TVI Pacific Inc (TSX: “TVI” or the “Company”) today announced that its Philippine affiliate, TVI Resource Development (Phils.) Inc. (“TVIRD”), completed the first shipment of copper concentrates from the Canatuan Mine on March 27, 2009, following the completion of Sulphide Project construction on November 15, 2008.
This milestone event brings the commissioning phase of operations to a close, with commercial operations having been declared in early March 2009, when inventory levels reached the 5,000 tonne threshold.
Certain statements in this News Release constitute forward-looking statements, including statements respecting cash flows anticipated from future production of copper at Canatuan and the anticipated timing of future shipments of copper concentrates from Canatuan.
In accordance with an offtake arrangement with MRI Trading AG, the first shipment of approximately 5,350 dry metric tonnes (“dmt”) of copper concentrates left Sta. Maria Port in Siocon, Zamboanga del Norte, destined for a major Chinese smelter. Under the copper offtake agreement with MRI Trading AG an initial payment of approximately US$4.8 million for the cargo is expected to be made to TVIRD within the week. The funds will be allocated to working capital and operating costs in continuing mine operations.
“This is a major milestone event for TVI and its stakeholders,” stated Clifford M. James, President and CEO. “TVIRD has successfully overcome many obstacles over the last two-years, when the Canatuan Sulphide Project was initiated. While challenges in the marketplace still exist, we are confident that the cash flows to be generated by TVIRD’s copper concentrate production will enable us to further progress the overall development of the Company.”
The shipment logistics were executed with contributions from the TVIRD Operations team and the local communities. Two landing craft transport barges were mobilised to the Santa Maria Port facility from another mining operation elsewhere on the island of Mindanao.
The concentrate was transferred from TVIRD’s warehouse facility at the port onto the barges, using the “Ro-Ro” (roll on-roll off) access built into the pier, which had previously been constructed under a United States Agency for International Development (“USAID”) project to promote economic activity for the Zamboanga Peninsula region. The barges were then mobilised alongside the vessel M.V. Sun Glory, which arrived on March 25 and anchored in the bay outside the harbour. The transhipment was completed by the close of March 27.
“My compliments go to the TVIRD Canatuan team,” added James. “This first shipment, made from a remote area of the Philippines, was executed smoothly, professionally and flawlessly. But I’d also like to thank and compliment the people of Santa Maria and Siocon, Zamboanga del Norte -the indigenous Subanon as well as Muslim communities -for their tremendous cooperation, support and assistance. It was a great, joint effort.”
To date the Canatuan Mine has produced approximately 7,300 metric tonnes of copper concentrate. It is anticipated that the next shipment will be made at the end of April or early May 2009 and approximately every six weeks thereafter.
Photos from the first shipment of copper concentrates are available in the online version of this news release on the Company’s website at www.tvipacific.com.
About TVI Pacific Inc. (TSX: TVI)
TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for and producing precious and base metals within district scale systems in the Philippines. The Company’s interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Inc.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “believe”, “scheduled”, “to be”, “will be” and similar expressions. Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Co as at the effective date of such statements.
Although the Co believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements.
These factors include, but are not limited to, such things as the volatility of prices for precious metals and base metals, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and availability of personnel.
Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking information respecting cash flows anticipated from future production of copper at Canatuan, is based upon base metals prices in effect as at the date of this News Release, management’s forecasts of trends in prices of base metals, current production of copper from the Canatuan mine, the processing capabilities of the Canatuan mine, estimates of the size of the copper reserves at Canatuan, the current development plan for Canatuan, TVIRD’s current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward-looking information respecting the anticipated timing of future shipments of copper concentrates from Canatuan, is based upon current production of copper from the Canatuan mine, the terms of the third party offtake agreement for the purchase of copper concentrates produced at Canatuan, the processing capabilities of the Canatuan mine, estimates of the size of the copper reserves at Canatuan, the current development plan for Canatuan, TVIRD’s current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change.
The forward-looking statements of the Co contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Co is exposed in the conduct of its business (including mining activities) are described in detail in the Company’s Annual Information Form for the year ended December 31, 2008, which was filed on SEDAR on March (date), 2009 and is available under the Company’s profile at www.SEDAR.com. Subject to applicable securities laws, the Co does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.