TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

September 21, 2005 11:43 ET

TVI Pacific Inc.: Balabag Property Update

CALGARY, ALBERTA--(CCNMatthews - Sept. 21, 2005) - TVI Pacific Inc. (TSX:TVI)

DUE DILIGENCE COMPLETED; SAMPLING RETURNS EXCELLENT GOLD AND SILVER VALUES

TVI ACCELERATES EXPLORATION PROGRAM - DRILL RIG MOBILIZED

- Four sites sampled testing a portion of a mineralized area extending approximately 500m east-west and 350m north-south with results ranging from ; 1m @ 0.49 g/t Au, 4.6 g/t Ag, 0.57 g/t AuEq to 1m @ 62.2 g/t Au, 8,175 g/t Ag, or 195 g/t AuEq.

- The average of all 144 channel samples is 7.58 g/t Au, 290 g/t Ag, 12.3 g/t AuEq.

- Best composite is 3m @ 13.0 g/t Au, 125 g/t Ag or 15.1 g/t AuEq.

- Additional sampling is planned to test along-strike, and down-dip continuation to gold-silver mineralization.

- Localized bonanza grades may reflect the presence of ore-shoots. The distribution of illegal mining activity in the area also suggests the presence of gold within at least one other adjacent vein system.

- Drill rig being mobilized from affiliate company EDCO, based in Cebu, Philippines.

TVI Pacific Inc. (TSE:TVI) is pleased to report it has received encouraging assay results from due diligence sampling conducted at its previously announced Balabag property in Zamboanga, southern Philippines.

Four sites were sampled, with results ranging from 1m @ 0.49 g/t Au, 4.6 g/t Ag, 0.57 g/t AuEq to 1m @ 62.2 g/t Au, 8,175 g/t Ag, or 195 g/t AuEq. The average of all 144 channel samples, taken from the veining, was 12.3 g/t gold equivalent (AuEq).

TVI Resource Development (Phils.) Inc. (TVIRD) holds an option on the Balabag property, which was granted under an option agreement with Zamboanga Minerals Corporation (ZMC). Balabag lies approximately 75km ENE of the TVI's gold-silver operation at Canatuan, and immediately adjacent to the extensive tenement applications filed by TVI in early 2005. The Mineral Production Sharing Agreement (MPSA) under which ZMC obtained its rights to the Balabag property covers 4,779 hectares. As noted in an earlier news release, 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.

The sampling program was conducted to confirm whether the attractive gold and silver values reported by a major mining company that previously conducted exploration at Balabag (in October 1996 - November 1997) are representative. That company reported gold-silver mineralization at four sites within an area extending approximately 500m east-west and 350m north-south. TVI's results indicate that attractive gold values do remain, despite seven years of active mining on the property by illegal miners.

TVI selected the Tinago vein for the technical due diligence because it was well documented by the previous explorer. TVI collected one-metre channel samples from both the surface and underground, on what is currently understood to be a large single vein. The samples were taken over 70m in an east-west direction, and 100m north-south. The vein dips northwards, sub-parallel to the surface, and the sampling tested approximately a 120m down-dip extent.

Management of TVI is very encouraged by the assay results and TVI is accelerating its planned drilling program at Balabag, which is designed to test the along-strike and down-dip continuation of the gold and silver mineralization. The Company is currently mobilizing drilling equipment available from its EDCO Drilling Division subsidiary based in Cebu, Philippines. A trenching, mapping, and sampling program is underway, and a ground magnetics survey (to be conducted by a local contractor) is planned for the near future. Management of TVI believes that the results of these exploration initiatives will clarify the geology (in particular the presence of any post-mineral faulting), in preparation for the drill program.

"We are excited by these results," said TVI CEO Clifford M. James. "While a great prospect does not a gold mine make, we plan to explore this property aggressively to evaluate whether it does, in fact, have the potential for future economic development."

Mr. James also announced that the Company plans to move quickly to work with indigenous people, illegal migrant miners, and the local municipality to ensure that benefits accrue in the short-term to the residents of the area. An assessment of the indigenous peoples' ancestral rights (at present inadequately confirmed), employment during drilling, as well as responses to health concerns within the illegal migrant miner community, are priority concerns, noted Mr. James.

A summary of the results of the sampling program is provided below. In addition, technical drawings setting out additional information relating to the sampling program, as well as photographs of the illegal mining activity at Balabag, may be found at the Company's web-site at www.tvipacific.com.

Technical summary

TVI expects to finalize and file a technical report (prepared in accordance with National Instrument 43-101) setting out additional details relating to the sampling program. That technical report is expected to be filed (on SEDAR) with certain securities regulatory authorities in Canada by September 23, 2005.

TVI's technical due diligence at Balabag involved the channel sampling of four sites sampled by the previous explorer. Gold equivalent values have also been calculated, as the value contributed by silver is significant. Commodity prices used in determining gold-equivalent values are USD 400 per ounce of gold and USD 6.50 per ounce of silver.

