and operate by 2009.

Construction at the mine site commenced in 2010 and the inaugural gold pour was achieved in February 2012. 

Siana was subsequently placed voluntarily by GRC on care and maintenance in April 2013, when a superficial crack was noted in the external wall of one of the tailings dams ("TSF4").  There was, however, no tailings spill and the incident was therefore considered environmentally benign.  In order to mitigate any potential environmental risk, the MGB imposed a cease-and-desist order ("CDO") in June 2013, which could not be rescinded until completion of structural repairs and improvements to tailings storage facilities.  GRC completed the works in January 2015 and the MGB subsequently lifted the CDO in January 2015, thereby allowing commercial operations to resume in February 2015.

Uncertainty surrounding the mining policy in the Philippines and difficulty obtaining environmental permit approvals led Red 5 to again suspend mining and processing activities at Siana and to place the site on temporary standby in April 2017.  Red 5 stated in an ASX announcement on April 18, 2017 that it believed the suspension to be the best way to preserve "the significant inherent value of the large in-situ gold inventory and high-quality infrastructure" at the site and that the decision was made because of the operational impact "which the current uncertainty regarding regulatory and government mining policy in the Philippines has had on the group's operations."  Ongoing activities through suspension have included dewatering of the open pit, infrastructure maintenance and monitoring of geotechnical issues.

TVIRD understands that, to date, Siana has produced 149,203 ounces of gold and 199,669 ounces of silver, in addition to nearly one million ounces of gold prior to its acquisition in 2003 by GRC. 

Source: Red 5 Limited ASX Report to
Shareholders dated June 24, 2015
Siana Gold Project – Operations Update
Source: Red 5 Limited ASX Activities Report
for the 3 months ended 31 March 2015

During its brief operating period, GRC has mined the Siana deposit by open pit methods with a plan that included a transition to underground mining following completion of open pit mining.

View of the Siana open pit Stage 4 West wall looking north.
Source: Red 5 Limited December 2015 Quarterly Activities Report, dated Jan.22.2016.
Mining west wall at Siana Gold Project.
Source: Red 5 Limited September 2015 Quarterly Activities Report.

Underground mine development has commenced with 445m of development completed, three portals developed and the establishment of several critical surface infrastructures for the mining operations.

Construction of main access portal at the Siana Underground Mine.
Source: Red 5 Limited March 2017 Quarterly Activities Report, dated April 28, 2017.
Concrete batch plant, constructed to support the underground mine development at Siana.
Source: Red 5 Limited December 2016 Quarterly Activities Report, dated Jan.30.2017.

Material mined from the Siana open pit has been processed onsite at the Siana CIL gold processing plant that has a design capacity of 1.1 mtpa.  TVIRD understands that processing recoveries reported have been between 75 to 85% for gold and 40 to 45% for silver.  The plant comprises single stage crushing, SAG milling, gravity concentration and high intensity cyanidation, leaching and adsorption (CIL), followed by carbon elution and electrowinning to produce combined gold and silver doré.  Tailings from the cyanide leach area are treated in a detoxification circuit to minimize cyanide concentration prior to discharge to the TSF.  Red 5 has advised TVIRD that GRC has spent over U.S. $200 million, to date, in its efforts to develop Siana.   

Siana has the only modern gold plant in the region with the potential to establish Siana as a processing centre for other nearby prospects/gold deposits.

TVIRD intends to review historical processing operations with the objective of testing and optimizing future performance.

Siana Processing Plant with SAG mill.
Source: Red 5 Limited September 2015 Quarterly Activities Report.
Thickener at Siana Gold Plant, construction of which was completed by October 2014 with
pre-commissioning, dry-commissioning and wet commissioning completed in November 2014.
Source: Red 5 Limited ASX Activities Report for the 3 months ended 31 December 2014.
View of the Siana processing plant with thickener and CIL tank in foreground.
Source: Red 5 Limited June 2015 Quarterly Activities Report.

Canatuan Project

Canatuan Project

Overview

Canatuan is owned 100% by TVIRD. The project is a volcanogenic massive sulphide (VMS) deposit located in the Province of Zamboanga del Norte on the island of Mindanao in the Philippines.

From 2004 to mid-2008 TVIRD produced gold and silver doré from an overlying gossan (oxidized) portion of the deposit. As this upper portion of the orebody was mined out, the underlying primary sulphide portion of the deposit containing copper and zinc was exposed.

By November 2008, TVIRD had completed construction of a sulphide production plant to process the underlying sulphide orebody containing copper and zinc and commenced commercial production of copper concentrate in March 2009. From March 2009 to February 2014, TVIRD completed 39 shipments of copper concentrate for a total volume of 199,778 dmt and 7 shipments of zinc concentrate for a total volume of 30,548 dmt. Milling operations concluded in January 2014.

Current Status

The Canatuan processing plant has been decommissioned and equipment reconditioned for use in the Balabag Project. Among the prospects TVIRD is exploring are possible new discoveries from exploration drill targets outside of the pit area, possible production of pyrite concentrates, re-processing of tails and harnessing possible economic deposits from outside the current MPSA – Malusok and SE Malusok – which are located at a short trucking distance from the Canatuan mine pit. TVIRD’s application for expansion of its current MPSA to include these deposits in areas adjacent to its current contract area had been approved by the MGB.

Rehabilitation

Following the end of mining and processing operations in January 2014, decommissioning and rehabilitation activities within the disturbed areas commenced. Approximately 183 hectares are subject to the closure programs as identified in the approved Final Mine Rehabilitation and Decommissioning Plan (FMRDP).

