PRESS RELEASE October 20, 1998
TVI AGREES TO JOINT VENTURE ON RAPU RAPU AND BUENAVISTA PROJECTS IN
THE PHILIPPINES
TVI Pacific Inc. (TSE:TVI) is pleased to announce that it has signed a
memorandum of agreement to enter into a Joint Venture Agreement with
Goldrush Mineral Exploration Corporation (Goldrush), a private
Philippines company, to continue the exploration of the Rapu Rapu and
Buenavista projects.
Rapu Rapu, located in the Province of Albay, Southern Luzon,
Philippines, is an advanced stage exploration project with two major
gold and silver-rich massive sulphide deposits, Ungay Malobago (gold
halo, oxides and sulphides) and Hixbar (sulphides). Current estimated
resources, provided by the company, are as follows:
Tonnes Cu% Zn% Au (g/t) Ag (g/t)
Ungay Malobago 3,500,000 1.76 2.75 3.42 43.3
Hixbar 1,357,000 1.25 1.25 2.96 15.5
The next stage of exploration on this property will work to further
define the structure of the system and expand the geological resource.
The target is a potential 8 million tonne resource containing one
million ounces of gold equivalent. It is expected that the project
will then move to the feasibility stage.
At Buenavista, located in Quezon Province, Philippines, TVI has
conducted an extensive mapping and sampling program since its
acquisition in 1997, and has determined that there is substantial
exploration potential on five identified high grade gold vein systems,
principally at Gitara/Bulos, the 'Main Target Area'. The next stages
of exploration will include an extensive drilling program to identify
mineralization potential at depth. The current exploration target for
Buenavista is for 500,000 oz of gold.
Pursuant to the agreement, Goldrush will earn a 75% interest in the
Rapu Rapu and Buenavista claims by entering into a joint venture with
TVI and making four non-refundable cash payments to TVI totaling US
$150,000 within five months from the date of signing the MOU and
contributing an additional US $3 million in exploration
expenditures over a period of four years (minimum US $1 million in
first year, US $250,000 per year in each of the following 3 years) on
the Rapu Rapu claims. Should Goldrush, which enters this agreement
with the financial backing of Lafayette Mining NL, a publicly traded
Australian company, default on any of these conditions, TVI will
retain its ownership interest in the Ungay Malobago and other TVI
claims at Rapu Rapu, while Goldrush will retain its ownership interest
in the Rapu Rapu Hixbar claims and those at Buenavista (Goldrush is
the original claim-owner of these areas). During the term of the joint
venture, Goldrush will be the Operator. Upon Goldrush earning its
interest, Goldrush and TVI will contribute to further expenditures
based upon the 75%/25% interest of the parties.
It has also been agreed that EDCO, TVI's 100% owned drilling
subsidiary, will provide all diamond-drilling services to the projects
at market prices.
All assaying referred to in this release was carried out according to
industry standards. The samples were independently assayed by fire
assay techniques. Pulps and rejects from which the samples were
derived are available for future reference.
-30-
I know they're cash strapped but this doesn't seem like a very sweet deal to me!
Any thoughts?
Jarrod
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