CALGARY, June 5, 2013 /CNW/ - TVI Pacific Inc. (TSX:
TVI) (OTCQX: TVIPF) ("TVI" or the "Company") announced today,
that as a result of positive
bench-scale test work carried out at the Agata Nickel
Processing
Project, it has commissioned and commenced operation of
pilot-plant
testing which will further define the technological parameters to
be
used in producing a Bankable Feasibility Study with the goal of
building a commercial processing plant.
The positive test work on nickel (Ni) laterite ore, from the
Agata
nickel laterite deposit, confirms the Agata ore is highly amenable
to
acid leaching with a high rate of nickel extraction achieved at a
low
acid consumption rate. The process technology TVI is
developing, and
which has produced these results, aims to achieve maximum
nickel
recovery and low acid consumption which translates into increased
metal
production and lower operating costs.
Highlights:
Extractions of 94% nickel achieved
Agata ore highly amenable to acid leaching
Low acid consumption rate of 650 kg/t ore
More than 70 leach tests concluded to date
TVI pilot plant testing expected to be completed during Q3
2013
"We are extremely pleased with the results achieved," said Mr.
Cliff
James, Chairman and CEO of TVI Pacific Inc. "The process
being
developed could position the proposed Agata nickel processing
plant
amongst the lower cost producers."
The Agata Processing Project - a joint venture with Mindoro
Resources
Ltd., is located in Agusan del Norte province, within the
Surigao
mining region on the island of Mindanao, Philippines. The Surigao
region is a major nickel producing region providing ore to
processing
plants in Australia, China, Korea and Japan.
Bench-Scale Test Work Yields Positive Results
Approximately one tonne of ore was sent to the Beijing General
Research
Institute of Mining & Metallurgy (BGRIMM) for the purposes
of
conducting bench-scale crushing, scrubbing, screening and
leaching
tests to confirm the optimal circuit configuration and validate
the
processing process identified by TVI.
A team of three TVI metallurgists were seconded to the BGRIMM team
for
the duration of the test work campaign. TVI also setup a
bench-scale
laboratory in Manila. All
optimum conditions as identified in the
BGRIMM tests have been validated, with excellent reproducibility
of
results between the TVI and BGRIMM tests.
To date, more than 70 leach tests have been conducted. These
tests
conclusively illustrate that the Agata ore is highly amenable to
acid
leaching. Overall extractions of 94% Ni has been obtained at a
relatively low acid consumption rate of 650 kg/t ore. This
translates
to approximately 49 t acid/t Ni produced for ore grades of 1.5% Ni.
The
acid utilisation efficiency is encouraging when compared to
other
atmospheric acid leach processes.
BGRIMM Pilot Plant Established (China)
Approximately twelve tonnes of ore were sent to BGRIMM in order
to
continuously operate a pilot plant that consists of, amongst
others,
primary leaching (atmospheric) and secondary leaching (low
pressure
autoclave). To date, all ore has been blended, crushed, screened
and
milled. Leaching commenced on May 13,
2013 to test a high grade (1.5%
Ni) and a medium grade (1.3% Ni) ore.
TVI Pilot Plant (Philippines)
Pregnant leach solution (PLS) from the BGRIMM pilot plant will
be
shipped to the Philippines and
processed in the TVI downstream Ni
recovery pilot plant. This plant will be commissioned in
June 2013 in
order to be operational by July 2013.
The TVI pilot plant work is
expected to be completed during Q3 2013.
Process Description
The process technology TVI is developing aims to achieve maximum
nickel
(Ni) recovery at an operating cost that could position the
Agata
process plant amongst the lower cost producers - while best
representing the requirement to contain capital costs of the
project.
The process involves the treatment of higher Ni grade ore (>1.3%
Ni).
Much of the high iron (Fe) grade limonite will be directly shipped
as
part of a direct shipment of ore operation (DSO). Therefore, the
ore
feed to the process plant is depleted of limonite. In addition,
the
higher grade Ni is associated mainly with the saprolite ore
(which
occurs beneath the limonite in the ore profile) - therefore, once
the
higher grade ore is considered, the ratio of limonite:saprolite
that
will be fed to the process plant is approximately 8%
limonite:92%
saprolite.
The process consists of separating the ore into a high Fe, low
magnesium
(Mg) fraction to feed the primary leaching stage and a low Fe, high
Mg
fraction, to feed the secondary leaching stage. Leaching is
conducted
in 2 stages to minimize acid consumption, as well as clean the
pregnant
leach solution (PLS) of Fe.
PLS is recovered by a counter current decantation (CCD) circuit and
then
further refined using ion exchange (IX), and finally precipitated
and
filtered to produce a nickel hydroxide product (NHP) of 53% Ni
content.
This NHP is a versatile product since it is a refined
intermediate
product, and therefore, due to its purity, it is easily refined
into Ni
metal by potential off-takers.
