TSX: TVI OTCQX: TVIPF
CALGARY, Nov. 3, 2014 /CNW/ - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) ("TVI" or "the Company") announces that it has entered into a Heads of Terms Agreement ("Agreement") with Kalo Exploration Ltd. ("Kalo"), a private resource company incorporated in Fiji, for the exclusive right to enter into a joint venture partnership to conduct mineral exploration, development and production on the Cirianiu gold project located in the Macuata Province of northern Vanua Levu Island, Fiji. This agreement represents one of the first opportunities identified by various members of the Company's new Project Advisory Group as announced in news on October 31, 2014.
"I am pleased to have signed this Agreement with Kalo as it gives TVI a highly prospective gold project to explore and possibly develop," stated Cliff James, President and Chief Executive Officer of TVI. "Our team has a successful track record of turning deposits into mines and the Cirianiu gold project fits the profile of projects we look for as it is located in a region that is known to host major gold deposits but is relatively underexplored; is pro-development and foreign investment-friendly; and where gold production has been an integral part of the economy."
TVI's Agreement with Kalo relates to properties covering 660 square kilometres in Macuata Province of northern Vanua Levu Island, Fiji, containing the Cirianiu gold project. Between 1986 and 1993, Placer drilled 41 holes totaling 4,194 metres over the project, leading to the definition of at least six grass-roots intermediate- to low-sulfidation epithermal gold-silver targets. The most advanced exploration target is Qiriyaga Hill, where Placer drilled 27 holes totaling 2,776 metres and found near-surface gold mineralization. Since 2009, Kalo has carried out detailed exploration work at the Qiriyaga Hill target including geological mapping, contour trenching, channel sampling and 3,231 metres of angled diamond drill testing in 22 holes, with encouraging results to date.
Under the terms of the Agreement, TVI has been granted the right to conduct an extensive due diligence review of the property that will aid the Company in making an investment decision. As part of the due diligence review, TVI will conduct first stage exploratory work which would include surveying, resampling of drill core, assaying, geological and mine modelling, and possible confirmatory drilling. The Company has a period of 180 days from the execution of the Agreement to complete this work, which will commence in the first week of November. TVI's exploration program will be carried out under the supervision of Florinio Lazo, a senior exploration geologist with extensive experience in various commodities and exploration projects in the Asia Pacific region, and who was credited for discovering the world-class Merlin Molybdenum-Rhenium deposit for Ivanhoe Australia in 2009. Mr. Lazo will be assisted by Roberto Tan, an experienced senior exploration geologist with extensive international gold exploration experience including recent work on gold-copper systems in Fiji.
Upon completion of the initial stage of work, TVI will have the option to proceed to the second stage ("Stage 2") of the Agreement whereby it will use best efforts to conclude the material terms of a Joint Venture Agreement ("JVA") or Shareholder Holders Agreement ("SHA") with Kalo. Upon the completion of a JVA or SHA, TVI will initiate a major exploration program with the primary objective of establishing an NI43-101 compliant resource and delivery of a Scoping Study. The Company will have a period of two years from the date of the signing of the JVA or SHA to complete Stage 2. Upon completion, TVI would earn a 20% economic interest in the properties.
Following the completion of Stage 2, TVI will have the exclusive option to proceed to a third stage ("Stage 3") whereby it will deliver a definitive NI 43-101 feasibility study. TVI has a period of one year to complete Stage 3 and upon completion would earn a 40% economic interest in the properties. Upon completion of Stage 3, TVI will have the exclusive option to proceed to the fourth stage of the Agreement ("Stage 4") whereby it will initiate the development of the project. The Company will have a period of two years to complete Stage 4, provided all permits and licenses are in place, and ultimately earn a 70% economic interest in the properties upon completion.
The Fiji Islands are located in the Southwest Pacific's "Ring of Fire", the active tectonic boundary between the Pacific and Indo-Australian Plates, which hosts several world-class porphyry copper-gold and epithermal gold deposits. Up to now, the bulk of historical exploration work has been conducted by Australian companies and the country remains relatively underexplored and highly prospective for new discoveries.
Mining has been an integral part of Fiji's economy with gold representing one of the country's largest exports. Gold production has been dominated by the Emperor gold mine, which has been in near continuous production since 1933, and has produced 7 million ounces of gold to date. Other notable deposits in the region include Namosi, one of the world's largest undeveloped copper-gold deposits (70% owned by Australian mining giant, Newcrest Mining); the Mt. Kasi Gold Mine, which operated in the 1930s and 1940s and may be brought back online by Newcrest; and the Tuvatu gold deposit controlled by Lion One Metals, which recently received government approvals for its construction and development plans.
The Government of Fiji has an administration founded on British law and a comprehensive Mining Act that offers reasonable royalty and taxation structures as well as negotiable taxation concessions to foster economic development.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines and Southeast Asia. TVI's affiliate, TVIRD, has to date produced copper and zinc concentrates as well as gold and silver from its Canatuan mine and has now commenced loading high-iron/low nickel ore with its Agata DSO project. TVIRD also continues to advance its Balabag Gold-Silver project. TVI is a direct or indirect participant/operator in several joint venture projects in the Philippines and Papua New Guinea and also has an interest in an offshore Philippine oil property.
In addition to retaining a 30.66% indirect interest in TVIRD and other Philippine subsidiaries, TVI continues to directly hold (i) 23.01% equity interest in Foyson Resources Limited ("Foyson") (ii) a 14.4% equity interest in Mindoro; (iii) its 10% interest in the Amazon Bay Iron Sands project (for which the exploration license is held by Titan Mines Limited, a company in which Foyson holds 50% shareholding and has an option to acquire the remaining 50%); and (iv) its 100% investment in shares of TG World Energy Corp.
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. 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. 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 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, changes in exploration plans or budgets, and availability of equipment and personnel.
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, 2013, which was filed on SEDAR on March 19, 2014 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.
SOURCE: TVI Pacific Inc.
For further information: TVI Pacific Inc.: Shirley Anthony, Investor Relations, 778.999.2771, [email protected]