Balabag Resource Estimate

1 TITLE PAGE
43-101 Technical Report for the Mineral Resources at the Balabag Project of TVI Pacific Inc.
July 2007 Written by Pierre-Jean Lafleur, P. Eng.
Respectfully presented to: Carl Caumartin Vice President Exploration TVI Pacific Inc. 2000, 736 6 Avenue S.W., Calgary, Alberta T2P 3T7 Phone: (403) 265-4356 Fax: (403) 264-7028 Date: July 27th , 2007 By: Pierre-Jean Lafleur, P.Eng. P.J. Lafleur Geo-Conseil Inc. 933 Carre Valois Ste-Therese, Quebec, Canada, J7E 4L8 Phone: (450) 979-6488 Email: pj.lafleur@videotron.ca
Technical Report 43-101 for the Balabag Project of TVI Pacific Inc
2 TABLE OF CONTENTS
2.1 Sections
1 2 TITLE P AGE........................................................................................................... 1 TABLE OF CONTENT.............................................................................................. 2
2.1 2.2 2.3 Sections.................................................................................................................... 2 List of Figures......................................................................................................... 4 List of Tables........................................................................................................... 4
3 4
SUMMARY .............................................................................................................. 5 INTRODUCTION AND T ERMS OF REFERENCE ...................................................... 19

1.1 1.2 1.3 Scope of Work....................................................................................................... 19 Source of Information .......................................................................................... 20 Field Validation Work ......................................................................................... 21
5 6
RELIANCE ON OTHER EXPERTS .......................................................................... 22 PROPERTY DESCRIPTION AND L OCATION............................................................ 23
7 ACCESSIBILITY , CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND P HYSIOGRAPHY ........................................................................................................... 26 8 HISTORY .............................................................................................................. 28
8.1 8.2 Rio Tinto Exploration Philippines Corporation ................................................ 28 Templar Gold N.L................................................................................................29
GEOLOGICAL SETTING ........................................................................................ 30

9.1
9.1.1
Geological and mineral insight of the Philippines:............................................ 30

Gold In the Philippines .................................................................................................... 31
9.2 9.3
9.3.1 9.3.2 9.3.3 9.3.4
Regional geology................................................................................................... 32 Local geology ........................................................................................................34

Sediments ........................................................................................................................ 34 Volcanics......................................................................................................................... 35 Intrusifs ........................................................................................................................... 35 Structures......................................................................................................................... 36
10 11
11.1 11.2
DEPOSIT T YPES ............................................................................................... 37 MINERALISATION ............................................................................................ 38

Balabag Epithermal Gold Mineralisation .......................................................... 39 Field Verification By PJLGCI............................................................................. 41
12
12.1 12.2
EXPLORATION ................................................................................................. 42
Mapping ................................................................................................................ 42 Surveying............................................................................................................... 43
13
DRILLING ........................................................................................................ 45 P.J. Lafleur Geo-Conseil Inc

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13.1 13.2 13.3
Site preparation and set-up ................................................................................. 48 Hole logging procedure........................................................................................ 48 Core sampling....................................................................................................... 48
14
14.1 14.2 14.3 14.4 14.5 14.6
SAMPLING METHOD AND APPROACH .............................................................. 50

Underground Sampling ....................................................................................... 50 TVIs 2005 Due Diligence Results ....................................................................... 51 Tunnel Mapping and Systematic Sampling ....................................................... 52 Trenching .............................................................................................................. 52 Compositing Samples...........................................................................................53 Statistical and Geostatistical Analysis ................................................................ 55
15 16
16.1
SAMPLE PREPARATION , ANALYSES AND SECURITY ......................................... 59 DATA VERIFICATION ....................................................................................... 63

Check samples by PJLGCI.................................................................................. 63
17 18 19
19.1
ADJACENT P ROPERTIES................................................................................... 68 MINERAL PROCESSING AND METALLURGICAL T ESTING ................................. 69 MINERAL RESOURCE A ND MINERAL R ESERVE E STIMATES ............................ 70
MINERAL RESOURCE ESTIMATE................................................................ 70
Methodology .............................................................................................................. 70 Results ........................................................................................................................ 72 19.1.1 19.1.2
19.2 19.3 19.4
MINERAL RESERVE ESTIMATE................................................................... 73 Mineral Resources Classification........................................................................73 Method to compute Reserves............................................................................... 73

Mining Dilution and Recovery ................................................................................... 73
19.4.1
20 21 22 23 24
OTHER R ELEVANT DATA A ND INFORMATION .................................................. 75 INTERPRETATION AND CONCLUSIONS ............................................................. 76 RECOMMENDATIONS ....................................................................................... 77 REFERENCES ................................................................................................... 78 DATE AND S IGNATURE P AGE .......................................................................... 79
25 ADDITIONAL REQUIREMENTS F OR T ECHNICAL R EPORTS ON DEVELOPMENT P ROPERTIES AND PRODUCTION P ROPERTIES.............................................................. 80 26 27

27.1
ILLUSTRATIONS ............................................................................................... 81 Appendices ..................................................................................................... 86

Analytical results ..................................................................................................87
28
Certification ................................................................................................... 92
QUALIFICATIONS CERTIFICATE....................................................................... 92 BEN AYAD Mohammed Ali...................................................................................... 94 E-mail : ali.benayad1@menara.ma........................................................................... 94 Ben_ayad@yahoo.com............................................................................................... 94
P.J. Lafleur Geo-Conseil Inc
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2.2 List of Figures

Figure 6-1 Property Location Map .............................................................................. 23 Figure 7-1: Histogram of Monthly Precipitations (Projected)..................................... 27 Figure 9-1: Regional geologic map of Zamboanga peninsula (After MGB, 2006) ..... 32 Figure 9-2: Simplified geological map of Mindanao Zamboanga Peninsula, compiled by Norwest .................................................................................................................. 33 Figure 9-3: Regional Balabag project geology/Regional geochemical anomalies (After Rio Tinto, 1977) .......................................................................................................... 34 Figure 9-4: Balabag project geologic map interpreted .............................................. 35 Figure 11-1 Photo: Warik-Warik quartz vein ............................................................. 40 Figure 11-2 Photo: Core showing crustiform banding exhibiting white quartz bands in a gray highly pyritic matrix .......................................................................................... 40 Figure 11-3 Photo: BDDH-40 From 75.30 to 76.30m Quartz vein breccia undeveloped to developed, colloform/crustiform banded, oxidized milky, chalcedonic, gray to smokey quartz with occasional cy-sil altered andesite. (22.298 g/t Au @ 3.80 meter zone) ......................................................................................... 40 Figure 14-1 Histogram of original sample length........................................................ 54 Figure 14-2 Scatter Plot of Au g/t and Sample Length ............................................... 54 Figure 14-3 Gold and Silver have a good correlation................................................. 55 Figure 14-4 Histogram of Gold and Silver Assays in Veins ....................................... 56 Figure 14-5 Semi-variogram of Gold and Silver (below) of all samples..................... 57 Figure 14-6 Semi-variogram of Gold and Silver (below) of samples in veins only..... 58 Figure 16-1 Gold and Silver Check Assays ................................................................ 66 Figure 16-2 Gold and Silver Correlation ..................................................................... 66 Figure 16-3 Location map of Check Samples Drill Holes........................................... 67 Figure 19-1 Block Model Setup .................................................................................. 70 Figure 19-2 Plan View Showing Veins ....................................................................... 71 Figure 19-3 Section 200W Showing Veins, DH and SMU ......................................... 71 Figure 19-4 The Indicated Class Outlined on Plan View on Level 510 ...................... 74 Figure 26-1 Location map of Balabag Project ............................................................ 82 Figure 26-2 Location map of TVI Due Diligence Sampled Sites ................................ 83 Figure 26-3 Location map of the small scale miners tunnels ..................................... 84 Figure 26-4 Location map of TVI Due Diligence Results ........................................... 85
2.3 List of Tables

Table 13-1 TVI's Drilling Results............................................................................... 45 Table 14-1 Results from Trenching Samples.............................................................. 53 Table 16-1 Core check samples collected by PJLGCI. ............................................... 64 Table 16-2 Results of Check samples by PJLGCI ...................................................... 65
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3 SUMMARY
In March 2007, TVI Pacific Inc. (TVI) of Calgary requested Pierre Jean Lafleur Goconseil Inc (PJLGCI) to produce a 43-101 Technical Report to update the mineral resources at TVIs Balabag gold property, in western Mindanao, Zamboanga, Philippines. The Balabag property is held under a Mineral Production Sharing Agreement (MPSA), by TVI Resources Development (Phils.), Inc. (TVIRD), that is TVIs subsidiary company in the Philippines. (For simplification, and otherwise specified, all references to TVI and TVIRD in the present report will be simply referred to as TVI.) A site visit and data review of the Balabag property was conducted by PJLGCI associated senior geologist, Mr. M. A. Ben Ayad, P. Geo., in April 2007 who controlled and verified the geological model established for the Balabag deposit to certify the mineral resource models to be compliant to NI 43-101. Some small scale mining activity, including tunnels that were sampled by TVI, provided another source of data that support and do warrant the mineral resource and reserve estimates presented in the following report. PJLGCI was able to retrieve the data required for the present report such as drill holes and samples database, as well as topographic surfaces (DTM Digital Terrain Model) and geological data including structures from the Balabag geological department. The preparation of this report by PJLGCI, following the project site visit, relied on two technical reports (references in section below), TVI drill holes data base and sampling results and maps. The second report is a technical due diligence realized by TVI to provide an assessment of the Balabag gold property. This high quality report helps to confirm the presence of gold on the property and to value the property gold potential. The data included the drilling and sampling information produced by TVI. The McPhar laboratory results confirm the presence of significant gold and silver mineralisation. TVI geologists have worked extensively, reviewing and developing geological models for the areas. This includes compiling historical data, and confirming ideas with surface mapping and sampling. PJLGCI associated geologist, visited the Balabag gold advanced project on April 13-18, 2007 and had access to the following data: Geological map of the Balabag deposit area Data of drilling realized until 2006 and all the channel sampling realized until April 2007, P.J. Lafleur Geo-Conseil Inc
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Discussion with TVI exploration personnel, Review of the geological interpretation realised by TVI Examination of drill cores and check sampling for grade control Review of the sampling procedure and analytical procedure Audit of the 3D geological model in Gems software realised by TVI,
The technical material considered in the present report is based on the existing data produced and compiled by TVI. In the realisation of this NI 43101 technical report, PJLGCI has relied on the data collected essentially by drilling and channel sampling works on the property. PJLGCI responsibility is limited to using the data provided to them by TVI, beside the usual core assay verification, assuming it is the best data available to perform the resource estimation of the Balabag project.
Property Description and Location
The tenement covering the Balabag property has a total area of 4,779 hectares. The tenement comprises a Mineral Production Sharing Agreement (MPSA) in the name of Zamboanga Minerals Corporation (ZMC) registered as Title No. 086-97-IX. The MPSA is located within the Municipalities of Bayog, Zamboanga Del Sur and Zamboanga Sibugay Province, Island of Mindanao, Philippines. The MPSA was granted on November 20, 1997 and subsequently registered with the Mines and Geology Bureau (MGB) on May 6, 1998. The P.J. Lafleur Geo-Conseil Inc
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MPSA has a term of twenty five years and may be renewed for another term not exceeding twenty five years. The boundaries of the contract area have not been legally surveyed. The MGB will only issue an Order to Survey should ZMC submit to the MGB a mining project feasibility study. The property has, and is being, affected environmentally by the activities of illegal small-scale miners in the Balabag area at Tinago, Unao-Unao, Miswi and Lalab. The miners are extracting gold from the surface and underground workings. The illegal rod and ball mill use mercury in the amalgamation process, and the CIP operators recover gold using cyanide. Neither of the two procedures apply environmentally responsible procedures.
Accessibility, Climate, Local Resources, Infrastructure And Physiography

