TVI Pacific Inc.

TVI Pacific Inc.

January 09, 2007 10:00 ET

TVI Pacific Provides Balabag Exploration Update

Encouraging gold and silver values continue to be encountered; current exploration drilling expected to be completed early 2007

CALGARY, ALBERTA--(CCNMatthews - Jan. 9, 2007) -


-- 2.65 m averaging 16.88 gpt Au and 13.57gpt Ag

-- 7.05 m averaging 4.85 gpt Au and 109.50 gpt Ag

-- 3.00 m averaging 5.94 gpt Au and 21.00 gpt Ag

-- 2.65 m averaging 9.36 gpt Au and 294.20 gpt Ag

-- 7.27 m averaging 15.33 gpt Au and 49.35 gpt Ag



TVI Pacific Inc. (TSX:TVI) ("TVI" or the "Company") is pleased to announce that its Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), has completed additional exploration drilling on the Balabag Property located in Zamboanga del Norte, Philippines. Information concerning prior results of the drilling program at Balabag was included in the Company's October 10, 2006 news release. A total of 30 additional drill holes (BDDH 27 to 54) have been completed, with 3 other holes on-going, using a combination of PQ3 (triple tube) and HQ3 (triple tube). This brings the total number of completed drill holes to 53 with a total aggregate meterage of 6,488 meters as of November 30, 2006. The drilling program has been conducted by Exploration Drilling Corporation, TVI's wholly-owned subsidiary.

The most recent drilling results are summarized in the Assay Table set out below in this news release. Maps indicating hole locations and setting out additional information relating to trenches, tunnels and schematic vein structures are available on the Company's website at

"Management of TVI Pacific continues to be encouraged with the results of the drilling program at Balabag," said TVI CEO Cliff James. "In addition to a multi-vein mineralization system identified by completed elements of our exploration program, new outcrops found further east may indicate extensions to existing vein structures which we expect to follow up on by further drilling and trenching. We expect the current drilling campaign to be completed early in 2007 enabling a comprehensive Scoping Study by mid-2007."

Certain information set out in this News Release respecting exploration activities at Balabag constitutes forward-looking information, including information concerning the anticipated timing of certain initiatives. Readers should review the cautionary statement respecting forward-looking information that appears at the end of this News Release.


The Balabag Gold project is centered on a 1.5 km by 1 km structurally controlled area consisting of a series of vein structures occurring in tuffaceous agglomerate and andesitic rocks bordered to the north and south by NW-SE regional faults displaying sinistral displacement. Data collected to date suggests an en echelon dilational system of sigmoidal veins that are stacked running east-westerly and gently dipping to the north. At Balabag, gold mineralization mainly occurs within quartz carbonate ferrigenous veins hosted in the tuffaceous agglomerate. This volcanic assemblage lies some 3 km to the east of a local dioritic intrusive where copper anomalies historically have been reported. Such intrusives are often associated with epithermal gold deposits around the Pacific Rim.

The Tinago vein appears to be the largest and more strongly mineralized structure. The mineralization appears to remain strong from section 4E to 4W (some 400m along strike) where the vein swell is greatest, yet appears to decrease progressively further west. The Tinago vein remains open to the east. The Miswi-Lalab twin vein system is smaller and thinner and appears somewhat like a leaner version of the Tinago vein. Other vein occurrences have been uncovered progressing further east where the mineralized area and vein system remain open and under explored. These latter occurrences need to be substantiated and require detailed follow-up work. Systematic mapping of the area is being carried out along with additional drilling at 25 meter spacing of the Tinago and other identified structures to enhance the definition of the mineralized system and resources.

