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Operational Numbers below as of August 31, 2009
- 1,804 tpd average daily throughput
- 198 tpd average daily production
- 91.5% copper recovery
- $US0.47 average cash cost per Cu lb eq.
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(TSX: TVI)
CALGARY, Sept. 15 /CNW/ - TVI Pacific Inc ("TSX:TVI" or "the Company") announced today that, for the month of August 2009, its Philippine affiliate, TVI Resource Development Philippines, Inc. ("TVIRD"), achieved increased levels of copper concentrate output with declining production costs at its Sulphide (Copper-Zinc) Project facility in Canatuan, Siocon, Zamboanga del Norte.
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Highlights to August 31, 2009:
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August Year-to-date
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Total tonnes of ore processed (t) 55,932 298,314
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Average tonnes of ore processed per day (t) 1,804 1,228
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Copper recovery (%) 91.5 80.4
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Ore copper grade (%) 2.28 2.39
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Ore gold grade (%) 0.59 0.82
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Ore silver grade (%) 46.00 75.91
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Concentrates produced (dry weight - t) 6,142 30,184
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Average daily concentrate production (tpd) 198 124
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Concentrate copper grade 18.97 19.00
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Concentrate gold grade (g/t) 3.83 3.79
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Concentrate silver grade (g/t) 258.39 319.60
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Average cash costs per Cu lb eq produced (US$)* 0.47 0.61
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* Excludes selling expenses. For the month of August 2009, the copper
pound equivalent for metals shipped was calculated using commodity
prices of US$2.75/lb for copper, US$952.15/oz for gold and
US$14.27/oz for silver. For the year-to-date (specific dates) the
copper pound equivalent for metals shipped was calculated using
commodity prices of US$2.29/lb for copper, US$933.35/oz for gold and
US$13.66/oz for silver. The copper pound equivalent for metals in
ending inventory at August 31, 2009, was calculated using commodity
prices of US$2.94/lb for copper, US$953.13/oz for gold and
US$14.54/oz for silver.
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The Canatuan mine produced an average of 198 tonnes per day ("tpd") of copper concentrates in August 2009, on an average daily throughput of 1,804 tonnes. Copper concentrate recovery was in excess of 90% as the Sulphide Plant attained a stable state of 95% availability. Average cash costs per pound of copper equivalent produced decreased to $US0.47 in August 2009 as a result of increased throughputs and higher efficiencies.
As reported on September 2, 2009, TVIRD made its sixth shipment of concentrates, increasing total exports to 29,705 dry metric tonnes ("dmt") since March 2009. The sixth shipment brings the Company's total estimated gross revenue for copper concentrates to US$34.33 million for 2009. In accordance with the offtake arrangement with MRI Trading AG, TVIRD receives an initial payment for each completed concentrate shipment representing approximately 90% of the estimated value of the total shipment. Final payment for the remaining sale price of the concentrates (approximately 10%) is due once final details relating to weight, assays and prices are determined.
The seventh shipment is expected to occur during the week of September 28, 2009, in keeping with TVIRD's four to five week shipping schedule.
"TVIRD's improved cash position, resulting from our operational successes, provides it with the financial resources to execute a portion of its growth plan", said Cliff James, President and Chief Executive Officer of TVI Pacific. "For instance, TVIRD has accelerated budgeted capital expenditures for the Sulphide Project's Zinc Circuit and Power Line components by six months, with construction expected to commence in Q4 this year. We have also accelerated exploration on near-mine tenements and other projects identified for priority follow-up by management."
TVIRD expects to reduce its power costs by up to 40% after the installation of a dedicated power line. The line will tap into the Philippine national power grid and make available 5-megawatts of power - which is estimated to be sufficient to service the power requirements for the duration of the life of the mine.
Third quarter financial statements and MD&A for TVI Pacific are scheduled to be released during the week of November 9, 2009.
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About TVI Pacific Inc. (TSX: TVI)
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TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for, developing 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.) Inc.
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", "scheduled", "to be", "will be" and similar expressions. Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the 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 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, changes in exploration plans or budgets, and availability of equipment and personnel. 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 concerning the anticipated timing of the seventh shipment of copper concentrates from the Canatuan mine is based upon the offtake agreement entered into by TVIRD for the sale of copper concentrates produced at Canatuan, the timing of prior shipments of copper concentrates, the continuation of copper concentrate production at Canatuan at current rates, no material changes in the prevailing market prices for copper and other base and precious minerals, the processing capabilities of the Canatuan mine, the availability of transportation for the shipment of copper concentrates produced at Canatuan and TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward-looking information concerning anticipated timing for startup of construction of the zinc circuit at the Canatuan project and construction of a new power line to service the Canatuan mine, is based upon TVIRD's current working capital position, estimated cash flow from the Canatuan mine being consistent with cash flow generated in recent months, the schedule of shipments of copper concentrates produced at the Canatuan mine being consistent with the shipping schedules for recent months, management's estimates of the costs associated with the construction projects and the current development plan for Canatuan and TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward-looking information concerning anticipated reductions in power costs following installation of the new power line is based upon the current power costs associated with the operation of the Canatuan mine, current power rates charged by the operator of the Philippine national power grid, and current and anticipated power requirements to operate the Canatuan mine. Forward-looking information concerning sufficiency of the proposed power line for mine requirements is based upon the current power requirements for the Canatuan mine, there being no unplanned material expansions to the Canatuan mine that would give rise to significant increased power demands, the current development plan for Canatuan and TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward-looking information concerning the anticipated timing of release of TVI Pacific's unaudited third quarter financial statements and related MD&A is based upon the current status of the draft financial statements and related MD&A, the historical timing of completion filing of third quarter financial statements and related documentation, and regulatory requirements. 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 and its affiliates are exposed in the conduct of their business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2008, which was filed on SEDAR on March 26, 2009, 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.
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The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
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