Stock up 70% today on the following news:
Monday March 29, 8:30 am Eastern Time
Company Press Release
TVI Pacific
Rapu Rapu Exploration Update
CALGARY, ALBERTA--The Rapu Rapu project, located on the island of Rapu Rapu in the province of Albay, Philippines, is a joint venture project
in which a group of companies controlled by Lafayette Mining NL, a publicly traded Australian company, is earnin g a 75 percent interest.
The following is a verbatim reproduction of a press release supplied by Lafayette, the project's Operator, regarding their continuing exploration of the
Ungay Malobago target area:
ASX COMPANY ANNOUNCEMENT
LAFAYETTE MINING NL
HOMEX - PERTH
Advancement RAPU RAPU
HIGHLIGHTS
Lafayette is pleased to announce the following advancements in respect of the Rapu-Rapu project.
- Receipt of Independent Scoping Study
A programme of test work on the metallurgy of samples taken from throughout the resource has been carried out under the control of Signet
Engineering Pty Ltd (''Signet'') and incorporated into a Scoping Study prepared by that organisation. In their report,
Signet has concluded that the minerlisation is amenable to conventional flotation processing to produce separate copper and zinc concentrates, with
high recoveries of the gold and silver reporting to the copper concentrate. Signet also concluded that th
e flow sheet developed from the test work is simple and robust. Test work of further samples is continuing in order to optimise the process.
- Ongoing drilling increases the grade of mineralisation
Results from a further 13 holes that have been completed for a total of 1,976 metres indicate that the mineralisation increases in grade towards the
west. The mineralisation, which is characterised by excellent continuity, remains open to the west and th e south. Significant intersections, stated as
gold equivalents, include:
UMC 020 19 m @ 15.54 g/t Au equivalent
(9.31 g/t Au; 1.57 percent Cu; 2.48 percent Zn; 64.93 g/t Ag)
UMC 021 31 m @ 14.37 g/t Au equivalent
(5.27 g/t Au; 2.46 percent Cu; 3.85 percent Zn; 66.98 g/t Ag)
UMC 022 67 m @ 8.76 g/t Au equivalent
(2.47 g/t Au; l.72 percent Cu; 2.80 percent Zn; 35.71 g/t Ag)
UMC 025 22 m @ 12.80 g/t Au equivalent
(4.26 g/t Au; 2.09 percent Cu; 4.17 percent Zn; 47.39 g/t Ag)
UMC 027 38 m @ 9.09 g/t Au equivalent
(3.53 g/t Au; 1.38 percent Cu; 2.75 percent Zn; 27.38 g/t Ag)
Completion of the current drilling programme, expected to occur by mid April, will test the along strike and down dip extensions of the mineralisation.
A new resource estimate is to be made at the end of this current programme.
SIGNET ENGINEERING SCOPING STUDY
Metallurgical test work previously carried out on the Rapu-Rapu project was limited to samples taken from one drill hole, and within that hole the test
work had been concntrated on the upper zone of mineralisation. Single tests were performed on the midd le and lower zones of mineralisation with
varying results.
Given the limited knowledge of the metallurgy gained from previous work, Signet Engineering were appointed by Lafayette to supervise a more
extensive programme of metallurgical test work on samples taken from throughout the mineralisation. The aim of thi s work was to advise the
Company on the processing characteristics of the mineralisation and to devise an appropriate process flowsheet.
Samples from previous core, as well as from fresh core collected in the recent drilling programme, were submitted for metallurgical testing and
mineralogical examination in Perth.
The key findings of the Signet Engineering Scoping Study resulting from testwork on core recovered from previous drilling programmes were:
- The ore is amenable to conventional flotation treatment to produce separate concentrates of copper and zinc with good pyrite rejection and high
levels of precious metal recoveries.
- Saleable copper concentrate can be produced within the following ranges of recovery;
-------------------------------------------------------------
Concentrate Percent Recovery
-------------------------------------------------------------
Percent Cu Cu Au Ag Zn
-------------------------------------------------------------
20 85-90 65-75 75-85 10-15
25 80-85 60-70 70-80 7-12
-------------------------------------------------------------
- Arsenic levels in the copper concentrate are expected to be approximately 0.7 percent. This is notably lower than the results of the previous
testwork indicated and significantly improves the marketability of the copper concentrate. No other penalty el ements have been identified at present.
