- Exploration Drilling Suggests Additional 150 Metre Sulphide Ore Body Extension To Northwest
- New Discovery Of Rubbly Gossan Float Near Mine Site
CALGARY, ALBERTA--(CCNMatthews - March 13, 2007) - TVI Pacific Inc.
(TSX:TVI) ("TVI" or the "Company") announced today that recent
exploration drilling by its Philippine affiliate, TVI Resource
Development (Phils.), Inc. ("TVIRD"), suggests that the ore body
associated with the sulphide zone at Canatuan extends laterally, in the
northwest quadrant, to a distance of approximately 150 metres further
than previously estimated.
The Company also announced the discovery of rubbly gossan float in a
creek approximately three kilometres from the Canatuan Mine. The float
is believed to have originated from a site near the mine's main ore
body.
Certain information set out in this News Release respecting future
exploration activity at Canatuan constitutes forward-looking
information. Readers should carefully review the cautionary statement
respecting forward-looking information that appears at the end of this
News Release.
The Company stated that assay results from the holes drilled in the
sulphide-extension exploration program have been compiled for the
purpose of preparing an updated National Instrument 43-101 report on the
sulphide mineral resource at Canatuan - to be available in the near
future.
Regarding the source of the gossan float, the Company commented that
further exploration drilling is anticipated in 2007 to enable the
Company to assess the potential impact of this new discovery on the
life-of-mine of the currently producing Canatuan Gossan mill. Gossan is
the oxidized, near-surface portion of the massive sulphide ore body,
currently being mined for silver and gold. The massive sulphide deposit
at Canatuan is a typical example of a volcanogenic polymetallic banded
and massive sulphide horizon developing on the sea-floor above
hydrothermal vents and containing copper, zinc sulphides and other
complex minerals.
The Canatuan Project is located in Siocon, Zamboanga del Norte, in the Southern Philippines.
"We believe that this extension to the sulphide ore body has the
potential to add to the mineral resource of the Sulphide Expansion
Project and futher improve the overall economics of the project,"
commented Clifford James, TVI President and CEO. "As well, if a new,
economic, rubbly gossan deposit is present, it may allow us to extend
the life-of-mine of the current Gossan plant, and extend the period that
we will be able to run two mills together, with a single cost base."
Recent TVIRD exploration activity at Canatuan was designed to assess
the lateral extension of the sulphide mineralization at the Canatuan
mine site and to provide TVIRD a better understanding of the Canatuan
mineral resource, in preparation for the construction of the proposed
sulphide plant. The exploration campaign involved diamond drilling and
reverse circulation (RC) drilling. TVI's Exploration and Drilling
Corporation (EDCO) conducted the drilling activity.
Technical Discussion
Initially, a total of 47 diamond drill holes were completed for
metallurgical test work and infill drilling. Additional drilling was
undertaken to assist TVIRD in its effort to delineate the extension of
sulphide mineralization to the northwest, northeast, southwest and
eastern peripheries of the Canatuan open pit, where the interpreted
sulphide ore body is situated. A combination of diamond drilling and RC
drilling was carried out to complete the drilling program. In total, 74
diamond drill holes and 125 RC drill holes were completed in the second
half of 2006, aggregating a total of 3910.25 metres and 4761 metres,
respectively.
Occurrences of sulphide mineralization were observed from the core
samples recently obtained, which assay data from the drill core in the
northwest area suggests an extension of the sulphide ore body (by
approximately 150 metres) to the northwest and outside the outline of
the open pit. Thus, additional diamond drilling focused on that area.
Banded to massive sulphide, ranging from three (3) to ten (10) metres
were evident with core drill holes CAN-06-42, CAN-06-46, CAN-06-47 and
CAN-06-48. The rest of the drill holes in the northwest extension show
an alternating series of quartz-pyrite-sericite-schist (QPSS) and thinly
banded sulphide (BSUL) with 1-5% pyrite.
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 dore. In
2006, TVI 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 at 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, TVI 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 TVI'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 highly 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
sq kms 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.
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 2006/07 exploration program as described
in this News Release. Mr. Caumartin has reviewed and approved this News
Release and has verified the statements set out in this News Release.
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. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, 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
events or 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 to 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 relating to
the anticipated exploration activities at Canatuan is based upon the
results of prior exploration activities and current exploration plans
and budgets, which are, in turn, premised on such things as the prices
for precious metals and base metals, commodity supply and demand,
currency and interest rates, recoverability of mineral reserves, timing,
results and costs of development activities, availability of financial
resources or third-party financing, applicable laws (domestic or
foreign) and are 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, 2005, which was filed
on SEDAR on March 30, 2006 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.