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TVI Pacific's 30.66% owned TVIRD Acquires Indirect 60% equity interest in Mt. Labo Exploration and Development Corporation

March 22, 2022

CALGARY, AB, March 22, 2022 /CNW/ - TVI Resource Development Phils., Inc. ("TVIRD"), a Philippines corporation in which TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) ("TVI" or the "Company") holds a 30.66% interest, announced today that it has acquired all of the outstanding capital stock of SageCapital Partners, Inc. ("SageCapital"), pursuant to a Sale and Purchase Agreement (the "SageCapital Agreement") between TVIRD and a third-party resident in the Philippines ("Vendor").  SageCapital is a holding company incorporated under the laws of the Philippines, which, in turn, owns 60% of the outstanding capital stock of Mt. Labo Exploration and Development Corporation ("MLEDC"), a Philippines mining and minerals exploration development company whose projects are based in Camarines Norte, Philippines, and which is the owner and operator of the Mabilo Project ("Mabilo") located in the Camarines Norte Province, Eastern Luzon, Philippines.

Highlights:

  • TVIRD has acquired all of the outstanding capital stock of SageCapital (the "SageCapital Shares"), pursuant to the SageCapital Agreement (the "Acquisition").  SageCapital, in turn, owns 60% of the outstanding capital stock of MLEDC.    
  • MLEDC prepared a feasibility study on Mabilo in May of 2016 ("Feasibility Study"), which Feasibility Study was supported by a technical report entitled "Mabilo Project National Instrument 43-101 Technical Report" prepared by Lycopodium Minerals Pty Ltd. dated and filed on May 2, 2016, with a mineral reserve and mineral resource effective date of November 2015.  RTG Mining Inc. ("RTG"), which holds a 40% interest in MLEDC, has filed the Technical Report under RTG's SEDAR profile (the "Mabilo Technical Report").  The Mabilo Technical Report reflects a historical Probable Mineral Reserves estimate of 7.8Mt at 2.0% Cu, 2.0g/t Au, 8.8g/t Ag and 45.5% Fe.  Metal price assumptions applied in the Mabilo Technical Report were US$5,200/tonne for Cu, US$1,125/oz for Au, US$15/oz for Ag and US$65/tonne for magnetite.  TVI considers this report no longer current and cautions that it should not be relied upon. See "The Mabilo Project" below.
  • Management and the directors of TVIRD believe that the Mabilo Project has exploration potential as it remains open, down dip and along strike.
  • Mabilo is covered by an approved Declaration of Mining Project Feasibility ("DMPF") and Environmental Compliance Certificate ("ECC") for initial direct shipping ore ("DSO") operations issued by the Mines and Geosciences Bureau ("MGB") and the Environmental Management Bureau, respectively, of the Department of Environment and Natural Resources ("DENR") of the Republic of the Philippines.         
  • With an open-pit mining method contemplated at Mabilo, the lifting of the open-pit mining ban in the Philippines as announced by the DENR of the Republic of the Philippines on December 23, 2021, is a significant development.           

Purchase of the SageCapital Shares :

TVIRD has acquired all of the outstanding capital stock of SageCapital from the Vendor.  SageCapital, in turn, owns 60% of the outstanding capital stock of MLEDC. 

The assets of MLEDC include the Mabilo Project located in the Camarines Norte Province, Eastern Luzon, Philippines, as covered by Philippines Mineral Production Sharing Agreement ("MPSA") MLC-MRD V-459 Amended (Renewal) and two (2) additional blocks with an existing Exploration Permit (EP-019-202-V), covering 3,484.2 hectares and 165.9 hectares, respectively, and including established government approvals and relationships with key stakeholders.

"This represents yet another strategic acquisition for TVIRD," said Mr. Cliff James, Chairman and CEO of TVI and Chairman of TVIRD, "While the Mabilo project is still in the early innings and there is much work to do to determine whether the project will be capable of commercial production, management of TVI hopes that the Acquisition, in combination with the recent acquisitions by TVIRD of the Siana Gold Mine and the Mapawa Project, will expand TVIRD's resource base. Management of TVIRD also considers the Acquisition to be compatible with TVIRD's ongoing consideration of an initial public offering in the Philippines."

On December 23, 2021, the DENR announced under DENR Administrative Order ("DAO") No. 2021-40 the lifting of the open-pit mining ban in the Philippines together with several other surface mining methods that had been in place for the extraction of copper, gold, silver and/or complex ores in the Philippines under the previously issued DAO No. 2017-10.  This development is highly significant because it is contemplated that mining at Mabilo will use an open-pit mining method. 

