Anyone out there who's more geologically-aware than I am? I can follow what they are saying but what does it MEAN?
-----------------------------------------------------------
TVI Pacific Inc.-Rapu Rapu Project Update
CALGARY, ALBERTA--The Rapu Rapu project, located in the province of Albay, Philippines, is a joint venture in which a group of companies including Lafayette Mining NL (the operator), an Australian public company, can earn a 75 percent interest upon contributing US$ 3 million, over a period of four years, in exploration expenditures. TVI will retain a 25 percent undivided interest in the joint venture after the earn-in by the Lafayette group is completed. The following is an excerpt relating to the Rapu Rapu project from a press release issued by Lafayette on July 29, 1999:
- RESOURCE AT THE MAIN ZONE INCREASED BY 50 PERCENT TO 6,128,000 TONNES GRADING 9.35 G/T AU EQUIVALENT
Incorporating the results of recent drilling, Micromine Pty Ltd (``Micromine') have independently determined the main Ungay Malobago zone of mineralisation to contain a resource of 6,128,000 tonnes grading 1.35 percent Copper, 2.36 percent Zinc, 2.79 g/t Gold and 33.05 g/t Silver. Using current spot prices for these metals, Lafayette has calculated the in-situ resource to contain a gold equivalent of 1.84 million oz at a grade of 9.35 g/t Au equivalent.
This resource, which remains open to the west, is in addition to the Hixbar zone of mineralisation that is along strike and 1.8 kms west of Ungay Malobago. Hixbar has historically been reported (not to JORC Standards), to contain 1.357mt grading 1.25 percent Copper, 1.25 percent Zinc, 2.96 g/t Gold and 15.50 g/t Silver At current spot prices, this is equivalent to 327,400 ozs Au equivalent contained metal at a grade of 7.5 g/t Au.
- DRILLING PROGRAMME OF 6,701M RC AND 1,091M DD COMPLETED WITH EXCELLENT RESULTS
The second phase of drilling on the Main zone that was contemplated in the March 1999 Quarterly Report has been completed with excellent grades and widths being achieved. Results include: [full results for applicable drill holes inserted by TVI]
--------------------------------------------------------------
Hole ID East North Dip Azi RL Depth From To Width
(m) (m)
--------------------------------------------------------------
UMC-034 19595 10050 -60 0 191 172 70 72 2
91 117 26
128 164 36
--------------------------------------------------------------
UMC-036# 19424 10048 -75 0 214 142 99 142 43
--------------------------------------------------------------
UMC-040# 19350 10048 -85 0 208 124 104 124 20
--------------------------------------------------------------
UMC 048 19475 10119 -70 180 203 142 72 120 48
--------------------------------------------------------------
UP 002 19825 10100 -75 0 148 47 5 24 19
24 43 19
--------------------------------------------------------------
UMD 001 19825 10103 -70 0 148 38.5 3 6 3
17 24 7
24 36 12
--------------------------------------------------------------
UMD004 19728 10100 -90 0 166 73.5 23 72 49
--------------------------------------------------------------
UMD005 19527 10055 -60 0 196 164.9 74 99 25
127 164 37
--------------------------------------------------------------
--------------------------------------------------------------
Hole ID Au Cu Zn Ag Au Eq
(g/t Au) (percent) (percent) (g/t Au) (g/t Au)
--------------------------------------------------------------
UMC-034 2.37 0.94 2.82 36.85 8.79
2.78 1.92 1.02 33.22 8.68
3.54 2.06 4.11 36.49 13.93
-----------------------------------------------------------
UMC-036# 2.67 1.80 3.29 37.66 11.46
-----------------------------------------------------------
UMC-040# 5.37 2.79 2.19 57.17 15.05
-----------------------------------------------------------
UMC 048 2.09 1.72 4.27 32.30 11.92
-----------------------------------------------------------
UP 002 3.61 0.11 0.01 42.67 4.70
4.63 5.08 2.49 61.41 19.42
-----------------------------------------------------------
UMD 001 2.64 0.05 0.01 23.60 3.24
36.82 0.13 0.01 60.23 38.29
3.93 2.12 4.33 53.92 15.08
-----------------------------------------------------------
UMD004 2.75 1.91 4.17 38.90 12.97
-----------------------------------------------------------
UMD005 2.91 1.81 4.24 32.72 12.88
3.29 1.85 4.96 43.23 14.53
-----------------------------------------------------------
Notes: # - Hole terminated in mineralisation due to adverse drilling conditions
- PRELIMINARY FEASIBILITY STUDY (PFS) ON SCHEDULE FOR COMPLETION AT THE END OF SEPTEMBER
Following the appointment of Signet Engineering Pty Ltd as the Study Manager, other sub-consultant appointments have been made. Progress by the study team has been maintained with the objective of completing the PFS by 30 September 1999. Continuing metallurgical and geotechnical testwork confirms the overall robustness of the project.
