TVI Pacific"s Canatuan gold and silver mine in the Philippines continues to improve its operating performance.

During the quarter Canatuan produced 15,437 gold equivalent ounces of metal, an increase of 16% on the first quarter of 2007. Production consisted of 10,587 ounces of gold, up 19% from the first quarter, and 243,296 ounces of silver, up 14% from the first quarter.

For the first half of 2007 Canatuan increased production to 28,745 gold equivalent ounces compared with 27,278 in the first half of 2006.

During the quarter, Canatuan set a production record for mill throughput, averaging 2086 dry metric tonnes per day. Compared with the previous year, the mine has increased mill throughput by nearly 50% and plans to continue optimizing mill production, targeting to exceed 2200 dry metric tonnes per day by the end of 2007.

As a result of the changing feed grade and the higher mill throughput, Canatuan produced significantly more silver compared with prior periods, thereby offsetting a decrease in gold production. Silver production increased by 57% on the same quarter in 2006.