TSX: TVI OTCQX: TVIPF
CALGARY, Nov. 27, 2014 /CNW/ - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) ("TVI" or "the Company") and TVI's Philippine affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), are pleased to announce that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVIRD holds a 60% interest and is the operator, has commenced an exploration program aimed at defining a National Instrument 43-101-compliant resource estimate at the Agata limestone project located in northern Mindanao, the Philippines. Once an initial resource has been developed and product markets are identified and confirmed, AMVI will evaluate the feasibility of commencing a limestone direct shipping ore ("DSO") operation using the same infrastructure developed for current nickel laterite DSO operations. A map and presentation on the Agata limestone project are available as PDF links to this news release on www.tvipacific.com.
"We are very pleased to see exploration work commencing at the Agata limestone project as it potentially represents another source of long-term cash flow for TVIRD, using essentially the same infrastructure created for the laterite direct shipping ore operations," stated Clifford James, Chairman and CEO of TVI and Chairman of TVIRD. "Given that TVI continues to hold a 30.66% interest in TVIRD, we are excited to see TVIRD advancing its projects on so many fronts to grow investment value, which will become evident when TVIRD successfully lists on the Philippine Stock Exchange, which is planned for 2015."
The Agata limestone project is situated to the south of TVIRD's current Agata nickel laterite direct shipping ore ("DSO") operation and immediately adjacent to the causeway facilities that were built to support the DSO operations. The project consists of a number of separate deposits, of which only one – the Payong Payong deposit covering approximately 27.7 hectares – has been drilled to date. Other deposits occur nearby and will be explored in stages in the future.
Current information on the Agata limestone project is based on limited exploration carried out on the Payong Payong limestone deposit in 2011 by Mindoro Resources Ltd. ("Mindoro"), TVIRD's joint venture partner in AMVI. Results from Mindoro's initial five-hole drill program outlined a large area of approximately 400 metres by 800 metres and yielded intercepts with a weighted average of 60.46 metres of 98.86% CaCO3 (calcium carbonate), indicating the presence of high-purity, massive, recrystallized limestone.
High-purity limestone is in great demand as a paper whitener for the paper making industry, as calcined and hydrated lime for a variety of industrial purposes, and as filler for toothpaste. Market prices for such products currently range from $100 to over $450 per tonne. AMVI is currently in preliminary marketing discussions with potential buyers who have expressed interest in high-purity limestone products to determine potential demand. A formal marketing study is also planned in the near future to better determine additional markets.
AMVI also expects to use the limestone in the production of lime for the planned Agata nickel processing plant (see news from November 24, 2014), which will reduce lime acquisition costs and significantly lower operating costs for the nickel processing project.
Once an initial resource has been developed and product markets are identified and confirmed, AMVI will evaluate the feasibility of commencing a limestone direct shipping ore ("DSO") operation using the same infrastructure developed for current nickel laterite DSO operations. Due to the project's close proximity to the causeway where materials will be shipped, potential operations will benefit from having low transport and handling costs.
Exploration Work Program
AMVI commenced exploration activities on the limestone project in early November 2014, including a detailed review and verification of previous work carried out by Mindoro as well as more detailed surface mapping and sampling of the area by the geological team. Core drilling has commenced in an initial program of 10 holes spaced at 200 meters at the Payong Payong deposit. Further infill drilling at 100 meter intervals may be required after the results of the initial program are analyzed. To date, results from the first hole have shown a 40 meter thickness of white to grey, marbleized limestone similar in quality to that previously drilled by Mindoro.
AMVI intends to produce an NI43-101-compliant resource report on the Agata limestone project after the completion of the exploration program in mid-2015.
Mike Bue, Bsc. Eng, M.Eng, P.Eng, Technical Advisor and Project Advisory Group member of TVI and a member of the Professional Engineers of Ontario and Canadian Institute of Mining and Metallurgy, is the qualified person under NI43-101 who has approved the scientific and technical information in this news release.
About the Agata Limestone Project
The Agata project is held by AMVI, a joint venture company whose shares are owned by TVIRD and Mindoro Resources Ltd. ("Mindoro"), in which TVIRD holds a 60% interest and is operator. TVI has a 30.66% direct interest in TVIRD and thereby a 24.2% indirect ownership interest in AMVI through its ownership in TVIRD and its 14.4% direct interest in Mindoro, which holds a 15% interest and option to acquire a further 25% in AMVI. The project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines.
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 doré from its Canatuan mine and has now commenced shipping 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, Papua New Guinea and Fiji 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) 20.04% 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]