- Metal Production of 15,437 Ounces - 16% Increase from First Quarter
- Record Mill Throughput - 10% Higher than First Quarter; 46% Increase From Q2 2006
- Record Gold Recovery Of 91.1%
- Silver Recovery Approaching Target Of 60.0%
CALGARY, ALBERTA--(Marketwire - Aug. 16, 2007) - TVI Pacific Inc.
(TSX:TVI) ("TVI" or the "Company) today released second quarter
operating statistics for the Canatuan Mine, located in the southern
Philippines, which is owned by its affiliate, TVI Resource Development
(Phils) Inc. ("TVIRD"). The Canatuan mine significantly improved its
operating performance compared with the first quarter, setting records
for gold recovery and mill throughput.
During the second quarter, the Canatuan mine produced 15,437 gold
equivalent ounces ("AuEqOz") of metal, an increase of 16% from the first
quarter of 2007 and comparable to the same period during 2006. On a
year-to-date basis, the Canatuan Mine has increased production to 28,745
AuEqOz of metal compared with 27,278 AuEqOz produced during the first
half of 2006. Production during the second quarter consisted of 10,587
ounces of Gold (Au), up 19% from the first quarter, and 243,296 ounces
of Silver (Ag), up 14% from the first quarter.
As a result of the changing feed grade and the higher mill
throughput, the Canatuan Mine produced significantly more silver
compared with prior periods, thereby offsetting the decrease in gold
production. For the second quarter, the Canatuan Mine produced 243,296
oz of silver, an increase of 57% from the same quarter in 2006, while
gold production decreased 16% compared with the prior year.
Certain information set out in this News Release constitutes
forward-looking information, including information relating to the
anticipated timing of production of copper and zinc concentrates from
the sulphide zone underlying the gossan reserve. Readers should review
the cautionary statement respecting forward-looking information that
appears at the end of this News Release.
"We are very pleased with the continued performance improvements at
the Canatuan mine," said Clifford M. James, TVI President and CEO. "Our
goal is to implement further productivity improvements and achieve
significant cost reductions in the coming months as we continue to
position the mine to begin producing copper and zinc concentrates from
the underlying massive sulphide reserves in mid-2008."
The following table summarizes the Canatuan Mine's operating statistics
since the beginning of 2006.
% chg
over
Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q1/07
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Mill throughput (dry
metric tonnes):
Total ore processed 114,199 129,758 165,394 181,829 172,129 189,813 10%
Average daily
throughput 1,269 1,426 1,798 1,976 1,913 2,086 9%
Feed grade (grams per
tonne):
Gold (Au) 3.09 3.39 2.68 2.04 1.85 1.90 3%
Silver (Ag) 72.24 60.96 42.85 40.52 76.59 67.46 -12%
Production volume
(ounces):
Gold (Au) 9,148 12,613 12,730 10,719 8,930 10,587 19%
Silver (Ag) 140,727 154,838 157,550 155,392 214,282 243,296 14%
Gold equivalent
ounces (AuEqOz) 11,641 15,636 15,698 13,904 13,308 15,437 16%
Recoveries:
Gold (Au) 80.56 89.17 89.45 89.76 87.39 91.08 4%
Silver (Ag) 53.06 60.89 69.14 65.6 50.55 59.10 17%
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During the second quarter, the Canatuan Mine set a production record
for mill throughput, averaging 2,086 dry metric tonnes per day (2,000
dry metric tonnes on a year-to-date basis). Compared with the prior
year, the Canatuan Mine has increased mill throughput by nearly 50%. The
Canatuan Mine plans to continue optimizing mill production and is
targeting to exceed 2,200 dry metric tonnes per day by the end of 2007.
Feed grade during the second quarter of 2007 was 1.90 grams per
tonne ("gpt") of gold and 67.46 gpt of silver, compared with 3.39 gpt of
gold and 60.96 gpt of silver during the second quarter of 2006. Gold
content has been relatively stable over the past three quarters and the
silver content during the first six months of 2007 was higher than
during 2006. Over the past year, the feed grade has changed because the
chalcocite and sulphide content of the gossan ore increases as mining
operations approach the massive sulphide zone underlying the gossan
reserves. By increasing mill throughput volumes, and by blending gossan
ore from different areas within the current pit, TVI has been able to
optimize and sustain metal production levels (on a gold equivalent
basis) in response to these changes in the feed grade.
Gold recovery reached a record high, averaging 91.08%, and silver
recovery averaged 59.10% during the second quarter compared with gold
recovery of 89.17% and silver recovery of 60.89% during the same period
last year. Both gold and silver recoveries have improved compared with
the first quarter of 2007 and the Canatuan Mine is targeting to further
improve silver recovery in the near term.
For additional information on the Canatuan Mine, please refer to the
National Instrument 43-101 ("NI 43-101") technical report prepared by
Geostat Systems International Inc. ("Geostat"), which was filed with
certain securities regulatory authorities in Canada on August 21, 2006
and is available on the SEDAR website at
www.sedar.com. The Geostat report assesses the gossan mineral reserves and resources at the Canatuan deposit.
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 the Philippines and other Asian countries. The
Company owns the Canatuan Mine and its other Philippine assets through
its affiliate, TVI Resource Development (Phils.) Ltd. ("TVIRD"). TVI's
most advanced project, the Canatuan Mine, currently produces gold and
silver dore.
In 2006, TVIRD 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 through the SEDAR website at
www.sedar.com.
The Canatuan sulphide project includes a copper-zinc bearing massive
sulphide zone underlying the gossan zone currently being mined at
Canatuan. Construction of the sulphide project is underway and TVI plans
to be in production in mid-2008. The Company is currently arranging
financing for the sulphide project.
TVIRD also holds a 2.5% net smelter royalty on the Philippine-based
Rapu Rapu project operated by Lafayette Mining Ltd. as well as other
significant land positions in the Philippines. TVIRD is focusing its
exploration efforts on expanding the mineral resource base near the
Canatuan Mine and on the Balabag project, for which the Company recently
released a resource estimate that has been filed on SEDAR.
Through a wholly-owned Chinese subsidiary, the Company has 2,394 km2
of land under application in China in the Golden Triangle and in the
Tibet Autonomous Region.
TVI's drilling business operates a fleet of 21 drill rigs, providing
contract drilling services to the Company's exploration projects and to
third parties. The drilling business provides the Company with priority
access to drilling equipment at low costs and the opportunity to
generate cash flow from third party contracts.
Andrew Bradfield BSc, P.Eng., Vice President, Operations of TVI
Pacific Inc., serves as TVI's "Qualified Person" (for purposes of
National Instrument 43-101 - Standards of Disclosure for Mineral
Deposits) on the Canatuan project and has reviewed 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 and, in certain cases, information provided or disseminated
by third parties. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, and that information obtained from third party sources is
reliable, 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 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 respecting the anticipated timing
of production of copper and zinc from the sulphide zone underlying the
gossan reserves at Canatuan, is based upon the status of negotiations
concerning financing of the sulphide project, the status of TVIRD's
program to source equipment for the expansion of the Canatuan mine,
progress made to date in the construction of the sulphide plant at
Canatuan, management's experiences with the construction of the gossan
processing facility at Canatuan, the current business plan developed by
the Company and the Company's current budget and overall strategy for
the Canatuan mine, which plans, budget and strategy are all 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 are described in detail in the Company's
Annual Information Form for the year ended December 31, 2006, which was
filed on SEDAR on March 29, 2007 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.