CALGARY, Aug. 4, 2015 TVI Pacific Inc. (TSX:TVI) (OTCQB:TVIPF) ("TVI" or "the Company") and TVI's Philippine affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), announce that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVIRD holds a 60% interest and is the operator, has completed four shipments of nickel ore in the month of July for gross proceeds of US$3.29 million from the Agata nickel laterite project located in northern Mindanao, the Philippines.
AMVI's shipment plans continue to adapt to depressed and volatile prices in the Philippine nickel laterite ore market. Market prices for limonite ore containing 0.6% to 0.9% nickel and 49% iron content have fallen from an average of $22 per tonne in the earlier part of 2014 down to $13 per tonne when operations commenced in October 2014 and down to $11 in recent months. For saprolite ore containing over 1.5% nickel and 15% to 20% iron, prices have fallen from over $100 per tonne in early 2014 to $27 per tonne in recent weeks. In response, AMVI continues to explore and implement opportunities in its operational plans, mining activities and marketing strategies to increase cost efficiencies and to help ensure continual demand for its products. Currently, AMVI is planning to complete approximately three to five shipments of nickel laterite ore in each coming month, subject primarily to weather conditions.
"As the operator, TVIRD has put in a tremendous amount of effort to ensure that the Agata nickel laterite operations remain viable and to align its mining activities with today's market conditions," stated Clifford James, Chairman and CEO of TVI and Chairman of TVIRD. "We continue to be optimistic that the Agata operations, along with developments at other TVIRD projects, will support TVIRD in seeking a listing on the Philippine Stock Exchange later this year and provide TVI with a significant potential source of funding for new projects."
July Shipment Summary
The four shipments completed in July included three high iron/low nickel limonite ore shipments and one higher nickel grade saprolite ore shipment, representing the 15th through 18th shipments completed by AMVI since operations commenced in October 2014. Details of the shipments are as follows (expected gross revenue figures are pending final assay and price adjustments):
- Fifteenth shipment totalling 50,117 wmt of limonite ore containing 0.89% nickel and 48.19% iron was completed on July 3, 2015. AMVI expects to receive gross revenue of US$485,000 for the shipment.
- Sixteenth shipment totalling 56,911 wmt of limonite ore containing 0.91 % nickel and 48.61% iron was completed on July 12, 2015. AMVI expects to receive gross revenue of US$604,000 for the shipment.
- Seventeenth shipment totalling 60,000 wmt of limonite ore containing 0.93% nickel and 48.23% iron was completed on July 17, 2015. AMVI expects to receive gross revenue of US$584,000 for the shipment.
- Eighteenth shipment totalling 56,826 wmt of saprolite ore containing 1.45% nickel and 21.01% iron was completed on July 20, 2015. AMVI expects to receive gross revenue of US$1.62 million for the shipment.
About the Agata Project
The Agata project is held by AMVI, a joint venture company in which TVIRD holds a 60% interest and is the operator and the remaining interest is held by Mindoro Resources Ltd. ("Mindoro"). TVI currently has a 30.66% interest in TVIRD as well as a 14.4% equity interest in Mindoro, and thereby has a 24.2% indirect ownership interest in AMVI.
The Agata Project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The Agata Project is well located and benefits from its deep protected seaport which provides the opportunity for year-round shipping.
Commercial production of nickel laterite direct shipping ore commenced at the project in October 2014. To date, a total of 18 nickel laterite ore shipments have been completed by AVMI containing a total of 808,389 wmt of limonite ore and 117,195 wmt of saprolite ore for total gross proceeds of US$15.18 million.
An NI 43-101 compliant mineral resource estimate released on April 10, 2013 shows the Agata DSO project to have reported Proven and Probable Reserves of 9.7 million wet metric tonnes with a grade of 48% Fe with 0.9% Ni. The report is available for viewing on http://www.sedar.com and www.tvipacific.com.
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 Asia Pacific region. TVI's track record of success includes putting the first foreign invested mine into production in the Philippines after the passage of the Philippines Mining Act of 1995. From 2004 to 2014, the Canatuan mine produced 105,200 ounces of gold, 1.8 million ounces of silver, 199,778 dry metric tonnes of copper concentrate and 30,558 dry metric tonnes of zinc concentrate.
TVI currently holds a 30.66% interest in TVIRD, a private Philippine resource company engaged in the production of nickel laterite ore at the Agata project as well as the completion of a definitive feasibility study on a nickel processing facility. Additionally, TVIRD is focused on advancing its 100% owned Balabag Gold-Silver project towards production and achieving a listing on the PSE in 2015. In addition to its interest in TVIRD, TVI also holds (i) a 22.1% equity interest in Foyson Resources Limited; (ii) a 14.4% equity interest in Mindoro Resources Ltd.; (iii) a 10% interest in the Amazon Bay Iron Sands project in Papua New Guinea; and (iv) a 100% investment in shares of TG World.
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 The equipment and personnel.
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 future shipments of high-iron/low nickel DSO from the Agata Mining Project, is based upon current mining rates of high-iron/low nickel DSO from the Agata Mining Project, the terms of the third party offtake agreement for the purchase of high-iron/low nickel DSO produced at the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at the Agata Mining Project, the current development plan for the Agata Mining Project, TVIRD's current budget and overall strategy for the Agata Mining Project, 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 mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2014, which was filed on SEDAR on March 25, 2015 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: Shirley Anthony, VP Corporate Communications, TVI Pacific Inc., Phone: 778.999.2771, E-mail: [email protected]