TVI Pacific Announces Balabag Project Construction Underway
TVI Pacific Inc. announces today that TVI Resource Development Phils., Inc. ("TVIRD"), a Philippines corporation in which TVI holds a 30.66% interest, has officially determined to advance its Balabag gold and silver project ("Balabag") in Zamboanga del Sur, Philippines towards commercial production and is progressing with various development works. The production decision follows the closing and first drawdown by TVIRD, announced on October 22 and October 24, 2019, respectively, of a US$28.5 million term loan facility with China Banking Corporation. TVIRD established the loan facility to finance construction of infrastructure at Balabag. Prior to the first drawdown, TVIRD funded development works with internally generated funds.
Balabag Progress :
Work has commenced and includes the award of a contract to undertake a design review and provide construction supervision services for the Balabag Tailings Storage Facility ("TSF"). TVIRD awarded the contract to GHD Pty Ltd ("GHD"), one of the world's leading professional services companies operating in the global markets of water, energy and resources, environment, property and buildings, and transportation.
Infrastructure works are moving forward and include:
90% completion of detailed engineering;
Construction of the tunnel and retaining wall for the crushing circuit which is approximately 30% complete;
The pouring of concrete blinding for the Grinding Foundation, which is 100% complete, and installation of forms for the foundation;
The ongoing rehabilitation of the existing Canatuan processing plant for use at Balabag, of which mobilization to site has commenced with the Ball Mills and flotation cells already having arrived at site;
89% completion of bulk earthworks, including cleaning and grubbing, cutting and excavation, embankment and compaction works and the hauling and disposal of waste including Basin Waste for construction of the TSF;
Continuous standard penetration tests ("SPT") with GHD and TVIRD geologists. EDCO, a 100% owned subsidiary of TVIRD, has been contracted for drilling onsite; and
67% completion of the Construction of Temporary Electrical Storage.
All haul roads down to the TSF are currently being sheeted with granular fill to better withstand the effects of erosion while foundation works for the TSF are anticipated to get underway during the course of the next week.
Development work is proceeding under the direction of Mr. Yulo Perez, President of TVIRD, who previously led mine development works and operations at TVIRD's successful Canatuan mine Phases 1 (Gold/Silver) and 2 (Copper/Zinc) as Vice-President of Operations and Chief Operations Officer of TVIRD. Mr. Perez helped contribute to the receipt by TVIRD of multiple awards from the Philippine government and leading mining industry associations.
"We are very excited to see the commencement of development activities at Balabag after many years of planning and preparation", said Mr. Cliff James, Chairman and CEO of TVI and Chairman of TVIRD. "This is the culmination of significant efforts to date and we expect that TVIRD will continue with its ongoing exploration works with the objective of expanding the initial resource and reserves of the project to extend the life of this project."
Further to the Company's press release of November 22, 2019, in which the Company announced the withdrawal of the scientific and technical disclosure set out in the Technical Report entitled "NI 43-101 Technical Report: Balabag Gold and Silver Project, Balabag, Depore, Zamboanga del Sur, Philippines" and filed on October 18, 2019, the Company wishes to clarify that in making the decision to put Balabag into production, TVIRD, a Philippine corporation that the Company does not control, relied exclusively on technical and economic analysis prepared under Philippine regulations and did not rely on TVI's October 18 report or any feasibility study classifying mineral reserves prepared in accordance with NI 43-101. Historically such projects have a much higher risk of economic and technical failure.
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. It operates under the highest standards of health and safety practices for its workers and its host community; and is uncompromising in its best-practices approach to environmental protection as well as community development. TVIRD has a pool of highly competent managers, technical personnel and skilled workers with previous experience in gold-silver operation, and holds a 60% interest in AMVI, a nickel laterite DSO operation that commenced in October 2014 and in which TVIRD is operator. To date AMVI has shipped a total of 12.88 million wet metric tonnes through 240 shipments. TVIRD also owns 100% of the Balabag gold/silver project.
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 and a 3.57% equity interest in Integrated Green Energy Solutions Ltd, a publicly listed company incorporated in Australia with shares listed on the ASX, that is engaged in the commercialization of technologies related to converting waste plastics to fuel in Australia and internationally. TVI's other holdings include a 14.4% equity interest in Mindoro Resources Ltd. and a 100% investment in shares of TG World. As at the date of this announcement, TVI has 655,537,039 outstanding common shares and 696,887,039 fully diluted including the currently issued outstanding options of 41,350,000.