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CALGARY, AB, May 18, 2022 /CNW/ - TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) ("TVI" or "the Company") is pleased to provide an update with respect to mining activities at the Agata nickel/iron mine, Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVI Resource Development Phils., Inc. ("TVIRD") holds a 60% interest and is operator. TVIRD is a Philippines corporation in which TVI holds a 30.66% interest.
The Agata direct shipping nickel/iron mine is currently expected to cease operations in October 2022 unless additional resources are discovered resulting from an ongoing exploration program that is currently underway.
Excessive rainfall, declining ore grades and continuing lockdowns in China resulting from their strict Covid Zero policy have impacted AMVI's current ability to ship.
The infrastructure of the Agata direct shipping nickel/iron mine will remain available to the potential Agata Limestone project when that project moves ahead.
Through to April 30, 2022, AMVI has shipped a total of 19.33 million wet metric tonnes of nickel laterite ore through 355 shipments, equal to almost two times the original proven and probable reserves of 9.7 million wet metric tonnes of nickel laterite ore developed in 2013.
Agata Nickel/Iron Mine:
TVIRD holds a 60% interest in and is operator of the Agata direct shipping nickel/iron mine, AMVI, which commenced operations in October 2014. AMVI is situated in a 4,995 hectare Mineral Production Sharing Agreement ("MPSA", MPSA No. 134-99-XIII) area located in the adjacent municipalities of Tubay, Jabonga and Santiago in Agusan del Norte province, Philippines. The term of the MPSA had been set to expire on May 26, 2024 but was renewed on October 18, 2021, by the Department of Environment and Natural Resources for an additional twenty-five (25) year period through to May 26, 2049. The mine site is located 3.5 km from AMVI's private port, which is strategically located within proximity to main markets in Asia.
Through to April 30, 2022, AMVI has completed a total project-to-date of 355 shipments of 19.33 million wet metric tonnes of nickel laterite. This has included 161 shipments of high iron ore and 194 shipments of saprolite. Completed shipments represent almost two times the proven and probable reserves of 9.7 million wet metric tonnes of nickel laterite ore with a grade of 48% Fe and 0.9% Ni that had been reported in the National Instrument 43-101 compliant Feasibility Study entitled "Technical Report for the Agata North Nickel Laterite DSO Project, Mindanao, Philippines" ("Feasibility Study"), dated August 30, 2013 and filed under the Company's SEDAR profile on September 10, 2013. The Feasibility Study was prepared under the direction of Dallas Cox, an independent qualified person, with contributions from Mark Gifford and Michael Conan-Davies; independent qualified persons as defined by National Instrument 43-101 (Canada).
With decreasing ore grades and increasing haul distance from the mine to the port, AMVI is carefully managing the remaining shipments. These are further challenged by the continuing Covid-related lockdowns in China together with the recent excessive rainfalls in the area of AMVI. In the longer term, the Agata nickel/iron mine is approaching its end, as indicated by the declining grades. It is currently expected that the Agata nickel/iron mine will continue to ship through to September 2022, at which time the mine is expected to cease operations unless additional resources are discovered through the ongoing exploration program that is currently underway.
Exploration is continuing within the MPSA with a focus to further extend mine life as well as reviewing several potential nickel laterite projects, near to AMVI, for possible acquisition.
Agata Limestone Project:
The Agata Limestone project is also held by AMVI and is located in the same MPSA that has been extended to May 26, 2049. The Environmental Compliance Certificate ("ECC") for the Agata Limestone project was received on June 1, 2021, and is valid through to May 31, 2026. Endorsements from the required local government have been received for the project and the balance of the permitting process is continuing.
It is expected that if the Agata Limestone project is to proceed, it will benefit from the use of the same infrastructure that has been developed to operate the Agata nickel/iron mine, including all administration buildings and offices, the laboratory, maintenance facilities, site roads and the port.
The Agata Limestone project is currently judged to be of lesser importance to TVIRD, given its size and potential value, when compared relative to the growing number of important projects now held by TVIRD, including the operating gold and silver mine at Balabag, the restart of the Siana gold mine and the development of the Mabilo project.