Year 2014 was considered a Transition Period prior to implementation of the final mine closure plan. Activities during this period were limited to equipment decommissioning, care and maintenance of the areas that had undergone prior progressive rehabilitation and preparation of the area for implementation of the FMRDP.

An Active Closure Phase followed in Year 2015 and continued through mid-2018. The program was designed to focus on structural improvements for drainage, erosion control and slope stability as well as soil conditioning and preparation and planting of cash crops and diverse forest species. To date, 168 hectares, representing 92% of the total disturbed area, is rehabilitated. TVIRD has also planted close to 600,000 trees, including contributions to the National Greening Program.

A Passive Closure Phase was scheduled for the remaining half of 2018 and is expected to continue through 2020. The activities are designed to focus on care and maintenance of the rehabilitation programs completed during progressive rehabilitation during the operations phase and those activities completed during the Active Closure Phase.

Both Third Party and internal environmental monitoring programs were planned to continue throughout the mine closure period. The internal monitoring program involves regular data collection for meteorology, water quality, stream hydrology and instrumentation data collection for the Tailings Storage Facility. Third Party monitoring programs completed during the Active Closure Phase include flora and fauna monitoring, air quality monitoring, and aquatic habitat monitoring.

Additional Exploration Potential

TVI has an extensive 352 square kilometer (136 square mile) package of tenement applications surrounding the Canatuan mine that make up the Greater Canatuan Tenement Area (GCTA). Volcanogenic sulphide deposits, like Canatuan, rarely occur in isolation. TVIRD believes that similar Canatuan-style deposits exist within the GCTA and that there is a potential for discovering extension developments.

MPSA processing and approval are on hold due to the ongoing moratorium on new mineral permit applications imposed by the Secretary of the Department of the Environment and Natural Resources (DENR) in compliance with Executive Order No. 79, Series of 2012. In March 2013, the DENR lifted the moratorium on application for exploration permits but retained the moratorium on MPSAs and financial or technical assistance agreements despite the signing of the much awaited Executive Order by the President of the Philippines. In November 2014, the DENR’s Mines and Geosciences Bureau (MGB) relaxed the current mining policy, allowing companies faced with depleting reserves to expand their contract areas.

In July 2018, the DENR lifted the Moratorium on the acceptance, processing and/or approval of Exploration Permit applications. The order took effect on August 10, 2018.

For more information, please visit TVIRD’s website at www.tvird.com.ph.

North Zamboanga Exploration Tenements

North Zamboanga Exploration Tenements

The North Zamboanga tenements consist of 11 permit applications covering 1,240 square kilometres (771 square miles) of the Zamboanga Peninsula on the island of Mindanao in the Philippines. The properties are 100% owned by TVIRD.

The current permit applications cover a number of mineral targets identified by a prior exploration program conducted by a major international company, numbering over 20 epithermal gold, massive sulphide and porphyry copper-gold prospects. Reconnaissance work carried out to date has supported historical findings and has resulted in the discovery of additional prospects of interest. Indications of mineralization often occur on the surface and have been easily accessible to our exploration teams.

Among the more prominent prospects in the North Zamboanga tenement package is the Bonbon area, which is covered by an 81 square kilometre (50 square mile) Exploration Permit Application. Bonbon is made up of a series of north-northwest trending quartz veinlets/stockworks in highly altered volcanics and intrusives, spread over a 10 kilometre (6 mile) long by 2 kilometre (1 mile) wide area. Geologic mapping and sampling as well as geophysical surveys are in the planning stages in order to locate prospective drill targets.

For more information, please visit TVIRD’s website at www.tvird.com.ph.

Agribusiness

Agribusiness

In 2013, TVIRD created a wholly owned subsidiary, TVI Agriproducts Inc., which entered into a 50:50 agribusiness joint venture with agricultural commodity manufacturer and marketer Kennemer Foods International to create and establish of a joint agri-enterprise for cacao production via company-managed plantations in the municipalities of Siocon and Baliguian in Zamboanga Del Norte.  Siocon and Baliguian are neighboring municipalities of TVIRD’s Canatuan mine which was decommissioned in late 2013.

Under the agreement, both companies will undertake the development of plantations through consolidated landholdings either through lease or revenue sharing agreements together with individual farmers and lot owners and recognized indigenous peoples communities.  Each plantation will have a consolidated area of no less than 100 hectares within the ancestral domain of the Subanons – TVIRD’s indigenous hosts - and nearby areas. The agreement also specifies the development of contract growing agreements with the farmers wherein the cacao produced from the plantations will be marketed and exported according to mutually-agreed terms of yield-sharing.

As the first local company to operate under the Mining Act of 1995, TVIRD has introduced livelihood programs to the community as part of its corporate social commitments and the joint agri-enterprise represents its most aggressive initiative to date. The initiative is set to provide the immediate community with a sustainable enterprise beyond the life-of-mine. The company also has interests in neighboring Balabag and in Agusan Del Norte.

Based on a development roadmap culled from a study conducted by the University of Asia and the Pacific (UA&P), the project would expand to a total of 1,600 hectares over four years, depending on available land, and at a financial internal rate of return of seven years.

Additionally, the project could generate close to 1,300 jobs for the local community or an additional 400 jobs if TVIRD workers are absorbed by the joint venture company.

For more information, please visit TVIRD’s website at www.tvird.com.ph.