Balabag is located in the Zamboanga Peninsula and is accessible from Manila by air transportation. Two airlines maintain regular scheduled 1 hr and 20 minute flights from Manila to Zamboanga City. From Zamboanga City, access to the property is by a 5-hour drive via the all-weather Zamboanga Dipolog national highway passing through a sealed road from Imelda town to Barangay Guinoman, Municipality of Diplahan in Zamboanga Sibugay Province. Generally, the topography is moderately rolling to semi-rugged. The central section of the Zamboanga Peninsula falls within the Type IV weather classification under the Climate Map of the Philippines. It is relatively dry from January to May and wet throughout the rest of the year. Mean annual average precipitation is 2,239.5 mm.
History
The property was initially under an option agreement with Rio Tinto Exploration Philippines Corporation (RTEPC) from October 15, 1996 to January 14, 1998. RTEPC conducted detailed geological mapping and rock sampling, geochemical stream sediment and grid-soil sampling, an IPResistivity survey. In November 1997, RTEPC reported: High grade epithermal gold mineralisation in the Tinago small-scale mining area measuring 20 meters by 130 meters averaging 20.32 g/t Au and 464.04 g/t Ag based on 145 rock samples collected. A broad geochemical gold soil anomaly of greater than 0.1 ppm Au. The presence of drainage geochemical anomalies of 100 to 360 ppm copper coupled with 10 ppm molybdenum in Legumbong, southwest part of the area, is suggestive of possible porphyry copper mineralisation. Rock geochemical anomalies in the San Pedro, north-central section of the area, reflect copper skarn type of mineralisation believed to be related to an andesite porphyry. Rock chips and grab samples from the Upper Dipili copper skarn gave assay results ranging from 1.72% to 9.49 % Cu, 148 to 242 ppm Ag, 1,000 to 15,910 ppm Pb and 11,000 to 88,400 ppm Zn.
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Templar Gold N.L., a Perth, Australia based company signed an Option Agreement with ZMC for a six year option term beginning 18th February 1999. During the scope of the Option Agreement, Goldminco Corporation (TSX) provided all the funding and cash requirement of Templar Resources Phil. Inc during its operation in the Philippines. By November 25, 2004, the Option Agreement with ZMC was terminated by Templar Resources Phil. Inc. prior to the end of the six year option agreement. On April 25, 2005 ZMC entered into an agreement with TVI Resource Development Phils., Inc. (TVIRD). Templar Resources is inferred to have had access to RTEPCs results, and to have therefore progressed directly to drilling once they moved onto the property. Their program was modest, and access to sites is known to have been affected by the presence of the illegal small-scale miners. Five shallow relatively narrow-diameter (NTW and BTW) holes totalling 593.6m comprised a scattered test of three of the four prospects within the Balabag project area. The first two holes missed the gold veins. Hole 3 was sited at Miswi and from 79m returned 14m @ 5.2 g/t Au, 85 g/t Ag (including 3m @ 16.6 g/t Au, 311 g/t Ag). Holes 4 and 5 were drilled at Tinago. Hole 4 intersected a small-scale miners stope but hole 5 from 2m intersected 9m @ 5.4 g/t Au, 122 g/t Ag (including 2m @ 19.7 g/t Au, 450 g/t Ag.).
Geological Setting
The Philippines may be viewed as a collage of metamorphic terrains, magmatic arcs, ophiolitic complexes, sedimentary basins and continental block of Eurasian affinity subjected to tectonic processes such as subduction, collision and major strike slip faulting. The subduction zones are represented on the east by the west dipping Philippine Trench traversing the eastern seaboard of the Philippines from Mindanao up to a point in Luzon and the East Luzon Trough. The continental block is represented by northern Palawan, southern Mindoro, Romblon Island Group and Buruanga Peninsula in Panay Island, known collectively as the North Palawan Block. The rest of the archipelago is considered as the Philippine Mobile Belt. Many areas of this mobile belt are underlain by ophiolitic complexes. Usually occurring together with pre-Cenozoic schists and phyllites, the ophiolitic rocks represent basement on which magmatic arcs have developed. Ultramafic rocks of these ophiolites are hosts to significant deposits of chromite and nickel. Laterites over these rocks also contain economic deposits of secondary nickel minerals. On the other hand, massive sulphide and manganese deposits are associated with the volcanic and sedimentary carapace of the ophiolite. The regional geology of the Zamboanga Peninsula is less well understood than other parts of the country, and its mineralisation potential remains to be quantified as the area continues to be under-explored. Regional geology The Mindanao peninsula is bounded to the west by the Eurasian Plate being subducted southeastward into the Sulu Trench, and on the east by the P.J. Lafleur Geo-Conseil Inc
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Philippine Sea Plate being subducted westward into the Philippine Trench. This tectonic setting has produced three distinct rock-stratigraphic assemblages in West Mindanao, namely: (a) SW- Zamboanga Zone, (b) Cotabato-Sindangan Collision Zone and, (c) NE - Zamboanga Zone (Flores, 1999). The SW Zamboanga Zone consists of a generally NEtrending and relatively older suite of rock-stratigraphic units. The CotabatoSindangan Collision Zone is characterized mostly by NW-trending braided or anastomosing sinistral faults and similarly-trending litho-stratigraphic units. The NE-Zamboanga Zone is mostly covered with the Quaternary Malindang volcanics and related lahar and alluvial deposits. Local geology The oldest rock unit mapped in The Balabag prospect is an intrusive, mainly diorite porphyry inferred as Pre-oligocene (Antonio, 1951). This is overlain by late Oligocene to Middle Miocene sediments. The sediments are generally steeply dipping and unconformably overlain by volcanic rocks. A younger intrusive suite of andesite to dacite porphyries intruded the volcanics, sediments and older diorite.
Deposit Types
The principal copper and gold deposits of the Philippines originate as an integral part of the formation of volcanic arcs, and many copper-gold deposits are associated with intrusions (mostly diorite and quartz diorite, but also monzonites and syenites) as well as Pliocene Pleistocene volcanism (Lepanto mine at Mankayan, Benguet). P.J. Lafleur Geo-Conseil Inc
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The complex geology of the Zamboanga Peninsula is host to several styles of mineralisation. The hydrothermal systems generated by the volcanic and intrusive activity, fall into one of three categories:
1. Porphyry copper-gold systems associated with high level plutonic intrusions, which are primarily dioritic in composition in the Philippines; 2. Epithermal gold systems, typically associated with deep seated fault systems; or 3. Volcanogenic massive sulphide deposits associated with the submarine discharge of metalliferous hydrothermal fluids.
Mineralization
Currently the principal target is at Balabag, and comprises vein-hosted epithermal gold mineralisation, and which is being worked extensively by small-scale miners. In currently focusing on the epithermal gold mineralisation, TVIs geologists are employing geological models reflecting well-studied deposits in arcsettings. The Balabag quartz veins system appears to be typical of that encountered in high-level low sulfidation epithermal vein systems. Visual inspection of the core showed a well described quartz veins by TVIs geologist. The high gold values correspond to the quartz veins mineralized intervals reported in the drill logs.
Exploration
The results of historic exploration on the Balabag property are partly reported above (Section 5 History). The Warik-Warik area notably was sampled in detail by RTEPC. Their results indicated high grade epithermal gold mineralisation to be within a north-south trending zone in the Tinago smallscale mining area measuring 20 meters by 130 meters (open to the south). The zone averaged 20 gpt Au and 464 gpt Ag based on 145 1.5m channel samples collected. TVIs first phase of exploration has focused on confirming the presence of gold and silver, and quantifying respective values. Detailed Geological mapping was conducted in the southeast of Balabag Hill (Genaro Creek and Minda Creek), and in the west of Balabag Hill (Depore River upstream from the ZMC Settlements) with a total length of 1.441 kilometres traverse lines. On the southeast of Balabag Hill, a major northtrending fault is exposed along Minda Creek. These could represent the northern extension of the silicified-zone/Quartz veining that was previously sampled along the main Genaro creek on the trail leading to Balabag. On the west of Balabag Hill, the previously identified major fault along the Depore River still extends northward. Structures still follow the general NW-SE-trends. P.J. Lafleur Geo-Conseil Inc
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In early 2006, a surveying team was assigned full time at Balabag, with the mandate to precisely locate all existing infrastructures, trails, small scale miners dwellings, tunnels and mills, as well as locating all drill hole collars, pads and sampling trenches. Among other thing, they have produced a detail contour map of the area.
Drilling
Templars drilling results have been referred to in the section describing the propertys history. TVI started a drilling program with the first hole collared on November 17, 2005. Proposed drill (DDH) hole locations were surveyed and drill pads were subsequently prepared at each location. In light of the encouraging results obtained during the early part of the program, the latter was increased to 60 drill holes and 7000m of drilling in 2006 to delineate the main zones of mineralisation at about 50m spacing. The program was completed with success (58 drill holes totalling 7,011m) and identified a potential mineral deposit consisting of a series of gold bearing epithermal vein structures situated near surface and of reasonable grade and potential tonnage to warrant systematic valuation work in 2007. In early 2007, an infill drilling program was initiated and results from an additional 9 drill holes (up to DDH-67 incl.) were compiled and appended to the database for the purpose of estimating mineral resources. All cores are logged and sampled at the core-shack built at the Balabag camp. Along drill core, sample locations were determined and marked by the geologists. In laying out the sample intervals a sample length of 1.0 m was used as the standard length interval.
Sampling Method and Approach

