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RTG to acquire Mt Kare gold project in PNG

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Mining.com

RTG Mining (ASX:RTG, TSX:RTG) has announced its intention to acquire a majority stake in the Mt Kare gold project in the Enga province of Papua New Guinea.

To carry out the plan, the Australian miner entered into binding Memorandum of Agreement with GMG Global Mining Group and Tribune Mt. Kare, the two priority applicants for the project who would sell an 80% interest if and when successful in securing the new exploration licence. The deal involves cash payments for a total of $6.5 million.

Located approximately 600 kilometres northwest of Port Moresby and 15 kilometres southwest of Barrick Gold’s (TSX:ABX) (NYSE:GOLD) Porgera gold mine, Mt Kare has a historical resource (JORC 2004), which includes a measured mineral resource of 1.2 million ounces of gold, an indicated mineral resource of 0.3 million ounces and an inferred mineral resource of 0.6 million ounces of the yellow metal.

Discovered in 1987 by Conzinc Riotinto of Australia, the project has had in excess of A$60 million spent on it by several companies, including 454 diamond holes totalling 73,639 metres.

Dome Gold lifts Fiji resources

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Mining Journal

The JORC resource for Koroua Island is 52.7 million tonnes at 13.3% heavy minerals, which includes over 1Mt of iron minerals, largely magnetite, plus there are traces of gold and rare earth minerals that require further investigation.  The total resource for Sigatoka is now over 184Mt across Koroua Island, Sigatoka River and Kulukulu. The Kulukulu foreshore appears to be more concentrated with thicker mineralisation, and is likely starting point for operations pending finalisation of the definitive feasibility study.

 Chairman Garry Lowder said Dome hoped to develop a robust sand dredging project that could fund work at the Namoli-Wainivau copper-gold and Ono Island gold projects elsewhere within the Pacific nation. The company has also been investigating the potential for industrial sand and gravel as a co-product. The DFS is expected next year. A prefeasibility study completed in 2015 suggested $105 million would be needed in stages to start operations, but would offer a two-year payback based on production of 351,000tpa of magnetite concentrate, 260,000tpa of non-magnetic bulk heavy mineral concentrates and up to 2Mtpa of sand and gravel. Shares in Dome have traded between A15-23c over the past year and were steady this morning at 19.5c, valuing the company at $53 million.

Thunderstruck Drills 14.5% Zinc over 6.3 Metres at Its Korokayiu Copper-Zinc VMS Prospect

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Junior Mining Network

Thunderstruck Resources Ltd. (TSXV: AWE) (OTC: THURF) (The “Company”) is pleased to report that the first two drill holes on its Korokayiu Joint Venture (JV) zinc-copper volcanogenic massive sulphide (VMS) prospect confirm historic results reported by Anglo American over 40 years ago which outlined a significant zinc-copper-silver-gold VMS system. Assays are pending for another 5 holes.

Based on these positive results, the joint venture partner JOGMEC is presently working with Thunderstruck on details of an aggressive 2020 drill program.

Drill hole WLK14B intersected 14.5% Zinc (Zn), 2.35% Copper (Cu), 111 grams-per-tonne Silver (g/t Ag), and 0.66 g/t Gold (Au) over a drill core interval of 6.31 metres1; within a broader zone of mineralization returning 9.5% Zn, 1.87% Cu, 55 g/t Ag, and 0.48 g/t Au over a 10.55-metre core interval (Table 1 and Figure 1). WLK14B (-60o dip / 334o azimuth) was drilled beneath the Korokayiu VMS Discovery Outcrop to verify historical drill intercepts reported by Anglo American. The mineralization is hosted by intensely altered fragmental volcanoclastic dacite hosting massive sphalerite-chalcopyrite-pyrite mineralization.

Drill hole WLK14A was designed to test the depth extent of high-grade massive sulphide mineralization intersected in WLK14B 40 metres down dip on section. WLK14A (-90o dip) intersected hanging wall basalt-andesite rocks directly overlying a shear and faulted contact zone beneath which dacitic volcanoclastic rocks hosting disseminated chalcopyrite-pyrite mineralization assayed 2.0% Cu, 0.11% Zn, 60 g/t Ag, and 0.51 g/t Au over a drill core interval of 3.35 metres1, within a broader zone of mineralization assaying 1.2% Cu, 0.3% Zn, 28 g/t Ag, and 0.23 g/t Au over 8.38 metres.

