TVI Pacific drilling segment has recorded a 204% increase in production from 2005 to 2006 from its Philippines and China operations.

Last year, the company drilled 58,946 metres for exploration contractors in the Philippines and China, representing a 204% increase in production compared with 19,370 metres drilled in 2005.

The Drilling Segment, consisting of Exploration Drilling Corporation (EDCO), a wholly-owned subsidiary of TVI Pacific in the Philippines; and Hunan Pacific Drilling (HPD), a division of Hunan Pacific Geological Exploration Incorporated (HPGEI), a wholly-owned subsidiary of TVI Pacific in China, provided drilling services for major clients in the Philippines and China, several on a repeat and multi-drill operations basis.

The Segment also contributed to the expanding exploration program of Philippine affiliate, TVI Resource Development (TVIRD), providing drilling services amounting to 16,847 metres for both its exploration activities at Balabag and at the Canatuan mine site in connection with resource definition and planning for both the Gossan and Sulphide projects.

TVI president and CEO Clifford M. James says: "This is a real turnaround performance by our Drillers.

"The Drilling Segment achieved excellent results for its clients in 2006 - including TVIRD. At the same time it refurbished, upgraded and expanded its fleet, and improved its infrastructure and management systems.

"We believe the Drilling Segment is well positioned for what we expect to be even stronger drilling demand in 2007 resulting from an anticipated upsurge in Asian mining activity, especially in the Philippines."

Clifford James says that revenues from Drilling Segment operations in China contribute significantly to the company's overall strategy in that country, which is executed by the company's wholly-owned Chinese subsidiary, HPGEI.