- Zinc metallurgy is currently characterised by the retention of appreciable levels contained in the batch test intermediate products in the copper stage
of the float. The zinc is readily recoverable and further testwork is expected to result in the opti misation of the flowsheet to produce the following
expected recoveries;
----------------------------------------------------
Concentrate Percent Recovery
----------------------------------------------------
Percent Zn Zn Au Ag
----------------------------------------------------
51 80-85 10-20 5-15
54 75-80 5-15 3-10
----------------------------------------------------
- The flowsheet developed by Signet has been used to test sample composites taken from the three zones of mineralisation (upper, lower and middle).
The composites from all zones responded satisfactorily and displayed similar metallurgy. This flowsheet ro bustness was not apparent in the previous
test work.
- Total process operating costs are currently-estimated by Signet to be US$ 10.41/t which represents a 31 percent reduction in process operating
costs previously estimated.
Results of recently completed RC holes are:
--------------------------------------------------------------
Hole ID East North Dip Azm. Depth Intersection
(degree) (m) (m)
--------------------------------------------------------------
UMC 17 19498 10341 -60 0 100 NSR
UMC 18 19848 10380 -60 0 100 NSR
UMC 19 19498 10360 -60 0 100 NSR
UMC 20 19525 10050 -60 0 178 76-106
128-147
154-168
UMC 21 19525 10060 -60 0 172 73-93
131-162
UMC 22 19525 10060 -70 0 158 71-138
149-150
UMC 23 19523 10053 -70 0 160 75-87
96-101
115-125
UMC 24 19525 10070 -60 0 158 73-83
140-156
UMC 25 19425 10048 -60 0 184 97-101
156-178
UMC 26 19425 10048 -65 0 184 91-105
160-163
167-176
UMC 27 19425 10048 -70 0 166 93-131
153-161
UMC 28 19262 10037 -60 0 166 152-160
UMC 29 19262 10047 -60 0 150 146-150
(e)
-------------------------------------------------------------
Hole ID Width Au Cu Zn Ag Au Equiv.
(m) (g/t Au) (Percent) (g/t) (g/t Au)
-------------------------------------------------------------
UMC 20 30 2.65 1.40 1.90 30.07 7.38
19 9.31 1.57 2.48 64.93 15.54
14 3.67 3.23 2.86 32.58 12.32
UMC 21 20 2.66 1.90 2.39 25.13 8.61
31 5.27 2.46 3.85 66.98 14.37
UMC 22 67 2.47 1.72 2.80 35.71 8.76
1 1.53 0.82 5.73 23.20 9.36
UMC 23 12 1.53 0.94 5.20 22.46 8.96
5 2.05 6.39 5.97 53.08 19.29
10 3.64 2.02 6.76 47.52 14.85
UMC 24 10 1.38 1.15 1.59 16.61 5.16
16 3.57 0.71 0.07 20.54 5.09
UMC 25 4 1.61 1.36 2.74 15.23 6.92
22 4.26 2.09 4.17 47.39 12.80
UMC 26 14 2.55 1.26 2.29 20.89 7.33
3 5.26 2.87 1.49 62.77 12.39
9 1.82 3.36 0.09 60.67 8.18
UMC 27 38 3.53 1.38 2.75 27.38 9.09
8 2.60 2.05 4.03 57.40 11.10
UMC 28 8 2.89 1.70 2.84 25.45 9.01
UMC 29 4 1.52 1.47 4.40 15.25 8.78
-------------------------------------------------------------
Notes:
a. NSR No Significant Result
b. Au equivalent grades provided as a guide only; the Directors of Lafayette acknowledge that the economics of gold and base metal operation may
vary. Au equivalent calculated using the following metal prices: Au US$ 287/oz; Ag US$ 5/oz; Cu US 65c/lb; Zn
US 45c/lb.
c. Azimuth relevant to local Grid (Grid North = 020 Magnetic).
d. All assaying performed by ITS Bondar Clegg in Manila, Philippines, using a 50g charge for fire assay and standard preparation sample techniques.
e. Hole not completed due to equipment failure. This hole, which ended in mineralisation, will be completed once the drill rig is repaired.