Mt. Labo Exploration and Development Corporation :

MLEDC was incorporated in the Philippines and registered with the Securities and Exchange Commission on February 26, 1980, to engage primarily in the business of mining, exploration and processing of metals and other mineral products.  MLEDC commenced operations on its Nalesbitan Mine in June 1989 and those operations continued until October 1990, at which time mining operations were suspended.  The Nalesbitan Mine is located 15 kilometers west of Mabilo and is included in the Mabilo MPSA.

MLEDC commenced work on Mabilo in July 2013.  Mabilo is a brownfield project and is held and operated 100% by MLEDC, a corporation owned by SageCapital (60%) and by RTG, through SRM Gold (40%).  RTG is an Australia-based mining and exploration company with a principal listing on the Toronto Stock Exchange (TSX:RTG) and a secondary listing on the Australian Stock Exchange (ASX:RTG).

The Mabilo Project:

The Mabilo Project is located in Camarines Norte Province, Eastern Luzon, Philippines, one of the major traditional gold mining centers in the Philippines.  The Mabilo Project area is easily accessed from the nearby town of Labo, using a 15 km all-weather road.  With a near-surface deposit, Mabilo has potential for DSO and it is contemplated that mining will use an open-pit mining method.  The Mabilo mineralized deposit is classified as a copper-gold-iron skarn deposit that offers potential for multi-metal products, namely copper, gold and silver, with by-products magnetite (Fe3O4) and pyrite (FeS2).

MLEDC undertook its first drilling program in 2012 designed to target the seven magnetic anomalies identified by ground magnetics survey.  The second drilling program followed in 2013 to 2015 during which time 112 drillholes were completed with a total meterage of 19,542 meters.  The MGB validated in March 2018 the June 2015 Final Exploration Report submitted with the application for a DMPF and the corresponding ECC and DMPF for initial DSO operations were approved in 2020.

On November 5, 2015, RTG announced that a Mineral Resource estimate had been prepared by independent resource consultancy, CSA Global Pty Ltd ("CSA Global"), which was later incorporated into the Feasibility Study.

The following Mineral Resource estimate is based on data obtained from 99 diamond drillholes (18,201 meters) completed as of the end of September 2015 and a 0.3 g/t Au or 0.3% Cu grade cut-off.  Holes were drilled on a nominal 40 meter by 40 meter drill pattern along strike, with infill to a nominal 20 meter by 20 meter in parts.

Classification

Million Tonnes

Cu %

Au g/t

Ag g/t

Fe %

Cu Metal
(Kt)

Au Oz
('000s)

Fe Metal
(Kt)

Indicated

8.9

1.9

2.0

9.8

45.6

169.3

577.6

4,034.5

Inferred

3.9

1.5

1.5

9.1

29.0

58.0

184.9

1,134.1

Total

12.8

1.8

1.9

9.6

40.5

227.3

762.5

5,168.6

On May 2, 2016, RTG filed the Mabilo Technical Report prepared by Lycopodium Minerals Pty Ltd. that is based on the results of a Feasibility Study completed on the Mabilo Project and reported:   

Probable Mineral Reserve Estimate

Ore

Waste

Strip

Ratio

Class

Type

Mt

Fe %

Au g/t

Cu %

Ag g/t

Mt


Gold cap

0.351

40.1

3.11

0.38

3.26



Probable

Supergene

0.104

36.5

2.20

20.70

11.90

77.13

10.0


Oxide Scarn

0.182

43.6

2.52

4.17

19.90




Fresh

7.155

45.9

1.97

1.70

8.73



TVI is not treating either the Mineral Resource estimate or the Probable Mineral Reserve estimate as current under National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("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.  Though historical, the estimates are fairly recent and were prepared to NI 43-101 standards, and TVIRD thus has no reason to believe they are not reliable within the context that they were initially prepared.

Qualified persons have not done sufficient work under NI 43-101 to verify the results of the Feasibility Study or to render it current and complete under NI 43-101, and therefore details of the Feasibility Study are not included in this news release.  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.  At the appropriate time, TVIRD plans to assess the mine development and production plan as included in the Feasibility Study in order to develop its own plan for further exploration and possible development.  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.

Mr. Michael James Bue, Bsc. Eng, M.Eng, P.Eng, a "qualified person" for the purposes of NI 43-101 has reviewed the Mabilo Technical Report on behalf of TVI.  To the best of the knowledge, information and belief of TVI, there is no new material scientific or technical information that would make the disclosure of the Mineral Resources in this release inaccurate or misleading.  Revisions to the Mabilo Technical Report are required to reflect current technical advances, environmental standards and economic parameters.  As a result, TVI considers the Feasibility Study and accompanying Mabilo Technical Report to be no longer current and should not be relied upon.