Bryce Bradley, Thunderstruck’s President/CEO, stated, “Thunderstruck is pleased with the initial drill results at Korokayiu which have confirmed the presence of high grade copper-zinc massive sulphide mineralization. With the last drilling on this prospect occurring over 40 years ago, and with no historic drill core remaining, we knew our first task would be to verify some of the key historically reported drill intercepts and provide new drill core to bring the significance of the Korokayiu discovery to light. We look forward to receiving additional drill results in the coming weeks that include further drilling on this section and step-outs to the east.”

Table 1: Korokayiu Cu-Zn Deposit 2019 Diamond Drill Intercepts

Drill Hole From (m) To m) Interval (m) Zn (%) Cu (%) Ag (g/t) Au (g/t)
WLK14B 57.05 67.60 10.55 9.51 1.87 54.5 0.48
including 57.73 64.04 6.31 14.51 2.35 111.1 0.66
WLK14A 78.82 87.20 8.38 0.28 1.15 27.5 0.23
including 78.82 82.17 3.35 0.11 2.05 59.7 0.51

1The true width of mineralization is estimated to be 80-100% of the drilled interval

The 2019 Korokayiu Joint Venture (JV) zinc-copper volcanogenic massive sulphide (VMS) prospect diamond drill program comprised 7 drill holes totaling 904 metres designed to verify the presence of historically reported copper-zinc massive mineralization and further test the extent of the deposit area. The 2019 diamond drill program has now paused for the holiday break and is expected to resume in early January, 2020. The drilling is funded by Japan Oil Gas and Metals National Corporation (JOGMEC), a Japanese company funded by the national government with the intent of discovering large-scale mineral deposits that will benefit Japanese industry.

“JOGMEC is currently in Fiji with Thunderstruck planning our 2020 drill program with a minimum expenditure of $1,500,000 to further test the depth and size of Korokayiu,” Bradley added. “Positive results may accelerate the program and increase expenditures.”

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Figure 1: Korokayiu 2019 Diamond Drill Section

To view an enhanced version of Figure 1, please visit:
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About Fiji

Viti Levu, the main island of Fiji, has a long mining history. It is on the prolific Pacific Ring of Fire, a trend that has produced numerous large deposits, including Porgera, Lihir and Grasberg. The island of Viti Levu hosts Namosi, held by a joint venture between Newcrest and Mitsubishi. Newcrest published Proven and Probable Reserves for Namosi of 1.3 billion tonnes at 0.37% Cu and 0.12 g/t Au (5.2M ounces Au and 4.9M tonnes Cu). Namosi is now undergoing environmental assessment as part of the permitting process. Lion One Metals is now developing its Tuvatu Project, with Indicated Resources of 1.1 million tonnes at 8.17 g/t Au (294,000 ounces Au), and Inferred Resources of 1.3 million tonnes at 10.6 g/t Au (445,000 ounces Au). The Vatukoula Gold Mine has been operating for 80 years, producing in excess of 7 million ounces.

About Thunderstruck Resources

Thunderstruck Resources is a Canadian mineral exploration company that has assembled extensive and highly prospective properties in Fiji on which recent and previous exploration has confirmed zinc, copper and precious metals mineralization. The Company provides investors with exposure to a diverse portfolio of exploration stage projects with potential for zinc, copper, gold and silver in a politically safe and stable jurisdiction. Thunderstruck trades on the Toronto Venture Exchange (TSX-V) under the symbol “AWE” and United States OTC under the symbol “THURF.”

Methodology and QA/QC

The analytical work reported on herein was performed by Australian Laboratory Services Pty. Ltd. (ALS) at Perth, WA. ALS is an ISO-IEC 17025:2017 and ISO 9001:2015 accredited geoanalytical laboratory and is independent of the Thunderstruck Resources and the QP. Drill core samples were subject to crushing at a minimum of 70% passing 2 mm, followed by pulverizing of a 250 gram split to 85% passing 75 microns (PREP-31). A 0.25 gram sample pulp was then subject to 4-acid (HF-HNO3-HClO4) digestion and analysis via 33 element ICP-AES analysis (ME-ICP61) for base metals and silver, and 30 gram fire assay fusion (Au-AA25) for gold determination. Base metal over limit values returning greater than 1%, or greater than 100 g/t for silver, were analyzed by four-acid digestion of a 0.40 gram sample pulp, followed analysis via ICP-AES (ME-OG62).