DH-ID No. From To Interval Au Ag AuEq Target Remarks
(m) (m) (m) (gpt) (gpt) /Ag)
BDDH-06-27 11.70 13.80 2.10 0.299 7.50 0.43 Miswi
BDDH-06-28 73.30 76.50 3.20 0.065 1.61 0.09 Tinago W
BDDH-06-28 76.50 79.15 2.65 2.292 39.65 2.98 Tinago W
BDDH-06-29 21.75 27.93 5.03 0.358 9.86 0.53 Tinago E
0.15m No
BDDH-06-30 17.08 19.30 2.07 2.779 33.16 3.35 Miswi Recovery
BDDH-06-30 93.40 94.95 1.55 3.955 15.96 4.23 Miswi
BDDH-06-30 111.00 112.72 1.72 8.890 37.07 9.53 Miswi
BDDH-06-30 114.20 114.75 0.55 0.425 2.70 0.47 Miswi
BDDH-06-30 123.75 126.40 2.65 16.884 13.57 17.12 Miswi
BDDH-06-31 5.30 5.83 0.53 0.145 3.00 0.20 Tinago W
BDDH-06-31 37.52 39.40 1.88 0.150 5.10 0.24 Tinago W
BDDH-06-31 41.15 42.00 0.85 0.213 13.40 0.44 Tinago W
BDDH-06-32 24.50 24.96 0.46 1.710 7.30 1.84 Tinago E
BDDH-06-32 33.20 34.20 1.00 1.959 9.50 2.12 Tinago E
BDDH-06-33 77.00 80.65 2.65 9.357 294.20 14.44 Tinago W
BDDH-06-34 32.00 33.70 1.70 1.101 49.10 1.95 Miswi
BDDH-06-34 33.90 34.80 0.90 0.756 31.90 1.31 Miswi
BDDH-06-34 35.20 37.20 2.00 0.752 4.50 0.83 Miswi
BDDH-06-34 40.40 40.70 0.30 0.067 23.30 0.47 Miswi
BDDH-06-34 41.00 41.50 0.50 0.200 8.20 0.34 Miswi
BDDH-06-34 41.90 43.80 1.90 0.353 7.36 0.48 Miswi
BDDH-06-35 9.25 10.70 1.45 0.074 1.90 0.11 Tinago E
BDDH-06-35 11.45 12.45 1.00 0.121 4.50 0.20 Tinago E
BDDH-06-35 14.60 15.35 0.75 0.108 8.90 0.26 Tinago E
BDDH-06-35 26.15 26.60 0.45 0.051 5.30 0.14 Tinago E
BDDH-06-35 27.45 30.15 2.70 0.034 5.91 0.14 Tinago E
BDDH-06-35 33.50 40.77 7.27 15.325 49.35 16.18 Tinago E
BDDH-06-35 41.10 42.10 1.00 0.063 3.30 0.12 Tinago E
BDDH-06-35 42.60 43.65 1.05 0.141 1.90 0.17 Tinago E
BDDH-06-35 44.15 44.40 0.25 0.042 2.60 0.09 Tinago E
BDDH-06-35 52.80 53.65 0.85 0.107 3.00 0.16 Tinago E
BDDH-06-35 56.50 57.75 1.25 0.324 4.00 0.39 Tinago E
BDDH-06-36 80.50 82.00 1.50 Lalab
BDDH-06-36 83.95 84.95 1.00 Lalab
BDDH-06-36 87.00 95.30 8.30 Lalab
BDDH-06-36 98.55 99.65 1.10 Lalab
BDDH-06-36 104.65 105.65 1.00 Lalab
BDDH-06-36 111.20 116.65 5.45 Lalab
BDDH-06-36 117.10 117.50 0.40 Lalab
BDDH-06-36 186.80 187.35 0.55 Lalab
BDDH-06-37 46.55 48.30 1.75 2.315 30.80 2.85 Miswi
BDDH-06-37 52.35 59.40 7.05 4.850 109.50 6.74 Miswi
BDDH-06-37 118.95 127.95 9.00 0.056 1.30 0.08 Miswi
BDDH-06-37 148.70 151.70 3.00 5.941 21.00 6.30 Miswi
BDDH-06-37 154.65 156.20 1.55 0.242 2.70 0.29 Miswi
BDDH-06-38 22.50 24.40 1.90 Tinago
BDDH-06-38 26.75 31.35 4.60 Tinago
BDDH-06-38 33.00 37.45 4.45 Tinago
BDDH-06-39 No Samples Sent Tinago Abandoned
BDDH-06-40 38.25 45.50 7.25 33.807 Miswi Result
BDDH-06-40 74.30 78.10 3.80 22.298 Miswi Result
BDDH-06-40 80.65 82.35 1.70 3.662 Miswi Result
Sent for
BDDH-06-41 Tinago Assay
Sent for
BDDH-06-42 131.30 137.20 5.90 Lalab Assay
Sent for
BDDH-06-43 Tinago Assay
Sent for
BDDH-06-44 86.80 92.90 6.10 Lalab Assay
Sent for
BDDH-06-44 93.85 99.60 5.55 Lalab Assay
BDDH-06-44 100.95 102.40 1.45 Lalab
BDDH-06-44 105.45 107.15 1.70 Lalab
Sent for
BDDH-06-45 Tinago Assay
Sent for
BDDH-06-46 7.00 9.20 2.20 Lalab Assay
BDDH-06-46 67.00 71.80 5.30 Lalab
BDDH-06-46 109.60 130.90 21.30 Lalab
BDDH-06-46 151.10 155.80 4.70 Lalab
Sent for
BDDH-06-47 Tinago Assay
Sent for
BDDH-06-48 94.68 104.70 10.20 Lalab Assay
BDDH-06-48 113.60 127.80 14.20 Lalab
BDDH-06-48 128.13 131.85 3.72 Lalab
BDDH-06-48 133.85 137.70 3.85 Lalab
BDDH-06-48 166.60 172.20 5.60 Lalab
BDDH-06-50 Miswi Cutting
BDDH-06-54 Tinago W Cutting
BDDH-06-56 Tinago On-Going
BDDH-06-57 Tinago W On-Going

