Canadian mining firm to hike its exposure in M’danao venture

Canadian listed mining firm TVI Pacific Inc. will be increasing its investments for its Canatuan mining activities in Mindanao this year to $10 million or about P540 million from the original allocation of $7 million.

TVI president and CEO Clifford James disclosed in a recent presentation to the Canadian Parliament in Ottawa that the company expects to spend $10 million this year in ongoing operating activities, including local employment, capital investment and operation expenditures.

"We have plans for expansion which will substantially increase the amount we spend annually," said James to members of the Parliament, part of the company’s campaign to soften the opposition by indigenous peoples in Mindanao whose lands are affected by TVI’s mining operations.

TVI operates the Canatuan orebody in Zamboanga del Norte in Mindanao.

James earlier told President Arroyo of TVI’s plans to initiate additional exploration in the Canatuan area in the near term.

James said "the company is convinced there is potential for further discoveries on strike with the Canatuan orebody which could create a long-term mining camp in the region and spur significant economic development for a depressed area of the country."

TVI also reportedly filed applications for new exploration grounds in the Zamboanga Peninsula and also plans to pursue exploration of other properties in its inventory.

The company said it remain bullish about the prospects of the local mining sector, especially with the Supreme Court decision that now allowed 100 percent foreign ownership of mining concessions in the Philippines.

The mining company is also working on the immediate re-activation of the company’s existing precious metals processing plant, also in located in Zamboanga del Norte.

The project which started in 2003, includes the development of both a gold and silver-rich oxide zone, and an underlying gold, silver, copper, and zinc - rich, volcanic-hosted massive sulphide (VMS) zone.

The re-activation of the existing processing plant represents the first step of a multi-phase plan to develop the established Canatuan deposit mineral resources and to realize the full production potential of the extensive metal-bearing VMS belt surrounding the Canatuan deposit.

Under the plan, TVI is supposed to process 80 metric tons (MT) of high-grade gold and silver tailings supply for an initial period of 15 months, then undergo upgrades in two additional production phases to 250 and 500 MT, processing the oxide zone over a period of five to six years.

During this period, TVI will expand the Canatuan operation to start production from the underlying massive sulphide zone. This activity will be carried out along with an exploration program to add to the project’s overall resource base.

The exploration program will begin with follow-up work on five previously identified massive sulphide prospects located close to the Canatuan orebody that have the potential to supplement feed to the Canatuan sulphide operation.

Financing for the various phases of the Canatuan project will initially come from internally generated funds, but external financing may also be sought in the future in order to accelerate production growth.

Gold and silver production from the first phase used TVI’s existing processing plant, which operated in 1997 as a pilot/metallurgical testing facility.

TVI’s mining activities continue despite opposition from indigenous Subanon, Muslims, and other residents of in the Siocon/Canatuan area.

The Subanons of Canatuan said downstream communities in the fertile valley below the mine are already observing negative effects from the mine’s operations on the Siocon and Lituban Rivers which they rely on for irrigation and fish farming.

They said further expansion will displace many more residents.