Thunderstruck Resources follows industry standard procedures for the work carried out on the Korokayiu prospect, with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the sample sequence sent to the laboratory for analysis. Thunderstruck Resources detected no significant QA/QC issues during review of the data. Thunderstruck Resources is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

Qualified Person Statement

Kristopher J. Raffle, P.Geo. (BC) Principal and Consultant of APEX Geoscience Ltd. of Edmonton, AB, is a qualified person for the project as defined by National Instrument NI 43-101. Mr. Raffle has reviewed and approved the portion of the technical content of this news release as it relates to Korokayiu VMS prospect.

For additional information, please contact:
Rob Christl, Investor Relations
Email: rob@thunderstruck.ca
P: 778 840-7180
or, visit our website: http://www.thunderstruck.ca

Neither the TSX Venture Exchange Inc. 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.This news release contains certain statements that may be deemed “forward-looking statements”. Although Thunderstruck believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Thunderstruck’s management on the date the statements are made. Except as required by law, Thunderstruck undertakes no obligation to update these forward-looking statements in the event that

Lion One tops up the kitty for further Fiji exploration

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Mining.com

Lion One Metals (TSXV: LIO) has closed its previously announced private placement for gross proceeds of C$11.5 million, which the company plans to use for exploration and development on its Tuvatu gold project in Fiji.

Under the private placement, the company issued a total of 14.38 million units at a price of C$0.80 per unit. Each unit consists of one common share and one common share purchase warrant, which entitles the holder to purchase one additional common share at C$1.20 per share at any time until June 6, 2021.

Shares of Lion One jumped more than 9% to a four-week high of C$1.09 during Monday’s session. The company’s market capitalization is approximately C$109.3 million.

The Tuvatu alkaline gold project, located within the reaches of the Navilawa volcano, is considered the largest undeveloped gold project in the island nation. Lion One holds a 13,619-hectare exploration license covering the entire Navilawa volcano, with the Tuvatu mining lease at its center.

Based on the latest technical report, the project has an estimated indicated resource of 1.1 million tonnes at 8.46 g/t Au for 299,500 ounces of gold.

China’s Zijin Mining To Buy Continental Gold For $1 Billion Cash

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Reuters

Zijin Mining Group Co Ltd (601899.SS)(2899.HK), one of China’s biggest gold miners, has agreed to buy Canadian miner Continental Gold Inc (CNL.TO) for C$1.33 billion ($999.92 million), saying the purchase would increase its gold reserves and boost cash flow as well as profit.

Zijin will pay C$5.50 per share in cash for Continental, a premium of about 13% to the Canadian company’s closing price on Friday, as it aims to secure Continental Gold’s flagship Buriticá gold project, the Chinese company said in a filing to the Shanghai Stock Exchange.

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The Buriticá gold project has measured and indicated gold reserves of 165.47 tonnes and an inferred reserve of 187.24 tonnes, Zijin said.

Continental Chief Executive Officer Arti Sussman said the project is expected to reach production next year and the “timing is right for Continental to sell to a more experienced mine operator”.

Kirkland Can Cut Costs Even After $3.7 Billion Deal

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Yahoo Finance

Kirkland Lake Gold Ltd. Chief Executive Officer Tony Makuch was quick to assuage investors that the planned C$4.9 billion ($3.7 billion) acquisition of Detour Gold Corp. won’t boost the company’s cost after shares tumbled.

Shares of Canada’s Kirkland Lake slumped 17% Monday, the worst since mid-July 2015, after announcing an all-share deal to buy Detour Gold, which operates the Detour Lake mine in Ontario. Detour Lake is expected to produce for more than 20 years and can generate 600,000 ounces a year.

Gold mining acquisitions have surged since 2018 after Barrick Gold Corp.’s takeover of Randgold Resources Ltd., and Newmont Mining Corp.’s purchase of Goldcorp Inc. Consolidating the projects after the mergers hasn’t been easy for Newmont, which inherited a company saddled by growing pains as it integrates Goldcorp assets.

In the case of Kirkland’s deal, the company will take on Detour Lake, whose cost is double that of the acquiring miner.

“There’s significant benefit in terms of maintaining or reducing costs from current levels,” Makuch said in a telephone interview. “This is definitely a long-life asset that has potential to grow production and continue to be a long-life asset.”

Kirkland has managed to cut its all-in sustaining cost or the cost to keep its mines in business by almost half to $562 an ounce in the third quarter, from three years earlier. That compares with a 15% gain in Detour’s cost of $1,198.

