Agata Mining Ventures Inc (AMVI), a joint venture company in which TVI Resources Development holds 60% and Mindoro Resources holds a 40% interest, has completed its sixth and seventh shipments of high-iron/low nickel direct shipping ore (DSO) from its Agata DSO operations in northern Mindanao.
In accordance with offtake arrangements with Tewoo Hoperay (Singapore) Pte Ltd, 49,234 wet metric tonnes (wmt) of limonite ore containing 0.88% nickel and 48.48% iron left the port of Payong-Payong in Agusan del Norte, Mindanao, on January 28, 2015, and 55,400 wmt containing 0.88% nickel and 48.47% iron left the port on February 7, 2015.
AMVI expects to receive gross revenue of US$615,000 and US$693,000, respectively, for the January and February shipments (pending final assay and price adjustments).
Production in January and February was hampered by extreme weather conditions which brought an extraordinary amount of rainfall to the operations area and limited production to just two shipments of high-iron/low nickel limonite ore. AMVI expects to complete three shipments of limonite ore during March and commenced loading one shipment on March 6.
In addition to the limonite DSO, in order to secure higher selling prices, AMVI had planned to make a shipment of higher grade nickel saprolite during February. However, due to continuous wet weather conditions, additional drying time is required to meet buyer specifications and AMVI now expects shipments of saprolite DSO will commence in April.
AMVI continues to ramp up its DSO operations with the goal of shipping more than 2.5 million wmt in 2015. In order to achieve this goal, AMVI expects to increase its shipment schedule to four shipments of limonite ore per month and at least one to two shipments of saprolite per month, once causeway expansion and stockpile area development work has been completed.
The Agata DSO Project is in Agusan del Norte province, within the Surigao mining region on the island of Mindanao. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The Agata project is well located and is expected to benefit from its deep protected seaport, the opportunity for year-round shipping and its proximity to main markets in Asia.