The sites sampled underground were determined by the geometry of the workings. The three sampled adits commence in the hanging wall to the mined vein, and progress approximately horizontally through the hanging wall contact into the vein. After entering the vein for a variable distance, and before encountering the footwall contact, the adits become inclined and sub-parallel to the hanging wall. These inclined areas are where stoping occurs, and management believes this represents the first higher-grade material encountered by the illegal miners. The majority of the samples were taken as 1m chip channels in the "ribs" (or walls) to these stopes.

Samples were taken perpendicular to dip, and therefore reflect true widths. However, none of the samples represent the full width to the vein, as the footwall was never encountered. The samples in any one stope commonly represent the same preferred, approximately planar, portion to the vein. In the larger (higher) stopes it was occasionally possible to take composite samples, as the mined true thickness was greater than a metre.

Twenty-five samples were collected in the Berong Tunnel. These were collected in the deepest portion of the stope, representing approximately 16m of down-dip extent to the vein. Much of the adit is little more than 1m in height, but a few 2m composites were collected. The results range from 1m @ 2.03 g/t Au, 17.5 g/t Ag, 2.32 g/t AuEq to 1m @ 21.6 g/t Au, 145 g/tAg, 24.0 g/t AuEq. The twenty-five samples average 7.92 g/t Au, 38.5 Ag, 8.5 g/t AuEq.

In Tunnel 32A, TVI chip-channeled eleven narrow locations underground, representing approximately six meters of down-dip extent to the vein. These samples average 4.77 g/t Au, 72.9 g/t Ag and 5.62 g/t AuEq. The highest grade is 1m @ 13.6 g/t Au, 80.5 g/t Ag with a gold equivalent grade of 14.9 g/t AuEq and range down to 1m @ 0.36 g/t Au, 27.8 g/t Ag, 0.82 g/t AuEq.

Fifty-three samples were collected from the vein in Tunnel 29A, and six from the hanging-wall. Approximately 12m of up-dip extent within the same plane of the vein was sampled. The mined height is typically only 1-2m, and as a consequence the number of composites is very limited. Individual samples within the vein range from a low of 1m @ 0.53 g/t Au, 6.2 g/t Ag, 0.63 g/t AuEq to 1m @ 20.2 g/t Au, 115 g/t Ag, 22.1 g/t AuEq. The highest composite is 3m @ 13.0 g/t Au, 125 g/t Ag and 15.1 g/t AuEq. The average of the samples recovered from the vein is 6.07g/t Au, 91.5 Ag g/t, representing 7.55g/t AuEq.

At Warik-Warik, much of the vein that was worked from underground by the small-scale miners (at the time the prior explorer conducted its sampling), is now exposed at surface. The sampled material represents remnant boulders of vein material that are not in situ, but have only moved a few meters and rest on un-mined portions of the same vein. Fifty-five samples, typically comprising 1m chip-channels perpendicular to the foliation seen in the boulders, were collected. The average of all samples collected by TVI was 9.48 g/t Au, 635 Ag g/t, representing 19.8 g/t AuEq. The values range from a low of 1m @ 0.49 g/t Au, 4.6 g/t Ag, 0.57 g/t AuEq to 1m @ 62.2 g/t Au, 8,175 g/t Ag, or 195 g/t AuEq.

Current interpretation suggests the samples from all four sample locations to have been collected from the same (Tinago) low-sulfidation epithermal gold-silver vein. The maximum and average widths to this vein are unknown as outcrop is limited, and the underground tunnels do not traverse the full width of the vein.

The average of the 145 samples taken by the previous explorer was 20.3 g/t Au, and 464 g/t Ag. TVI's 144 samples from the veining average 7.58 g/t Au, 290 g/t Ag and 12.3 g/t AuEq. Both phases of sampling have locally identified bonanza grades that may reflect the presence of ore-shoots. TVI's average values are high, but less than encountered in the earlier sampling campaign conducted by the previous explorer. Management is of the view that the variance is most likely attributable to the illegal small-scale miners practicing a reasonable form of grade-control -- in the seven-year period between the two phases of sampling, it is probable they have identified and focused on the particularly high-grade material identified by the previous explorer. The continuation of mining has also precluded TVI from replicating sampling on the original sites. The natural variation in the distribution of grade, as demonstrated by TVI's results on the individual adits, likely also explains some of the variance. The foregoing information reported by the previous explorer should not be relied upon and the reproduction of such information in this News Release should not be taken as confirmation by TVI Pacific or TVIRD of the accuracy or reliability of such information.

The distribution of illegal migrant miners in the immediate area suggests that gold is also present in other mineralized areas, within at least one other vein system, which had not been identified by the previous explorer. This additional mineralization was not sampled as part of the technical due diligence, however TVI, expects to commence its assessment of the significance of these target areas in the near future.

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.

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. TVI Pacific Inc. does not assume responsibility for the accuracy and completeness of the forward looking statements and, subject to applicable law, does not undertake any obligation to publicly revise such forward looking statements to reflect subsequent events or circumstances. The forward looking statements of TVI Pacific Inc. contained in this News Release are expressly qualified, in their entirety, by this cautionary statement.

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

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