Balabag Project Update: TVI Pacific files Balabag scoping study



    (TSX: TVI)

    CALGARY, Aug. 21 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that it has filed on SEDAR (www.sedar.com) the comprehensive
scoping study (prepared in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects) respecting the Balabag
epithermal gold project, which is located near the municipalities of Bayog,
Zamboanga Del Sur, and Diplahan, Zamboanga Sibugay, in the Philippines. The
study, entitled Scoping Study of the Balabag Project, was prepared by Genivar
Limited Partnership of Montreal, Quebec, Canada ("Genivar"). This news release
should be read in conjunction with the release issued on July 17, 2008, "TVI
Pacific Receives Balabag Scoping Study".
    Certain statements in this News Release constitute forward-looking
statements, including statements concerning the estimated time required to
undertake certain feasibility work at Balabag and estimates of the time
required to undertake construction activities at Balabag in the event a
production decision is reached by the Company in respect of the project.
Readers should refer to the cautionary statement that appears at the end of
this News Release.
    The purpose of the Scoping Study was to assess the mining potential of a
stand-alone commercial scale mining operation centred on the currently
delineated Balabag deposit and to provide an order of magnitude of its
economic potential. The Management and Board of Directors of the Company are
encouraged by the Balabag Scoping Study, which supports their conclusion that
the preparation of a comprehensive exploration and feasibility work program is
warranted to further assess the resource and reserve models and to provide
additional engineering, environmental, socio-political, and commercial site
studies.
    Significant information and assumptions (base case models) set out in the
Balabag Scoping Study include the following:

    
    -------------------------------------------------------------------------
    (US$)            Base Case 1 (O/P & U/G)(*)    Base Case 2 (O/P & U/G)(*)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Capital
     costs :        $38.8 M (10% contingencies)   $58.1 M (10% contingencies)
    -------------------------------------------------------------------------
    Avg. Production rate :       1,300 / 6 yrs                 1,450 / 5 yrs
    -------------------------------------------------------------------------
    Cut-off grade :              0.48 gpt AuEq                 0.44 gpt AuEq
    -------------------------------------------------------------------------
    Ore
     production :  2,803,729 tonnes (O/P & U/G)  2,579,052 tonnes (O/P & U/G)
    -------------------------------------------------------------------------
    Average grade
     (diluted):      3.94 gpt AuEq; (O/P & U/G)    3.95 gpt AuEq; (O/P & U/G)
    -------------------------------------------------------------------------
    Gold Price :                   650.00 $/oz                   900.00 $/oz
    -------------------------------------------------------------------------
    Silver Price :                  13.00 $/oz                    17.00 $/oz
    -------------------------------------------------------------------------
    Discount Rate :                        10%                           10%
    -------------------------------------------------------------------------
    Cash costs per Oz Au Eq :    312 $/oz AuEq                 397 $/oz AuEq
    -------------------------------------------------------------------------
    Total Operating Costs :            $96.1 M                      $110.7 M
    -------------------------------------------------------------------------
    Total Income (Before Tax) :       $100.5 M                      $134.5 M
    -------------------------------------------------------------------------
    Net Project CF (Aft Tax) :         $45.0 M                       $58.1 M
    -------------------------------------------------------------------------
    Net Present Value (Aft Tax):       $19.8 M                       $36.1 M
    -------------------------------------------------------------------------
    Internal Rate of return :            31.9%                         45.8%
    -------------------------------------------------------------------------
    Payback Period :                 3.1 years                     2.2 years
    -------------------------------------------------------------------------
    (*) O/P means open pit mining operations; U/G means underground mining
        operations.
        Gold Equivalent ("AuEq") values were calculated using $650/oz Au and
        $13/oz Ag for Base Case 1 and $900/oz Au and $17/oz Ag for Base
        Case 2.
        The foregoing is a summary only of certain information contained in
        the Balabag Scoping Study. Readers should refer to the full report
        filed on SEDAR for additional details concerning the information set
        out in this News Release.
    

    Readers are cautioned that the Balabag Scoping Study is preliminary in
nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves. There is no
certainty that the Balabag Scoping Study assessment will be realized and
actual results may vary substantially.
    Both base cases are preliminary in nature and a definitive feasibility
assessment will need to be completed to enable the management and Board of
Directors of the Company to make a production decision in regard to the
Balabag Project. This feasibility work is expected to entail (i) additional
exploration drilling, resources /reserves modeling and pit optimization; (ii)
detailed engineering bids and costing reviews; and (iii) geotechnical,
environmental and socio-political baseline studies (to document EIS work and
ECC applications). Management estimates that it will take between 16 and 24
months to complete such feasibility work. Genivar has recommended that such
feasibility work be undertaken at the earliest opportunity in order to secure
all necessary operating permits and to enable the Company to reach a
production decision in a timely manner.
    Once a production (investment) decision has been reached, the
construction time (pre-production period) for either of the base case
scenarios is estimated to be approximately twenty four (24) months. Management
of the Company believes that this period could be shortened, by as much as
eight months, should a commitment be made by the Company to rehabilitate an
existing logging road in order to provide access to the site much sooner.

    
    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 TVI Resource Development (Phils.)
Ltd.

    Mr. Marc Beauvais, Eng, P. Eng. of Genivar Limited Partnership, has
served as the "Qualified Person" (for the purposes of National Instrument
43-101 - Standards of Disclosure for Mineral Deposits) in respect of the
Balabag Scoping Study. Mr. Beauvais has reviewed this news release at the
request of TVI. Mr. Beauvais is independent of TVI Pacific for purposes of
National Instrument 43-101.

    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. 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
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 time required to undertake certain feasibility work at Balabag
is based upon the time required to undertake certain exploration activities at
Balabag to date, management's experiences with other feasibility work programs
undertaken in the Philippines and elsewhere, advice received from third-party
advisors with respect to the timing of various components of the feasibility
work program and the Company's current budget and overall strategy for
Balabag, which plans, budget and strategy are all subject to change.
Forward-looking information concerning the estimated time required to
undertake construction activities at Balabag (in the event a production
decision is reached by the Company in respect of the project) is based upon
management's experiences with other construction projects in the Philippines
and elsewhere, advice received from third-party advisors with respect to the
timing of various components of the construction project, and the Company's
current budget and overall strategy for Balabag, 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 (including exploration activities) are
described in detail in the Company's Annual Information Form for the year
ended December 31, 2007, which was filed on SEDAR on March 27, 2008 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.ward-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.
    





For further information:

For further information: Investor Relations - (403) 265-4356 or
tvi-info@tvipacific.com


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