TVI Pacific Inc. · TSXV:TVI
TVI Pacific — Philippine Mining Conference 2011
40 slides from TVI Pacific's conference presentation, Sep 13, 2011
Slide 1: A Philippine Resource Company
A Philippine Resource Company TSX: TVI OTCQX: TVIPF Corporate Presentation September 2011
Slide 2: Our Vision & Growth Plan
Our Vision & Growth Plan We are a publicly-traded resource company focused on the production, development, exploration and acquisition of resource projects primarily in the Philippines. Find New Ore Develop TVI’s Secure New Explore >20 Develop to Extend Next Mine at Development High-Impact and/or Mi
Slide 3: Anticipated Catalysts/Project Timelines
Anticipated Catalysts/Project Timelines H2 2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Canatuan Mine/Mill Life Expansion Programs Greenstone/VMS targets identified High grade ore processing projects Balabag Gold/Silver Mine Optimized feasibility study released Updated 43-101 released Mine development decisi
Slide 4: Liquidity & Capitalization
Liquidity & Capitalization* *As at June 30, 2011 TSX Share Price (30 day average) $0.08 Basic Market Capitalization (million) $49.8 About Us Basic Shares Outstanding (million) 622.1 Shares Fully Diluted (million) 676.0 Insider Ownership (basic) 13.6% Insider Ownership (fully-diluted) 20.3% Current C
Slide 5: Financial Snapshot
Financial Snapshot Q2 Q1 YTD 2011 2011 2011 Production Cash Cost ($US per Cu lb eq) (1) $1.65 $2.01 $1.80 Performance Total Cash Cost net of by-products $1.70 $1.55 $1.64 ($US per Cu lb eq) (2) Gross Revenue (thousand) $24,084 $11,287 $35,371 Net Revenue (thousand) $21,214 $10,759 $31,973 Operating
Slide 6: Operations Snapshot
Operations Snapshot Q2 Q1 YTD 2011 2011 2011 Production Production (thousand lbs Cu 6,271 4,448 10,719 equivalent) Metals Produced Copper (thousand lbs) 4,397 3,331 7,728 Zinc (thousand lbs) 1,553 - 1,553 Gold (oz) 1,378 1,035 2,413 Silver (oz) 90,653 101,380 192,033 6
Slide 7: Our Properties
Our Properties North Zamboanga Tenement Area = 162,403 hectares (401,307 acres) Tamarok/Tapisa Copper / Gold Project 0 Kilometres 25.0 Manila 0 Miles 15.5 Bonbon Gold Prospect Santa Maria Balabag Port Facility Gold / Silver Project Greater Canatuan Tenement Area Canatuan Copper / Zinc Mine 7
Slide 8: Canatuan Copper Mine
Canatuan Copper Mine Volcanogenic Massive Sulphide Deposit (Cu/Zn/Au/Ag) Initial Reserves (NI 43-101, 2008) Priorities Proven & Probable 3,034,383 t @ 1.35% Cu, 1.05% Zn, 0.75 g/t Au & 36.09 g/t Ag • Expand current orebody Initial Resources – initial reserves – 3.0 million tonnes Measured & Indicate
Slide 9: Canatuan Mining, Production & Shipment
Canatuan Mining, Production & Shipment 9
Slide 10: Priority Projects to Extend Mine Life at Canatuan
Priority Projects to Extend Mine Life at Canatuan 1. Current Orebody • Near pit drilling completed EXPA 61 0 Kilometres 5.0 2. Near Mine Prospects 0 Miles 3.1 3 Matigdao • Malusok and SE Malusok 3 Palalian 3 Tabingan 3. Close Proximity Prospects • EXPA 61 – Matigdao, Palalian & Tabingan 4. Other Pro
Slide 11: Canatuan Greenstone/VMS Geology
Canatuan Greenstone/VMS Geology Malusok and SE Malusok Sukol Area Malusok SE Malusok Paduan Canatuan Mill Plant Current Sulphide Orebody Outline Cusan Southwestern Canatuan Lingcangot Area 0 Kilometres 2.0 0 Miles 1.2 11
Slide 12: 1. Current Orebody
1. Current Orebody Canatuan Mill Plant Current Sulphide Orebody Outline Extension targets consist of: Extension areas consist of those: • Areas not previously drilled • Not previously drilled • Areas previously uneconomic • Previously uneconomic • Beneath current pit for potential extension to depth
Slide 13: 2. Near Mine Prospects
2. Near Mine Prospects Malusok 1990s Drill Hole Location Map 2 Malusok 2 SE Malusok Canatuan Mine • Approval of permits at an advanced stage • Will authorize exploration and drilling 13
Slide 14: 3. Close Proximity Prospects
