TSXV: TVI  OTC Pink: TVIPF

CALGARY, June 11, 2018 /CNW/ - TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) ("TVI" or "the Company") is pleased to provide the following update with respect to the status of projects at TVI Resource Development Phils., Inc. ("TVIRD"), the Philippine affiliate of TVI, in which TVI holds a 30.66% interest.    

TVIRD Project Highlights

  • 9.4 million wet metric tonnes of nickel laterite DSO shipped through 173 shipments since commencement of nickel laterite DSO operations by Agata Mining Ventures Inc. ("AMVI") in October 2014, including:

    • 1.1 million wet metric tonnes of nickel laterite DSO shipped in 20 shipments during the first five months of 2018.

  • Receipt in May 2018 of the Special Tree- Cutting and Earth Balling Permit for the Balabag project.

  • 7 holes (approximately 675 meters) of a 11-hole (approximately 11,000 meters) drilling program have been completed in San Vicente, one of four potential limestone project sites within the Agata tenement.

  • Aggregate deposit that will meet the requirements of the construction industry confirmed at Agata through a 6-hole drilling program in December 2017.

Potential PSE Listing

While TVIRD continues to monitor opportunity to list on the Philippine Stock Exchange ("PSE") and a proposed initial public offering ("IPO"), all related activities continue to be on hold due to the uncertain environment in which the Philippine mining industry continues to operate since a nationwide audit of metallic mines was ordered by the Department of Environment and Natural Resources ("DENR") in June 2016. It is currently anticipated that such listing activities will resume once the DENR's position on various mining policies is further clarified.

TVIRD Areas of Growth

TVIRD nonetheless continues to be focused on maximizing its valuation for a listing on the PSE, which would also maximize its investment value for TVI, including the issuance of additional regular dividends, by focusing on the following areas of growth:

  • Optimizing operations and thereby maximizing profits at the Agata Nickel Laterite Direct Shipping Ore ("DSO") Project;
  • Advancing the Balabag Gold-Silver Project towards production;
  • Advancing the Agata Limestone Projects towards production and;
  • Advancing the Agata Aggregate Projects towards production.

Agata DSO Project

Since commencement of nickel laterite DSO operations by AMVI in October 2014, a total of 9.4 million wet metric tonnes have been shipped through 173 shipments as of May 31, 2018, of which 1.1 million wet metric tonnes of nickel laterite DSO were shipped through 20 shipments during the first five months of 2018. AMVI is a joint venture company between TVIRD (60%), Mindoro Resources Ltd. ("Mindoro") (15%) and Minimax (25%), in which TVIRD is operator.

AMVI continues to be one of 11 successful mining companies allowed to continue its activities while a further 20 mining companies face closure and another 10 have been suspended as a result of a nationwide audit of 41 metallic mines in September 2016. 

AMVI has engaged the services of a third party Qualified Person to review the remaining resource and reserve of the project. The review may result in an increase or decrease of the remaining mineable reserves and mine life of the project. The review is expected to be completed through the second half of 2018. However, the review would now include additional resources found beyond the previous pit limits.

Balabag

The Balabag gold/silver project is owned 100% by TVIRD and has received in October 2013 the Environmental Compliance Certificate ("ECC") and in April 2016 the Declaration of Mining Project Feasibility ("DMPF"). Further to learning in February 2017 that MPSA No.086-97-IX, in which the Balabag project is located, is among 75 MPSAs that have been recommended for cancellation, TVIRD continues to await a response to its letter to the DENR of February 2017 in which it has emphasized its position that there exists no grounds to validly cancel, terminate or suspend the MPSA between the government and TVIRD as there is neither violation of the terms of the MPSA nor of any law, rule or regulation that would merit its cancellation, termination or suspension. Of note also is that the Balabag project requires resolution of the open-pit mining ban announced by the former DENR Secretary in February 2017. TVIRD's position is that mining at Balabag will not use an open pit approach but rather a side cut approach, similar to what was done at Canatuan, which we understand will be acceptable to the Philippine Government.

TVIRD is well into a two-phase exploration program for the Balabag gold/silver project. The first phase includes the re-mapping of tunnels that were abandoned by the illegal small-scale miners and were previously inaccessible to TVIRD. With the new information coming from these tunnels, it is expected that an improved interpretation of the vein systems of Lalab and Miswi veins will be established. The first phase is expected to be completed by the end of June 2018. The second phase, drilling of the Lalab and Miswi veins, will then commence by July 2018 and is expected to be completed within the second half of 2018. It is TVIRD's expectation that resources at Balabag will be increased as a result of this program. 