TVIs sampling was conducted both underground and on surface in early 2005. Geological mapping both of the surface, and underground, identified the sites to be subsequently sampled. Sample intervals selected from drill core were recorded with reference with the hole collars. The sites sampled underground were determined by the geometry of the workings. All sampled adits commence in the hanging wall of the mined vein, and progress approximately horizontally through the hanging wall contact into the vein. In the tunnels, samples were taken perpendicular to dip, and therefore largely reflect true widths of the intervals sampled. The samples in any one stope commonly represent the same preferred, approximately planar, portion to the vein. Predetermined sample sites were identified with spray paint markings. After the samples were taken, the sample locations were re-sprayed for easy identification. Normal sample spacing underground was 1.5 meters between each channel within the stoped areas. P.J. Lafleur Geo-Conseil Inc
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The responsible geologist logged and described each sample, with all observations written in a sample ticket logbook, and/or on core logs, with a corresponding sample tag that was placed in the sample bag. The sample number was also written on the surface of the sample bag, for double checking and easy identification during the dispatch of the samples to the laboratory. Samples numbers were plotted on a sample location map, and/or on cross sections, produced at the same scale as the geological map produced in selecting sample sites. TVIs earlier due diligence work involved the channel sampling of four sites previously sampled by RTEPC. Twenty-five samples were collected in the Berong Tunnel. The results range from 1m @ 2.03 gpt Au, 17.5 gpt Ag, 2.395 gpt AuEq to 1m @ 21.6 gpt Au, 145 gpt Ag, 24.621 gpt AuEq. The twenty-five samples average 7.92 gpt Au, 38.5 gpt Ag, 8.722 gpt AuEq. In Tunnel 32A, the highest grade is 1m @ 13.6 gpt Au, 80.5 gpt Ag with a gold equivalent grade of 15.277 gpt AuEq and range down to 1m @ 0.36 gpt Au, 27.8 gpt Ag, 0.939 gpt AuEq. Fifty-three samples were collected from the vein in Tunnel 29A, and six from the hanging wall. Individual samples within the vein range from a low of 1m @ 0.53 gpt Au, 6.2 gpt Ag, 0.659 gpt AuEq to 1m @ 20.2 gpt Au, 115 gpt Ag, 22.596 gpt AuEq. The average of the samples recovered from the vein is 6.07 gpt Au, 91.5 gpt Ag, representing 7.976 gpt AuEq. The average of all samples collected by TVI in Warik-Warik was 9.48 gpt Au, 635 gpt Ag representing 22.709 gpt AuEq. The values range from a low of 1m @ 0.49 gpt Au, 4.6 gpt Ag, 0.586 gpt AuEq to a highest grade channel sample which returned 1m @ 62.2 gpt. The results of the more recent tunnel sampling indicate quite variable gold and silver values, ranging from 0.003 to 45.34 gpt Au and 0.50 to 1390.0 gpt Ag, confirming the high silver to gold ratios. In summary, TVI is confident in the reliability of the sampling conducted, and the quality of the subsequent assays. TVIs results confirm the presence of significant gold and silver values associated with the Tinago vein at Balabag. Trenching In late 2005 and during 2006, TVI proceeded to excavate a number of trenches across the Tinago and Miswi-Lalab veins systems. Out of the 20 trenches that were dug, 19 trenches were mapped and sampled (Trench 1-17, and Trench 19-20). Later, 4 more trenches were added. To date, a total of 952 samples were collected along these trenches, primarily located straddling the Tinago, Miswi, and Lalab prospects and totalling an aggregated 945.0 meters in length. There are 1317 samples inside veins and 52% of those samples have 1.0m in length while 81% have between 0.5 and 1.5m in length. There are 44 samples P.J. Lafleur Geo-Conseil Inc
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with length greater than 1.5m and only 7 of those samples with length greater than 2.5m. There is no particular bias between sample length and gold grade values. There are 5592 samples with gold assay values and 5360 samples with silver assay values available at the time of writing this report for all rock types. It includes in the veins only 1271 samples with gold assay values averaging 2.81 g/t and 1234 samples with silver assay values averaging 75.9 g/t available at the time of writing this report. The variogram model equation is represented by the following equation for interpolation of gold grade Gamma = 0.3 + S (0.3/10m) + S (0.4 /50m) The model is isometric where the short range continuity (10m) is displayed by studying the data across the thickness of the vein. Otherwise, the actual data does not display a particular preference for grade continuity on strike or down dip. Gold and silver values in the veins display a good correlation. The same grade continuity structure is visible when filtering out the sample outside the veins.
Sample Preparation, Analyses And Security

Samples have been taken to confirm the presence of gold and silver and help make a geological model and develop the exploration drilling program. Wherever possible, the samples were surveyed to develop a 3D geological model to estimate the mineral resource tonnage and grade. The drilling samples are prepared on site and transported to TVIs Canatuan Mine Laboratory. Once at the Canatuan mine, the Balabag samples are shipped to a designated certified laboratory. McPhar Laboratory of Manila, Philippines, an ISO 9001/2000 accredited laboratory, performed the sample preparation and assaying for the project. A replicate assay is done on every 10th sample, and certified reference materials are used in every 20 samples. The sample preparation and analytical procedures conducted by McPhar Laboratory for the TVI samples area as follows: Sample Preparation: Sample are dried, crushed, split and a 1 kg portion is pulverized and 250 mg is used for assaying. A duplicate portion is made every 10th sample. Fire Assay: A 50 gr portion is used for fire assay and a gravimetric finish for gold (>3ppm) and silver.
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Assay by AAS: Other elements (Cu,Pb,Zn) are assayed using the AAS method. Quality Control: All equipment (crusher, ring mill) are flushed with barren rock and cleaned with compressed air. A replicate assay is done on every 10th sample, and certified reference materials, both blanks and standards, are used in every 20 samples. Samples with anomalously high or low values are re-assayed automatically. Reporting: Analytical results are transmitted via fax, e-mail and hard copy reports. Sample Storage: Sample pulps and coarse rejects are retained and typically stored at the Lab Sample Security: TVI follows a detail procedure to have samples tagged, bagged, shipped and tracked from the project site to the laboratory with diligence.
Data Verification
The first data verification corresponds to due diligence sampling which was conducted by TVIs geologists to identify whether the gold and silver values reported previously by RTEPC were in place. One site visit were made by PJLGCI associated Geologist, M. A. Ben Ayad, to both TVIs Manila office and the Balabag project area. During this visit, carried out while the 2006 drill program was completed, the geological data as described by TVI geologist observations, sampling and logging procedures was confirmed. The Quality Assurance program used by TVI at Balabag to monitor the analytical results relies on the use of control samples included by TVI and by the McPhar laboratory. The 2005-2006 sampling and assay procedures utilized a full suite of standards as well as multi lab check assaying. The site visit confirmed the location, access, topography, MPSA ownership, the location of previous drilling and test pitting and confirmed by independent sampling (Check sampling) the presence of gold on the Balabag property. This visit confirmed the regional geology, geological sequence and ore geology as described by TVI from earlier sampling and drill programs. A total of 27 samples originated from 4 selected drill holes chosen to represent all the veins making the deposit, have been sampled by PJLGCI senior geologist and sent to INTERTEK JAKARTA. The samples correspond to the quarter of the core sampled by TVI, collected by PJLGCI and sent for preparation and assays to INTERTEK.
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Three Standards have been included every ten samples. The verification samples show very good checked values between TVI and PJLGCI assays.
Adjacent Properties
There are a few adjacent exploration or mining properties surrounding the Balabag tenements but none that interfere or could create conflict with TVI properties.
Mineral Processing and Metallurgical Testing

Genivar is currently carrying a pre-feasibility study on the Balabag project including Mineral Processing and Metallurgical Testing.
Mineral Resource and Mineral Reserve Estimates

The block model direction matches the vein strike and dip with SMU of 5m by 2.5m by 5m high. The grades were computed for each block in veins, one vein at the time with its own samples located inside the vein. The interpolation method was Ordinary Krigging with capping values of 50 gpt Au and 1000 gpt Ag and a search sphere of 150m radius. Indicated resources of 1.37 million tonnes (Mt) averaging 2.9 grams per tonne (gpt) gold (Au), 84.3 gpt silver (Ag) o Using >0.5 gpt grade group: 126,507 ounces (Ozs) Au; 3,716,842 Ozs Ag 203,703 Ozs on a gold equivalent (AuEq) basis Inferred resources of 1.96 Mt averaging 2.6 gpt Au, 55.2 gpt Ag o Using >0.5 gpt grade group: 162,056 Ozs Au; 3,471,890 Ozs Ag 234,165 Ozs on a AuEq basis
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(@ $650/Oz Au & $13.5/Oz Ag)
Grade Group >2.0 gpt Au >1.0 gpt Au >0.5 gpt Au 0.0 - 0.5 gpt Au
Class. Indicated Indicated Indicated Indicated
Tonnage 695,128 1,091,970 1,371,105 314,820
Au (gpt) 4.54 3.41 2.87 0.28
AU_OZ 101,452 119,912 126,507 2,834
Ag (gpt) 132.98 100.61 84.33 9.25
AG_OZ 2,972,660 3,531,287 3,716,842 93,665
AuEq (gpt) 7.30 5.50 4.62 0.47
AUEQ_OZ 163,192 193,254 203,703 4,779
Total Indicated
1,685,925
2.38
129,341
70.31
3,810,507
3.84
208,482
Class. Inferred Inferred Inferred Inferred
Tonnage 821,521 1,488,853 1,957,168 498,254
Au (gpt) 4.5 3.14 2.58 0.24
AU_OZ 118,864 150,300 162,056 3,845
Ag (gpt) 96.9 65.9 55.2 8.33
AG_OZ 2,560,532 3,152,794 3,471,890 133,411
AuEq (gpt) 6.51 4.51 3.72 0.41
AUEQ_OZ 172,045 215,781 234,165 6,615
Total Inferred
2,455,422
2.11
165,901
45.69
3,605,301
3.05
240,780
Notes: 1. 2. 3. 4. 5. 6.
Indicated: within 25m Search Radius (SR) of at least two drill holes; Inferred: between 25 and 150m SR of at least one drill hole The estimation method used geostatistical block modeling techniques, using Ordinary Kriging grade interpolation and capping values set at 50gpt Au and 1000gpt Ag PJLGCI is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing of others issues that may materially affect the estimate of mineral resources Mineral resources which are not mineral reserves do not have demonstrated economic viability Metallurgical recoveries and net smelter returns have not yet been determined There is no assurance, at this time, that the mineralisation at Balabag will support a commercial mining operation
The mineral reserves are the part of the mineral resources that can be mined with a profit. The mineral reserves estimate depends on the mine plan which is being drawn by Genivar in its pre-feasibility study at the time of writing this report. There is no assurance, at this time, that the mineralisation at Balabag will support a commercial mining operation. The mineral resources in the Indicated category have to be within 25m Search Radius (SR) of at least two drill holes. See Figure 19-4 below. The mineral resources beyond that may be classified in the Inferred category if they are located between 25m and 150m of at least one drill hole. Any mineralized material outside the veins has not been classified in any mineral resources.
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Other Relevant Data and Information

PJLGCI is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing of others issues that may materially affect the estimate of mineral resources
Interpretation and Conclusions

Mineral resources which are not mineral reserves do not have demonstrated economic viability. It should be noted that the methodology used in the technical report tends to understate the effect of small scale mining. This is mainly due to the fact that the small scale miners dig out the high grade portion without documenting their work.
TVIs results and PJLGCI verification confirm the presence of significant gold and silver values associated with the Tinago vein at Balabag. TVI has demonstrated with its ongoing exploration program that the mineral resources at Balabag are of economic interest. TVI should complete the ongoing prefeasibility study by Genivar. The mineral resource estimate should be updated based on the latest results. On the regional scale, the setting hosting the current gold bearing quartz veins is unlikely to be found nearby the existing discovery. However, TVI has more exploration work to do to complete the search for gold and maybe some other metals of economic interest.
Recommendations
TVI should continue to support the ongoing exploration program to its end. TVI should complete the ongoing pre-feasibility study by Genivar. The mineral resource estimate should be updated based on the latest results.
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Additional Requirements For Technical Reports On Development Properties And Production Properties
The details for this section depend on the on-going study and mine plans which are being drawn by Genivar in its pre-feasibility study at the time of writing this report.
Prepared in Ste-Therese, this June 15th, 2007.
Pierre Jean Lafleur, P.Eng.,

P.J. Lafleur Go-Conseil Inc. 933 Carr Valois Ste-Thrse (Qubec) Canada, J7E 4L8 Phone: +1 450 979-6488 Cell: +1 514 512 2368 email: pj.lafleur@videotron.ca Skype: pjlafleur
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4 INTRODUCTION AND TERMS O F R EFERENCE

