TVI forges ahead at Canatuan

With a cash payment of $2 million, TVI Pacific (ASE) has acquired the 5,000-hectare Canatuan property in the Philippines.

Situated on the western tip of Mindanao Island, the polymetallic property hosts three shallow-dipping, massive sulphide horizons which comprise the Canatuan deposit. Hosted in a quartz-sericite schist, the deposit is arcuate-shaped, 800 metres long and 200 to 300 metres wide.

Work is currently aimed at defining oxidized and sulphide reserves. Precious metals appear to be concentrated within the near-surface, oxidized portions of the three horizons. In addition, base and precious metals are found within sulphide reserves, which are deeper extensions of the three horizons. Three rigs have thus far drilled 45 holes (or about 75% of the planned exploration and definition work). Thirty-eight of these intersected mineralization above the cutoff grade, which was based on a net smelter return value of $28 per tonne.

The upper oxidized portions host an oxide reserve of 904,000 tonnes averaging 4.21 grams gold and 148.9 grams silver per tonne. Reserves in the sulphide material are 1.3 million tonnes averaging 3.8% copper and 2.42% zinc, plus 1.28 grams gold and 62.28 grams silver.

TVI is also exploring two newly discovered areas, Maombong River and Malusok, which will be subjected to ground geophysical surveys and diamond drilling. A prefeasibility study is under way for the Canatuan deposit. Preliminary results suggest the oxide and sulphide ores could support a 750-tonne-per-day operation over nine years. Initial capital costs are estimated at $27 million, with operating costs expected to range between $34 and $37 per tonne. Metallurgical work indicates that gold and silver recoveries from the oxide ore would exceed 90% and 70%, respectively. Recoveries of copper and zinc from the sulphide ore are expected to exceed 90%.

Following sumbission of the prefeasibility study, a final feasibility will be compiled, which should be ready by November. If all goes well, plant construction will start in early 1996, with initial production occurring before the end of that year.