3. Close Proximity Prospects EXPA 61 Greater Canatuan Tenement Area Matigdao Palalian EXPA 61 Tabingan Exploration Permit being processed • Consistent with VMS style of mineralization at Canatuan Growth Canatuan • Tabingan Mine Site ̵ Banded sulphide unit ~400 metres (1,312 feet) exposure up to 20 m
Slide 15: 4. Other Projects
4. Other Projects Luzon Island Other opportunities to extend mill life • A number of projects being evaluated where high-grade ore can Growth be direct shipped and processed at the Canatuan mill • Cost effective to barge and back- Visayas haul high-grade ore • Projects are located in Mindanao, Luzon
Slide 16: Balabag – TVI's Next Mine
Balabag – TVI’s Next Mine Low Sulfidation Epithermal Gold/Silver Deposit Completed drill programs Balabag Resources (2007 NI 43-101 - based on 67 drill holes) • Pre-June 30, 2010 Indicated Resources 1,371,105 t @ 2.87 g/t Au & 84.33 g/t Ag 203,703 AuEqOz • 106 holes for 11,569 metres Inferred Resour
Slide 17: Mineralization Projected to Surface
Mineralization Projected to Surface 17
Slide 18: Mineralization Extends to Depth
Mineralization Extends to Depth 500 Phase 1, 2010 Pre 2010 drill program drill program 450 Metres Metres 400 -82 -82 00 82 164 164 Feet 18
Slide 19: Balabag Proposed Site Layout
Balabag Proposed Site Layout Camp Waste Dump Mill Starter Pit Tailings Storage Facility Balabag Project Development Plan
Slide 20: Development Opportunities
Development Opportunities • TVI is seeking new, larger, longer-life projects • Operationally and financially capable • Financing options being considered Capable • Strategic partners being assessed • Copper, gold, iron, nickel and coal are commodities of interest • Numerous projects currently being
Slide 21: High-Impact North Zamboanga Exploration Prospects
High-Impact North Zamboanga Exploration Prospects • Multiple high-impact copper/gold prospects • TVI exploration supports historical finding Sindangan Cotabato Fault System and has discovered new prospects • Tamarok - indications of large-scale porphyry Upside copper/gold system • Tapisa - potential
Slide 22: Tamarok & Tapisa
Tamarok & Tapisa Extensive Alteration: 6 km (3.7 mi) of Cu-Au Mineralization • Potential for large-scale porphyry copper/gold mineralization system • Drilling temporarily postponed pending detailed geochemical, geological mapping and ground magnetometry surveys to define structural setting • New por
Slide 23: Safety & Employer Awards
Safety & Employer Awards 57th Annual Philippine Mine Best In The Region Safety & Environment Most Outstanding Employer in the Number 1 Priority Association Awards Zamboanga Peninsula Region Safest Mineral Processing runner-up Awarded by the Department of Labor and Employment, the Rotary Club of 7th
Slide 24: Security is Foremost
Security is Foremost An inherent function of our business Have earned tremendous, widespread community support Security personnel participate in Creating models for community livelihood projects Backyard poultry raising and marketing Farm products supply food for mine personnel 14 medical missions s
Slide 25: Corporate Social Commitment
Corporate Social Commitment We are a leader in Responsible Mining Commitment Statement of Commitment We are committed to exploration and mining practices that promote transparency, responsible stewardship of the environment, and the inalienable rights to life, dignity and sustainable development of
Slide 26: Corporate Social Commitment
Corporate Social Commitment Health and Sanitation Sustainable Livelihood Built health clinic that Focused on sustainability, economics provides free 24/7 healthcare and social well-being of community and ambulance service to including micro-finance. impact communities. Responsive Education Royalty S
Slide 27: Environmental Commitment
Environmental Commitment Biodiversity Tailings Management 50% of mining area remains in Four tailings storage facilities original habitat condition. constructed with three undergoing reclamation. Watershed Management Monitoring Programs 90% of disturbed area subject Monitoring by third party profess