The Qualified Person responsible for the scientific and technical content of this news release is Mr. Michael James Bue, Bsc. Eng, M.Eng, P.Eng. Mr. Bue has acted as the Qualified Person in compliance with NI 43-101 reporting requirements by virtue of his membership in the Professional Engineers of Ontario and Canadian Institute of Mining and Metallurgy and has confirmed compliance of this news release with NI 43-101 requirements.
About TVI Resource Development Phils., Inc.
TVIRD, a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines. TVIRD has a pool of highly competent managers, technical personnel and skilled workers with previous experience in gold-silver operation. TVIRD owns 100% of the Balabag gold/silver mine, 100% of the Siana gold mine and Mapawa project, a 60% indirect interest in the Mabilo project, and a 60% interest in AMVI. The Balabag gold/silver mine commenced shipping in September 2021 and through to the date of this news release has shipped 24,770 gold equivalent ounces through 16 shipments.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the acquisition of resource projects in the Asia Pacific region. TVI currently holds a 30.66% equity interest in TVIRD, a Philippines corporation, a 14.4% equity interest in Mindoro Resources Ltd. and a 100% investment in shares of TG World Energy Corp. As at the date of this announcement, TVI has 656,987,039 outstanding common shares and 696,887,039 fully diluted including the currently issued outstanding options of 39,900,000.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled", "to be", "will be" and similar expressions. The forward-looking statements contained in this News Release include: (1) statements related to plans to cease operations at the Agata nickel/iron mine; (2) statements related to possible acquisition of potential nickel laterite projects; (3) statements related to possible plans for the Agata Limestone project to proceed; (4) statements related to activities intended to restart the Siana gold mine; (5) statements related to development of the Mabilo project.
Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information supplied by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct.
Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied and should not be read as guarantees of future performance or results. These factors include, but are not limited to, such things as: (i) general economic conditions in Canada, the Philippines and elsewhere; (ii) volatility of prices for precious metals, base metals, and other commodities; (iii) commodity supply and demand; (iv) fluctuations in currency and interest rates; (v) inherent risks associated with the exploration and development of mining properties, including but not limited to geological characteristics, metallurgical characteristics of the mineralization, the availability of equipment and facilities necessary to complete development and the ability to develop adequate processing capacity; (vi) the cost of consumables and mining and processing equipment; (vii) unforeseen technological and engineering problems; (viii) ultimate recoverability of reserves; (ix) production, timing, results and costs of exploration and development activities; * political factors, political stability or civil unrest, including but not limited to acts of sabotage or terrorism and legislative changes that may impact the mining industry and TVIRD's ability to obtain or retain required permits, perform required exploration, complete development or operate any mine or project; (xi) availability of financial resources or third-party financing; (xii) changes in laws or regulations (domestic or foreign); (xiii) changes in administrative practices; (xiv) changes in exploration plans or budgets; (xv) the availability of skilled labour; (xvi) the failure of parties to contracts with the Company to perform as agreed, including its joint venture partners; (xvii) the impact of the COVID-19 pandemic or any similar public health crises; and (xviii) extreme weather conditions and forces of nature (i.e. typhoons, heavy rains, earthquakes, and the like) that may disrupt operations and explorations.
The Company does not have control over TVIRD nor does it have any involvement in the management or decisions of TVIRD or control over financial reporting and internal controls of TVIRD. The Company relies on the internal controls and financial reporting controls of TVIRD and their failure to maintain effectiveness or comply with applicable standards may adversely affect TVI.
Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this news release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.
Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2021, which was filed on SEDAR on April 28, 2022 and is available under the Company's profile at www.SEDAR.com.
The forward-looking statements contained in this News Release are made as of the date hereof and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements, except as required by applicable securities laws in force in Canada. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE TVI Pacific Inc.
View original content: http://www.newswire.ca/en/releases/archive/May2022/18/c3784.html