COMMENTARY ON THE RECENT DRILLING RESULTS
The aims of the current drilling programme are to (a) validate the results of drilling programmes carried out previously as well as obtain assays
previously omitted, (b) enhance understanding of the structure of the mineralisation, and (c) test extension s of the mineralisation to the west.
The drilling completed by Lafayette to date has confirmed the reliability of the previous results and also increased the grade of the identified
mineralisation. The latter has been achieved primarily as the result of including zinc assays that were not p reviously available.
Testing of the western extensions has commenced and will be the objective of the remaining part of the present programme. Holes UMC 028 & 029
on Section 19262 E are the only completed step out holes from the current programme, both of which intersected m assive sulphides. The massive
sulphides were intercepted as predicted by the geological model and have confirmed the extension of the mineralisation further to the west of the
existing resource.
The mineralisation remains open to the west and, in places, to the north and south. Notable in the results obtained from the most recent drill holes
towards the west of the resource, is the change in the tenor of the gold and zinc mineralisation, with si gnificantly higher grades of both metals being
encountered. It is postulated that faulting in this area has resulted in some remobilisation and concentration of gold and zinc. Particularly significant high
grade intersections include:
Section 19525 E
19m @ 9.31 g/t Au, 1.57 percent Cu, 2.48 percent Zn & 64.93 g/t Ag from 128 m - 147 m
Section 19425 E
22 m @ 4.26 g/t Au, 2.09 percent Cu, 4.17 percent Zn & 47.39 g/t Ag from 156 m - 178 m
Also of note from the latest round of drilling are the wide intercepts encountered in the Middle Zone of the mineralisation. Intersections of significant
width include:
Section 19525 E
31 m @ 5.27 g/t Au, 2.46 percent Co, 3.85 percent Zn & 66.98 g/t Ag from 131 m - 162 m
67 m @ 2.47 g/t Au, 1.72 percent Cu, 2.80 percent Zn & 35.71 g/t Ag from 71 m - 138 m
Section 19425 E
38 m @ 3.53 g/t Au, 1.38 percent Cu, 2.75 percent Zn & 27.38 g/t Ag from 93 m - 131 m
Drilling to date has outlined the mineralisation over a continuous strike length of 800 m with an average width of 50 m across strike and a vertical
extent of 110m. The mineralisation occurs from surface to a maximum vertical depth of 150 m.
OTHER DEVELOPMENTS
The Company has commenced a programme of work aimed at securing the relevant approvals required for development of the project within the
Philippines. Included in this programme are the following:
ENVIRONMENTAL BASE LINE STUDY
Leading environmental consultants, Dames and Moore, have been engaged to undertake a base line environmental study as a requirement for the
granting of an Environmental Compliance Certificate (ECC). Damps and Moore have also been tasked with advising the
Company on the applicable environmental procedures to be followed during the project development phase.
NCIP CERTIFICATION
The National Commission of Indigenous Peoples have issued the required Certificate of Clearance for the approved mining licence which covers the
Ungay Malabago resource as well as the adjoining claims to the west. Certificates for the remainder of the cl aims are expected to be received during
June quarter.
Yours faithfully,
Ian Culbert
Chief Executive
26 March 1999
The geological information reported in this document has been prepared by Mr Michael McMullen (MAusImm), an executive director of the
Company and a geologist with more than the required 5 years experience. Signet Engineering Pty Ltd has consented to the use of information from the
Scoping Study in the form and context in which it appears in this announcement.
(TVI note: Signet Engineering Pty Ltd is a member company of the international engineering group, Fluor Daniel.)
Contact:
TVI Pacific Inc.
Cyrus Ameli
Investor Relations
(403) 265-4356
(403) 264-7028
tvi-info@tvipacific.com
tvipacific.com
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