Slide 28: Social Development & Management Program
Social Development & Management Program 28
Slide 29: TVI's Contribution to the Economy
TVI’s Contribution to the Economy 2004-2008 2009 2010 2011 EXCISE TAX PAID PhP 77.8M PhP 62 M PhP 68 M ROYALTIES PAID TO IP PhP 39.6 M PhP 30.6 M PhP 35 M PhP 16.8M 1%, now 1.5% of gross revenue as of July 2011 ACTUAL SDMP EXPENSES PhP 23.2 M PhP 7.4 M PhP 11.5 M PhP 25.9M OPERATING COSTS PhP 1.9 B
Slide 30: Oil Assets
Oil Assets Unique Opportunity for TVI to acquire undervalued assets with great upside at a low cost – a compelling value proposition Immediately enhances TVI high-impact growth potential Combined company provides operating synergies with overall reduced costs Will potentially increase, diversify and
Slide 31: Pillars for Growth
Pillars for Growth Philippines – Potential production/cash flow platform • Proven oil-charged system with existing discoveries susceptible to sequential development • Robust economics and business case with sustained oil production • Real benefits from capitalizing on past investment Alaska - Manage
Slide 32: Strategy
Strategy • Establish production & cash flow from Philippine developments • Use cash flow to advance exploration projects and build the Philippine O&G division 1. Develop SC 54A Philippine discoveries to achieve production / cash flow • 3 discoveries for sequential development • 20+ exploration targe
Slide 33: Pillar #1: Potential Cash Flow Platform
Pillar #1: Potential Cash Flow Platform China Service Contract 54A: Proven Oil Fairway Philippines • 12.5% participating interest • Pinnacle reef fairway with multiple producing fields Vietnam SC 54A & prospects identified Spratly • “Chain of pearls” sequential development concept: Islands move the
Slide 34: Pillar #2: Alaska Opportunity
Pillar #2: Alaska Opportunity Joint venture participants: • Alaska Venture Capital Group LLC • Ramshorn Investments Inc. • TG World Energy Inc. (20-35%) Four key areas in a proven oil fairway, close to existing infrastructure 1. North Tarn (20%) – western area - contiguous to west side of Kuparuk Fi
Slide 35: Alaska - Play Areas
Alaska - Play Areas Beechey Point Unit • North Shore oil discovery • 81 sq. mile of 3-D seismic shot in 2007 South Thomson • 130 sq. mile 3-D survey planned Tofkat / Big Island • 225 sq. mile 3D survey shot in 2008 • Tofkat oil discovery in March 2008 North Tarn • Adding to land position • North Tar
Slide 36: Poised for Rapid Growth
Poised for Rapid Growth • Canatuan mine platform for growth - Consistent cash flow generator ̵ Potential extension & expansion of current operation ̵ TVI plans to fast-track exploration drilling on identified prospects in the Greater Canatuan Tenement Area and other near-mine prospects • Development
Slide 37: Anticipated Catalysts/Project Timelines
Anticipated Catalysts/Project Timelines H2 2011 2012 2013 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Canatuan Mine/Mill Life Expansion Programs Greenstone/VMS targets identified High grade ore processing projects Balabag Gold/Silver Mine Optimized feasibility study released Updated 43-101 released Mine development decisi
Slide 38: Connect With Us
Connect With Us Rhonda Bennetto Ian McColl VP IR & Corporate Relations Investor Relations Analyst 403.265.4356 403.265.4356 rhonda.bennetto@tvipacific.com ian.mccoll@tvipacific.com www.twitter.com/tvipacific www.facebook.com/tvipacific Create your own news links 38
Slide 39: Reserves & Resources
Reserves & Resources Canatuan • Canatuan minerals resources and reserves from “43-101 Technical Report for the Sulphide Resources at the Canatuan Project of TVI Pacific Inc.” filed April 7, 2008 and prepared by P.J. Lafleur Geo-Conseil Inc. Mine Life is 6.0 years at an initial rate of 1,300 dmt per
Slide 40: Forward Looking Statements
Forward Looking Statements Certain information set out in this presentation constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "