TVI Pacific Inc.

TVI Pacific Inc.

October 13, 2005 08:46 ET

TVI Pacific Inc.: Balabag Exploration Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 13, 2005) -


- Six sites sampled portions of the Tinago vein; two sites sampled the Miswi vein.

- Average of all 133 channel samples is 7.46 g/t Au, 176.8 g/t Ag, 10.33 g/t AuEq.

- Best results come from the Gonzaga shaft, which penetrates the Tinago vein, comprising a composite of 15m @ 12.4 g/t Au, 404 g/t Ag, 18.9 g/t AuEq (true thickness, 6m), including 4m @ 26.7 g/t Au, 776 g/t Ag, 39.3 g/t AuEq.

- New results suggest that the area of mineralization at Balabag may be larger than previously estimated by management.

- Previously announced ground magnetic survey almost complete.

- Drill hole locations being sited for upcoming drill program.

TVI Pacific Inc. (TSX:TVI)(TVI) is pleased to report the results of an additional 133 assays from channel samples collected at the Balabag property by staff of TVI Resource Development (Phils.) Inc. (TVIRD), an affiliate of TVI. The majority of these recent samples was collected from locations outside the area previously selected for technical due diligence. (Information concerning the initial sampling of the due diligence area was set out in the September 21, 2005 news release disseminated by TVI.) The gold and silver values associated with the recent channel samples represent a continuation of previously reported values over a larger area, with the average of the new samples being 7.46 g/t Au, 176.8 g/t Ag, 10.33 g/t AuEq.

The new sample results on the Balabag property provide further encouragement to management of TVI on a number of fronts. These results suggest that the area of mineralization at Balabag appears be larger than previously estimated by management -- more than double the strike extent of the Tinago vein with an interpreted strike extent of approximately 150m. If the vein intersected in the Roging tunnel is part of the Tinago vein, as the TVIRD technical team suspects, based on surface mapping, then the strike extent would more than double again to approximately 400m. The interpreted down-dip extent of the Tinago vein has increased to approximately 180m. Results from the Gonzaga shaft, which penetrates the Tinago vein, comprise a composite of 15m @ 12.4 g/t Au, 404 g/t Ag, 18.9 g/t AuEq (true thickness 6m), including 4m @ 26.7 g/t Au, 776 g/t Ag, 39.3 g/t AuEq. The assay results also identified an additional vein, Miswi, with results that averaged 6.58 g/t Au, 87.6 g/t Ag, 8.00 g/t AuEq from the limited number of samples taken to date from two separate tunnels.

"We continue to be excited by these results," said TVI CEO Clifford M. James. "As a result we have increased the pace and intensity of our exploration program."

TVIRD holds an option on the Balabag property, which was granted under an agreement with Zamboanga Minerals Corporation (ZMC). Balabag lies approximately 75km east-northeast of the TVIRD's gold-silver mining operation at Canatuan, and immediately adjacent to the extensive tenement applications filed by TVIRD in early 2005. The Mineral Production Sharing Agreement (MPSA) under which ZMC obtained its rights to the Balabag property covers 4,779 hectares. The agreement between TVIRD and ZMC provides TVIRD with an exclusive period, of two years and nine months, to assess the mineral potential of the property. Should TVIRD so elect, the property may be purchased for US$350,000, with ZMC then retaining a 2.5% net smelter royalty on the property.

A brief summary of the results of the sampling program is provided below. Updated technical drawings setting out additional information relating to the sampling program, as well as photographs of the extensive illegal gold mining activity at Balabag, may be found at the Company's web-site at A technical report (prepared in accordance with National Instrument 43-101) setting out additional details relating to the sampling program was filed (on SEDAR) with certain securities regulatory authorities in Canada on September 27, 2005.

Tinago Vein Sampling Results

Sampling of the Tinago vein included tunnels and shafts named below, which were not previously reported. Gold equivalent averages of one-metre channel samples, together with associated maximum and minimum values are as follows:

Tunnel or No. Ave Max Min
Shaft Samples (AuEq g/t) (AuEq g/t) (AuEq g/t)
Lando 31 11.30 38.70 1.44
Tata 18 5.40 20.80 2.48
Daoala 10 5.33 16.00 0.73
Galamon 14 3.70 8.63 0.71
Roging 6 1.92 4.94 1.01
(shaft) 15 18.90 75.30 4.71

Until the Gonzaga shaft was sampled, the sole measure indicating the Tinago vein's potential thickness was a drill-hole intersection, probably oblique, conducted in the one modest drill program on the property, which intersected 9m @ 5.4 g/t Au, 122 g/t Ag (including 2m @ 19.7 g/t Au, 450 g/t Ag.) The Gonzaga shaft results comprise a composite of 15m @ 12.4 g/t Au, 404 g/t Ag, 18.9 g/t AuEq, (true thickness 6m) including 4m @ 26.7 g/t Au, 776 g/t Ag, 39.3 g/t AuEq. This thickness is substantial and as the footwall is not yet exposed, exceeds the six metres measured so far. Gonzaga is adjacent to the Warik-Warik glory-hole, where exposures created by mining also suggest that the vein has substantial thickness.