TVIRD has received in May 2018 the Special Tree-Cutting and Earth Balling Permit from the Forest Management Bureau ("FMB") of the DENR, for which it is coordinating with the FMB the mechanics related to implementation. This is the last of the major permits required before development can commence at Balabag, subject to resolution of DENR issues noted above.

Agata Limestone Projects

The Agata Limestone projects are held by AMVI (in which TVIRD has a 60% interest) and are located within the same 4,995-hectare MPSA as the Agata Nickel Laterite project. The limestone projects include the most advanced – Payong Payong and 3 others – one located to the south of the Agata N DSO project and two others to the north – San Vicente and San Jose.  

A drill program completed in April 2015 confirmed the presence of a high-purity recrystallized limestone deposit at Payong Payong covering an approximate area of 600 meters by 650 meters. A report was subsequently prepared by a third party Qualified Person, as well as a positive internal feasibility study. AMVI continues to further evaluate the feasibility of commencing a limestone DSO operation producing products for the steel, power and agricultural industries, producing hydrated lime and possibly a higher value ground calcium carbonate ("GCC") product marketable to the paper and plastics industries in Asia.

Further evaluation of the three other potential limestone sites is currently underway. An exploration permit (EP 27) covering both San Vicente and San Jose has been renewed thereby allowing drilling in San Vicente to proceed with 11 holes (approximately 11,000 meters) that are expected to be completed by the end of June 2018. As of the date of this information update, 7 holes (approximately 675 meters) have been drilled.

Agata Aggregate Projects

The Agata Aggregate project, also held by AMVI (in which TVIRD has a 60% interest) and located in the same 4,995-hectare MPSA area as the Agata Nickel Laterite project and limestone projects, reflects a potential aggregate deposit suitable for many construction applications, as confirmed by an initial 6-hole drill program in December 2017 and independent lab studies. 

AMVI is currently studying the need to implement another drilling program with the objective of establishing independently confirmed resources/reserves for this deposit. This program is expected to start by the second half of 2018, upon completion of which an in-house feasibility study is then expected to commence.

About TVI Resource Development Phils., Inc.

TVIRD, the Philippine affiliate of TVI Pacific Inc., in which TVI holds a 30.66% interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines. It operates under the highest standards of health and safety practices for its workers and its host community; and is uncompromising in its best-practices approach to environmental protection as well as community development. TVIRD holds a 60% interest in AMVI, in which TVIRD is operator, a nickel laterite DSO operation that commenced in October 2014 and has to date shipped a total of 9.4 million wet metric tonnes through 173 shipments. TVIRD also owns 100% of the Balabag gold/silver project.

About TVI Pacific Inc.

TVI Pacific Inc. is a Canadian resource company focused on the acquisition of resource projects in the Asia Pacific region. TVI currently holds a 30.66% equity interest in TVIRD and a 4.94% equity interest in Integrated Green Energy Solutions Ltd, a publicly listed company incorporated in Australia with shares listed on the ASX, that is engaged in the commercialization of technologies related to converting waste plastics to fuel in Australia and internationally. TVI's other holdings include a 14.4% equity interest in Mindoro Resources Ltd.; a 10% interest in the Amazon Bay Iron Sands project in Papua New Guinea; and a 100% investment in shares of TG World. As at the date of this information update, TVI has 655,537,049 outstanding common shares and 698,987,039 fully diluted including the currently issued outstanding options of 43,450,000.            

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. 

Forward-looking statements regarding expectations that TVIRD will be able to find additional resources and reserves at either Balabag or Agata are based upon current and previous exploration activities, management's experience with other exploration programs undertaken in the Philippines and elsewhere, management's current and previous experience with mining and processing activities at Balabag and Agata, and TVIRD's overall plans, budget and strategy (which are all subject to change).  The Company does not have control over TVIRD nor does it have any involvement in the management or decisions of TVIRD or control over financial reporting and internal controls of TVIRD.  The Company relies on the internal controls and financial reporting controls of TVIRD and their failure to maintain effectiveness or comply with applicable standards may adversely affect TVI.

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, 2017, which was filed on SEDAR on April 19, 2018 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE TVI Pacific Inc.

Copyright 2018 Canada NewsWire

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