UPDATED RESOURCE CALCULATION
Lafayette commissioned Micromine with independently determining and auditing a new resource for the main Ungay Malobago zone based upon the results of the recent and previous drilling programme.
RECENT DRILLING PROGRAMME
During the Quarter, Lafayette carried out a total of 4,976m of RC drilling and 1,091m of DD drilling. An additional 1,725m of RC drilling has completed subsequently. Three rigs were employed for this programme, with each rig having its own designation - UMC, UMD and UP. [The full results of the programme are available upon request from TVI].
The aims of the programme were to:
I. Close off cross sectional extensions of the mineralisation.
II. Test the western extensions of the mineralisation.
III. Obtain metallurgical samples, and
IV. Obtain geotechnical data for input to the Preliminary Feasibility Study.
As the programme proceeded, it became apparent that the mineralisation had considerable extension to the south, particularly in the western half. This necessitated an increase in the planned programme in order to test these southern extensions. Much of the substantially increased tonnage that has been identified this quarter has arisen from a thickening of the mineralisation within the confines of the conceptual pit that had been previously optimised.
Also identified during the drilling programme was the existence of disseminated or semi-massive sulphide mineralisation in contact with the massive sulphides (primary mineralisation). This disseminated material, whilst of lower grade, was previously regarded as waste and would require to be mined in order access the primary mineralisation. Accordingly the material has the potential to be economic and reduce the average stripping ratio for an open pit mining scenario.
Lafayette has commissioned the PFS study group to re-optimise the resource in order that a revised pit shell and stripping ratio can be determined. It is expected that the re-optimisation of the resource will be completed during August 1999.
PRELIMINARY FEASIBILITY STUDY
On 6 May 1999, the Company announced that Signet Engineering Pty Ltd had been appointed to manage a preliminary feasibility study of the Rapu Rapu project. Several appointments of sub-consultants have subsequently been made and the full study group now consists of:
Study Manager and Mining Studies Signet Engineering Pty Ltd
Geophysics and hydrogeology Coffey Geoscience Ltd
Tailings Coffey/Rescan Ltd
Environmental studies and
permitting Dames & Moore Group
Resource determination Micromine Pty Ltd
Marketing Mineral Commerce Services Pty Ltd
The timetable for the study calls for the final report to be submitted on or before 30 September 1999. It is expected that this timetable will be achieved.
Also as part of the preliminary feasibility study, diamond drilling to collect core from the sites of the proposed pit walls has been carried out in order to determine the geotechnical characteristics of the surrounding rock. The results of this will be incorporated into a revised pit optimisation study to be completed in August.
Preliminary results from this ongoing metallurgical and geotechnical testwork support the overall robustness of the project as indicated in the earlier Scoping Study and Pit Optimisation Study.
PROPOSED WORK FOR THE SEPTEMBER 1999 QUARTER
A limited RC drilling programme on the Ungay Malobago resource will be undertaken with the objective of upgrading that part of the resource presently classified as Inferred to an Indicated or Measured category. This programme is expected to total approximately 1,200m.
Lafayette proposes to commence exploration of the Hixbar mineralisation during the September quarter. This will initially entail the geophysical surveying of the area between Ungay Malobago and Hixbar and an area approximately 500m to the NNE of Hixbar. Previous geophysical surveys indicate the extension of the massive sulphides that host the mineralisation to these areas. Follow up drilling on Hixbar will commence towards the end of the present quarter.
The Preliminary Feasibility Study currently underway is expected to be completed by the end of the quarter.
Registration of the Rapu Rapu project with the Philippines Department of the Environment and Natural Resources will be made during August as part of the process of obtaining Government clearance for the possible development of mining operations.
I. Culbert
DIRECTOR, CHIEF EXECUTIVE OFFICER
The geological information reported in this document has been prepared by Mr Michael McMullen (MAIMM), 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. Similarly, Micromine Pty Ltd has consented to the use of information from the Pit Optimisation Study and Resource Estimation Model in the form and context in which it appears in this announcement.
The following statements apply in respect of the information in this report that relates to Ore Reserves or Identified Mineral Resources:
- The information is based on, and accurately reflects, information compiled by Mr Colin Arthur (Msc.FGS.MAusIMM.CGeol.CEng), who is a Corporate Member of the Australasian Institute of Mining and Metallurgy.
- Mr Arthur is employed by Micromine Pty Limited, and is manager of Micromine's consultancy division, The Mineral Resource Centre
- Mr Arthur has relevant experience in relation to the mineralisation being reported on, to qualify as a Competent Person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
The full text of sections pertaining to Rapu Rapu in the Lafayette quarterly report is available from TVI Pacific's website. |
