Zinc concentrate production seen in January 2011
TVI Resource Development (Phils.), Inc. (TVIRD), provides an update on operations and exploration as follows:
• Canatuan – good progress with the Zinc Circuit commissioning
• Siennalynn – exploration drill program proceeding
• Balabag – scoping study on track, resource definition drilling continues
Zinc Circuit Commissioning
During November and December, good progress has been made on the Zinc Circuit commissioning at Canatuan. Copper-zinc separation has been achieved using the revised reagent regime and the reconfigured process flow sheet discussed in previous press releases. During commissioning, the continuous production of copper concentrates has been achieved to meet shipping requirements. As of the date of this release, loading of the last copper concentrate shipment for the year is underway.
Given the progress in the copper-zinc separation to date, and the ongoing process refinements, it is anticipated that zinc concentrate production could begin in January 2011.
Click here for a schematic of the plant modifications
Siennalynn property
Since October 19, 2010, TVIRD has had four diamond drills operating on the property completing 1,765 metres to date. Initial results have confirmed the presence of a stockwork zone at the Pinili prospect containing two mineralized breccias bodies: one with significant base metal mineralization.
Pinili prospect: To date, seven diamond drill holes have been completed with an eighth hole in progress. Drilling in one section has identified a large stockwork zone containing appreciable zinc, copper and silver in at least two mineralized breccia bodies, which join together at depth. The strike length of the zone appears to be at least 250 metres and is open both along strike and at depth. Additional drilling on this prospect will test the continuity and intensity of the mineralization in this multi-element breccia system. The mineralized zone, hosted in andesitic volcanics, strikes easterly and dips approximately 75 degrees to the south.
Bailos prospect: Surface mapping and sampling have identified a one-kilometre strike length quartz vein breccia zone at Bailos, some 700 metres south of Pinili. To test for subsurface continuity of the mineralization, TVI has drilled two holes and the breccia zones were intersected in both. The breccia zones intersected to date show copper, gold and silver mineralization
Tatfu and Nanao West prospects: Drilling also continues on the Tatfu and Nanao West prospects.
Assay results for all the prospects are being compiled and analyzed and will be reported at a future date.
Click here to view Siennalynn prospect location map
Balabag gold project
The previously announced internal scoping study is on track and TVIRD expects to come to a decision regarding a “bootstrap” mine development plan in Q1, 2011 as previously stated. The study involves an evaluation of the economics of mining a minimum identified “core” resource. The study involves scoping capital costs including infrastructure, plant and pit development and operating costs such as mine and mill costs, tailings disposal, environmental remediation and social programs. Metallurgical testing and social and environmental baseline studies are ongoing.
The Phase 2 drilling program, consisting of 55 new holes, is on schedule with 20 holes drilled to date and two presently drilling. The exploration portion of the program is currently focusing on step-out drilling in the downdip mineralized zones with a view to confirming and extending the Balabag mineral resource. This component of the program is expected to be completed by the end of Q1, 2011. It is intended that the program will also include further infill drilling in the core area of the Tinago vein zone for mine development planning, to be initiated in 2011.
Eight holes have been drilled in the zones downdip of the Tinago vein system. Five of these holes confirmed an extension of the mineralized zone and three tested the boundaries outside the limits of the system.
Phase 2 exploration drilling to date has included six holes at Miswi and seven holes at Lalab, adding to the resource database for these vein sections.
Assay results for all the new Balabag drill holes are being compiled and analyzed and will be reported at a future date.
Airborne Geophysical Survey
A helicopter-supported geophysical survey covering all of TVIRD’s northern tenements in the Zamboanga peninsula is largely complete. As of December 1, 2010, over 6,546 line-kilometres (4,067 line-miles) have been flown acquiring magnetic/radiometric data covering 119,017 hectares (294,096 acres). Processing and interpretation of the data is expected to be completed by early 2011. This high quality data will assist the Company in identifying specific exploration targets for future program planning.
A second helicopter survey over the greater Canatuan area involves the acquisition of a combination of Versatile Time-Domain Electromagnetics (VTEM) and magnetics data. This survey had been delayed because of the unavailability of an appropriate helicopter but is now expected to be flown in early 2011 with processing and interpretation to follow. This data will assist in the location of mineralization in the vicinity of the Canatuan operations with the goal of providing additional mill feed and mine life.
Cesar Medina, Exploration Manager of TVIRD, is acting as the Qualified Person in compliance with NI 43-101 reporting requirements with respect to this news release by virtue of Mr. Medina’s membership of the Australasian Institute of Mining and Metallurgy (AusIMM) and the reciprocity rules covered under ROPO (Recognized Overseas Professional Organizations). He has prepared and or supervised the preparation of the scientific or technical information in this document and confirms compliance with NI 43-101 requirements. TVIRD’s exploration programs are designed and conducted under the supervision of Mr. Medina.
