“ahead of schedule and well under budget”
TVI Resource Development (Phils.) Inc. (TVIRD) recently surpassed the daily throughput
benchmark of 1,000 tonnes per day, following the commissioning and full operation of its
new 9′ X 15′ second ball mill and crusher for its gold and silver mining operations on Mt.
Canatuan in Siocon, Zamboanga del Norte.
Exceeding 1,000 Dry Metric Tonnes of gossan ore milled per day (DMTPD), the
Canatuan mine increased gold and silver daily production to approximately 130 AuEqOz
(gold equivalent in ounces, the standard unit of measurement for combined gold and
silver production). Production is expected to further increase to approximately 150 to 160
AuEqOz as the various additional plant components are brought onstream,
(For purposes of this News Release, silver credits are added to form gold equivalent
values, as the value contributed by silver is significant. Commodity prices used in
determining gold-equivalent values are USD 450 per ounce of gold and USD 7.00 per
ounce of silver.)
“TVI’s Canatuan project continues to be very much on a roll,” said CEO Clifford M.
James. “The new engineering and management expertise we have attracted has
assisted in our effort to fasttrack our planned expansion initiatives. As a result, TVIRD
has reached the 1,000 DMTPD milestone, ahead of schedule and well under budget.
Our experience with recent mine expansion initiatives at Canatuan provides us with
confidence that we will be able to build the proposed sulphide flotation plant and have it
operational in 2006. We are very pleased with our progress to date at Canatuan and
believe that the Canatuan Mine is a showcase for what can be achieved in a remote
area under less than ideal operating conditions using modern mining methods, paying
particular attention to the needs of the indigenous host community.”
Further plant expansion at Canatuan is well underway, with the construction of an
additional thickener, leach tanks, CIP tanks, additional filter presses and clarifiers for the
Merrill-Crowe process. (a technique for removing gold from a chemical solution which is
separated from the ore by methods such as filtration and counter current decantation,
and then the gold is cemented by adding zinc dust, which precipitates the gold). These
new plant enhancements are designed to improve gold and silver recoveries and to
improve plant availability. Daily throughput is expected to reach 1,200 DMTPD by
yearend.
Capital expenditures on plant enhancements continue to remain substantially below
feasibility study projections, principally as a result of the successful acquisition of good,
previously owned plant equipment.
Mill operations and maintenance staff have been augmented to support the anticipated
increase in throughput capacity. In-house ore body modeling with pit optimization and
scheduling suites are currently being used to upgrade and optimize pit operations.
Additional geological and mine engineering personnel have been added to strengthen
the Canatuan mining team.
Ore cut-off grade to be lowered, increasing ore reserve, mine life and gold production
Earlier, TVIRD has commenced a review of its existing Gossan Feasibility Study to
assess the cut-off grade to be used for its gossan reserve and current mining operation
and the ultimate plant sizing beyond 1,200 DMTPD. This review is expected to be
completed in January. Given the significant rise in prices of both gold (from US $375 to a
current price greater than US $450 per oz) and silver (from US $5.50 to a current price
greater than US $8 per oz) since the Gossan Feasibility Study was completed in May
2004, substantially lower than expected capital expenditures to complete mine
development to date and much better economies of scale anticipated from an increase
in plant throughput from 800 DMTPD to 1,200 DMTPD, management expects that a
decrease in cut-off grade can be achieved for the ore that can be processed at
Canatuan, thereby increasing mineable ore reserves, mine life of the gossan phase and
total oz of gold and silver that may ultimately be produced.
Sulphide feasibility study well-advanced
Through TVIRD’s consultants and accredited laboratories, metallurgical test work is
underway, which is aimed at assessing the optimal flow sheet for treatment of the
sulphide ore at Canatuan. Norwest Corporation of Calgary, Canada, is expected to
complete the full feasibility for Canatuan in the first quarter of 2006. TVIRD expects to
support the feasibility work with in-house engineering resources and has retained an
independent, third party, metallurgical engineering group with specific process plant
expertise. TVIRD also expects to retain a second independent, third party, engineering
group to specifically evaluate and engineer the port load out facility and other required
infrastructure. Management of TVIRD anticipates that following completion of its current
activities and completion of a successful Sulphide Feasibility Study, the process plant
engineering group and the infrastructure group will be in a position to transition from
feasibility study directly into the detailed engineering work needed to support
construction of the flotation plant.
TVIRD is actively sourcing key pieces of capital equipment for the proposed flotation plant.
Second tailings pond construction underway
Ground preparations are underway to commence the second and final stage of the
current Gossan tailings impoundment facility. Hauling and stockpiling of sand required
for the filter layer of the designed dam has started. Equipment contractors for the dam
construction are on site for the commencement of work, which is currently scheduled for
December. TVIRD anticipates that Knight Pi??sold Consulting Engineers, based in North
America, will continue to oversee dam construction.
Further, a team has been organized and preparations are underway for the design and
permitting of an additional tailings storage facility to support the proposed sulphide
flotation plant.
