TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

May 14, 2008 08:30 ET

TVI's Sulphide Project Process Engineering Progressing; Gossan Operations Cleanup and Conversion Continue

- Sulphide Project Moving Ahead - Gossan Facilities Cleanup And Conversion On Track - Gossan Project Q1 Performance Reported

CALGARY, ALBERTA--(Marketwire - May 14, 2008) - TVI Pacific Inc (TSX:TVI) (the "Company") today provided an update for the Canatuan Mine, which is located in Southern Philippines and operated by the Company's affiliate, TVI Resource Development (Phils.) Inc ("TVIRD"). This news release should be read in conjunction with the Company's interim consolidated Financial Statements and Management's Discussion and Analysis for the period ending March 31, 2008, which have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the Company's website (www.tvipacific.com).

Certain statements in this News Release constitute forward-looking statements, including statements respecting the timing of commencement of construction of the next segment of the sulphide dam at Canatuan, completion of the gossan cleanup phase and the time frame for ongoing environmental rehabilitation activities at Canatuan. Readers should refer to the cautionary statement that appears at the end of this News Release.

Sulphide Project Advancing

The Company reported that activities are onging in relation to the engineering, development and construction of a copper-zinc flotation plant to process ore from the lower, sulphide portion of the Volcanogenic Massive Sulphide deposit located at Canatuan. The sulphide portion of the ore body underlies the oxidized, gossan zone, which has now successfully been mined at the TVIRD Canatuan site.

TVIRD has contracted an Australia-based engineering and management firm, Intermet Engineering, to assist in finalizing and optimizing the process design and engineering specifications for its Sulphide Project production facilities at Canatuan. New senior personnel have been recruited to oversee the engineering, development and construction of the sulphide plant, the improvement of the road leading to and from the port and the construction of port facilities to support the shipment of copper and zinc concentrates.

TVIRD procured an additional ball mill in 2007, which, when added to the existing equipment at Canatuan, brings the initial capacity of the milling equipment sourced for the sulphide project to 1,300 dry metric tonnes ("dmt") per day. Completed works include an additional warehouse and, most importantly, the foundation of the sulphide dam for the copper-zinc tailings. Construction of the next segment of the dam (required to bring it to initial operating height) is scheduled to commence shortly.

On the social and community side, TVIRD has extended its information-education-communication campaign among the residents of communities in and around Canatuan to provide additional information about the project.

Cleanup Of Gossan Facilities And Conversion For The Sulphide Project

Since grinding operations concluded on April 9, 2008, TVIRD has conducted an extensive cleanup of its gossan facilities, harvesting residual metal from all circuits. The last dore shipment was made on April 24, 2008.

As well, the operations team has stepped up its efforts to convert gossan-related facilities to sulphide operations. The cleanup and conversion activities include, among other things, the refurbishment of the crushing plant and the conveying system, the relining and refurbishment of the ball mills and the overhauling and conditioning of conveyance equipment for use in the processing of sulphide ore. The cleanup phase is expected to be completed by the middle of May 2008.

Environmental rehabilitation activities, which began in 2004 when TVIRD commenced its gossan operations, continue to be undertaken, and are scheduled to be sustained through 2013. These activities consist primarily of revegetation, reforestation and structure improvements. TVIRD has planted over 100,000 trees in Canatuan since 2004.

TVIRD has determined that the Sulphide Project will require a smaller organization and a different set of skills than the Gossan Project. Accordingly, effective April 18, 2008, TVIRD initiated a major reduction of manpower by 168 personnel; those who occupied positions that are not needed during the transition period and when the sulphide operations begin.

Gossan First Quarter 2008 Operations Performance

The Canatuan Project processed more ore in the first quarter of 2008 vis-a-vis the same period in the previous year. It processed 176,101 dmt in Q1, 2008 versus 172,129 in Q1, 2007. However, due to expected lower metal grades and recoveries, the project produced 5,067 gold equivalent ounces ("AuEqOz") in the first quarter of 2008, down 38% from the 13,308 AuEqOz in the same quarter last year. Production in the first quarter consisted of 4,466 ounces of gold ("Au") and 32,128 ounces of silver ("Ag"), compared with 8,930 Au and 214,282 Ag in the first three months of 2007. Additional information on Q1,2008 performance can be found on the Company's website at www.tvipacific.com.

"The Gossan Project performed better in the first quarter of 2008 than we had anticipated as a consequence of successful mining practices and appropriate cost reductions," said Clifford M. James, TVI President and CEO. "We had expected our gossan operations to cease by the end of March, but were able to extend the extraction of gold and silver to the second week of April as a result of clean up operations. The additional period of operations generated incremental metal production and cash flow. Looking forward, in addition to the construction of the Sulphide Project, we have begun to consider the possibility of using the heap leaching technique of metal recovery, a low-cost method of processing ore, for the remaining low-grade ore at Canatuan. We believe that this process could be viable, given the current price of precious metals."

About TVI Pacific Inc. (TSX:TVI)

TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for and producing precious and base metals within district scale systems in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Ltd.

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" and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements. 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 by such forward-looking statements. 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 mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices and changes in exploration plans or budgets. 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. Forward-looking information respecting the timing of commencement of construction of the next segment of the sulfide dam at Canatuan, is based upon progress made to date on the construction of the foundation for the sulfide dam, advice received from third-party contractors with respect to the timing of various components of the construction project, prior experiences of management with construction activities at Canatuan, the current development plan for Canatuan and the Company's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward-looking information concerning the completion of the gossan cleanup phase at Canatuan is based upon progress made to date in relation to the gossan cleanup initiative, the current development plan for Canatuan and the Company's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change.
Forward-looking information respecting the timeframe for ongoing rehabilitation activities at Canatuan are based upon rehabilitation activities carried out to date at Canatuan, the current rehabilitation plan for Canatuan and the Company's current budget and overall strategy for environmental rehabilitation at Canatuan, which plans, budgets and strategy are all subject to change. The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company is exposed in the conduct of its business (including exploration activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2007, which was filed on SEDAR on March 27, 2008 and is available under the Company's profile at www.SEDAR.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.

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

Contact Information

  • TVI Pacific Inc.
    Clifford M. James
    President and CEO
    (403) 265-4356
    or
    TVI Pacific Inc.
    Paul Moon
    Director, Corporate Communications
    (403) 265-4356
    or
    TVI Pacific Inc.
    2000, 736 - 6 Avenue S.W.
    Calgary, Alberta T2P 3T7
    (403) 264-7028 (FAX)
    Email: tvi-info@tvipacific.com
    Website: www.tvipacific.com