For the purpose of calculating gold equivalent values a gold price of US$ 550 per oz and silver US$ 9.50 per oz were used. Au and Ag equivalent calculations reflect gross metal content and have not been adjusted for metallurgical recoveries. True widths are approximately 85% of the reported lengths.


Data collected at Balabag suggests that some if not all of the vein structures remain open to the east, either on strike and/or at depth. Systematic drilling at 50 meter spacing was conducted to determine whether the veins have a minimum continuity (as TVIRD believes to be the case). New outcrops found further east may indicate extensions to existing vein structures which are expected to be followed up by further drilling and trenching. Systematic mapping of the area is being carried out and additional drilling at 25 meter spacing on the Tinago and other identified structures is planned to enhance TVI's understanding of the mineralized system and resources. The current drilling campaign is expected to be completed early in the 2007 so as to enable a preliminary resource estimate and scoping study on the project by mid-2007.

TVIRD holds an option on the Balabag property which was granted under an agreement with Zamboanga Minerals Corporation ("ZMC"). Balabag lies approximately 75 km 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 which cover an area of 1,257.12 km2. The Mineral Production Sharing Agreement ("MPSA") under which ZMC obtained its rights to the Balabag property covers an area of 47.79 km2. The agreement between TVIRD and ZMC provides TVIRD with an exclusive period, ending May 2008, to assess the mineral potential of the property. Should TVIRD so elect, the property may be purchased for US$350,000 with ZMC retaining a 2.5% net smelter royalty on the property.

Current Work Program and Quality Assurance

The current work program calls for continued mapping, trenching, channel sampling and exploration diamond drilling at Balabag. Management is confident the program is well managed with field and interpretative work carried out diligently by the TVIRD team. The drilling supervision, core logging, mapping trenching and channel sampling procedures are consistent with current mining practices. Core samples, typically one meter long, are sawed using a circular carbide-blade apparatus. Wherever practical to do so, the channel samples are cut 5 to 10 cm deep using circular carbide saw-blade across the exposed rock surfaces and structures in trenches and outcrops. Likewise the drill logs are comprehensive, descriptive and include RQD measurements and fracture counting with detailed sampling interval determinations. Overall, in Management's view, the field and interpretative work is of high quality.