Kirkland’s stock price has surged in the three years through Friday, climbing eight-fold, as profits soared. The shares have outstripped a 36% rise in the BI Global Senior Gold Valuation Peers index, and a 21% climb in gold prices over that same period.

That has put the company in a strong position to expand. The Detour Lake gold mine is about the same size as Kirkland’s biggest project, the Fosterville mine in Australia.

Bull Run

In the decade-long bull run that took prices of the precious metal to a record in 2011, companies bought assets in their rush to ramp up output to meet rising demand for the metal, accumulating debt to close those deals. As prices reversed and the metal languished in a bear market for years, investors hit the exit, leaving many miners unable to service their obligations and forcing them to cut cost to survive.

A group of investors including the hedge fund founded by billionaire John Paulson and Egyptian billionaire Naguib Sawiris’s La Mancha had called on gold companies to unlock $13 billion in value through mergers and cost cuts.

The group called the Shareholders’ Gold Council of 18 investors urged the mid-tier companies to pursue no-premium mergers to cut duplicate corporate structures and achieve economies of scale.

The acquisition of Detour Gold “will increase Kirkland Lake’s overall cost profile,” Fahad Tariq, an analyst at Credit Suisse Group AG said in a note before trading started Monday. “It also raises concerns about potentially weaker exploration updates coming at Fosterville.”

Slipping Value

Detour shareholders will receive 0.4343 share of Kirkland, according to the statement. After the deal is completed, existing Kirkland shareholders will own 73% of the new company, with Detour owners holding the rest. The agreement values Detour at C$27.50 a share, a 24% premium to the closing price on Friday, Kirkland said in a statement.

After Kirkland shares plunged Monday, the value of the offer has fallen to C$22.75. Detour shares advanced 1.8% to C$22.61 in Toronto.

Detour shares have almost doubled this year to become this year’s best performer on the Bloomberg Americas Mining Index, helped by a rally in gold prices. Paulson & Co. led an overthrow of the board in 2018 after a bitter proxy battle, in which he called for the company to put itself up for sale.

The new entity would have gold production of about 1.5 million ounces in 2019 and free cash flow of $700 million, Kirkland said.

(Closes shares in second and 14th paragraphs.)

–With assistance from Thomas Biesheuvel.

To contact the reporter on this story: Joe Deaux in New York at jdeaux@bloomberg.net

To contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Joe Richter

Gold juniors are coiled like springs

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Bloomberg

Re-furbished gold mine cranks up in Papua New Guinea

Last month’s US budget deficit was $107 billion — about $80 for every federal taxpayer. The current total US debt limit of $20 trillion will be exceeded in March, 2017.

“Just two months after the next president and Congress are sworn in, they will be running a government that is up against its legal borrowing limit,” confirmed Shai Akabas, at the Bipartisan Policy Center.

The fiscal irresponsibility of democratic governments around the world is causing a flood of investment dollars to gold — an unrenewable hard asset.

The Gold Miners ETF (NYSE-GDX) is up 71% year-to-date. The Junior Gold Miners ETF (NYSE-GDXJ) is up 96% year-to-date.

The Holy Grail for junior investors is to find a small gold company capable of funding its own exploration with profits from production.

K92 Mining Inc. (TSX.V: KNT) (OTCQB: KNTNF) fits this profile. The company has just announced that it has commenced gold production at their Irumafimpa deposit, targeting 52,000 ounces of gold in year one and then followed that news up by announcing the results of a Preliminary Economic Assessment (“PEA”) on the Kora Deposit which is a mere 700m away.

This PEA estimates all-in sustaining costs of US $619 / oz Au Eq with annual production over a 9 year mine life of 108,000 ounces. The NPV5, at Kora, came in at an impressive US $417 million.

K92 is operating the Kainantu Gold Mine, in the Eastern Highlands province of Papua New Guinea. The project is fully permitted, with the mining leases recently renewed for 10 years, and the environmental permit valid has 40 years remaining.

“Getting production started at Irumafimpa is big news for K92 shareholders and allows us to target free cash flow that can then be used for expansion and exploration work, without share dilution,” stated K92 President and Director Bryan Slusarchuk in an exclusive interview. “To follow that production start-up with the Kora PEA results is a testament to the great work the team onsite is doing”

The acquisition background is informative. In 2014, Barrick was trying to sell Australasian mining assets as part of a mandate to trim $13 billion in debt. At this time there was a small pool of investors, worldwide who were looking to buy mineral assets. The K92 group entered early in Barrick’s divestiture process. They purchased the asset when gold was unfashionable.