The scientific and technical content of this news release has been sourced from publicly available documents filed under RTG's SEDAR profile (that may be accessed at https://www.sedar.com/) and ASX profile (that may be accessed at https://www2.asx.com.au/markets/company/RTG).

Additional information related to the Mabilo Project may be found on the TVIRD website at https://tvird.com.ph/

Qualified Person

The Qualified Person responsible for the scientific and technical content of this news release is Mr. Michael James Bue, Bsc. Eng, M.Eng, P.Eng.  Mr. Bue has acted as the Qualified Person in compliance with NI 43-101 reporting requirements by virtue of his membership in the Professional Engineers of Ontario and Canadian Institute of Mining and Metallurgy and has confirmed compliance of this news release with NI 43-101 requirements.

About TVI Resource Development Phils., Inc.

TVIRD, a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines.  TVIRD has a pool of highly competent managers, technical personnel and skilled workers with previous experience in gold-silver operation and owns 100% of the Balabag gold/silver mine, 100% of the Siana gold mine and Mapawa project, and a 60% interest in AMVI, a direct shipping Nickel/Iron operation that commenced in October 2014 and in which TVIRD is operator.  Balabag has shipped 17,939 gold equivalent ounces through 12 shipments to the date of this news release and AMVI has shipped a total of 18.84 million wet metric tonnes of nickel laterite ore through 346 shipments through to February 28, 2022.

About TVI Pacific Inc.

TVI Pacific Inc. is a Canadian resource company focused on the acquisition of resource projects in the Asia Pacific region.  TVI currently holds a 30.66% equity interest in TVIRD, a Philippines corporation, a 14.4% equity interest in Mindoro Resources Ltd. and a 100% investment in shares of TG World Energy Corp. As at the date of this announcement, TVI has 656,987,039 outstanding common shares and 696,887,039 fully diluted including the currently issued outstanding options of 39,900,000.

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

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.  The forward-looking statements contained in this News Release include: (1) statements related to exploration potential of Mabilo, which is not guaranteed and requires further review and analysis by TVIRD and may be affected by factors beyond the control of TVIRD; (2) the stated total Mineral Resource and Probable Mineral Reserves of Mabilo, for which actual volumes produced may vary (the estimation of mineral reserves and mineral resources is inherently uncertain and involves subject judgments about many relevant factors).

Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information supplied by third parties.  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 and should not be read as guarantees of future performance or results.   These factors include, but are not limited to, such things as: (i) general economic conditions in Canada, the Philippines and elsewhere; (ii) volatility of prices for precious metals, base metals, and other commodities; (iii) commodity supply and demand; (iv) fluctuations in currency and interest rates; (v) inherent risks associated with the exploration and development of mining properties, including but not limited to geological characteristics, metallurgical characteristics of the mineralization, the availability of equipment and facilities necessary to complete development and the ability to develop adequate processing capacity; (vi) the cost of consumables and mining and processing equipment; (vii) unforeseen technological and engineering problems; (viii) ultimate recoverability of reserves; (ix) production, timing, results and costs of exploration and development activities; * political factors, political stability or civil unrest, including but not limited to acts of sabotage or terrorism and legislative changes that may impact the mining industry and TVIRD's ability to obtain or retain required permits, perform required exploration, complete development or operate any mine or project; (xi) availability of financial resources or third-party financing; (xii) changes in laws or regulations (domestic or foreign); (xiii) changes in administrative practices; (xiv) changes in exploration plans or budgets; (xv) the availability of skilled labour; (xvi) the failure of parties to contracts with the Company to perform as agreed, including its joint venture partners; (xvii) the impact of the COVID-19 pandemic; and (xviii) extreme weather conditions and forces of nature (i.e. typhoons, heavy rains, earthquakes, and the like) that may disrupt operations and explorations.

The Company does not have control over TVIRD nor does it have any involvement in the management or decisions of TVIRD or control over financial reporting and internal controls of TVIRD.  The Company relies on the internal controls and financial reporting controls of TVIRD and their failure to maintain effectiveness or comply with applicable standards may adversely affect TVI.

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.

Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2020, which was filed on SEDAR on April 28, 2021 and is available under the Company's profile at www.SEDAR.com .

The forward-looking statements contained in this News Release are made as of the date hereof and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements, except as required by applicable securities laws in force in Canada.  The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE TVI Pacific Inc.