Near-mine gold, silver and base metal exploration program on extensive claims surrounding minesite
Search for new ore to bring to Canatuan mill
TVI Resource Development (Phils.) Inc. (“TVIRD”), has initiated a comprehensive new exploration program within the claims surrounding the Canatuan gold-silver mine in the Zamboanga peninsula, Mindanao. The new exploration program has two principal objectives: The highest priority is near-mine exploration to bring new resources to the current operation, and the second objective is the search for new mineral deposits that could be operated independently of the current facilities, or to which these facilities may be transferred when the oxide ore at Canatuan is ultimately exhausted.
On a 40km strike fm Canatuan
The claims currently comprise a mix of tenements that have been granted to TVIRD, and others for which TVIRD has made application and that are well-advanced and in the process of being awarded. The tenements comprise an area of 371 sq. km, and encompass strike extensions along forty-five kilometres of the volcanics hosting the Canatuan orebody, which is currently being mined.
A previous exploration round conducted by TVIRD identified a number of additional prospects along strike from the Canatuan orebody, but exploration was suspended, until production was established on the Canatuan deposit.
Management of TVI Pacific believes that any new discoveries may be of two types and typically co-exist. Any near-surface discoveries are expected to be of gold and silver – enriched gossan, of the type currently being mined and processed. This oxidized material typically overlies the primary mineralization from which it is derived. The primary mineralization is the second target, which typically comprises a mixture of copper, lead and zinc sulfides with precious metal values. These two types of mineralization have differing geochemical and geophysical signatures. As a result, TVIRD expects to apply several different geochemical and geophysical tools as prospects are progressively explored.
Prior exploration by TVIRD was restricted to a limited radius around the Canatuan orebody. As a result, the majority of the company’s tenements have not been systematically explored. Outside the area currently being mined, prior exploration comprised a modest program of drainage and soil geochemistry, geological mapping, ground-based geophysics and drilling. This prior program resulted in the discovery of the SW Canatuan, Malusok and SE Malusok prospects – all within four kilometers of existing facilities. In addition to these prospects, TVIRD’s prior work has also identified additional targets at Sukol, Tanuman, Lingcangot, Matigdao and Palali-an.
The Canatuan mine deposit, and the nearby prospects, SW Canatuan, Malusok and SE Malusok, occur at approximately the same stratigraphic level within a sequence of altered felsic volcanics. This demonstrates a clustering phenomenon that is common with these systems worldwide. Management of TVI believes that those areas are compelling exploration targets and that additional discoveries might occur along-strike from the mine, and within the same volcanic stratigraphy which has already been mapped over seven kilometers of strike extent. However, the SW Canatuan, Malusok and SE Malusok prospects have been only partially explored and there is no assurance that new discoveries will be made.
The SW Canatuan prospect demonstrates the limited amount of exploration conducted around the mine, and the potential upside. This prospect was reported to be one of the first areas worked by artisanal miners in the Canatuan area, and one of the earliest gold discoveries in the area. Local small scale miners are reported to have mined ore with economic grades but as commonly occurs, the property was abandoned when mining activities encountered a relatively high water table or when the gossan ore was located at excessive depths. No gridding or geophysical surveys have been carried out to date, and only two shallow holes have been drilled. SE Malusok and Malusok have both been drilled to a limited extent. Intercepted grades were lower than those being mined at Canatuan. However, management of TVI is of the view that further work is well-justifed as the currently known mineralization is open both along strike, and down-dip.
As a preparatory exploration activity, TVIRD has recently collated and catalogued its extensive library on its previous exploration activities in the area, and is currently reviewing this data to establish the details and priorities of the new exploration program. A project manager has been selected and two additional staff geologists and several contract geologists are expected to be hired in order to fast-track this program. TVIRD plans to complete a systematic first-pass of the entire 371km2 before the end of this year. TVI’s prior exploration activity also demonstrated the mineralisation’s response to ground-based electro-magnetic (EM) geophysical techniques, and as a consequence TVIRD proposes to undertake helicopter-borne time-domain EM in the dry season commencing early 2006.
Note …
Alan R. Flint (BSc (Hons) ARSM), Vice-President Exploration of TVI Pacific and AusIMM member, is serving as TVI’s “Qualified Person” for purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Deposits (“NI-43-101″) on this project and has reviewed this News Release and verified the data set out herein. Mr. Flint is a geologist and has more than 25 years relevant experience in the metalliferous mining and exploration industry.
The statements herein that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as “expect”, “may”, “anticipate” or “will” and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied by forward looking statements. TVI Pacific Inc. does not assume responsibility for the accuracy and completeness of the forward looking statements and, subject to applicable law, does not undertake any obligation to publicly revise such forward looking statements to reflect subsequent events or circumstances. The forward looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
