Encouraging gold and silver values continue to be encountered; current exploration drilling expected to be completed early 2007
CALGARY, ALBERTA--(CCNMatthews - Jan. 9, 2007) -
- RECENT DRILL INTERCEPTS INCLUDE:
-- 2.65 m averaging 16.88 gpt Au and 13.57gpt Ag
-- 7.05 m averaging 4.85 gpt Au and 109.50 gpt Ag
-- 3.00 m averaging 5.94 gpt Au and 21.00 gpt Ag
-- 2.65 m averaging 9.36 gpt Au and 294.20 gpt Ag
-- 7.27 m averaging 15.33 gpt Au and 49.35 gpt Ag
- OBJECTIVE TO DELINEATE TINAGO AND MISWI VEIN SYSTEMS AT 50 METER SPACING
- COMPLETE PROJECT SCOPING STUDY ANTICIPATED BY MID-2007
TVI Pacific Inc. (TSX:TVI) ("TVI" or the "Company") is pleased to
announce that its Philippine affiliate, TVI Resource Development
(Phils.) Inc. ("TVIRD"), has completed additional exploration drilling
on the Balabag Property located in Zamboanga del Norte, Philippines.
Information concerning prior results of the drilling program at Balabag
was included in the Company's October 10, 2006 news release. A total of
30 additional drill holes (BDDH 27 to 54) have been completed, with 3
other holes on-going, using a combination of PQ3 (triple tube) and HQ3
(triple tube). This brings the total number of completed drill holes to
53 with a total aggregate meterage of 6,488 meters as of November 30,
2006. The drilling program has been conducted by Exploration Drilling
Corporation, TVI's wholly-owned subsidiary.
The most recent drilling results are summarized in the Assay Table
set out below in this news release. Maps indicating hole locations and
setting out additional information relating to trenches, tunnels and
schematic vein structures are available on the Company's website at tvi2014.q4web.com.
"Management of TVI Pacific continues to be encouraged with the
results of the drilling program at Balabag," said TVI CEO Cliff James.
"In addition to a multi-vein mineralization system identified by
completed elements of our exploration program, new outcrops found
further east may indicate extensions to existing vein structures which
we expect to follow up on by further drilling and trenching. We expect
the current drilling campaign to be completed early in 2007 enabling a
comprehensive Scoping Study by mid-2007."
Certain information set out in this News Release respecting
exploration activities at Balabag constitutes forward-looking
information, including information concerning the anticipated timing of
certain initiatives. Readers should review the cautionary statement
respecting forward-looking information that appears at the end of this
News Release.
Interpretation
The Balabag Gold project is centered on a 1.5 km by 1 km
structurally controlled area consisting of a series of vein structures
occurring in tuffaceous agglomerate and andesitic rocks bordered to the
north and south by NW-SE regional faults displaying sinistral
displacement. Data collected to date suggests an en echelon dilational
system of sigmoidal veins that are stacked running east-westerly and
gently dipping to the north. At Balabag, gold mineralization mainly
occurs within quartz carbonate ferrigenous veins hosted in the
tuffaceous agglomerate. This volcanic assemblage lies some 3 km to the
east of a local dioritic intrusive where copper anomalies historically
have been reported. Such intrusives are often associated with epithermal
gold deposits around the Pacific Rim.
The Tinago vein appears to be the largest and more strongly
mineralized structure. The mineralization appears to remain strong from
section 4E to 4W (some 400m along strike) where the vein swell is
greatest, yet appears to decrease progressively further west. The Tinago
vein remains open to the east. The Miswi-Lalab twin vein system is
smaller and thinner and appears somewhat like a leaner version of the
Tinago vein. Other vein occurrences have been uncovered progressing
further east where the mineralized area and vein system remain open and
under explored. These latter occurrences need to be substantiated and
require detailed follow-up work. Systematic mapping of the area is being
carried out along with additional drilling at 25 meter spacing of the
Tinago and other identified structures to enhance the definition of the
mineralized system and resources.
