(TSX: TVI)
CALGARY, April 1 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
today provided a 2007 operations review for the Canatuan Mine, located in the
Southern Philippines, and operated by its affiliate, TVI Resource Development
(Phils) Inc. ("TVIRD"). This news release should be read in conjunction with
the Company's audited consolidated Financial Statements and Management's
Discussion and Analysis for the year ended December 31, 2007, which have been
filed with certain securities regulatory authorities in Canada and are
available on SEDAR (www.sedar.com) and on the Company's website
(tvi2014.q4web.com).
The Canatuan Mine processed a record 740,099 dry metric tonnes ("dmt") in
2007, a 25% increase from the 591,180 dmt processed in 2006. However, due to
expected lower metal grades and recoveries, the project produced 45,905 gold
equivalent ounces ("AuEqOz") in 2007, down 19% from the 56,880 AuEqOzs
produced in 2006. Production during 2007 consisted of 33,078 ounces of gold
("Au") and 653,278 ounces of silver ("Ag"), compared with the 45,210 ounces of
gold and 608,507 ounces of silver produced in 2006.
Tonnes processed at the Canatuan Mine have increased year-over-year since
the start of production in mid-2004. Full year mill throughput of 192,870 dmt
in 2005 improved to 591,180 dmt in 2006 and to 740,099 dmt in 2007. However,
the highest gold grades were encountered at the top of the oxide deposit, near
surface, and gold grades decreased with depth as mining approached the
underlying sulphide deposit. Another consequence of mining closer to the
sulphide deposit has been that the copper content in the oxide ore has
increased with depth, affecting metal recoveries. Copper competes with gold in
the processing circuit and leads to overall lower gold recovery. Both factors,
the lower grade and recovery with depth, have affected metal production at the
Canatuan Mine. The substantial increase in tonnes processed was not able to
fully offset the lower grades and recoveries.
"Since the start of operations in mid-2004, we believe the Canatuan
gossan operation has served the Company well," said Clifford M. James, TVI
President and CEO. "Cash flows from the gossan operation to date have financed
much of the next phase of operations, the Canatuan sulphide project, as well
as the exploration of other projects such as the Balabag gold property. In
light of the anticipated conclusion of the mining and milling of gossan ore
using the CIL - Merrill-Crowe recovery system at Canatuan, we are examining
alternatives for the further extraction of gold and silver. With the current
high precious metal prices, tailings material within our earlier tailings dams
and material previously classified as waste from mining operations may now
represent possible opportunities to profitably extract both gold and silver
using flotation and heap-leach processes, respectively. These opportunities,
which we are actively considering, exist irrespective of future exploration
activities in the Canatuan area."
The following table summarizes the Canatuan Mine's operating statistics
for the periods noted.
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%chg
over
Q1/07 Q2/07 Q3/07 Q4/07 2007 2006
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Mill throughput (dmt) 172,129 189,813 179,630 198,527 740,099 25%
Avg. daily throughput (dmt) 1,913 2,086 1,953 2,158 2,028 25%
Au grade (g/t) 1.85 1.90 1.58 1.10 1.60 -41%
Ag grade (g/t) 76.59 67.46 36.18 46.21 56.29 9%
Au recovery (%) (produced) 87.39 91.08 88.53 78.32 87.12 0%
Ag recovery (%) (produced) 50.55 59.10 56.79 26.12 48.77 -21%
AuEqOz produced (ozs) 13,308 15,437 10,287 6,873 45,905 -19%
Gold produced (ozs) 8,930 10,587 8,079 5,482 33,078 -27%
Silver produced (ozs) 214,282 243,296 118,654 77,046 653,278 7%
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Period Q1/06 Q2/06 Q3/06 Q4/06 2006
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Mill throughput (dmt) 114,199 129,758 165,394 181,829 591,180
Avg. daily throughput (dmt) 1,269 1,426 1,798 1,976 1,620
Au grade (g/t) 3.09 3.39 2.68 2.04 2.72
Ag grade (g/t) 72.24 60.96 42.85 40.52 51.78
Au recovery (%) (produced) 80.56 89.17 89.45 89.76 87.49
Ag recovery (%) (produced) 53.06 60.89 69.14 65.60 61.82
AuEqOz produced (ozs) 11,641 15,636 15,698 13,904 56,880
Gold produced (ozs) 9,148 12,613 12,730 10,719 45,210
Silver produced (ozs) 140,727 154,838 157,550 155,392 608,507
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Gold equivalent values were calculated applying a silver to gold ratio
based on average gold and silver prices at the time of determination (51
to 1 in 2007; 52 to 1 in 2006).
