Management of
About a year ago, TVI was drawing up plans to mine Canatuan’s gold-silver gossan reserves at the rate of 1,850 tonnes per day in the first phase, followed by mining of the gold-silver-copper-zinc sulphides at 850 tonnes per day in a second phase. But metal prices have since nosedived, forcing TVI to modify those plans and consider two lower-cost options.
The first option entails expanding, to 300 tonnes per day, an existing pilot plant, which operated in 1997 at between 50-80 tonnes per day. The gold-silver reserves would be processed by a combination of carbon-in-leach and Merrill-Crowe methods. Capital costs for this option are estimated at US$4 million.
The second option calls for staged expansions of the pilot plant, first to 120 tonnes per day and then to 300 tonnes. Although capital costs are lower, at US$1.5 million, only limited cash flow would be received in the first year, owing to the need to re-invest in the plant expansion.
Both alternatives are expected to yield internal rates of return of more than 20%.
TVI says that after six years of production at this level, a separate sulphide processing plant could be built to process the sulphide reserves at a throughput rate of 850 tonnes per day. An additional investment would be required.
At last report, proven and probable reserves in Canatuan’s gossan cap were estimated at 1.1 million tonnes averaging 3.77 grams gold and 105.66 grams silver per tonne. The massive sulphide resource stands at 1.5 million tonnes averaging 1.31 grams gold, 62.14 grams silver, 2.79% copper and 2% zinc.
Among TVI Pacific’s other mineral projects in the Philippines are the Rapu Rapu and Buenavista projects, which have been optioned to a private Philippine company.
Rapu Rapu is an advanced-stage project with two gold-and-silver-rich massive sulphide deposits: Ungay Malobago and Hixbar. The former contains 3.5 million tonnes grading 1.76% copper, 2.75% zinc, 3.42 grams gold and 43.3 grams silver; the latter, 1.3 million tonnes of 1.2% copper, 1.2% zinc, 2.96 grams gold and 15.5 grams silver.
Buenavista, in Quezon province, is a high-grade gold prospect with five known vein systems.
Goldrush Mineral Exploration has the right to earn a 75% interest in both projects in return for exploration commitments and cash payments.
Be the first to comment on "TVI refines plans for Canatuan"