TVI Pacific Inc is extending its due diligence work program at the Cirianiu Gold Project in Macuata Province of northern Vanua Levu Island by another 180 days. The decision comes after the company received encouraging results from data verification work carried out to date.
Management has determined that an additional exploration program including auger soil geochemical surveying and possible confirmation drilling will be essential in allowing an investment decision to be made on the project, which is now expected for the fourth quarter of 2015.
“TVI’s exploration team in Fiji has done an exceptional job of better understanding the resource potential at the Cirianiu project,” says TVI’s chairman and CEO Clifford James. “While the project looks very promising from both a geological and permitting perspective, we want to go into the decision making process with as much confidence as possible. This requires us to conduct further exploration work of our own to confirm previous data and to potentially identify additional areas of mineralization.”
In early November 2014, TVI entered into a Heads of Terms Agreement with Kalo Exploration Ltd, a private resource company incorporated in Fiji, for the exclusive right to enter into a joint venture partnership to conduct mineral exploration, development and production on the Cirianiu project.
Under the terms of the agreement, TVI was granted the right to conduct a due diligence review of the property over a period of 180 days. TVI has now received approval from Kalo to extend the period of this due diligence work by another 180 days to allow for additional work to be done.
Since November 2014, TVI has carried out re-logging, resampling for assay, sampling for petrography, density measurements, re-assay and collar resurveys. The program also included data validation of all completed drill holes at the project’s Qiriyaga Hill deposit from previous exploration work carried out by Placer Pacific from 1986 to 1993 and Kalo from 2009 to 2013. All new generated data from the program enabled TVI’s team to create updated interpretations of geological sections and level plans to better understand the mineralization controls and emplacement of gold at the Qiriyaga Hill deposit.
Results have indicated that the Qiriyaga Hill deposit contains a low-sulphidation style epithermal gold deposit where the gold is distributed in volcanoclastic host rocks mainly as free gold in quartz stockwork and hydrothermal breccia. The general gold grade appears to be in the range of 0.3 to 5.0 grams/tonne with localized higher-grade zones. The main style of mineralization is very fine hairline quartz stockwork in a silica and clay-chlorite altered volcanoclastic sequence. High-grade, intensely silicified hydrothermal breccia bodies occur in the deposit as well.
The mineralization is mainly gold with varying minor amounts of silver, lead, zinc and copper. Based on this data, the company has a firmer understanding of the deposit’s resource potential and is able to better plan further exploration work in the project area.
Work to date has found a high correlation between soil geochemistry, trench data and soil results with the presence of gold mineralization at depth. Also, program results indicate that the Qiriyaga Hill deposit may be open to the northeast and possibly to the southwest and southeast. To test possible extension potential during the extended due diligence period, TVI plans to carry out a grid auger soil survey covering an area of 3km by 2km. By conducting this work, management hopes to expand the areas of known mineralization to increase the resource potential in the project area.
Following the auger soil geochemistry program, and subject to Board approval, TVI plans to conduct a limited confirmation drilling program mainly to test high grade areas of the deposit to ensure continuity of mineralization, which would further de-risk the project. Based on the results of these programs, TVI will be able to make a decision on whether it will proceed with the formation of a JV on the project in the fourth quarter of 2015.