TVI Pacific Inc. (TSX:TVI)(OTCQX:TVIPF) today announced the acquisition of rights to explore and subsequently acquire a highly prospective Copper-Zinc-Gold Property on the Zamboanga Peninsula, Mindanao Island, Philippines.
TVI's Philippine operating affiliate, TVI Resource Development (Phils.), Inc., has signed two agreements that cover a total of 2,000 hectares (4,900 acres) both areas being located within MPSA No. 076-97-IX granted to Siennalynn Gold Mining Corp.
A reinterpretation of previous exploration data on the property from programs conducted by major international mining companies, together with recent field work conducted by TVIRD, has identified two types of exploration targets: near- surface showings that could provide material for immediate trucking to the Canatuan mill site; and deeper, potentially major hydrothermal deposits. These targets could add additional ore sources and extend and expand TVI's mining operations at Canatuan.
Immediate Benefits of the Acquisition
- Samples taken recently from small scale mine workings at the Pinili Prospect show grades of up to 3.62% copper (Cu), 15.59% zinc (Zn) and 2.40g/t gold (Au);
- Exploration data, including airborne and ground geophysical data acquired along with the property, have been re-interpreted by geophysical consultants and TVIRD geologists. Several immediately drillable prospects; namely, Pinili, Nanao West and Nanao East lie within a short trucking distance of about 25 kilometers (15.5 miles) from TVI's operating mine at Canatuan; and
- The primary prospect, the Pinili Prospect, where small scale, high-grade copper mining has taken place, has been identified for immediate drilling.
Drilling of the property is planned in two stages:
- Stage 1: a total drill program of about 1,200 metres (3,900 feet) will begin in October 2010 to assess the extent and quality of the near-surface mineralization.
-- 7 holes for a total of 500 metres (1,600 feet) at the Pinili Prospect; and
-- 1 hole each at the Nanao West and Nanao East Prospects for a total of 700 metres (2,296 feet).
- Stage 2: By mid-2011, approximately 3,000 meters (9,842 feet) of exploratory drilling will be carried out on prospects that could host deeper hydrothermal porphyry copper targets. These prospects include Bailos, Abueva, Tatfu, and Rodrige.
Property Acquisition Summary
- The properties were acquired from SGMC and YZ Summit Mining Corp, ("YZ"), a small-scale operator who had entered into an Operating Agreement with SGMC on a portion of the Siennalyn MPSA and over the past two years was engaged in mining for the purposes of direct shipping copper ore to China from two small adits on the Pinili Prospect.
- TVIRD acquired the exploration rights over the property for an initial consideration of US$1.2 million in cash, with the right to acquire a 100% interest in the property at a subsequent time, in the event of a decision to develop a mine.
The property is underlain by volcanic intrusive rocks which contain epithermal and mesothermal auriferous quartz-sulphide veins. These veins have been the target of small-scale gold operators over the past few years.
Near Surface Targets for Immediate Drill Program
Clast-supported hydrothermal breccias containing copper-zinc-lead (Cu-Zn-Pb) sulphides and gold (Au) within areas of low-temperature alteration are exposed in historical excavations at Siennalynn. Grades of up to 3.62% Cu, 15.59% Zn and 2.40g/t Au in the breccia lodes located in the northern part of the property have been identified as possible near-term feed for the Canatuan plant. This area, called the Pinili Prospect area will be the subject of the immediate drill program.
TVIRD mapping recently completed at the Pinili Prospect Adit 2 revealed that the main mineralized breccia lode strikes WNW with steep dip directions swinging from NE to SW. It is exposed for at least 85 meters (278 feet) along the drift of Adit 2. The breccia lode is a structurally-emplaced body at least 2 meters (6.5 feet) wide where mapped, but the full width is not exposed in Adit 2 and may therefore be greater. A low grade mineralized alteration halo also exists around the main breccia lode. Where it was exposed at a crosscut within Adit 2, an 8 metre (26 feet) thick zone grading 0.22% Cu (with trace gold and zinc) was encountered. Drilling will allow determination of true width and strike continuity of the Pinili breccia lode.
Potential Deeper Hydrothermal Deposits
Evidence of additional, larger and deeper mineralized targets of porphyry mineralization is being identified using reprocessed geophysical data combined with ground prospecting recently completed by TVIRD. Mineralization is extensive but outcrop exposure is limited requiring further follow-up. These prospects are Bailos, Abueva, Tatfu, Rodrige, Nanao West and Nanao East.
Previous airborne magnetic survey data outlined a large alteration zone of quartz-clay-sulphide-iron oxide in the central part of the project area. Reprocessing of this magnetic survey data revealed a core alteration zone 2 Kilometres by 1.5 Kilometres (1.2 miles by 1 mile) of low magnetic intensity surrounded by magnetic volcanic rocks. Surface mapping of this alteration zone has outlined several mineralized areas of quartz-sulphide breccias and hematitic altered rocks.
Soil geochemical anomalies coincident with ground IP and magnetic survey anomalies from previous investigations occur along the margin of the alteration core. Ground prospecting follow-up by TVIRD has identified several potential drill targets; namely, Bailos, Abueva, Tatfu and Rodrige. Of these prospects, Bailos has been traced over 1 kilometer (0.6 miles) in length. Further exploration including trenching, mapping and sampling will be carried out to better pinpoint the drill targets.
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.
Peter Swiridiuk of AIMEX Geophysics, Gold Coast, Australia and Graeme Mackee of Geo Discovery Group Pty. Ltd., Brisbane, Australia have been engaged by TVIRD as consultants for the re-processing and interpretation of the airborne and ground geophysical data acquired by Placer in late 1990s. Messrs. Swiridiuk and Mackee are also Qualified Persons in compliance with NI 43-101 reporting requirements.
Source: TVI Pacific Inc.