Technical drawings and maps setting out additional information relating to the drilling and sampling program may be found at the Company's web-site at A technical report (prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")) setting out additional details relating to the prior sampling program at Balabag was filed (on SEDAR) with certain securities regulatory authorities in Canada on September 27, 2005. Additional information concerning the geology, mineral occurrences and nature of mineralization found at Balabag is also set out in the September 27, 2005 report.

Although management of TVI is encouraged by the exploration results generated to date in the Balabag area and has determined to undertake further exploration activities, readers are cautioned that there has been insufficient exploration to date to define a mineral resource and it is uncertain whether further exploration will result in the identification of a mineral resource.

About TVI Pacific Inc. (TSX: TVI)

TVI Pacific Inc. is a publicly-listed Canadian mining company focused on exploring for 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 foreign-invested, new, mining project in the Philippines in nearly four decades) began mining and milling operations in mid-2004, producing gold and silver dore. Mill throughput is currently averaging 1,900 dmtpd, generating an average of approximately 160 AuEqOz per day from a gossan/oxide zone. In 2006, TVI received a completed NI 43-101 feasibility study on the Canatuan Sulphide project prepared by Norwest Corporation (which has been filed with certain securities regulatory authorities in Canada and is available at the SEDAR website.) The Norwest study addresses the copper-zinc bearing massive sulphide zone, or lower portion of the Canatuan Deposit. Planning for construction of the Sulphide Project at Canatuan is nearly complete and a positive plant production decision is anticipated in the near future after further project optimization work has been completed. In addition, TVI holds a 2.5% NSR on the Philippine-based Rapu Rapu project (operated by Lafayette Mining Ltd.). Exploration in the Philippines is being conducted at Canatuan, in an effort to expand TVI's resource base and to find new deposits, at Balabag and at other areas which management of TVI view as compelling exploration properties.

In China, TVI's wholly-owned Chinese subsidiary, Hunan Pacific Geological Exploration Inc. ("HPGEI"), was the first foreign mining company to be granted both WOFE status and a Qualified Explorer License. The exploration program in China is focused primarily within the Golden Triangle area, a highly prospective metallogenic region in China's south-western provinces of Yunnan, Guizhou and Guangxi Autonomous Region and prospective areas in the Tibet A.R. HPGEI has 2,394 sq kms of land under application in China in the Golden Triangle and in the Tibet A.R.

TVI also has a Drilling Division consisting of Exploration Drilling Corporation ("EDCO"), a wholly-owned subsidiary of TVI Pacific Inc. based in the Philippines, and Hunan Pacific Drilling ("HPD"), a division of HPGEI based in China, which generates revenue from contract drilling.

Carl L. Caumartin BSc, P.Eng., MBA, Vice President, Exploration of TVI Pacific Inc. is serving as TVI's "Qualified Person" (as contemplated by National Instrument 43-101 (Standards of Disclosure for Mineral Projects)), for purposes of the Balabag exploration project. Mr. Caumartin 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, performed the sample preparation and assaying for the current sampling phase of the exploration project at Balabag. Gold analysis was by 50 gm fire assay fusion; where gold values were greater than 3 ppm assay values were by gravimetric finish and by AAS where the values were less than that threshold. Silver was determined by AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate results were included in the analytical report. A blank and a standard sample were included for each batch of 50 samples for quality control. A replicate assay was done on every 20th sample and certified reference materials were used in every 20 samples. In addition to the laboratory's internal QA/QC, TVIRD independently inserted blanks and standards randomly, but on average every 20th sample.

The statements set out in this news release 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. Forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release. These factors include, but are not limited to, such things as the volatility of prices for precious metals and base metals, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of mining properties, ultimate recoverability of reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing and new laws (domestic or foreign). Forward-looking information respecting future exploration on the Balabag property are based on the results of earlier exploration initiatives, the current budget, development plans and overall strategy of TVI and the current exploration program, all of which are subject to change. 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 Company's operations are described in detail in TVI's Annual Information Form, filed by TVI on SEDAR on March 30, 2006, which is available at

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

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