1.1 Scope of Work
In March 2007, TVI Pacific Inc. (TVI) of Calgary requested Pierre Jean Lafleur Goconseil Inc (PJLGCI) to produce a 43-101 Technical Report to update the mineral resources at the Balabag gold property in western Mindanao, Zamboanga, Philippines. A site visit and data review of the Balabag gold property was conducted by PJLGCI associated senior geologist, Mr. M. A. Ben Ayad, P. Geo., in April 2007. The purpose of the visit was an appraisal of the mineralisation and geological characteristics, a review of the existing geological model, the reported drill holes samples results and an estimate of the reliability of the information provided by TVI. This visit aims to support a first mineral resources and reserves estimation of the different veins considering all the existing drill holes data realised up to March 2006. In addition, PJLGCI was asked to make several technical enhancements in the resource model to better utilize the available data produced by TVI. A full review of the mineral resources model was carried out by Mr. P.-J. Lafleur, P. Eng. The tasks included the following broader scope of work: Control and verify the geological model established for the Balabag deposit Validate the database to make the grade tonnage block model using the 3D model to conform with industry standard methods (using geostatistics), including a review of the variography (grade continuity analysis) and compositing (sampling normalization); Make recommendations for additional drilling, in-fill as definition drilling Perform a strategic mine plan analysis (NPV optimization) using TVIs Whittle Software license, including current metal prices and operating costs (This is to be carried out by Genivar in Canada); Certify the mineral resource models to be compliant to NI 43-101. The tasks assigned to PJLGCI are focused on making a mineral resources estimation at Balabag to support detailed mine planning and mining operations, while adjusting to a changing economic environment when possible. These models comprise the resource block model (geology in full 3D in Gems), the reserves (mine planning optimization in Whittle) and the economic model (scheduling, mill recoveries and metal prices forecasted). Mineral reserves can mainly change due to metal price variations or differing metal recovery forecast where there exist marginal ore zones sensitive to those economic factors. It is generally agreed that the mineral resources used to carved out the mineral reserves is not yet drilled in an optimal fashion with drill spacing varying between 25m and 50m. Some small scale mining activity, including tunnels that were sampled by TVI, do support and warrant the mineral resource and reserve estimates presented in the following report. P.J. Lafleur Geo-Conseil Inc
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PJLGCI was asked to identify the sensitivity of the project to specific technical factors to ascertain its potential size against a range of economic factors to verify its potential value. Hence, PJLGCIs scope of work relies on the previous geological data and Studies as well as TVIs current financial figures to determine the appropriate economic parameters such as costs or cut-off grades, mill recoveries and environmental issues used to report the mineral resources and the mineral reserves. The units of measure used in this report are metric and monetary units are the US dollar, unless indicated otherwise.
1.2
Source of Information
PJLGCI was able to retrieve the data required for the present report such as drill holes and samples database, as well as topographic surfaces (DTM Digital Terrain Model) and geological data including structures from the Balabag geological department. The preparation of this report by PJLGCI, following the project site visit, relied on two technical reports (references in section below), TVI drill holes data base and sampling results and maps. The first documents produced by the previous property owner, the major mining company Rio Tinto (RTEPC), constitute a source of historic information on the Balabag project. RTEPC performed quality exploration work, but their report is incomplete for the lack of geological maps and geophysical interpretation. The second report is a technical due diligence realized by TVI to provide an assessment of the Balabag gold property. This high quality report helps to confirm the presence of gold on the property and to value the property gold potential. Most of the information used for this work came from various computer files of the Balabag Project. The data included the drilling and sampling information produced by TVI. Assays and analysis were conducted at the McPhar Laboratory, which has been ISO 9001/2000 certified since 1992, and it normally undergoes two technical audits per year. During the past few years comprehensive audits have been undertaken by major mining and exploration companies, including one that is assessing the feasibility of a major copper deposit. McPhar also is a regular participant of international round robin tests conducted by Geostats, and Ore Research groups of Australia. A following Section describes, in some detail, the sample preparation and analytical processes used by McPhar. The same section details the usage of internal and independent standards and blanks to check the laboratorys precision and repeatability. The checks indicate the lab is acceptable for the scope and level of study being conducted by TVI. The McPhar results confirm the presence of significant gold and silver mineralisation.
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TVI geologists have worked extensively, reviewing and developing geological models for the areas. This includes compiling and analysing historical data, elaboration of geological models and confirming ideas with surface mapping and sampling.
1.3
Field Validation Work
PJLGCI associated geologist, visited the Balabag gold advanced project on April 13-18, 2007 and had access to the following data: Geological map of the Balabag deposit area Data of drilling realized until 2006 and all the channel sampling realized until April 2007, Modelisation of the deposit in Gems mining software, All the exploration staff of the geological department in Balabag exploration camp was readily available to assist PJLGCI in its work which consisted in: Discussion with TVI exploration personnel, Review of the geological interpretation realised by TVI Field visit of the main deposit and one prospect area (Tinango) Review of the drill hole database and spot check Examination of drill cores and check sampling for grade control Review of the sampling procedure and analytical procedure Audit of the 3D geological model in Gems software realised by TVI, Review of the resource estimates based on this data.
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RELIANCE O N O THER EXPERTS
The technical material considered in the present report is based on the existing data produced by TVI. In the realisation of this NI 43-101 technical report, PJLGCI has relied on the data collected essentially by drilling and channel sampling works on the property. PJLGCI responsibility is limited to using the data provided to them by TVI, assuming it is the best data available to perform the resource estimation of the Balabag project. PJLGCI does not take any responsibility for the quality of the data that was produced by TVI, other than the customary verification done by PJLGCI. PJLGCI responsibility is limited to making an enhanced resource and reserve estimation based on the original data by applying the best method to create its models. For the mineral reserves, PJLGCI does rely on the mine plan prepared by Genivar. PJLGCI depends on other experts mandated by TVI to determine the capital and operating costs, pit slope stability factors, ore dressing and processing, tailings and environment, and other mine design criteria, etc. PJLGCI has found the quality of the data to be in good standing. PJLGCI sees no reason to doubt or further investigate its validity based on the evidence available at the time of writing this report. The present report intends to comply fully with the NI 43-101 rules regarding the production of a Technical Report. PJLGCI did verify the data made available to them for inconsistencies and database entry errors and applied standard statistical methods commonly used in the exploration and mining industry to characterize the data. PJLGCI used topographic plans and mine plans, including maps showing the property limits, to determine the volume of resources available, but it did not verify completely the source of information or the legal status of the property, including the rights to own, explore and extract ore material from the site. PJLGCI is not aware of the existence of any claims on the property due to financial grievances (bankruptcy, mortgage, debts, etc.), liabilities or responsibilities due to environment rules, policies or claims to impeach the development of the project. According to PJLGCI representative, personal knowledge of the region and satellite images, PJLGCI is satisfied that the geographic, topographic and geologic information used in this report is correct. The results and opinions expressed in this report are dependent on the accuracy of the geological and legal informations mentioned above, which are up to date and complete at the date of publication of the report. It is understood that no information susceptible to influence the conclusion of the present report were withheld from the study. PJLGCI asserts the right, but not the obligation, to modify this report and its conclusions if new information is presented after the date of publication. PJLGCI assumes no responsibility for the actions of TVI in the distribution of the report.
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6 PROPERTY DESCRIPTION A ND LOCATION

The tenement covering the Balabag property has a total area of 4,779 hectares. The tenement comprises a Mineral Production Sharing Agreement (MPSA) in the name of Zamboanga Minerals Corporation (ZMC) registered as Title No. 086-97-IX. The MPSA is located within the Municipalities of Bayog, Zamboanga Del Sur and Zamboanga Sibugay Province, Island of Mindanao, Philippines. The property is bounded by geographic coordinates from 75130 to 75530 latitude and from 1225330 to 1225800 longitude.
Figure 6-1 Property Location Map The MPSA was granted on November 20, 1997 and subsequently registered with the Mines and Geology Bureau (MGB) on May 6, 1998. The MPSA has a term of twenty five years and may be renewed for another term not exceeding twenty five years. The following are the terms and conditions under the MPSA Contract that ZMC must comply with: 1. Exploration timetable - ZMC must complete exploration activities within the maximum allowable period of time (6 years). ZMC has requested the MGB to grant an extension, and this has been recommended but not yet effected. When granted, this would be expected to expire approximately Oct 1st 2007.
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2.
Work Programs and Budget - ZMC to strictly comply with the approved Exploration and Environmental Programs and their corresponding budgets. Relinquishment - ZMC is allowed to relinquish portions or total area during the Exploration Stage. After the Exploration Stage and upon approval of the Declaration of Mining Project Feasibility, ZMC must relinquish any portion of the MPSA Contact area not necessary for mining operations or those not covered by the Mining Project Feasibility. Survey of the Contract area- ZMC shall survey the area upon submission of the Declaration of Mining Project Feasibility. Declaration of Mining Project Feasibility - ZMC must submit a Declaration of Mining Project Feasibility together with a mining Project Feasibility Study, a three (3) year Development Construction or Commercial Work Program, a complete geologic report and an Environmental Compliance Certificate. Failure of the part of ZMC to submit a declaration of Mining Project Feasibility during the exploration period shall be considered a substantial breach of the MPSA agreement. Periodic Reports- ZMC is required to report quarterly and annually its exploration accomplishments. Final Report- ZMC shall submit to the MGB a final report under oath upon expiration of the exploration period, to include results of all exploration activities including expenditures. Relinquishment Report- ZMC to submit a separate report on the relinquished area accompanied by maps, assay results and expenditures.
3.
4.
5.
6.
7.
8.
The boundaries of the contract area have not been legally surveyed. The MGB will only issue an Order to Survey should ZMC submit to the MGB a mining project feasibility study. This is a mandatory requirement for the issuance of the order. In addition to the legal requirements with respect to the MGB, the following describes the key issues related to the Option Agreement between ZMC and TVI dated April 26, 2005: 1. Upon signing of the agreement, the sum of USD 2,000 is paid 2. During Stage 1 TVI conducts due diligence which shall include a review of the status of the MPSA, including challenges to the MPSA, status of small scale miners on the concession area, security situation and initial technical review. At any time during Stage 1, TVI may by notice to ZMC elect to pay the amount of USD 15,000 that would grant TVI the right to advance to Stage 2. In P.J. Lafleur Geo-Conseil Inc
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addition TVI will pay ZMC its pro-rata share on the cost of land maintenance and other fees due on the MPSA 3. During Stage 2, TVI will conduct first phase exploratory work and at any time during Stage 2, TVI may elect to proceed to Stage 3 by paying ZMC the amount of USD 35,000. 4. During Stage 3, TVI will conduct a major exploration work with the objective of defining a resource. At this stage, TVI will also pay ZMC the amount of USD$ 2,000 per month payable in advance. TVI will also be responsible for the land maintenance and taxes due on the MPSA. If during Stage 3, TVI elects to exercise the Option to Acquire, TVI shall pay ZMC an acquisition price of USD$ 350,000 and ZMCs interest in the property will revert to a royalty. The property has, and is being, affected environmentally by the activities of illegal small-scale miners in the Balabag area at Tinago, Unao Unao, Miswi and Lalab. The miners are extracting gold from the surface and underground workings. The illegal rod and ball mill use mercury in the amalgamation process, and the CIP operators recover gold using cyanide. Neither of the two procedures subscribe to environmentally responsible procedures.
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7 ACCESSIBILITY, CLIMATE, LOCAL R ESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Balabag is located in the Zamboanga Peninsula and is accessible from Manila by air transportation. Two airlines maintain regular scheduled 1 hr and 20 minute flights from Manila to Zamboanga City. From Zamboanga City, access to the property is by a 5-hour drive via the all-weather Zamboanga Dipolog national highway passing through a sealed road from Imelda town to Barangay Guinoman, Municipality of Diplahan in Zamboanga Sibugay Province. Another route is via Dipolog City which is serviced by one airline three times a week on a 1 hr and 30 minute flight from Manila. From Dipolog access is by a 4 hours drive via the all weather Dipolog-Zamboanga highway passing through a sealed road from Imelda town to Baraga Gunwoman, Municipality of Diplahan. Thence, the area can be reached by an hour-long motorbike ride along the Depore River and finally by an hour-long hike from the foot of Balabag Hill along trails and old logging roads. Generally, the topography is moderately rolling to semi-rugged. Towards the western section of the area, elevations range from 200 to 928 meters above mean sea level (AMSL). The area is drained by the southeasterly flowing headwaters of the Kabasalan and Palandoc Rivers. The higher elevations are vegetated with secondary forest growth, cogon and grasses while the lower elevations are cultivated for agricultural crops. The central section of the Zamboanga Peninsula falls within the Type IV weather classification under the Climate Map of the Philippines. It is relatively dry from January to May and wet throughout the rest of the year. Mean annual average precipitation is 2,239.5 mm. November registered the highest mean monthly rainfall at 358 mm, while February is the driest month at 58 mm. The annual temperature is relatively warm and constant throughout the year (27.7C) with recorded temperature ranging from minimum of 25.3C to a maximum of 29.7C. Average humidity is 84% with minimum humidity at 74% and maximum of 85%. As the climate has no extremes, activities may be conducted all year without seasonal breaks.
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Figure 7-1: Histogram of Monthly Precipitations (Projected)
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8 HISTORY
The Balabag property is a Mineral Production Sharing Agreement (MPSA) tenement application filed by Zamboanga Minerals Corporation (ZMC) The MPSA was granted on November 20, 1997 and subsequently registered with the Mines and Geology Bureau (MGB) on May 6, 1998. The approved MPSA covers about 4,479 hectares and is denominated as MPSA086-97-IX.
8.1 Rio Tinto Exploration Philippines Corporation

