New technical work at TVI Pacific Gossan Mineral resource at its Canatuan mine has resulted in a substantial increase resource.

It is now estimated that the Gossan resource hosts 2.55 million tonnes, averaging 2.43 grams per tonne grams per tonne gold and 64 grams per tonne silver.

Additional exploration work is under way to further delineate the gossan and sulphide mineral resources at Canatuan, along with infill drilling and metallurgical testwork to further optimize the sulphide mineable reserves

TVI initiated a review of the gossan mineral resource at Canatuan in April with a view to determining an appropriate cut-off grade . In light of the significant increases in the prices for gold and silver and increased throughput capacity at the Canatuan mine, management expected that a decrease in the previously established cut-off grade could be achieved, which would, in turn, increase mineral reserves, mine life of the gossan phase and total ounces of gold and silver that may ultimately be produced. Near mine exploration and delineation of "Rubbly Gossan" was also expected to lengthen mine life.

Using a $20 NSR per tonne cut-off, the total gossan and rubbly gossan mineral resources, in the measured and indicated categories, are estimated at 2.55 million tonnes, averaging 2.43 grams per tonne gold and 64 grams per tonne silver, and valued at $53.47 NSR per tonne.

In addition to the above Measured and Indicated gossan and rubbly mineral resources, the 43-101 Technical Report identifies an estimated 915,650 tonnes of inferred category laterite, saprolite and mineralised schist material at Canatuan, averaging 1.25 grams per tonne gold and 99.6 grams per tonne silver.

Using a $20 NSR per tonne cut-off, 5% mining dilution and 95% mining recovery (86% for the rubbly gossan) in ore, the total oxide (gossan and rubbly gossan) mineral reserves, in the proven and probable categories, are estimated at 1.29 million tonnes, averaging 2.27 grams per tonne gold and 62.27 grams per tonne silver, and valued at $50.61 NSR per tonne. The optimised pit to extract this ore also is estimated to contain 2.82 million tonnes of waste for an average stripping ratio of 2.19.

Mining and processing operations of gossan ore started at Canatuan in May 2004. Since last year, various upgrades were made to the mine and mill facilities, which have resulted in increased metal production. In August, a daily production rate of just over 2000 tonnes per day was achieved for a period of several days, at 90% gold recovery and 75% silver recovery. At average mine grades this equates to daily production of approximately 190 ounces of gold equivalent. Assuming a sustainable mining throughput rate of 1800 tonnes per day, the gossan mineral reserves at Canatuan could be mined over the next two years.

TVI Is conducting an ongoing exploration program to further define the mineralization surrounding the current Canatuan open pit with the aim of ultimately increasing Canatuan's reserves/resources and extending the long-term life of mine plan. Several previously identified near mine targets, which are considered promising by management, are scheduled for further testing to determine whether commercial quantities of minerals are present.

Once the results of these programs are known, it is TVI's intention to update both the gossan and sulphide mineral resource (for potential production of copper and zinc concentrates) at Canatuan.