TVI Resource Development recent drilling at its Canatuan property in the Philippines suggests that the ore body associated with the sulphide zone at Canatuan extends laterally, in the north-west quadrant, to a distance of approximately 150 metres further than previously estimated.

Furthermore, a rubbly gossan float in a creek about 3km from the Canatuan Mine has been discovered. The float is believed to have originated from a site near the mine's main ore body.

The assay results from the holes drilled in the sulphide-extension exploration program have been compiled to prepare an updated National Instrument 43-101 report on the sulphide mineral resource at Canatuan.

Regarding the source of the gossan float, the company says further exploration drilling is anticipated this year to enable the company to assess the potential impact of this new discovery on the life-of-mine of the currently producing Canatuan Gossan mill.

Gossan is the oxidized, near-surface portion of the massive sulphide ore body, currently being mined for silver and gold. The massive sulphide deposit at Canatuan is a typical example of a volcanogenic polymetallic banded and massive sulphide horizon developing on the sea-floor above hydrothermal vents and containing copper, zinc sulphides and other complex minerals.

The Canatuan Project is located in Siocon, Zamboanga del Norte, in the Southern Philippines.

TVI president and CEO Clifford James says: "We believe that this extension to the sulphide ore body has the potential to add to the mineral resource of the Sulphide Expansion Project and further improve the overall economics of the project.

"As well, if a new, economic, rubbly gossan deposit is present, it may allow us to extend the life-of-mine of the current Gossan plant, and extend the period that we will be able to run two mills together, with a single cost base."

Recent TVIRD exploration activity at Canatuan was designed to assess the lateral extension of the sulphide mineralization at the Canatuan mine site and to provide TVIRD a better understanding of the Canatuan mineral resource, in preparation for the construction of the proposed sulphide plant. The exploration campaign involved diamond drilling and reverse circulation drilling.

Initially, a total of 47 diamond drill holes were completed for metallurgical test work and infill drilling. Additional drilling was undertaken to assist TVIRD in its effort to delineate the extension of sulphide mineralization to the northwest, northeast, southwest and eastern peripheries of the Canatuan open pit, where the interpreted sulphide ore body is situated.

A combination of diamond drilling and RC drilling was carried out to complete the drilling program. In total, 74 diamond drill holes and 125 RC drill holes were completed in the second half of last year, aggregating a total of 3910.25 metres and 4761 metres, respectively.

Occurrences of sulphide mineralization were observed from the core samples recently obtained, which assay data from the drill core in the northwest area suggests an extension of the sulphide ore body (by approximately 150 metres) to the northwest and outside the outline of the open pit. Additional diamond drilling focused on that area.