The property was initially under an option agreement with Rio Tinto Exploration Philippines Corporation (RTEPC) from October 15, 1996 to January 14, 1998. Rio Tinto disengaged from the property when they concluded further investment in the country, and at the same time as other investors in the industry. RTEPC conducted detailed geological mapping and rock sampling, geochemical stream sediment (-80 mesh) and grid-soil sampling. An IPResistivity survey was also conducted, and the company incurred a total exploration expenditure of US$286,000. The geological and geochemical surveys collected 213 stream sediment samples, 164 outcrop and rock float samples, 984 grid soil samples and 344 rock chip samples from various smallscale mine workings. An IP-Resistivity survey was conducted over a total of 9.6 line kilometres. In November 1997, RTEPC reported the following conclusions: High grade epithermal gold mineralisation in Balabag is indicated by a east-west trending high assay zone in the Tinango small-scale mining area measuring 20 meters by 130 meters (open down-dip to the south and along strike to the east). The zone averaged 20.32 g/t Au and 464.04 g/t Ag based on 145 rock samples collected. Balabag has two broad geochemical gold soil anomalies of greater than 0.1 ppm Au. Portions of these anomalous zones are being worked on by small-scale miners, where gold-bearing quartz stockworks and veins are mined underground. The presence of drainage geochemical anomalies of 100 to 360 ppm copper coupled with 10 ppm molybdenum in Legumbong, southwest part of the area, is suggestive of possible porphyry copper mineralisation. K-silicate alteration (secondary biotite and magnetite) was also observed in the diorite intrusive in the same area. Rock geochemical anomalies in the San Pedro, north-central section of the area, reflect copper skarn type of mineralisation believed to be related to an andesite porphyry. High zinc and lead values were also obtained from outcrop samples in the headwaters of Dipili River. Rock P.J. Lafleur Geo-Conseil Inc
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chips and grab samples from the Upper Dipili copper skarn gave assay results ranging from 1.72% to 9.49 % Cu, 148 to 242 ppm Ag, 1,000 to 15,910 ppm Pb and 11,000 to 88,400 ppm Zn. Stream sediment samples from the San Pedro copper skarn area returned results that range from 0.14 to 0.68 ppm Au, 40 to 85 ppm Pb and 100 to 180 ppm Zn, while grab samples taken from the Upper Dipili skarn base metal gave 0.86 g/t Au, 1.24% Zn and 0.27% Pb. RTEPC recommended follow-up detailed geological mapping, additional IP-Resistivity and subsequent ground magnetic surveys. The company planned an initial program of three drill-holes (300 meters each) to test identified targets, however the company withdrew from the agreement and the country before this ever happened.
8.2 Templar Gold N.L.

Templar Gold N.L., a Perth, Australia based company signed an Option Agreement with ZMC for a six year option term beginning 18th February 1999. On November 21, 2000 Templar Resources Philippines Inc. was registered as a Philippine Company. This company was partly owned by Templar Gold N.L. and Goldminco Corporation of Perth, Australia and furnished MGB IX a copy of its Article of Incorporation and By Laws registered with the MGB Region XIII. With a local Company in place, the Option Agreement of ZMC was transferred to Templar Resources Phil. Inc. by way of a Deed of Assignment executed by Templar Gold NL in favour of Templar Resources Phil. Inc. and registered with the MGB Region IX on November 22, 2000. During the duration of the Option Agreement, Goldminco Corporation (as part owner of Templar Resources Phil. Inc.) and being a Company listed on the Toronto Stock Exchange, handled the news release of the ZMC Balabag exploration results in Canada. Goldminco provided all the funding and cash requirement of Templar Resources Phil. Inc during its operation in the Philippines. By November 25, 2004, the Option Agreement with ZMC was terminated by Templar Resources Phil. Inc. prior to the end of the six year option agreement. On April 25, 2005 ZMC entered into an agreement with TVI Resource Development Phils., Inc. (TVIRD). Templar Resources is inferred to have had access to RTEPCs results, and to have therefore progressed directly to drilling once they moved onto the property. Their program was modest, and access to sites is known to have been affected by the presence of the illegal small-scale miners. Results of the minor drilling were reported in April 2003 as follows. Five shallow relatively narrow-diameter (NTW and BTW) holes totalling 593.6m comprised a scattered test of three of the four prospects within the Balabag project area. The first two holes were sited in the Unao-Unao area but failed to intersect quartz veining. Hole 3 was sited at Miswi and from 79m returned 14m @ 5.2 g/t Au, 85 g/t Ag (including 3m @ 16.6 g/t Au, 311 g/t Ag). Holes 4 and 5 were drilled at Tinago. Hole 4 intersected a small-scale miners stope but hole 5 from 2m intersected 9m @ 5.4 g/t Au, 122 g/t Ag (including 2m @ 19.7 g/t Au, 450 g/t Ag.). The first four holes were oriented 600/2250 and the last drill-hole vertical. P.J. Lafleur Geo-Conseil Inc
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9 GEOLOGICAL SETTING
9.1 Geological and mineral insight of the Philippines:
The Philippines may be viewed as a collage of metamorphic terrains, magmatic arcs, ophiolitic complexes, sedimentary basins and continental block of Eurasian affinity subjected to tectonic processes such as subduction, collision and major strike slip faulting. The subduction zones are represented on the east by the west dipping Philippine Trench traversing the eastern seaboard of the Philippines from Mindanao up to a point in Luzon and the East Luzon Trough. East dipping subduction zones include the Manila Trench, Negros Trench and Cotabato Trench. The southern termination of the Manila Trench is characterized by the transformation of the subduction of the South China Sea Plate into an arccontinent collisional deformation within Mindoro Island. The continental block is represented by northern Palawan, southern Mindoro, Romblon Island Group and Buruanga Peninsula in Panay Island, known collectively as the North Palawan Block. Rock suites in this block include schists that are characteristically rich in quartz and chert formations that have been dated Late Permian to Jurassic. The rest of the archipelago is considered as the Philippine Mobile Belt. Approximately co-axial with the mobile belt is the Philippine Fault, a major strike slip fault that apparently developed partially in response to the kinematic forces from the subduction from the east and west of the mobile belt. Many areas of this mobile belt are underlain by ophiolitic complexes. Usually occurring together with pre-Cenozoic schists and phyllites, the ophiolitic rocks represent basement on which magmatic arcs have developed. The ages of the ophiolitic complexes range from Jurassic to early Paleogene. One of the best studied complete ophiolite sequence is the Zambales Ophiolite where tectonized peridotites progress to layered and isotropic gabbro, sheeted dike complex, pillow basalts and finally pelagic sedimentary rocks. Other ophiolitic complexes include those in Isabela, Polillo Island, eastern Rizal, Camarines Norte, Caramoan Peninsula,Mindoro, southern Palawan, Panay Island, Bohol Island, Leyte Island, Samar Island, Dinagat Island Group, north-central Zamboanga, Mindanao Central Cordillera and Pujada Peninsula. Ultramafic rocks of these ophiolites are hosts to significant deposits of chromite and nickel. Laterites over these rocks also contain economic deposits of secondary nickel minerals. On the other hand, massive sulphide and manganese deposits are associated with the volcanic and sedimentary carapace of the ophiolite. Ancient magmatic arcs in the mobile belt are characterized by thick volcanic flows intercalated with pyroclastic and sedimentary rocks and intrusions of diorite, quartz diorite and andesitic to dacitic rocks. Some intrusions, however, have a more alkalic character such as the syenites in Isabela and monzonites in Quirino and Nueva Vizcaya. The ages of the diorite intrusions vary, from late Early Cretaceous (Albian) in Cebu to Late MioceneP.J. Lafleur Geo-Conseil Inc
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Pliocene (Black Mountain Quartz Diorite in Baguio District).Younger volcanic rocks, occurring as flows, intrusions and volcanic edifices disposed in linear belts are associated with active subduction processes. These are best exemplified by the Bataan volcanic belt and Bicol volcanic chain.
Figure 2 Tectonic Map of the Philippines The regional geology of the Zamboanga Peninsula is less well understood than other parts of the country, and its mineralisation potential remains to be quantified as the area continues to be under-explored. 9.1.1 Gold In the Philippines
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Gold and copper deposits in the Philippines tend to be clustered in certain areas such as Luzon Central Cordillera, Camarines Norte, Surigao and Davao, although large deposits may also be found elsewhere, as in Zambales (Dizon mine), Cebu (Atlas mine) and South Cotabato (Tampakan project). Many copper-gold deposits are associated with intrusions (mostly diorite and quartz diorite, but also monzonites and syenites) as well as Pliocene Pleistocene volcanism (Lepanto mine at Mankayan, Benguet). Iron deposits are also associated with Neogene intrusions of diorite and quartz diorite.
9.2 Regional geology