“Barrick purchased this asset in 2007 for $141 million and then invested in excess of $100 million into the project,” confirms Slusarchuk. “There was the existing gold mine on the property, but Barrick was focused on elephant sized porphyry targets. For K92, our focus has instead been on the re-start of production which has now occurred and the significant expansion potential in and around the Kora and Irumafimpa deposits.”

The team that was assembled to acquire this project has deep engineering and operational expertise.

The Chairman, Tookie Angus, is a mining legend who has financed dozens of global projects and is well known for being involved in multiple billion dollar plus merger and acquisition transactions.  He was a founding director of companies such as Ventana Gold and also acts as the Chairman of Nevsun Resources. The CEO, Ian Stalker is the former VP of Gold Fields and was the CEO of Uramin when it grew from a microcap into a company which sold for $2.5 billion in the span of three years. Mr. Slusarchuk has structured complex debt and equity financing transactions in the United States, Canada and Europe with multiple top tier banks.

“K92 Mining has a good shot at generating positive cash flow at the Kainantu mine,” stated Thibaut Lepouttre, CEO of the Caesars Report. “Barrick could regret having sold the asset for cents on the dollar.”

Papua New Guinea is a mature mining jurisdiction in a rapidly emerging economy. About 70% of the country’s GDP is derived from mining and oil & gas. The country is starting to gain more prominence on the world stage, evidenced by events such as the FIFA U-20 Women’s World Cup that will take place in November, the hosting of the first ever PGA Golf Tournament earlier this year and the selection to hold the 2018 APEC event where world leaders from 21 countries, such as the United States and Canada will attend.

When it began trading publicly on the TSX.V on May 25th, 2016, K92 was fully funded to restart production at the Irumafimpa Deposit. Since then, the company has raised $26 million in additional capital through private placements and the exercise of previously granted warrants.

The initial resource estimate for the Kainantu Project is 1.84 million inferred ounces at 11.6 g/t gold equivalent and 240,000 indicated ounces at 13.3 g/t gold equivalent, based on 78,935 metres of drilling.

Currently, K92 has 2 diamond drilling rigs on the property.

One is drilling out the Irumafimpa orebody for grade control and mine planning. The second unit is drilling the Judd Vein System (JVS) targeting expansion. The JVS has a strike length of 2,500 meters, running parallel to the Irumafimpa and Kora Deposits. Previously reported drilling results from JVS include 3 meters @ 278.2 g/t of gold and 9 meters @ 8.32 g/t of gold.

“K92 has attracted one of the smartest precious metals investors in the world in Ross Beaty, who put $2 million CAD into the company,” stated Jeb Handwerger, CEO of Gold Stock Trades. “Mr. Beaty is Founder and Chairman of Pan American Silver, a dividend paying producer with seven operating mines and 7, 000 employees. Mr. Beaty has a knack for acquiring assets at cheap valuations in bear markets and seeing large returns.”

With the money printing presses working overtime, the value of paper currency is in long term decline. According to the World Gold Council, China now owns 1,828 tons of gold; Chinese government holdings are up 450% in the last 15 years.

Nickel miners see stronger 2020 due to Indonesian export ban

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Business World

THE Philippine Nickel Industry Association (PNIA) is projecting stronger production in 2020 on the back of a nickel export ban by Indonesia and higher prices.

“We are looking at stronger production year next year with the Indonesian ore ban. We are looking forward to seeing what the market holds. Hopefully the prices… they dipped a little bit right but we are looking at a stronger year next year,” PNIA Chairman Clarence J. Pimentel, Jr. told reporters.

“We are about 25% above (year-earlier) production this year… I think most of us are at that level at this point,” he said. Higher prices are also expected towards the end of the year.

Mines and Geosciences Bureau (MGB) said nickel production grew 3% to 11.306 million dry metric tons (DMT) in the first half of 2019. The United States Geological Survey noted in a report published in February that in 2018, Indonesia was the top nickel producer with 560,000 tons, followed by the Philippines, with 340,000 tons.

Indonesia has banned nickel ore exports starting 2020 in a bid to develop a processing industry, thereby capturing more value-added from the nickel trade.