During 2007, the Canatuan Mine set a production record for mill
throughput, averaging 2,028 dmt per day compared to 1,620 dmt in 2006, an
increase of 25%. For the fourth quarter, average mill throughput increased to
a record rate of 2,158 dmt per day, compared to the 1,953 dmt achieved in the
third quarter of 2007, an increase of 10%. Lower throughput rates in the third
quarter of 2007 were primarily attributable to a five-week ball mill shutdown
during which mill throughput was affected. Since that time, a number of new
initiatives, designed to optimize mill production, have been implemented at
Canatuan with the intention of improving mill throughput.
Also during the third quarter of 2007, unusually heavy precipitation
adversely affected haul roads and pit bottoms, particularly in areas where
higher grade ore is mined. As a result, a significant portion of the mill feed
was taken from lower grade stockpiles, which are ordinarily blended with
higher grade ores from active pits. In the fourth quarter of 2007, TVI
essentially depleted higher grade ore sources as the gossan operations
approached the end of reserve life. As a result, the ore grades and metal
production continued to decline in line with expectations.
The average feed grades during 2007 were 1.60 grams per tonne ("gpt") of
gold and 56.29 gpt of silver, compared with 2.72 gpt of gold and 51.78 gpt of
silver during 2006. On a quarterly basis, the feed grades for the fourth
quarter of 2007 were 1.10 gpt for gold and 46.21 gpt for silver, versus 2.04
gpt for gold and 40.52 gpt of silver for the comparable period in 2006. As
expected, 2007 witnessed a decrease in the average feed grade as the remaining
gossan reserves were characterized by increasingly lower grades. In addition,
the nature of the feed changed, in that the chalcocite and sulphide content of
the gossan ore increased as mining operations approached the massive sulphide
zone underlying the gossan reserves. The presence of chalcocite and sulphides
in the ore has caused a reduction in recoveries and has required the use of
more cyanide.
Gold recoveries in 2007 declined slightly to an average of 87.12% while
silver recoveries fell to 48.77%. These values are lower than the 2006
recoveries of 87.49% for gold and 61.82% for silver. Recoveries in the fourth
quarter of 2007 noticeably decreased to 78.32% for gold and 26.12% silver,
when compared to the 2006 fourth quarter recoveries of 89.76% for gold and
65.60% for silver. The decrease in recoveries is also attributable to the
increasing depth of the mining operation and its proximity to the copper and
zinc bearing sulphide zone of the deposit.
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. The Company's interest in the Canatuan Mine and
its other Philippine assets are held through its affiliate, TVI Resource
Development (Phils.) Ltd. TVI's most advanced project, the Canatuan Mine,
currently produces gold and silver doré. On March 13, 2008, the Company signed
a definitive US$15 million bridge financing agreement with an arms length
party for the purpose of provided working capital funding for TVIRD, including
funds to restart construction of the sulphide project at Canatuan. The Company
has substantially completed the conditions to the first drawn down under the
financing agreement.
Carl L. Caumartin BSc, P.Eng., MBA, Vice President, Exploration 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.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
For further information: Clifford M. James, President and CEO, Paul
Moon, Director, Corporate Communications, (403) 265-4356