BALABAG GOLD PROJECT - ON GOING DRILLING CAMPAIGN - SUMMARY RESULTS
---------------------------------------------------------------------------
DH-ID No. From To Interval Au Ag AuEq Target Remarks
---------------------------------------------------------------------------
($550
Au
$9.50
(m) (m) (m) (gpt) (gpt) /Ag)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
BDDH-06-27 11.70 13.80 2.10 0.299 7.50 0.43 Miswi
---------------------------------------------------------------------------
BDDH-06-28 73.30 76.50 3.20 0.065 1.61 0.09 Tinago W
BDDH-06-28 76.50 79.15 2.65 2.292 39.65 2.98 Tinago W
BDDH-06-29 21.75 27.93 5.03 0.358 9.86 0.53 Tinago E
0.15m No
BDDH-06-30 17.08 19.30 2.07 2.779 33.16 3.35 Miswi Recovery
BDDH-06-30 93.40 94.95 1.55 3.955 15.96 4.23 Miswi
BDDH-06-30 111.00 112.72 1.72 8.890 37.07 9.53 Miswi
BDDH-06-30 114.20 114.75 0.55 0.425 2.70 0.47 Miswi
BDDH-06-30 123.75 126.40 2.65 16.884 13.57 17.12 Miswi
BDDH-06-31 5.30 5.83 0.53 0.145 3.00 0.20 Tinago W
BDDH-06-31 37.52 39.40 1.88 0.150 5.10 0.24 Tinago W
BDDH-06-31 41.15 42.00 0.85 0.213 13.40 0.44 Tinago W
BDDH-06-32 24.50 24.96 0.46 1.710 7.30 1.84 Tinago E
BDDH-06-32 33.20 34.20 1.00 1.959 9.50 2.12 Tinago E
BDDH-06-33 77.00 80.65 2.65 9.357 294.20 14.44 Tinago W
BDDH-06-34 32.00 33.70 1.70 1.101 49.10 1.95 Miswi
BDDH-06-34 33.90 34.80 0.90 0.756 31.90 1.31 Miswi
BDDH-06-34 35.20 37.20 2.00 0.752 4.50 0.83 Miswi
BDDH-06-34 40.40 40.70 0.30 0.067 23.30 0.47 Miswi
BDDH-06-34 41.00 41.50 0.50 0.200 8.20 0.34 Miswi
BDDH-06-34 41.90 43.80 1.90 0.353 7.36 0.48 Miswi
BDDH-06-35 9.25 10.70 1.45 0.074 1.90 0.11 Tinago E
BDDH-06-35 11.45 12.45 1.00 0.121 4.50 0.20 Tinago E
BDDH-06-35 14.60 15.35 0.75 0.108 8.90 0.26 Tinago E
BDDH-06-35 26.15 26.60 0.45 0.051 5.30 0.14 Tinago E
BDDH-06-35 27.45 30.15 2.70 0.034 5.91 0.14 Tinago E
BDDH-06-35 33.50 40.77 7.27 15.325 49.35 16.18 Tinago E
BDDH-06-35 41.10 42.10 1.00 0.063 3.30 0.12 Tinago E
BDDH-06-35 42.60 43.65 1.05 0.141 1.90 0.17 Tinago E
BDDH-06-35 44.15 44.40 0.25 0.042 2.60 0.09 Tinago E
BDDH-06-35 52.80 53.65 0.85 0.107 3.00 0.16 Tinago E
BDDH-06-35 56.50 57.75 1.25 0.324 4.00 0.39 Tinago E
BDDH-06-36 80.50 82.00 1.50 Lalab
BDDH-06-36 83.95 84.95 1.00 Lalab
BDDH-06-36 87.00 95.30 8.30 Lalab
BDDH-06-36 98.55 99.65 1.10 Lalab
BDDH-06-36 104.65 105.65 1.00 Lalab
BDDH-06-36 111.20 116.65 5.45 Lalab
BDDH-06-36 117.10 117.50 0.40 Lalab
BDDH-06-36 186.80 187.35 0.55 Lalab
BDDH-06-37 46.55 48.30 1.75 2.315 30.80 2.85 Miswi
BDDH-06-37 52.35 59.40 7.05 4.850 109.50 6.74 Miswi
BDDH-06-37 118.95 127.95 9.00 0.056 1.30 0.08 Miswi
BDDH-06-37 148.70 151.70 3.00 5.941 21.00 6.30 Miswi
BDDH-06-37 154.65 156.20 1.55 0.242 2.70 0.29 Miswi
BDDH-06-38 22.50 24.40 1.90 Tinago
BDDH-06-38 26.75 31.35 4.60 Tinago
BDDH-06-38 33.00 37.45 4.45 Tinago
BDDH-06-39 No Samples Sent Tinago Abandoned
Partial
BDDH-06-40 38.25 45.50 7.25 33.807 Miswi Result