Key Process Information
Ore type: Ni grade >1.3%; 8% limonite, 92% saprolite
Ore feed rate: 550,000 dtpa
Leach Ni extraction: 94%
Leach H2SO4 consumption: 650 kg/t
ore
Overall Ni recovery: 92%
Ni product: NHP; 53% Ni; 7,000 - 7,500 t contained Ni pa.
Test Work Ore Selection
Approximately thirty tonnes of ore were mined from a variety of
test
pits that cover the Agata ore body. Test pits were carefully
selected
from the available drill hole data to accurately reflect the ore
that
is expected to feed the process plant. Limonite and saprolite ore
was
separately mined, blended and loaded into sealed drums to preserve
ore
moisture.
TVI and Mindoro Joint Venture
TVI and Mindoro Resources (TSXv:MIO) have signed four joint
venture
agreements, previously announced on October
1, 2012, relating to the
Agata and Pan de Azucar mining projects located in the Philippines on
the islands of Mindanao and Panay, respectively. The joint
ventures
present TVI with multiple growth opportunities for near-term
and
medium-term cash flow generating potential. Under the agreements
the
Company's Philippine affiliate, TVI Resource Developments (Phils.)
Inc.
("TVIRD") has the ability to earn up to a 60% interest and will act
as
operator of the projects.
Mining Project Opportunities within the Agata Tenement
a near-term high iron (Fe) laterite direct shipping ore (DSO)
operation
a near-term limestone DSO operation
a medium-term lime production facility
a medium-term nickel processing plant project
Prior extensive pre-feasibility and engineering works have been
conducted on the Mindoro properties. These reports can be accessed
on
Mindoro's website at www.mindoro.com or on SEDAR at
www.sedar.com.
TVI Pacific Inc. has filed an updated National Instrument
43-101
technical report on the Agata project on April 10, 2013. The National
Instrument 43-101 technical report is available on SEDAR and on
TVI's
website.
Qualified Person
Yulo Perez, Chief Operations Officer
of TVI Resource Development
(Phils.), Inc. (TVIRD), Fellow AusIMM, is the qualified person
under NI
43-101 who has approved the scientific and technical information
in
this news release.
About TVI Pacific Inc.
TVI Pacific Inc. is a publicly-traded Canadian company that is
focused
on the production, development, exploration and acquisition of
resource
projects in the Philippines and
Southeast Asia. TVI produces
copper and
zinc concentrates from its Canatuan mine. TVI is a
partner/operator in
several joint venture projects in the
Philippines and Papua New
Guinea
and also has an interest in an offshore Philippine oil
property.
The Toronto Stock Exchange has neither approved nor disapproved
of the
information contained herein.
Forward-Looking Statements: This news release contains certain
forward-looking information (referred to herein as
"forward-looking
statements"). Forward-looking statements are often, but not
always,
identified by the use of words such as "anticipate", "plan",
"intend",
"estimate", "scheduled", "expect", "may", "will", "should", or
similar
words suggesting future activities or outcomes. The
forward-looking
statements set out in this news release include information
relating to
interests that may be earned by TVIRD in the Agata and Pan de
Azucar
joint ventures; opportunities for exploration, development and
commercialization of the Agata Mining Project (including the High
Fe
and Limestone DSO/Lime Production Facility and the Agata Nickel
Processing Plant).
Forward-looking statements are subject to certain risks and
uncertainties that could cause actual events or outcomes to
differ
materially from those anticipated or implied by such
forward-looking
statements. Those risks and uncertainties include, but are
not limited
to: (A) results of further work in pursuing the conceptual
planning
described in this news release not supporting current expectations
as
to the opportunities outlined; (B) TVIRD not funding the
necessary
expenditures at Agata or Pan de Azucar to advance the projects or
earn
an interest under the joint venture agreements due to, among
other
things (i) changes in TVIRD's strategic priorities, due
diligence
findings, changes in laws or regulations affecting mining
operations in
the Philippines (including the
profitability of such operations), and
other factors, (ii) changes in TVIRD budgets and (iii) limited
availability of funds; (C) a determination on the part of TVIRD not
to
pursue projects contemplated by one or more of the joint
venture
agreements noted above for technical, economic, legal or other
reasons
(including, without limitation, a failure to obtain required
permits or
other governmental or regulatory approvals); and (D) certain
other
risks identified elsewhere in TVI's public filings, including,
without
limitation, those risk factors set forth at pp. 46-52 of TVI's
Annual
Information Form dated March 19,
2013. Accordingly, readers should
not place undue reliance upon the forward-looking statements
contained
in this news release and such forward-looking statements should not
be
interpreted or regarded as guarantees of future outcomes.
The forward-looking statements contained in this news release are
made
as of the date hereof and TVI does not undertake any obligation
to
update publicly or to revise any of the included
forward-looking
statements, except as required by applicable Canadian securities
law.
The forward-looking statements contained herein are expressly
qualified
by this cautionary statement.
SOURCE TVI Pacific Inc.