Newmont Gold inks deal with TVI Pacific

The Philippine subsidiary of Newmont Gold (NGC-N) has optioned a 60% interest in two application areas on the island of Luzon from TVI Pacific (TVI-T) for US$4 million.

TVI holds a government contract giving it the right to conduct large-scale mineral exploration and development on the two prospective areas.

Newmont will operate the project for the duration of the agreement and will design and conduct an exploration program on the properties. Once Newmont earns its interest, the companies will contribute further expenditures on a pro rata basis.

TVI’s deal with Newmont is subject to the right of first refusal held by Echo Bay Mines (ECO-T), which has 30 days to match Newmont’s offer.

The proposed transaction is non-binding unless definitive agreements are approved and executed by both companies.

Neil Westoll, TVI’s senior vice-president of exploration, states, “This agreement with Newmont is an opportunity for TVI to advance exploration activities in Luzon with the assistance of one of the world’s most respected

mining companies.”

Elsewhere in the Philippines, on the island of Mindanao, TVI and Echo Bay have completed a drill program on the Kingking copper-gold porphyry property.

The joint venture is held 25% by TVI and 75% by Echo Bay. A drill program consisting of 108 holes and spanning 45,426 metres was completed on schedule.

The program is aimed at defining the resource and obtaining information for a preliminary feasibility study, due in March.

An infill drill program, conducted in November 1996 at the Casagumayan and Tiogdan areas, confirmed earlier indications of higher gold grades. Detailed geological assessment and modeling of the mineralization at Kingking, considered essential for completion of the study, are under way. TVI reports that preliminary metallurgical tests indicate that recoveries of oxide gold and copper at Kingking could improve over earlier estimates of 70% and 80%, respectively. Recovery rates from sulphides are 80% for gold and 85% for copper.

Results from the recent round of drilling at the Tiogdan area include: 96 metres (from 225 to 321 metres) grading 1.33 grams gold per tonne gold and 0.26% copper in hole 77, which was drilled vertically; hole 66, which returned 12 metres (from 6 to 18 metres) of 0.76 gram gold and 0.12% copper, 15 metres (from 231 to 246 metres) of 0.82 gram gold and 0.27% copper, and 30 metres (from 387 to 417 metres) of 0.65 gram gold and 0.18% copper; and hole 78, which returned 63 metres (from surface) of 0.87 gram gold and 0.26% copper.

Hole 75, drilled vertically in the Casagumayan-Tiogdan stockwork zone, encountered 84 metres (from surface) of 2.17 grams gold and 0.19% copper, whereas hole 83, collared in the Casagumayan area, encountered 162 metres (from surface) of 0.64 gram gold and 0.12% copper.

In western Lumanggang, hole 65 intersected 60 metres (from 168 to 228 metres) of 0.08 gram gold and 0.86% copper, while hole 64 intersected 84 metres (from surface) of 0.09 gram gold and 0.51% copper. And on the same section, hole 72, drilled 300 metres north of hole 64 and collared in the hangingwall volcanics, yielded a discontinuous series of intercepts from 210 to 603 metres that averaged 0.12-0.35 gram gold and 0.24-0.39% copper.

In the Bacada area, hole 67 returned intermittent mineralization from 96 to 489 metres, averaging 0.19-0.46 gram and 0.3-0.43% copper.

Hole 79, at the northern edge of Lumanggang, returned discontinuous, low-grade copper and gold mineralization from 51 to 291 metres. The highest-grade section returned 75 metres (from 216 to 290 metres) of 0.32 gram gold and 0.33% copper.