Zamboanga Peninsula The Mindanao peninsula is bounded to the west by the Eurasian Plate being subducted southeastward into the Sulu Trench, and on the east by the Philippine Sea Plate being subducted westward into the Philippine Trench. This complexity is increased in Zamboanga (West Mindanao) by the NE-subducting Cotabato trench that is expressed on-land as a collision zone along the Cotabato-Sindangan Fault, which is believed to connect northwestward to the Negros Trench (Acharya and Aggarwal, 1981). This tectonic setting has produced three distinct rock-stratigraphic assemblages in West Mindanao, namely: (a) SW- Zamboanga Zone, (b) CotabatoSindangan Collision Zone and, (c) NE - Zamboanga Zone (Flores, 1999). These are commented in the following section of the report.
Figure 9-3: Regional geologic map of Zamboanga peninsula (After MGB, 2006) P.J. Lafleur Geo-Conseil Inc
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The SW Zamboanga Zone consists of a generally NE-trending and relatively older suite of rock-stratigraphic units. These include the pre-Tertiary basement complex consisting of Triassic Schists and other metamorphics, Jurassic Granites, Cretaceous Ultramafics and Ophiolitic Rocks, and Paleocene to Eocene Sediments. Oligocene to Miocene sediments and volcanics unconformably overlie the basement complex. Miocene intrusives and hypabyssal rocks intrude the pre-existing rocks. The youngest sequences comprise Quaternary volcanics and finally a young cover of Quaternary sediments, alluvium and terrace gravel.
Figure 9-4: Simplified geological map of Mindanao Zamboanga Peninsula, compiled by Norwest The Cotabato-Sindangan Collision Zone is characterized mostly by NW-trending braided or anastomosing sinistral faults and similarly-trending litho-stratigraphic units. Rock suites comprise Cretaceous ultramafics and ophiolitic rocks, Paleocene-Eocene sediments and Oligocene to Miocene volcanics and sediments. Miocene intrusives and hypabyssal rocks, Quaternary igneous sequences (both intrusive and extrusive), and alluvium comprise the youngest sequences. The NE-Zamboanga Zone is mostly covered with the Quaternary Malindang Volcanics and related lahar and alluvial deposits. P.J. Lafleur Geo-Conseil Inc
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9.3 Local geology

The oldest rock unit mapped in The Balabag prospect is an intrusive, mainly diorite porphyry inferred as Pre-oligocene (Antonio, 1951). This is overlain by late Oligocene to Middle Miocene sediments. The sediments are generally steeply dipping and unconformably overlain by volcanic rocks. A younger intrusive suite of andesite to dacite porphyries intruded the volcanics, sediments and older diorite.
Figure 9-5: Regional Balabag project geology/Regional geochemical anomalies (After RTEPC, 1977) 9.3.1 Sediments Oligocene to middle miocene in age, the sedimentary units of Balabag prospect is composed of indurated and bedded calcareous-sandstonesiltstone- and mudstone with interbed of limestone, conglomerate and grauwacke. North of Balabag Hill, this unit which has consistent steeply dipping beds (65 to 70 S) is overlain unconformably by the dacitic and andesitic volcanics. P.J. Lafleur Geo-Conseil Inc
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Figure 9-6: Balabag project geologic map interpreted 9.3.2 Volcanics Constituting the most extensive rock type in the area, the volcanics consists of porphyritic andesite and dacite, pyroclastics or lithic tuff and volcanic flow breccia. The volcanic unit shows locally a unconformity contact with the sediments. This unit, locally with thin sedimentary interbed, constitute the host rock of the Balabag gold veins mineralisation. 9.3.3 Intrusifs Larges bodies of quartz diorite are exposed in the west and northeast part of the MPSA area. Regional works by the Bureau of mines in 1951, inferred a Pre-Oligocene age for theses diorite bodies. A younger intrusive, andesite porphyry, occurring as smaller bodies intruded the diorite porphyry, sediments and volcanics.
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9.3.4 Structures At the scale of the Balabag prospect, the bedding observable in the sedimentary unit has a NW consistent strike with steep dips of 50 to 75 to the NE or to the SW suggesting the presence of folding with NW axis orientation. Regarding lineaments and faults, two major regional directions are observable and correspond to NW and NE trending. NE lineaments seem to be anterior to the NW which are probably related to the regional NW CotabatoSindangan Collision Zone.
The Sindangan-Cotabato Collision Zone indicates a setting of an obliquely convergent NE-SW compression that developed sub-parallel NW-SE trending sinistral strike-slip faults and several strike-slip couples. These stresses could produce NE-trending dilatant zones (tension gashes) and NW-trending fault jogs, dilational splays, dilational bends, and NW-striking dilatant zones in reverse and normal faults.
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10 DEPOSIT TYPES
The principal copper and gold deposits of the Philippines originate as an integral part of the formation of volcanic arcs, and many copper-gold deposits are associated with intrusions (mostly diorite and quartz diorite, but also monzonites and syenites) as well as Pliocene Pleistocene volcanism (Lepanto mine at Mankayan, Benguet). The complex geology of the Zamboanga Peninsula is host to several styles of mineralisation. This ranges from volcanogenic massive sulphides as characterized by TVIs Canatuan operation, to epithermal gold mineralisation as demonstrated by Philex Golds Sibutad property that has now been minedout. Porphyry copper mineralisation is exposed at several properties, but these targets have not yet been evaluated. The hydrothermal systems generated by the volcanic and intrusive activity, fall into one of three categories: 1. Porphyry copper-gold systems associated with high level plutonic intrusions, which are primarily dioritic in composition in the Philippines; 2. Epithermal gold systems, typically associated with deep seated fault systems; or 3. Volcanogenic massive sulphide deposits associated submarine discharge of metalliferous hydrothermal fluids. with the
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11 MINERALISATION
Various styles of mineralisation were recognized in the MPSA held by Zamboanga Minerals. Porphyry copper mineralisation is indicated by stream geochemical signatures localized in Legumbong area. Copper skarn mineralisation is located in Upper Dipilli-San Pedro River area. Currently the principal target is at Balabag, and comprises vein-hosted epithermal gold mineralisation, and which is being worked extensively by small-scale miners. In currently focusing on the epithermal gold mineralisation, TVIs geologists are employing geological models reflecting well-studied deposits in arc-settings. These include Golden Cross in New Zealand, Tolokuma in PNG, Gosowong in Indonesia and the Baguio mineral district in Luzon, Philippines. These deposits exhibit predictive zonation in quartz textures, base-metal contents, and wall-rock alteration; all of which will orient TVI in its exploration. TVI has staffed the project with geologists that have worked both on the Baguio and Gosowong deposits.
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11.1 Balabag Epithermal Gold Mineralisation

The gold mineralisation in Balabag prospect is characterized by quartz veining and silica replacement within andesitic to dacitic volcanics and fine-grained laminated tuffs. Stockwork quartz veins and veinlets are present in the underground workings. Wallrocks are generally altered to sericite-illite, chlorite and kaolinite although a few occurrences of alunite and pyrophyllite in the leached/silicified layer in Tinango area were observed . At surface, the thickest mineralized zone exposed is located at the socalled Warik-warik area (Photo. Figure 11-1). The zone consists of banded or crustified veins in the middle, with dark sulphidic bands (Photo. Figure 11-2 ), which under the microscope, show magnetite-hematite-chalcopyritesphalerite-galena in the order of paragenesis. The banded portion at the middle is about 3 meters thick, and bordered by massive sillica-illite/sericite zone, with total thickness of about 10 meters. Wallrock alteration is marked at this place by high silicification that is partialy chalcedonic and still mineralized but of lower grade than the veins body. Gold-silver mineralisation at Balabag appears to be typical of that encountered in high-level low sulfidation epithermal vein systems. Following the drilling campaign, the vein systems appear to locally consist of several closely-spaced individual veins that vary in width from less than 1m to more than 20 meters at Warik Warik, where small scale mining activities are concentrated. The Balabag vein system strikes generally ENE and dips 30to 40 to the north and is traceable through surface workings up to 500 meters west of Warik Warik, where the structures pinch and steepen. The MiswiLalab vein system strike parallel to Tinago, occurring some 70 to 100m deeper in the footwall. The veins exhibit a en echelon pattern and tend to develop within andesitic tuff and volcaniclastic units bordered to the north and south by NWSE running faults showing sinistral displacement. The vein structures which develop braiding and typical pinch and swell within the andesites tend not to extend on either side of the faults, in the sediments. The veins system appears to have been locally slightly displaced by N-S trending sub vertical faulting that would be post-mineralisation. Neither the Tinago nor the Miswi veins have been completely closed off along strike although, the reduced thicknesses and steep plunges going west make the structures less amenable to open pit mining and therefore, have not been pursued further at this stage. Other veins occurrences and small breccias are found progressing east, in step and in echelon with the Miswi structure, yet, appear more discontinuous and poorly developed occurrences.
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Figure 11-1 Photo: Warik-Warik quartz vein
Figure 11-2 Photo: Core showing crustiform banding exhibiting white quartz bands in a gray highly pyritic matrix
Figure 11-3 Photo: BDDH-40 From 75.30 to 76.30m Quartz vein breccia undeveloped to developed, colloform/crustiform banded, oxidized milky, chalcedonic, gray to smokey quartz with occasional cy-sil altered andesite. (22.298 g/t Au @ 3.80 meter zone)
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The Balabag epithermal gold prospects are believed to have been emplaced during the waning stages of the Miocene and to have continued until the Pliocene. It is also believed that gold mineralisation is coeval with the intrusion of hypabyssal rocks consisting of andesite and dacite porphyries. The Sindangan-Cotabato Collision Zone indicates a setting of an obliquely convergent NE-SW compression that developed sub-parallel NW-trending sinistral strike-slip faults and several strike-slip couples. These stresses could produce NE-trending dilatant zones (tension gashes) and NW-trending faultjogs, dilational splays, dilational bends, and NW-striking dilatant zones in reverse and normal faults.
11.2 Field Verification By PJLGCI

