TVI Pacific Rapu Rapu drilling results and resource update
TVI Pacific Inc
TVI
Shares issued 107,529,821
1999-10-05 close $0.07
Wednesday Oct 6 1999
Mr. Cyrus Ameli reports
The Rapu Rapu project, located in the province of Albay in the Philippines, is a
joint venture in which Lafayette Mining NL (the operator), an Australian public
company, can earn a 63.75-per-cent interest upon contributing $3-million (U.S.),
over a period of four years in expenditures. TVI will retain a 25-per-cent
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
recent press release issued by Lafayette:
Lafayette Mining NL has recently completed a short infill drilling program of 1,458
metres of reverse circulation on the main Ungay Malobago resource on the island
of Rapu Rapu in the Philippines. The aims of the program were to:
upgrade that part of the resource, previously classified as inferred to either an
indicated or measured category;
close off the cross sectional extensions of the mineralization. (The mineralization
remains open to the west; however it was not intended to test this extension dining
the recently completed program.)
The first aim of the program was achieved with the total tonnage classified as
indicated or measured increasing 59 per cent from 3,615,817 tonnes to
5,756,418 tonnes, almost all of which is classified as measured. This will enable
ore reserves to be determined as part of the preliminary feasibility study which is
nearing completion. The company expects to be able to make an announcement in
this regard shortly.
While the total resource (measured, indicated and inferred) has increased from
6,128,000 tonnes to 6,577,111 tonnes, it is apparent from the recent drilling that
the cross sectional extensions of a large part of the resource are not yet closed off.
It is significant that the last hole of the program, UMC 80, which was collared
outside of the previous resource, encountered the largest intersection to date, this
being 80 metres at 3.81 grams per tonne Au, 1.23 per cent Cu, 2.09 per cent Zn
and 29.75 g/t Ag.
Updated resource calculation
Incorporating the results of recent drilling, Micromine Pty Ltd. has independently
determined the main Ungay Malobago zone of mineralization to contain a resource
of 6,577,000 tonnes grading 1.32 per cent copper, 2.14 per cent zinc, 2.61 g/t
gold and 31.26 g/t silver.
This resource, which remains open to the west, is in addition to the Hixbar zone of
mineralization that is along strike and 1.8 kilometres west of Ungay Malobago.
Hixbar has historically been reported (not to JORC standards) to contain 1.357
tonnes grading 1.25 per cent copper, 1.25 per cent zinc, 2.96 g/t gold and 15.50
g/t silver.
The Ungay Malobago resource estimate determined by Micromine is summarized
by the following table:
Category Tonnage Cu Zn Au Ag
% % g/t g/t
Measured 18,751 .03 .01 2.04 6.72
103,703 .16 .02 2.99 27.79
5,729,702 1.44 2.35 2.73 33.35
Total 5,852,156 1.41 2.30 2.73 33.17
Indi-
cated 26,716 1.81 3.30 3.47 48.76
Total 26,716 1.81 3.30 3.47 48.76
Inferred 698,239 0.57 0.71 1.57 14.57
Total 698,239 0.57 0.71 1.57 14.57
Total 6,577,000 1.32 2.14 2.61 31.26
Resource is calculated using nominal lower grade cutoffs of 0.5 g/t Au and 0.5 per
cent Cu and upper grade cutoffs of 25 g/t Au, 325 g/t Ag, 10 per cent Cu and 10
per cent Zn.
Methodology
The methodology adopted by Micromine in arriving at this resource estimate
included the following steps:
sectional interpretation of each of the oxide and primary ore domains and
geostatistical analyses of each (wire frame of the mineralization then constructed
based on the sectional interpretation);
creating a 3-D inverse distance weighted block model;
tightly constraining the created blocks inside the sectional interpretation to blocks
of 10 metres east, five metres north and 2.5 metres RL;
assigning resource categories to the blocks and reporting on these;
Micromine validated the IDW block model created by means of the following:
manual sectional and bench checks;
running a second IDW model employing a different search ellipsoid;
making comparisons with composited and uncut grades used in trial models with
the reportable model.
Results of drilling program
The full results of the recent infill drilling program are given in the attached
appendix. Significant results include:
Hole Width Au Cu Zn Ag
m g/t % % g/t
UMC-073 35 2.86 1.18 1.68 23.64
UMC-074 8 2.34 1.85 3.20 30.07
UMC-076 16 2.46 1.41 1.38 24.51
UMC-077 38 3.37 2.00 3.27 34.46
UMC-078 3 8.68 5.04 1.60 112.63
UMC-080 80 3.81 1.23 2.09 29.75
The potential for additional tonnage increases is excellent given the broad zones of
mineralization encountered in UMC 080, which is approximately in the middle of
the mineralized strike length. This intercept is the southernmost drill hole on
Section 19450, which remains open to the south. The mineralization is interpreted
to bulge toward the south in this area and further drilling is planned to explore this
new zone of massive sulphides.
At the conclusion of the infill drilling program, the resource remains open to the
west, to the south over a strike length of 270 metres, to the north over a strike
length of 130 metres and at depth over a strike length of 125 metres. The southern
and northern extensions of the resource will be tested as pan of the next phase of
drilling.
Virtually all of the latest increase in resource tonnage of 450,000 tonnes has been
found within the confines of the conceptual pit design. This should have a marked
effect on the waste to ore ratio and future exploration will continue to focus on
delineating reserves within the existing pit design.
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