Partial
BDDH-06-40 74.30 78.10 3.80 22.298 Miswi Result
Partial
BDDH-06-40 80.65 82.35 1.70 3.662 Miswi Result
Sent for
BDDH-06-41 Tinago Assay
Sent for
BDDH-06-42 131.30 137.20 5.90 Lalab Assay
Sent for
BDDH-06-43 Tinago Assay
Sent for
BDDH-06-44 86.80 92.90 6.10 Lalab Assay
Sent for
BDDH-06-44 93.85 99.60 5.55 Lalab Assay
BDDH-06-44 100.95 102.40 1.45 Lalab
BDDH-06-44 105.45 107.15 1.70 Lalab
Sent for
BDDH-06-45 Tinago Assay
Sent for
BDDH-06-46 7.00 9.20 2.20 Lalab Assay
BDDH-06-46 67.00 71.80 5.30 Lalab
BDDH-06-46 109.60 130.90 21.30 Lalab
BDDH-06-46 151.10 155.80 4.70 Lalab
Sent for
BDDH-06-47 Tinago Assay
Sent for
BDDH-06-48 94.68 104.70 10.20 Lalab Assay
BDDH-06-48 113.60 127.80 14.20 Lalab
BDDH-06-48 128.13 131.85 3.72 Lalab
BDDH-06-48 133.85 137.70 3.85 Lalab
BDDH-06-48 166.60 172.20 5.60 Lalab
For
BDDH-06-50 Miswi Cutting
For
BDDH-06-54 Tinago W Cutting
Drilling
BDDH-06-56 Tinago On-Going
Drilling
BDDH-06-57 Tinago W On-Going
For the purpose of calculating gold equivalent values a gold price
of US$ 550 per oz and silver US$ 9.50 per oz were used. Au and Ag
equivalent calculations reflect gross metal content and have not been
adjusted for metallurgical recoveries. True widths are approximately 85%
of the reported lengths.
Outlook
Data collected at Balabag suggests that some if not all of the vein
structures remain open to the east, either on strike and/or at depth.
Systematic drilling at 50 meter spacing was conducted to determine
whether the veins have a minimum continuity (as TVIRD believes to be the
case). New outcrops found further east may indicate extensions to
existing vein structures which are expected to be followed up by further
drilling and trenching. Systematic mapping of the area is being carried
out and additional drilling at 25 meter spacing on the Tinago and other
identified structures is planned to enhance TVI's understanding of the
mineralized system and resources. The current drilling campaign is
expected to be completed early in the 2007 so as to enable a preliminary
resource estimate and scoping study on the project by mid-2007.
TVIRD holds an option on the Balabag property which was granted
under an agreement with Zamboanga Minerals Corporation ("ZMC"). Balabag
lies approximately 75 km east-northeast of the TVIRD's gold-silver
mining operation at Canatuan and immediately adjacent to the extensive
tenement applications filed by TVIRD in early 2005 which cover an area
of 1,257.12 km2. The Mineral Production Sharing Agreement ("MPSA") under
which ZMC obtained its rights to the Balabag property covers an area of
47.79 km2. The agreement between TVIRD and ZMC provides TVIRD with an
exclusive period, ending May 2008, to assess the mineral potential of
the property. Should TVIRD so elect, the property may be purchased for
US$350,000 with ZMC retaining a 2.5% net smelter royalty on the
property.