During the Balabag property visit, PJLGCIs senior geologist completed the geological database audit by the examination of selected cores and a field trip. The Balabag quartz veins system appears to be typical of that encountered in high-level low sulfidation epithermal vein systems. Its spatial organization exhibit a en echelon pattern. Theses veins tend to develop within the volcanic unit (andesitic tuff and volcaniclastic) probably for its hardness (Brittle comportment). Its NE orientation and NW en echelon direction is compatible with a sinistral movement of the faults bordering the volcanics to the north and south. The andesitic volcanic unit, host of the mineralized veins, could correspond to an anticline with NW axis in relation with the NE-SW regional compression. Visual inspection of the core showed a well described quartz veins by TVIs geologist. The high gold values correspond to the quartz veins mineralized intervals reported in the drill logs.
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12 EXPLORATION
More than eight years have passed since RTEPC sampled the property, and as indicated by the same figure, the location and geometry of workings has changed substantially, as extraction has continued. The results of historic exploration on the Balabag property are partly reported above (Section 5 HISTORY ). The Warik Warik area notably was sampled in detail by RTEPC. Their results indicated high grade epithermal gold mineralisation to be within a north-south trending zone in the Tinago small-scale mining area measuring 20 meters by 130 meters (open to the south). The zone averaged 20 gpt Au and 464 gpt Ag based on 145 1.5m channel samples collected. TVIs first phase of exploration has focused on confirming the presence of gold and silver, and quantifying respective values. TVIs geologists have now been on the property for more than two years, and have primarily focused on the overall Tinago and Miswi-Lalab epithermal vein system.
12.1 Mapping
Detailed Geological mapping was conducted in the southeast of Balabag Hill (Genaro Creek and Minda Creek), and in the west of Balabag Hill (Depore River upstream from the ZMC Settlements) with a total length of 1.441 kilometres traverse lines. The area mapped is still underlain primarily by volcaniclastics intruded by narrow porphyritic andesite to andesite porphyry dikes. The volcaniclastics usually exhibit a dark reddish tint due to hematite staining. On the southeast of Balabag Hill, a major north-trending fault is exposed along Minda Creek. It is characterized by a +4 meter-wide breccia zone. Structures along this area follow a more northerly direction compared to the previously generally observed NW-SE trend. Several silica-clay-pyrite alteration zones were identified along Minda Creek. These could represent the northern extension of the silicified-zone/Quartz veining that was previously sampled along the main Genaro creek on the trail leading to Balabag. On the west of Balabag Hill, the previously identified major fault along the Depore River still extends northward. Structures still follow the general NW-SE-trends. An almost 30 meter wide andesite porphyry dike cuts across the volcaniclastic sequence along a northeasterly trend. Along the Depore River, the silica-clay-pyrite alteration observed south of the Vitalla Tunnel (projected extension of the Tinago Vein) has completely dissipated. It appears that the silica-clay pyrite alteration is only confined along the footwall sequence of the Vitalla Vein. The upstream northern portion which represents the hanging wall sequence shows only propylitic alteration.
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12.2 Surveying
In early 2006, a surveying team was assigned full time at Balabag, with the mandate to precisely locate all existing infrastructures, trails, small scale miners dwelling, tunnels and mills, as well as locating all drill hole collars, pads and sampling trenches. The surveyors also undertook to produce a detailed digital topographic map (DTM) of the Balabag site, reproduced at 1:1000 and featuring 5 and 2m contour lines. All information and survey data was incorporated in a comprehensive digital database constituted at the site. Following is more detailed account of the work accomplished by the surveying team stationed at Balabag over the course of 2006. 1. Completed a topo-survey at Sitio Balabag covering an area of almost 3 hectares. 2. Lay-out all drill holes proposed locations (PDDH nos. 3 to 58), azimuths and dip angles. 3. Computed/plotted all drill holes, drill pads and roads, tunnels, traverse stations, creek and topo-survey points on worksheet plan at scale 1:1,000. 4. Surveyed creek with a total distance of more then 400 meters. 5. Surveyed roads with a meterage distance of about 500 meters covering roads to Miswi, Lalab-lalab, main road to Balabag Camp and the road to Zamboanga Mining. 6. Surveyed actual ground location of all completed drill holes (BDDH Nos. 1 to 58), at Tinago, Miswi-Lalab, and Unao-Unao. 7. Surveyed actual ground location for all completed drill pads (BDDH Nos. 3 to 58) and for drill pads being prepared for nine proposed drill holes (PDDH Nos. 59 to 67). 8. Surveyed new excavated road at Unao-Unao area with meterage of more than 850 meters. 9. Surveyed the entire existing agglomeration of small scale rod mills and plants, tunnels, cabins and dwellings and for fourteen (14) newly constructed houses and two (2) new rod mills at Tinago area to document a census and socio-cultural map. 10. Executed circuit traverse from local reference permanent Bench Marks (BM-1 to BM-7) and installed concrete monuments for reference purposes. 11. Continued updating official topo-survey plan of Balabag with a scale of 1:1000 with contour intervals of five (5) meters and two (2) meters.
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12. Surveyed the existing pilot and logging road from Sitio Balabag to Lacnapan, Municipality of Kabasalan, Zamboanga del Sur covering a distance of 23.561 kilometres . 13. Surveyed the existing pilot and logging road from Barangay Dipili, Municipality of Bayog, Zamboanga del Sur covering a distance of 13.110 kilometres. 14. Established traverse stations along the existing pilot and abandoned logging roads from Balabag to Lacnapan to Dipili and vice versa.
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13 DRILLING
Templars drilling results have been referred to in the section describing the propertys history. TVI started a drilling program with the first hole collared on November 17, 2005. By the end of December 2006, a total of 58 surface holes (some 7,011m) had been drilled. Assays from an additional 9 drill holes were compiled and appended to the database. Significant intercepts are presented as follows: Table 13-1 TVI's Drilling Results
DH-ID No. From (m) BDDH-05-01 BDDH-05-01 BDDH-05-02 BDDH-06-03 BDDH-06-03 BDDH-06-03 BDDH-06-04 BDDH-06-04 BDDH-06-04 BDDH-06-05 BDDH-06-05 BDDH-06-06 BDDH-06-06 BDDH-06-06 BDDH-06-07 BDDH-06-07 BDDH-06-08 BDDH-06-09 BDDH-06-10 BDDH-06-10 BDDH-06-11 BDDH-06-12 BDDH-06-12 BDDH-06-13 BDDH-06-14 BDDH-06-15 BDDH-06-16 BDDH-06-17 BDDH-06-18 BDDH-06-19 BDDH-06-19 BDDH-06-19 BDDH-06-20 2.30 9.80 0.00 13.05 29.05 0.00 20.00 27.00 1.20 30.55 4.00 10.30 26.00 3.00 18.60 15.28 37.65 38.85 42.85 42.20 34.30 82.40 44.00 27.95 24.50 38.80 39.90 59.45 5.32 39.55 45.00 73.05 To (m) 7.30 16.80 8.10 18.05 32.05 7.20 21.00 31.50 6.70 33.40 5.10 16.60 30.00 7.80 41.35 23.40 41.00 40.85 43.80 44.30 38.45 83.96 47.95 33.40 27.50 46.80 54.20 62.25 8.32 41.55 46.00 74.05 Interval (m) Au (gpt) Ag (gpt) 193.420 49.780 9.677 33.960 41.200 8.469 204.400 31.090 3.818 17.370 40.650 164.038 106.650 14.517 65.524 269.380 10.810 11.550 59.600 6.020 75.590 16.700 6.680 234.650 91.530 189.575 167.043 31.989 22.000 18.500 9.100 0.800 AuEq ($650Au & $13.50Ag) 8.29 2.15 1.27 2.39 3.72 2.32 6.00 2.10 1.02 0.73 6.37 7.40 7.67 2.10 4.53 12.32 2.05 1.83 3.37 0.86 3.46 3.74 0.46 8.45 4.20 7.80 9.16 5.55 1.45 1.95 2.42 1.37 Target
5.00 4.275 7.00 1.120 No Significant Intercept 8.10 1.068 5.00 1.685 3.00 2.862 7.20 2.149 1.00 1.750 4.50 1.450 5.50 0.940 2.85 0.370 1.10 5.530 6.30 3.992 4.00 5.454 4.80 1.802 22.75 3.169 8.12 6.730 3.35 1.830 2.00 1.595 0.95 2.128 2.10 0.730 4.15 1.890 1.56 3.395 3.95 0.320 5.45 3.580 3.00 2.297 8.00 3.867 14.30 5.688 2.80 4.886 3.00 0.994 2.00 1.564 1.00 2.232 1.00 1.358
Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago Tinago W Tinago W Tinago W Tinago W
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BDDH-06-21 BDDH-06-22 BDDH-06-23 BDDH-06-23 BDDH-06-24 BDDH-06-25 BDDH-06-25A BDDH-06-25A BDDH-06-26 BDDH-06-26 BDDH-06-27 BDDH-06-28 BDDH-06-28 BDDH-06-29 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-31 BDDH-06-31 BDDH-06-31 BDDH-06-32 BDDH-06-32 BDDH-06-33 BDDH-06-34 BDDH-06-34 BDDH-06-34 BDDH-06-34 BDDH-06-34 BDDH-06-34 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-36 BDDH-06-37 BDDH-06-37 BDDH-06-37 BDDH-06-37 BDDH-06-37 BDDH-06-38 BDDH-06-38 BDDH-06-39 BDDH-06-40
70.80 100.85 49.60 55.60 50.70 0.00 0.00 22.25 31.00 54.25 11.70 73.30 76.50 21.75 17.08 93.40 111.00 114.20 123.75 5.30 37.52 41.15 24.50 33.20 77.00 32.00 33.90 35.20 40.40 41.00 41.90 9.25 11.45 14.60 26.15 27.45 33.50 41.10 42.60 44.15 52.80 56.50 111.20 46.55 52.35 118.95 148.70 154.65 28.75 34.00 38.25
71.80 102.55 50.50 56.60 52.70 22.00 8.00 31.57 33.70 54.95 13.80 76.50 79.15 27.93 19.30 94.95 112.72 114.75 126.40 5.83 39.40 42.00 24.96 34.20 80.65 33.70 34.80 37.20 40.70 41.50 43.80 10.70 12.45 15.35 26.60 30.15 40.77 42.10 43.65 44.40 53.65 57.75 112.20 48.30 59.40 127.95 151.70 156.20 29.95 37.45 45.50
1.00 2.893 1.70 3.676 0.90 2.672 1.00 1.397 2.00 1.318 22.00 1.629 8.00 4.095 9.32 12.415 2.70 1.015 0.70 1.193 2.10 0.299 3.20 0.065 2.65 2.292 5.03 0.358 2.07 2.779 1.55 3.955 1.72 8.890 0.55 0.425 2.65 16.884 0.53 0.145 1.88 0.150 0.85 0.213 0.46 1.710 1.00 1.959 2.65 9.357 1.70 1.101 0.90 0.756 2.00 0.752 0.30 0.067 0.50 0.200 1.90 0.353 1.45 0.074 1.00 0.121 0.75 0.108 0.45 0.051 2.70 0.034 7.27 15.325 1.00 0.063 1.05 0.141 0.25 0.042 0.85 0.107 1.25 0.324 1.00 1.809 1.75 2.315 7.05 4.850 9.00 0.056 3.00 5.941 1.55 0.242 1.20 0.788 3.45 1.457 No Samples Sent 8.25 29.785
5.600 199.800 188.400 18.500 21.700 24.600 118.050 100.300 18.670 2.600 7.500 1.610 39.650 9.860 33.160 15.960 37.070 2.700 13.570 3.000 5.100 13.400 7.300 9.500 294.200 49.100 31.900 4.500 23.300 8.200 7.360 1.900 4.500 8.900 5.300 5.910 49.350 3.300 1.900 2.600 3.000 4.000 16.500 30.800 109.500 1.300 21.000 2.700 10.600 19.083 1,534.945
3.01 7.83 6.58 1.78 1.77 2.14 6.55 14.50 1.40 1.25 0.45 0.10 3.12 0.56 3.47 4.29 9.66 0.48 17.17 0.21 0.26 0.49 1.86 2.16 15.47 2.12 1.42 0.85 0.55 0.37 0.51 0.11 0.21 0.29 0.16 0.16 16.35 0.13 0.18 0.10 0.17 0.41 2.15 2.95 7.12 0.08 6.38 0.30 1.01 1.85 61.66
Tinago W Tinago W Miswi Miswi Miswi Tinago E Tinago E Tinago E Tinago W Tinago W Miswi Tinago W Tinago W Tinago E Miswi Miswi Miswi Miswi Miswi Tinago W Tinago W Tinago W Tinago E Tinago E Tinago W Miswi Miswi Miswi Miswi Miswi Miswi Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Tinago E Lalab Miswi Miswi Miswi Miswi Miswi Tinago Tinago Tinago Miswi
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BDDH-06-40 BBDH-06-41 BDDH-06-42 BDDH-06-43 BDDH-06-44 BDDH-06-44 BDDH-06-44 BBDH-06-45 BBDH-06-45 BDDH-06-46 BDDH-06-46 BDDH-06-46 BDDH-06-47 BDDH-06-48 BDDH-06-48 BDDH-06-49 BDDH-06-50 BDDH-06-50 BDDH-06-50 BDDH-06-51 BDDH-06-52 BDDH-06-53 BDDH-06-54 BDDH-06-54 BDDH-06-55 BDDH-06-56 BDDH-06-57 BDDH-06-57 BDDH-06-58 Total BDDH-07-59 BDDH-07-60 BDDH-07-61 BDDH-07-62 BDDH-07-63 BDDH-07-63 BDDH-07-64 BDDH-07-65 BDDH-07-66 BDDH-07-67 BDDH-07-68 BDDH-07-69 Total
74.30
82.35
37.20 89.75 97.50 128.35 33.95 39.35 38.55 48.15 67.00 41.60 152.70 156.80 40.00 53.75 100.65
37.67 91.50 108.15 129.00 35.35 44.35 41.35 55.80 73.80 44.35 153.65 158.60 47.30 56.10 112.10
45.70 89.20 116.30 9.80 151.85 159.40 35.00 7011.30
46.70 97.72 117.80 10.30 153.40 161.70 37.50 metres
8.05 11.336 No Significant Intercept No Significant Intercept 0.47 3.832 1.75 0.627 10.65 1.025 0.65 0.680 1.40 2.290 5.00 2.086 2.80 0.919 7.65 2.668 6.80 4.795 2.75 1.745 0.95 2.931 1.80 0.639 No Significant Intercept 7.30 0.861 2.35 6.783 11.45 1.767 No Significant Intercept No Significant Intercept 1.00 1.025 8.52 6.714 1.50 0.773 0.50 2.391 No Significant Intercept 3.55 1.235 2.30 1.992 2.50 0.456 2006 Drilling campaign
661.832
25.08
4.900 29.800 50.282 30.500 140.600 15.835 8.975 17.137 139.096 25.900 162.900 12.117 8.168 125.038 19.038
3.93 1.25 2.07 1.31 5.21 2.41 1.11 3.02 7.68 2.28 6.31 0.89 1.03 9.38 2.16
3.400 130.046 24.200 5.450 2.606 2.152 25.800
1.10 9.41 1.28 2.50 1.29 2.04 0.99
Miswi Tinago Lalab Tinago Lalab Lalab Lalab Tinago Tinago Lalab Lalab Lalab Tinago Lalab Lalab Lalab Miswi Miswi Miswi Unao-unao Lalab Unao-unao Tinago W Tinago W Unao-unao Tinago Tinago W Tinago W Tinago
128.00 137.75 34.00 27.75 0.00 1120.40
129.60 139.20 47.40 48.40 8.15 metres
No Significant Intercept No Significant Intercept No Samples Sent No Significant Intercept 1.60 0.994 14.272 1.45 1.040 7.084 0.00 0.000 0.000 13.40 2.600 113.000 No Samples Sent 20.65 2.526 117.117 No Samples Sent 8.15 2.203 29.493 2007 Drilling campaign (partial results)
1.29 1.19 0.00 4.95 4.96 2.82
Tinago Lalab Tinago Unao-unao Lalab Lalab Tinago Tinago Lalab Tinago Lalab Tinago
In light of the encouraging results obtained during the early part of the program, the latter was increased to 60 drill holes and 7000m of drilling in 2006 to delineate the main zones of mineralisation at about 50m spacing. The program was completed with success (58 drill holes totalling 7,011m) and identified a potential mineral deposit consisting of a series of gold bearing epithermal vein structures situated near surface and of reasonable grade and P.J. Lafleur Geo-Conseil Inc Page 47 of 95
potential tonnage to warrant systematic valuation work in 2007. Accordingly, an infill drilling program, designed to increase sampling density to 25m spacing, was initiated in early 2007. From this later program, assays received from an additional 9 drill holes were compiled and added to the database to permit an updated interpretation of the vein system at Balabag, complete a 3D geological model and estimate mineral resources. The infill drilling program was interrupted and put on hold temporarily in April 2007, to accommodate site visits by independent consultants and to allow for the computation of a first resource model using geostatistical estimation techniques and the preparation of a NI 43-101 technical report on the project. Based on the same data and the upgraded resource model, a mine scoping study was commissioned to Genivar, an independent mining consultant, to determine the potential commercial viability of the project.
13.1 Site preparation and set-up

