TVIRD unit wants to develop P1.02-B Mapawa gold project
A subsidiary of TVI Resource Development Philippines Inc. (TVIRD) plans to develop the P1.02-billion Mapawa gold project in Surigao del Norte.
TVIRD subsidiary Greenstone Resources Corp. (GRC) has proposed extracting mineral resources through the Mapawa gold project. This would be located in Surigao City, and the towns of Sison and Tagana-an.
According to a document filed with the Environmental Management Bureau, the project is covered by a mineral production sharing agreement with the government. The MSPA covers a 1,481.66-hectare area.
“This is aimed at optimizing the utilization of identified mineral resources while ensuring that development contributes to national and local economic growth, community upliftment, and environmental sustainability,” the filing read.
There are 5.1 million tons of measured and indicated resources at the Mapawa gold project. However, the proponent said the project has an estimated inferred resource of 12 million tons.
“With this quantity, the expected mine life of the Mapawa project could exceed the projected three years, greatly serving its purpose as a supplementary ore source for the Siana project,” GRC said.
Since it is a supplemental project, the ore milling will be handled by the company’s other mining project, Siana gold project. The latter is located in Tubod, Surigao del Norte.
Minerals extracted from the Mapawa gold project will be transported to GRC’s existing processing plant at Siana. This approach is more “technically sound and cost-effective” to undertake compared to building a dedicated processing facility for the Mapawa project.
GRC said the additional ore feed from the Mapawa project will significantly extend the operational life of the Siana project’s open-pit mining operations.
Beyond 3 years
“With this mining schedule and the potential confirmation of inferred resources to reserves, the Mapawa project could extend its mine life beyond the three-year estimate, potentially having not less than 10 years life of mine,” the firm added.
GRC opted for open-pit mining due to the shallow to moderately deep nature of the ore body, its geometry and favorable geotechnical conditions. These allow for efficient ore recovery and safer operational conditions.
However, the firm said underground mining remains an alternative for future consideration. This depends on the outcome of deep validation drilling, fluctuations in future gold prices and overall production costs.
Based on its financial analysis, the Mapawa Gold Project has a net present value of P1.01 billion and its internal rate of return stands at 74 percent. Such numbers indicate the project’s feasibility.
GRC is a unit of TVIRD, which is itself partly owned by publicly-listed Canada-based TVI Pacific Inc. It is engaged in the exploration, development and production of precious and base metals from district-scale, large-system, high-margin projects in the Philippines.
