The Agata Mining Joint Venture Receives Declaration of Mining Project Feasibility and Approval to Develop Port Facility for the Agata High-Iron DSO Project
TSX: TVI OTCQX: TVIPF
TSXV: MIO ASX: MDO FFT: OLN
CALGARY, April 28, 2014 /CNW/ – TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF) (“TVI“), Mindoro Resources Ltd. (TSXV: MIO) (ASX: MDO) (FFT: OLM) (“Mindoro“) and TVI’s Philippine affiliate, TVI Resource Development (Phils.),
Inc. (“TVIRD“) announced today that the Agata Mining Joint Venture (“the AMJV“) has received the Declaration of Mining Project Feasibility (“DMPF“) and clearance to develop a port facility for the proposed direct
shipping ore (“DSO“) operation of the high-iron laterite resources at the Agata Project,
located in Agusan del Norte, Mindanao, the Philippines.
Receipt of the DMPF authorizes the AMJV to proceed to development,
including the extraction and sale of iron, nickel and other associated
minerals in the contract area. Site development is expected to commence
in May 2014 and shipping of the high-iron laterite would then commence
through the third quarter of 2014, subject to receipt of remaining port
approvals and financing.
The DMPF, granted by the Philippine Mines and Geosciences Bureau of the
Department of the Environment and Natural Resources, also confirms that
the AMJV has complied with requirements of approval, which include,
among other things:
-- Provision of a Mining Project Feasibility Study Report; -- Receipt of an Environmental Compliance Certificate; -- Provision of a three (3) year Development and/or Utilization Program; -- Provision of an Environmental Protection and Enhancement Program, and Final Mine Rehabilitation and/or Decommissioning Plan; and, -- Proof of technical competence and financial capability,
Clearance to develop a private non-commercial port facility has also
been received from the Philippine Ports Authority. Construction of the
port facility may commence upon securing the permit to construct, the
application for which has commenced and will be followed also by an
application for the permit to operate.
On September 10, 2013, TVIRD and Mindoro completed a NI 43-101 compliant
Feasibility Study indicating robust economics for a DSO operation of
the high-iron laterite resources at the Agata Project. The Feasibility
-- Low initial start-up capital of US$10.1 million, high Internal Rate of Return of 187% and payback within first year of operation; -- Post-tax Net Present Value (10% discount) of US$37.9 million; -- DSO product to grade 48% Fe and 0.9% Ni. - a product in consistent demand; -- Shipping rates to accelerate to 2.5M wet metric tonnes per annum in 2015.
The National Instrument 43-101 Compliant Mineral Resource estimate for
the Agata Nickel Project, released on April 10, 2013 and available on www.sedar.com, www.tvipacific.com, and www.mindoro.com, shows the Agata DSO project to have reported Proven and Probable
Reserves of 9.70 million wmt grading of 48% Fe with 0.9% Ni.
TVI Pacific Chairman, President & CEO, Cliff M. James, said, “We are
pleased with this development that will allow TVIRD to move back into
production while working in parallel to further realize our proposed
nickel processing project for the benefit of our shareholders and the
community. We continue to successfully achieve significant milestones
that include the results of testing at our pilot plants in both China
and the Philippines, and the technical program remains on track to
provide metallurgical data required to design the proposed full-scale
processing plant and to finalize a bank feasibility study.”
Mindoro CEO Tony Climie commented, “This major milestone brings Mindoro
to the production stage. Exploration by Mindoro in the Philippines
since 1997 has produced the Agata Nickel Laterite resource, two
NI43-101 compliant gold resources, and multiple promising porphyry
copper-gold prospects. Mindoro is pleased with the progress made by the
operator, TVIRD, at Agata and with the support provided by major
shareholder, Prime Resources Holdings Inc., of the Philippines.”
TVIRD and Mindoro Joint Ventures
TVIRD and Mindoro have signed four joint venture agreements, previously
announced on October 1, 2012, relating to the Agata and Pan de Azucar
mining projects located in the Philippines. The joint ventures present
TVIRD and Mindoro with multiple growth opportunities for near and
medium-term cash flow. TVIRD may earn up to a 60% interest in each of
the joint ventures and is operator of the projects.
As at March 31, 2014, TVIRD has incurred total expenditures of
$6,410,715 and earned a 59% interest in the shares of the Agata Mining
Joint Venture and a 45% interest in the shares of the Agata Processing
Joint Venture, which remain in escrow. TVIRD’s interest in the Agata
Mining Joint Venture will be confirmed once the high-iron laterite DSO
is brought into operation, and TVIRD’s interest in the Agata Processing
Joint Venture confirmed upon completion of the bank feasibility study
for the Nickel Processing Facility.
Mining opportunities at Agata include:
-- near-term high-iron laterite DSO; -- near-term limestone DSO; -- medium-term lime production facility; -- medium-term nickel-processing plant.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the
production, development, exploration and acquisition of resource
projects in the Philippines and Southeast Asia. TVI’s affiliate,
TVIRD, has to date produced copper and zinc concentrates from its
Canatuan mine and is advancing its Balabag Gold-Silver project and its
Agata Nickel DSO operation.
TVI holds a 30.66% indirect interest in TVIRD and the assets owned by
TVIRD (including Canatuan, Balabag, the Agata Mining and the Agata
Processing Joint Ventures, the Pan de Azucar Mining and Processing
Joint Ventures, and various exploration properties), a 15.51% equity
interest in Foyson Resources Limited (“Foyson”), a 14.4% equity
interest in Mindoro Resources Ltd., 100% of TG World Energy Corp., and
a 10% interest in the Amazon Bay Iron Sands project (for which the
exploration license is held by Titan Mines Limited, a company in which
Foyson holds 50% shareholding and has an option to acquire the
About Mindoro Resources Ltd.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO),
Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN
906167). Mindoro has a 16% interest in the Agata Mining Joint Venture
and 30% interest in the Agata Processing Joint Venture, Mindanao, with
an option to acquire an additional 25% in both projects. Mindoro also
holds 75% interest in the Pan de Azucar Sulphur-Copper-Gold Project,
Iloilo. TVIRD has the option to earn up to a 60% interest in Agata and
Pan de Azucar projects by meeting the earn-in requirements outlined in
the June 24, 2013, press release, which include funding the DSO
operation into production and producing a bankable feasibility study
for a nickel processing facility. Mindoro also holds 75% interest in
the Tapian San Francisco Copper-Gold Project, Mindanao.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release constitute 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”, “schedule” and similar expressions.
Forward-looking statements include, but are not limited to, commencing
development of the infrastructure for the Agata North DSO Project plans
to commence direct shipping of high-iron limonite ore in the third
quarter of 2014, and other statements that are not historical facts.
Forward-looking statements are based upon the opinions and expectations
of TVI and Mindoro as at the effective date of such statements and, in
certain cases, information received from or disseminated by third
parties. Although TVI and Mindoro believe that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions and that information received from or disseminated by third
parties is reliable, 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.
These factors include, but are not limited to, such things as general
economic conditions in Canada, the United States, the Philippines and
elsewhere; volatility of prices for precious metals, base metals, oil
and gas; commodity supply and demand; fluctuations in currency and
interest rates; inherent risks associated with the exploration and
development of mining properties; inherent risks associated with the
exploration of oil and gas properties; ultimate recoverability of
reserves; production, timing, results and costs of exploration and
development activities; political or civil unrest; availability of
financial resources or third-party financing; new laws (domestic or
foreign); changes in administrative practices; changes in exploration
plans or budgets; and availability of personnel and equipment
(including mechanical problems) and extreme weather conditions and
forces of nature (i.e. typhoons, heavy rains, earthquakes, and the
like) that may disrupt operations and explorations.
The forward-looking statements set out in this release include
information relating to interests that may be earned by TVIRD in the
Agata and Pan de Azucar joint ventures; opportunities for exploration,
development and commercialization of the Agata Mining Project
(including the High Fe and Limestone DSO/Lime Production Facility and
the Agata Nickel Processing Plant). Related risks and uncertainties
include, but are not limited to: (A) results of further work in
pursuing the conceptual planning described in this release not
supporting current expectations as to the opportunities outlined; (B)
TVIRD not funding the necessary expenditures at Agata or Pan de Azucar
to advance the projects or earn an interest under the joint venture
agreements due to, among other things (i) changes in TVIRD’s strategic
priorities, due diligence findings, changes in laws or regulations
affecting mining operations in the Philippines (including the
profitability of such operations), and other factors, (ii) changes in
TVIRD budgets and (iii) limited availability of funds; (C) a
determination on the part of TVIRD not to pursue projects contemplated
by one or more of the joint venture agreements noted above for
technical, economic, legal or other reasons (including, without
limitation, a failure to obtain required permits or other governmental
or regulatory approvals); and (D) certain other risks identified
elsewhere in TVI’s public filings, including, without limitation, those
risk factors set forth at pp. 66-74 of TVI’s Annual Information Form
dated March 19, 2014.
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.
The forward-looking statements of TVI and Mindoro contained in this news
release are expressly qualified, in their entirety, by this cautionary
statement. Various risks to which TVI, Mindoro and their affiliates are
exposed in the conduct of their business are described in detail in
TVI’s and Mindoro’s Annual Information Forms for the year ended
December 31, 2013, which were filed on SEDAR on March 19, 2014, and
March 31, 2014, respectively, and are available at www.SEDAR.com. Subject to applicable securities laws, TVI and Mindoro do not
undertake any obligation to publicly revise the forward-looking
statements included in this news release to reflect subsequent events
or circumstances, except as required by law.
SOURCE TVI Pacific Inc.