Regarding the investment outlook, Mr. Pimentel said he is hoping for an improved climate with greater clarity on the government’s stance on revenue-sharing from mineral extraction, the ban on open pit mining, and the moratorium on the issuance of new mining permits.

“We are getting there, and the government is trying its best to invite more investment and it’s easing up a little bit. I am hoping that next year, we’ll see a step forward,” he said.

PNIA is also discussing with the Department of Trade and Industry (DTI) plans to join the International Nickel Study Group (INSG).

“We are crossing our fingers with the DTI…. We are looking forward to it, but it’s something that the government has to take the lead on. Not the private sector,” he said.

Meanwhile, PNIA said it has entered into a partnership with the China Industrial Association of Power Sources (CIAPS) through its Power Battery Application committee in a bid to tap demand from the growing electric vehicle industry.

“We believe that there is a great opportunity for the nickel industry in the Philippines. Aside from the country’s wealth of natural nickel reserves, champions of nickel mining are encouraged by developments that are vital in driving business and investment growth around the world,” Mr. Pimentel said in a statement.

A memorandum of understanding (MoU) was signed on Nov. 15 with the Chinese producers which contemplates possible joint ventures and investment agreements. — Vincent Mariel P. Galang

TVI Pacific Announces Balabag Project Construction Underway

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TVI Pacific

TVI Pacific Inc. (TSX-V: TVI) (OTC Pink: TVIPF) (“TVI” or “the Company“) announces today that TVI Resource Development Phils., Inc. (“TVIRD“), a Philippines corporation in which TVI holds a 30.66% interest, has officially determined to advance its Balabag gold and silver project (“Balabag“) in Zamboanga del Sur, Philippines towards commercial production and is progressing with various development works. The production decision follows the closing and first drawdown by TVIRD, announced on October 22 and October 24, 2019, respectively, of a US$28.5 million term loan facility with China Banking Corporation. TVIRD established the loan facility to finance construction of infrastructure at Balabag. Prior to the first drawdown, TVIRD funded development works with internally generated funds.

Construction of the tunnel and retaining wall for the crushing circuit (CNW Group/TVI Pacific Inc.)
Construction of the tunnel and retaining wall for the crushing circuit (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Excavator scarifying the Coffer dam surface prior to compaction. The surface was sealed with a smooth drum compactor due to impending rainfall. (CNW Group/TVI Pacific Inc.)
Excavator scarifying the Coffer dam surface prior to compaction. The surface was sealed with a smooth drum compactor due to impending rainfall. (CNW Group/TVI Pacific Inc.)
Location of drill area for Borehole no.1. EDCO started with the SPT in preparation  for packer test (CNW Group/TVI Pacific Inc.)
Location of drill area for Borehole no.1. EDCO started with the SPT in preparation for packer test (CNW Group/TVI Pacific Inc.)
Construction of the tunnel and retaining wall for the crushing circuit (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Installation of Forms Grinding-Foundation (CNW Group/TVI Pacific Inc.)
Excavator scarifying the Coffer dam surface prior to compaction. The surface was sealed with a smooth drum compactor due to impending rainfall. (CNW Group/TVI Pacific Inc.)
Location of drill area for Borehole no.1. EDCO started with the SPT in preparation  for packer test (CNW Group/TVI Pacific Inc.)

Balabag Progress:

Work has commenced and includes the award of a contract to undertake a design review and provide construction supervision services for the Balabag Tailings Storage Facility (“TSF“). TVIRD awarded the contract to GHD Pty Ltd (“GHD“), one of the world’s leading professional services companies operating in the global markets of water, energy and resources, environment, property and buildings, and transportation.

Infrastructure works are moving forward and include:

  • 90% completion of detailed engineering;

  • Construction of the tunnel and retaining wall for the crushing circuit which is approximately 30% complete;

  • The pouring of concrete blinding for the Grinding Foundation, which is 100% complete, and installation of forms for the foundation;

  • The ongoing rehabilitation of the existing Canatuan processing plant for use at Balabag, of which mobilization to site has commenced with the Ball Mills and flotation cells already having arrived at site;

  • 89% completion of bulk earthworks, including cleaning and grubbing, cutting and excavation, embankment and compaction works and the hauling and disposal of waste including Basin Waste for construction of the TSF;

  • Continuous standard penetration tests (“SPT”) with GHD and TVIRD geologists. EDCO, a 100% owned subsidiary of TVIRD, has been contracted for drilling onsite; and

  • 67% completion of the Construction of Temporary Electrical Storage.

