The best results from the recent program were obtained from hole 1, which returned 8.5 metres (from 21 metres) of 7.73% copper and 4.46% zinc, plus 4.5 grams gold and 145 grams silver per tonne, and hole 2, which cut 7.9 metres (from 52 metres) of 1.84% copper, 4.12% zinc, 2.06 grams gold and 82 grams silver.
TVI says the drilling confirms previous results and boosts confidence in the deposit’s continuity.
The drilling has also provided massive-sulphide core samples for metallurgical test work — part of a due-diligence study being carried out by TVI’s potential joint- venture partners from Japan.
Pending results from the metallurgical tests, which are expected in January, a joint-venture agreement will be negotiated and a full feasibility study launched.
Reserves at Canatuan are estimated at 1.3 million tonnes grading 3.36% copper, 2.45% zinc, 1.45 grams gold and 73.02 grams silver in sulphides plus 935,500 tonnes of gossan material grading 4.12% gold and 133.44 grams silver.
At metal prices of US$300 per oz. gold, US$5.25 per oz. silver, US80 per lb. copper and US50 per lb. zinc, TVI estimates the project would yield an overall, after-tax internal rate-of-return of about 69% on an all-equity basis. Cash flow in the first year is projected at US$18.1 million.
TVI has had a rocky relationship with local Filipinos at Canatuan, with protesters temporarily delaying drilling there last fall.
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