TVI Resource Development (TVIRD) and Atlas Consolidated Mining and Development Corp (ACMDC) hope to establish a joint venture for development of the Canatuan sulphide project in the Philippines.

TVIRD, the Philippines affiliate of TVI Pacific, and ACMDC have signed a memorandum of agreement under which TVIRD has received an advance of 42 million Philippine pesos (about US$1 million) from ACMDC. In return TVIRD has granted an option to ACMDC to enter into a joint venture.

TVIRD is also involved in discussions with other parties to secure the funding required to develop Canatuan and to reduce the company's working capital deficiency.

The Canatuan mine produces gold and silver doré and, following the planned construction of the sulphide plant, will transform into the production of copper and zinc concentrates from a sulphide deposit underlying the open pit operation.

Assuming that project financing is available, TVI is targeting to have the sulphide plant in operation in the second half of 2008.

TVI has financed the initial development and construction of the sulphide project from cash flow generated by the current gossan operations.

TVI expects that the remaining capital cost and working capital requirements for the sulphide project will be about US$14.4 million. The estimated cost to complete the project reflects potential cost savings assuming that portions of the current gossan producing plant can be converted to the proposed sulphide processing plant.

TVI has made considerable progress on the sulphide project, including:

All permits required are in place.

Tax exemption has been approved by the Philippine Board of Investment.

Updating the computerized geologic block model based on the 2006 drilling program, for which a new NI 43-101 report is underway to update mineral resources and reserves.

Metallurgical test work for process optimization almost complete.

Detailed engineering of the process plant due.

Purchased three used ball mills, two of which have been refurbished and 1 in storage.

Tailings dam construction underway, phase 1 to be completed in this quarter with 1 year capacity.

Electrical power line under construction.

Additional administration office building, warehouse and lab upgrade all completed.

Acid mine drainage study for waste rock and dam is ongoing

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