TVIRD initiates Balabag scoping study and expands gold project drill program
(1) for “Bootstrap” mine development and is expanding the drilling program at the Balabag epithermal gold project.
• Recent assay results from the initial 30 hole Phase 1 drill program, completed in late July 2010, support continued drilling at Balabag to further define the resources.
• Based on these results, TVIRD has launched an internal scoping study(1) and expects to come to a decision regarding a “Bootstrap” mine development plan by Q1, 2011. Under the “Bootstrap”, or phased development concept, an initial “starter” plant would be constructed, drawing ore feed from the core area, with the plant and mine being expanded in stages from internal cash flow, to the extent that the resource supports. The intent of the scoping study(1) is to evaluate the engineering, the environmental and social requirements, the financial viability and the overall feasibility of the starter operation.
• Drilling under Phase 2 has been extended to approximately 55 new holes (11 of which have been drilled since the initiation of Phase 2 in late July). As the resource evaluation continues, more drill holes may be required to support the scoping study(1) and development evaluation.
• The Phase 2 program includes further infill drilling in the core area of Tinago, where the initial 30 hole drill program was concentrated, and step out drill holes in the downdip mineralized zones identified in Phase 1. Phase 2 also includes infill drilling at Miswi and infill and extension drilling at Lalab.
(1) The intent of the internal scoping study referred to in this press release is to evaluate the feasibility of a “Bootstrap” operation at Balabag and to make a development decision. An earlier study was completed (“Scoping Study of the Balabag Project” filed August 20, 2008, prepared by Genivar Limited Partnership) which evaluated a full-scale operation.
Click here to view the Balabag Gold-Silver Project Drillhole Location Map
Program Going Forward
Environmental and Social Baseline Studies: The Company intends to accelerate the environmental and social baseline studies required to provide program and cost data for the scoping study and is preparing for subsequent regulatory approval applications. A substantial amount of work has already been done in this regard.
Tinago Vein System: About 20 new infill holes are planned to be drilled in the core area identified in Phase 1 in support of the scoping study. In addition, more than 20 step out holes are planned to test mineralization extension downdip.
Miswi and Lalab: At Miswi 10 infill holes are planned to reduce the spacing used in the resource evaluation (8 of which have been drilled since the initiation of Phase 2 in late July and 2 are in progress); and at Lalab, 2 step out holes are planned to test for an extension of the vein (1 has been completed and 1 is in progress). Assay results are pending.
TVIRD plans to update the 43-101 report in Q2, 2011, after receiving drilling results from the Phase 2 program which will allow an updated resource estimation, and after receiving scoping study results.
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 (Recognised Overseas Professional Organisations). He has prepared and or supervised the preparation of the scientific or technical information within this press release. TVIRD’s exploration programs are designed and conducted under the supervision of Mr. Medina.
ALS Chemex (Brisbane, Australia) conducted third party check assays of TVIRD drill samples.
* A Scoping Study was completed on the Balabag Gold Project in 2007. This study was based on a full-scale development concept. The new Scoping Study being undertaken at Balabag currently is based on a “bootstrap” development concept.