All haul roads down to the TSF are currently being sheeted with granular fill to better withstand the effects of erosion while foundation works for the TSF are anticipated to get underway during the course of the next week.

Development work is proceeding under the direction of Mr. Yulo Perez, President of TVIRD, who previously led mine development works and operations at TVIRD’s successful Canatuan mine Phases 1 (Gold/Silver) and 2 (Copper/Zinc) as Vice-President of Operations and Chief Operations Officer of TVIRD.  Mr. Perez helped contribute to the receipt by TVIRD of multiple awards from the Philippine government and leading mining industry associations.

“We are very excited to see the commencement of development activities at Balabag after many years of planning and preparation”, said Mr. Cliff James, Chairman and CEO of TVI and Chairman of TVIRD.  “This is the culmination of significant efforts to date and we expect that TVIRD will continue with its ongoing exploration works with the objective of expanding the initial resource and reserves of the project to extend the life of this project.”

Further to the Company’s press release of November 22, 2019, in which the Company announced the withdrawal of the scientific and technical disclosure set out in the Technical Report entitled “NI 43-101 Technical Report: Balabag Gold and Silver Project, Balabag, Depore, Zamboanga del Sur, Philippines” and filed on October 18, 2019, the Company wishes to clarify that in making the decision to put Balabag into production, TVIRD, a Philippine corporation that the Company does not control, relied exclusively on technical and economic analysis prepared under Philippine regulations and did not rely on TVI’s October 18 report or any feasibility study classifying mineral reserves prepared in accordance with NI 43-101.  Historically such projects have a much higher risk of economic and technical failure.

About TVI Resource Development Phils., Inc.

TVIRD, a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining company that focuses on the acquisition, exploration, development and production of resource projects in the Philippines.  It operates under the highest standards of health and safety practices for its workers and its host community; and is uncompromising in its best-practices approach to environmental protection as well as community development.  TVIRD has a pool of highly competent managers, technical personnel and skilled workers with previous experience in gold-silver operation, and holds a 60% interest in AMVI, a nickel laterite DSO operation that commenced in October 2014 and in which TVIRD is operator.  To date AMVI has shipped a total of 12.88 million wet metric tonnes through 240 shipments.  TVIRD also owns 100% of the Balabag gold/silver project.

About TVI Pacific Inc.

TVI Pacific Inc. is a Canadian resource company focused on the acquisition of resource projects in the Asia Pacific region.  TVI currently holds a 30.66% equity interest in TVIRD and a 3.57% equity interest in Integrated Green Energy Solutions Ltd, a publicly listed company incorporated in Australia with shares listed on the ASX, that is engaged in the commercialization of technologies related to converting waste plastics to fuel in Australia and internationally.  TVI’s other holdings include a 14.4% equity interest in Mindoro Resources Ltd. and a 100% investment in shares of TG World.  As at the date of this announcement, TVI has 655,537,039 outstanding common shares and 696,887,039 fully diluted including the currently issued outstanding options of 41,350,000.

Lion One jumps on indications of bigger gold system in Fiji

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Mining Journal

The well-funded company also said the first of four deep diamond holes undercutting its Tuvatu resource had hit “multiple mineralised intercepts” and specks of visible gold.

Hennigh was appointed advisor in March at Lion One, which is advancing towards production at the fully permitted Tuvatu and envisages multimillion-ounce potential at Navilawa.

He said they were already seeing “huge returns” from the start of the latest exploration work, including specialised stream sediment sampling, termed BLEG, for bulk leach extractable gold at Navilawa.

“BLEG samples clearly show the alkaline gold system is much larger than previously thought and that we have a vast new area in which to develop drill targets,” he said.

“Our first deep diamond drill hole has encountered multiple lodes including a new style of potentially important high-grade mineralisation at Tuvatu.”

The company believes the new mineralisation is typical of the high-grade in some lodes at the Vatukoula mine 40km away.

Lion One said Tuvatu had an indicated 1.1 million tonne resources grading 8.17g/t gold for 294,000 ounces and 1.3Mt at 10.6g/t for 445,000oz.

The company had C$9.1 million (US$6.9 million) in working capital at June 30.

Lion One shares were trading at 45c a year ago and have more than doubled during the course of 2019.

They closed up 15c to $1.10 on Friday to capitalise it at $113.4 million (US$85.7 million).

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