Additional assays were also received from the Berong tunnel and the Warik-Warik glory-hole on the Tinago vein. Twenty-eight additional samples from Warik-Warik averaged 7.83 g/t Au, 422.3 g/t Ag, 14.7 g/t AuEq, bringing the average of all 83 samples from this tunnel to 8.92 g/t Au, 563.2 g/t Ag, 18.08 g/t AuEq. An additional seventeen samples taken from the Berong tunnel averaged 9.02 g/t Au, 54.3 g/t Ag, 11.0g/t AuEq, elevating the average for all forty-two samples from this tunnel to 8.36 g/t Au, 44.9 g/t Ag, 9.51 g/t AuEq.

Miswi Vein Sampling Results

The Miswi vein is located approximately four hundred meters east-southeast of the Warik Warik area. This vein was briefly described in TVI's recently filed 43-101 Report on the Balabag property. In that Report, a drill-hole intersection of 14m @ 5.2 g/t Au, 85 g/t Ag (including 3m @ 16.6 g/t Au, 311 g/t Ag) is mentioned. TVIRD technical staff sampled two tunnels that penetrated the Miswi vein, the Bulldog and Takloy tunnels. Gold equivalent averages of one-metre channel samples, together with the associated maximum and minimum values are as follows:

No. Ave Max Min
Samples (AuEq g/t) (AuEq g/t) (AuEq g/t)
Bulldog 10 8.71 16.30 2.76
Takloy 3 5.64 7.29 3.81

Management of TVI is of the view that these Miswi vein results, from an area distant from the Tinago vein, suggest that the area of mineralization on the Balabag property is larger than previously estimated by management. The Miswi results provide management with further encouragement that the Balabag property represents a compelling exploration prospect. Related to the channel sampling program, the ground magnetic survey referred to in TVI's last news release (September 21, 2005) is already well advanced. Interpretation of the ground magnetic results are expected to assist TVIRD staff in siting the drill-holes to test the Tinago and Miswi veins as soon as a drill rig is on-site, which is expected shortly.

Further exploration of the Balabag property is required to assess its potential for future economic development and it is uncertain at this time, that further exploration will result in the discovery of an economic mineral resource on the property.

About TVI Pacific Inc.

TVI Pacific Inc. is a publicly-listed (TSX:TVI) mining company focused on exploring and producing precious and base metals within district scale systems in Asia.

In the Philippines, TVI's most advanced project, the Canatuan Mine, the first, new, foreign-invested mine in many years, began mining and milling operations in mid 2004, and is now producing gold and silver in excess of 700 dmtpd (110 AuEq oz per day) from a gossan/ oxide zone. Expansion is underway to achieve 1200 dmtpd (180 AuEq oz per day) by the end of 2005. Subject to receiving a positive feasibility study, which is currently underway, the construction of a sulphide flotation plant at Canatuan to process both copper and zinc concentrates from a sulphide zone is planned to be operational by the end of 2006. TVI holds a valuable 2.5% net smelter return (NSR) royalty on the Philippine-based Rapu Rapu project, the second foreign-invested, new, mining project in the Philippines, which has recently begun operations, with royalty cash flow to TVI beginning in Q4, 2005. Exploration in the Philippines is being conducted at Canatuan both to expand its resource base and to find new deposits, and at Balabag which represents a promising, advanced - stage gold exploration property located in North Zamboanga, near Canatuan. Extensive applications have also been filed on a new copper-gold mineral district, also near Canatuan, on which exploration is planned in the near future.

In China TVI's wholly-owned Chinese subsidiary, Hunan Pacific Geological Exploration Inc. (HPGEI) is the first foreign mining company to be granted both WOFE status and a Qualified Explorer Licence. HPGEI has four areas of interest; the Shuikoushan and Haoya gold exploration projects, areas of interest in the Golden triangle region on which exploration licences have been filed, and Tibet where initial exploration has begun.

TVI also has a Drilling Division, based in both the Philippines (EDCO) and China (HPD), which provides cash flow from contract drilling, and is currently experiencing a rapid growth in level of activity.

Alan R. Flint BSc (Hons), ARSM, EMBA, MAusIMM, Vice-President Exploration of TVI Pacific, is serving as TVI's "Qualified Person" for purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects), on this project. Mr. Flint has reviewed and approved this news release and has verified the data (including sampling, analytical and test data) set out in this news release. McPhar Laboratory of Manila, Philippines, an ISO 9001/2000 accredited laboratory, performs the sample preparation and assaying for the project. Gold analysis is by 50 gm fire assay fusion; where gold values are greater than 3 ppm assay values are by gravimetric finish, and if less then by AAS. Silver is determined by AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate results are included in the analytical report. A blank and a standard sample are included for each batch of 50 samples for quality control. A replicate assay is done on every 10th sample, and certified reference materials are used in every 20 samples. In addition to the laboratory's internal QA/QC, TVI Pacific independently inserts blanks and standards randomly, but on average every tenth sample.

In this news release, Gold equivalent values have also been calculated. Gold equivalent values are calculated applying a gold price of US$400 per troy ounce, and silver US$6.5 per troy ounce.

The statements herein that are not historical facts are forward-looking statements. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "anticipate" or "will" and similar expressions) may include plans, expectations, opinions, or guidance that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those anticipated or implied by forward looking statements. The forward looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks associated with the Corporation's exploration activities are set out in TVI's Annual Information Form, filed by TVI on SEDAR on April 6, 2005, which is available at

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

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