Current Work Program and Quality Assurance
The current work program calls for continued mapping, trenching,
channel sampling and exploration diamond drilling at Balabag. Management
is confident the program is well managed with field and interpretative
work carried out diligently by the TVIRD team. The drilling supervision,
core logging, mapping trenching and channel sampling procedures are
consistent with current mining practices. Core samples, typically one
meter long, are sawed using a circular carbide-blade apparatus. Wherever
practical to do so, the channel samples are cut 5 to 10 cm deep using
circular carbide saw-blade across the exposed rock surfaces and
structures in trenches and outcrops. Likewise the drill logs are
comprehensive, descriptive and include RQD measurements and fracture
counting with detailed sampling interval determinations. Overall, in
Management's view, the field and interpretative work is of high quality.
Technical drawings and maps setting out additional information
relating to the drilling and sampling program may be found at the
Company's web-site at
tvi2014.q4web.com.
A technical report (prepared in accordance with National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"))
setting out additional details relating to the prior sampling program at
Balabag was filed (on SEDAR) with certain securities regulatory
authorities in Canada on September 27, 2005. Additional information
concerning the geology, mineral occurrences and nature of mineralization
found at Balabag is also set out in the September 27, 2005 report.
Although management of TVI is encouraged by the exploration results
generated to date in the Balabag area and has determined to undertake
further exploration activities, readers are cautioned that there has
been insufficient exploration to date to define a mineral resource and
it is uncertain whether further exploration will result in the
identification of a mineral resource.
About TVI Pacific Inc. (TSX: TVI)
TVI Pacific Inc. is a publicly-listed 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 in
nearly four decades) began mining and milling operations in mid-2004,
producing gold and silver dore. Mill throughput is currently averaging
1,900 dmtpd, generating an average of approximately 160 AuEqOz per day
from a gossan/oxide zone. In 2006, TVI received a completed NI 43-101
feasibility study on the Canatuan Sulphide project prepared by Norwest
Corporation (which has been filed with certain securities regulatory
authorities in Canada and is available at the SEDAR website.) The
Norwest study addresses the copper-zinc bearing massive sulphide zone,
or lower portion of the Canatuan Deposit. Planning for construction of
the Sulphide Project at Canatuan is nearly complete and a positive plant
production decision is anticipated in the near future after further
project optimization work has been completed. 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 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 A.R. 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 Division consisting of Exploration Drilling
Corporation ("EDCO"), a wholly-owned subsidiary of TVI Pacific Inc.
based in the Philippines, and Hunan Pacific Drilling ("HPD"), a division
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 Balabag exploration project. Mr.
Caumartin has reviewed and approved this news release and has verified
the data, including sampling, analytical and test data, set out in this
news release. McPhar Laboratory of Manila, Philippines, an ISO 9001/2000
accredited laboratory, performed the sample preparation and assaying
for the current sampling phase of the exploration project at Balabag.
Gold analysis was by 50 gm fire assay fusion; where gold values were
greater than 3 ppm assay values were by gravimetric finish and by AAS
where the values were less than that threshold. Silver was determined by
AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate results
were included in the analytical report. A blank and a standard sample
were included for each batch of 50 samples for quality control. A
replicate assay was done on every 20th sample and certified reference
materials were used in every 20 samples. In addition to the laboratory's
internal QA/QC, TVIRD independently inserted blanks and standards
randomly, but on average every 20th sample.
The statements set out in this news release that are not historical
facts are forward-looking statements. Forward-looking statements (often,
but not always, identified by the use of words such as "expect", "may",
"anticipate" or "will" and similar expressions) may include plans,
expectations, opinions, or guidance that are not statements of fact.
Forward-looking statements are based upon the opinions, expectations and
estimates of management as at the date the statements are made and are
subject to a variety of risks and uncertainties and other factors that
could cause actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. Accordingly,
readers should not place undue reliance upon the forward-looking
statements contained in this News Release. 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 reserves, timing, results and costs of exploration and
development activities, availability of financial resources or
third-party financing and new laws (domestic or foreign).
Forward-looking information respecting future exploration on the Balabag
property are based on the results of earlier exploration initiatives,
the current budget, development plans and overall strategy of TVI and
the current exploration program, all of which are subject to change. The
forward looking statements of TVI Pacific Inc. contained in this News
Release are expressly qualified, in their entirety, by this cautionary
statement. Various risks associated with the Company's operations are
described in detail in TVI's Annual Information Form, filed by TVI on
SEDAR on March 30, 2006, which is available at
www.SEDAR.com.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.