Sulphide Project Update

02/05/2009



TVIRD provides update on commissioning activities for Canatuan Sulphide Project

TVI Resource Development (Phils.) Inc. (TVIRD) today provided
an update on commissioning activities at its Canatuan Mine in Siocon, Zamboanga
del Norte.

Commissioning Activities Continue

TVIRD reports that commissioning activity, which began after
project start-up in mid-November, continues at the company’s copper-zinc
flotation plant, which is designed to process ore from the lower, sulphide portion
of the volcanogenic massive sulphide deposit located at Canatuan. Commissioning
activities for operations of a similar size generally last between three to
six months, as operators attempt to achieve optimal levels of production. The
sulphide portion of the ore body underlies the oxidized, gossan zone that was
previously mined at the Canatuan site. This news release should be read in conjunction
with the company’s prior update announcing the commencement of Sulphide
Project operations, which was disseminated on November 17, 2008, and can be
read via this link: http://www./article.php?id=207.

Recent activity highlights for the Sulphide Project include the following:

  • Overall Project Activity –

    o Construction of the overall plant is
    now completed except for the sulphide dam, which is expected to be built
    progressively in stages.

    o The primary focus in recent weeks has
    been on plant optimization and metallurgical performance, with the plant
    recovery improving as TVIRD personnel have developed systems to manage
    the behaviour of the complex ore being treated.

    o Conducted a geological review of the
    ore body to better define ore-type contacts, which is important in predicting
    ore feed quality. Blending strategies and procedures have been refined,
    resulting in improved metallurgical performance in the mill. Improved
    geological grade control procedures have been developed and have been
    implemented.

    o As of January 31, 2009, 2,174 metric
    tons of concentrate had been produced in connection with on-going plant
    commissioning and optimization.

Figure 1: First product produced from the sulphide
plant

  • Mining Operations –

    o Drilling and blasting operations commenced
    during the week of December 15th, 2008 and these operations continue
    on a regular basis. Directed drilling is also being undertaken as part
    of the grade control process for better selectivity during mining.

    o Grade control procedures and inter-departmental
    (mine and mill) production planning and grade control have been strengthened
    with the availability of additional information from blast hole drilling.

Figure 2: View of the completed sulphide plant

  • Crushing Circuit –
    o Operating.
  • Grinding Circuit –
    o Operating.
  • Flotation Circuit –
    o Operating.

    o Additional piping circuits were installed
    to allow flexibility in re-directing pulp and froth flows depending
    on the performance of the flotation circuit. There is now a high degree
    of flexibility in handling froths and concentrate product which has
    contributed to better recovery performance at the plant

Figure 3: The cleaner flotation cells

  • Filter Press and Concentrate House –
    o Operating

Figure 4: Loading of concentrates for transport
to the warehouse at Sta. Maria Port.

  • Concentrate Warehouse –

    o Construction of the concentrate warehouse
    at the port of Sta. Maria was completed on December 23, 2008. Hauling
    of the first batch of copper concentrates to the warehouse commenced
    on December 26, 2008.

    o Construction of the “dryer house”
    at the warehouse has commenced. The construction of this mezzanine room
    for concentrate assaying is expected to continue for approximately one
    month.

    o Continued with the related road maintenance
    and drainage controls.

Figure 5: Sta. Maria port concentrate warehouse

  • Assay Laboratory –
    o Operating.
  • Sulphide Dam –
    o The sulphide tailings impoundment facility
    is now operational.

    o Continued work on the concreting of the
    temporary spillway at the right abutment. This is a necessary preparation
    to raise the spillway level to about 292 metres from the current 282
    metres.

    o Further sulphide dam construction work
    will be allocated as the need arises.

Figure 6: View of the sulphide dam

  • Environmental Rehabilitation –

    o Completed the construction of a sediment
    pond at the back road side of the pit.

    o Commenced installation of safety barrier
    at the rehabilitated Ambaan Ridge and erected log posts in the area.
    This is part of TVIRD’s Safety Action Plan for 2009.

    o Reforestation at the rehabilitated Ambaan
    Ridge was completed after having planted 625 Mangium trees at the third
    and last benches.

    o Continued preparation and implementation
    of environmental protection plans.

    o Began reclamation activities at the upper
    and lower tailings dam impoundments consisting of debris removal and
    placement of fill materials on top of the tailings.

    o Commenced rehabilitation and drainage
    controls at southwest overburden dump and the Phase 2 area within the
    Lumot Creek watershed.

     

  • Social Development and Management Program –

    o Continued to expand the Food Always In
    The Home (“FAITH”) program in the Canatuan area.

    o Worked with the Siocon Subanon Women’s
    Association Inc. (SSWAI) to assist their expanding program.

    o Implemented a number of medical missions
    in neighbouring communities.

    o Launched a computer literacy program
    for the indigenous peoples.

    o Hosted members of the municipal council
    members to witness the blasting in the pit area.