Proposed drill (DDH) hole locations were surveyed and drill pads were subsequently prepared at each location. Post drilling, the actual collar location was resurveyed, and these revised (actual) collar locations were incorporated into the drill hole database. The core is recovered by drillers and stored in boxes with wooden blocks inserted after each run to indicate the depth. A geologist controls the meterage blocks and calculate the core recuperation on drill site.
13.2 Hole logging procedure

All cores are logged and sampled at the core-shack built at the Balabag camp. Logging is done for geotechnical (RQD, etc.) and geological purposes, as well as sampling. The following information is recorded in the geological core log: - Structural features (Bedding, foliation faults), lithology, colors, texture, grain size, alteration, weathering, quartz veins, sulphide (nature and %) and mineralogy. All boxes were photographed with a digital camera before the core was marked and cut for assays. The photographic records were downloaded as individual computer files.
13.3 Core sampling

Along drill core, sample locations were determined and marked by the geologists. After logging is completed, selected intervals were cut with a diamond saw blade mounted on sliding tray apparatus (2 units), with one half core sections placed back in wooden core boxes for storage on site and the other half core bagged and shipped for assaying.
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In laying out the sample intervals a sample length of 1.0 m was used as the standard length interval. However lithology changes were respected such that sample intervals do not extend across major lithological contacts. Upon completion of sampling, all bags were closed and packaged and sent to Canatuan for shipment by commercial carrier to McPhar Labs in Manila. Upon arrival at the lab, the samples were controlled, opened and run through the standard assay procedures described in the following sections.
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14 SAMPLING METHOD AND APPROACH

TVIs sampling was conducted both underground and on surface in early 2005. Geological mapping both of the surface, and underground, identified the sites to be subsequently sampled. Sample intervals selected underground were recorded with reference to distance from the tunnels portal. Sample intervals selected in surface trenches were recorded with reference to distance to the starting end of each trench. Sample intervals selected from drill core were recorded with reference with the hole collars. All starting points were dutifully surveyed by the resident team of surveyors. Mapping and surveying are described in details in Section E XPLORATION above.
14.1 Underground Sampling

The sites sampled underground were determined by the geometry of the workings. All sampled adits commence in the hanging wall of the mined vein, and progress approximately horizontally through the hanging wall contact into the vein. After entering the vein for a variable distance, and before encountering the footwall contact, the adits generally become inclined and sub-parallel to the hanging wall. These inclined areas are where stoping occurs, and TVIs management believes this represents the first higher-grade material encountered by the illegal miners. The majority of the samples were taken as 1m chip channels in the ribs (or walls) to these stopes. In surface trenches, samples were also usually collected as 1m channels, 10cm wide and 10cm deep, using rock saws whenever possible. In the tunnels, samples were taken perpendicular to dip, and therefore largely reflect true widths of the intervals sampled. However, none of the composited sample lengths truly represent the full width to the vein, as the footwall contacts were rarely encountered. In the larger (higher) stopes it was occasionally possible to take composite samples, as the mined true thickness was greater than a metre. The samples in any one stope commonly represent the same preferred, approximately planar, portion to the vein. Predetermined sample sites were identified with spray paint markings. Typically sampled channels were dug about six inches wide, two inches deep from a freshened rock face and the samples collected from bottom to top, or from sill of the workings to the back. This system eliminated contamination that would otherwise have occurred due to material adhering to the lower portion of the vein, if sampling was taken from top to bottom. After the samples were taken, the sample locations were re-sprayed for easy identification. The samples were taken manually with the use of a heavy hammer and steel moil/chisels. The rock chips were caught on canvass placed immediately below the sampling area. Normal sample spacing underground was 1.5 meters between each channel within the stoped areas.
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Individual samples obtained channel from tunnels and trenches weighed typically approximately 4 to 5 kilograms each, and to avoid bias were shipped without prior splitting as described in the following section. The responsible geologist logged and described each sample, with all observations written in a sample ticket logbook, and/or on core logs, with a corresponding sample tag that was placed in the sample bag. The sample number was also written on the surface of the sample bag, for double checking and easy identification during the dispatch of the samples to the laboratory. Samples numbers were plotted on a sample location map, and/or on cross sections, produced at the same scale as the geological map produced in selecting sample sites.
14.2 TVIs 2005 Due Diligence Results

TVIs earlier due diligence work involved the channel sampling of four sites previously sampled by RTEPC. These results are summarized below: Twenty-five samples were collected in the Berong Tunnel. These were collected in the deepest portion of the stope, representing approximately 16m of down-dip extent to the vein. Much of the adit is little more than 1m in height, but a few 2m composites were collected and the best value is 2m @ 20.3 gpt Au, 149 gpt Ag, 23.404 gpt AuEq. The results range from 1m @ 2.03 gpt Au, 17.5 gpt Ag, 2.395 gpt AuEq to 1m @ 21.6 gpt Au, 145 gpt Ag, 24.621 gpt AuEq. The twenty-five samples average 7.92 gpt Au, 38.5 gpt Ag, 8.722 gpt AuEq. In Tunnel 32A, TVI chip-channelled eleven narrow locations underground, representing approximately six meters of down-dip extent to the vein. These samples average 4.77 gpt Au, 72.9 gpt Ag and 6.289 gpt AuEq. The highest grade is 1m @ 13.6 gpt Au, 80.5 gpt Ag with a gold equivalent grade of 15.277 gpt AuEq and range down to 1m @ 0.36 gpt Au, 27.8 gpt Ag, 0.939 gpt AuEq. Fifty-three samples were collected from the vein in Tunnel 29A, and six from the hanging wall. Approximately 12m of up-dip extent within the same plane of the vein was sampled. The mined height is typically only 1-2m, and as a consequence the number of composites is very limited. Individual samples within the vein range from a low of 1m @ 0.53 gpt Au, 6.2 gpt Ag, 0.659 gpt AuEq to 1m @ 20.2 gpt Au, 115 gpt Ag, 22.596 gpt AuEq. The highest composite is 3m @ 13.0 gpt Au, 125 gpt Ag and 15.604 gpt AuEq. The average of the samples recovered from the vein is 6.07 gpt Au, 91.5 gpt Ag, representing 7.976 gpt AuEq. Warik-Warik represents a glory-hole, in which much of the vein that was mined from underground by the small-scale miners, at the time of the majors sampling, is now exposed at surface. The sampled material represents remnant boulders of vein material that are not in situ, but have only moved a few meters and rest on un-mined portions of the same vein. Fifty-five samples, typically comprising 1m chip-channels perpendicular to the foliation seen in the boulders, were collected. The average of all samples collected by P.J. Lafleur Geo-Conseil Inc
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TVI was 9.48 gpt Au, 635 gpt Ag representing 22.709 gpt AuEq. The values range from a low of 1m @ 0.49 gpt Au, 4.6 gpt Ag, 0.586 gpt AuEq to a highest grade channel sample which returned 1m @ 62.2 gpt, 8,175 g/t Ag, or 195 g/t AuEq.
14.3 Tunnel Mapping and Systematic Sampling

During the later part of 2005 TVIs geologists undertook to systematically revisit the existing small scale tunnels and accessible workings, still active or abandoned, that surround the Tinago-Miswi mineralized system. Some 18 tunnels were thus methodically revisited, mapped and resampled by channel sampling including those sites previously investigated by previous operators. The results of the more recent tunnel sampling indicate quite variable gold and silver values, ranging from 0.003 to 45.34 gpt Au and 0.50 to 1390.0 gpt Ag, confirming the high silver to gold ratios. QA/QC matters are described in the following Sections. In summary, TVI is confident in the reliability of the sampling conducted, and the quality of the subsequent assays. TVIs results confirm the presence of significant gold and silver values associated with the Tinago vein at Balabag. The distribution of illegal small-scale miners also demonstrates that gold is also present in the other mineralized areas, at Unao Unao, Miswi -Lalab and at least one other vein structure.
14.4 Trenching
In late 2005 and during 2006, TVI proceeded to excavate a number of trenches across the Tinago and Miswi-Lalab veins systems. Out of the 20 trenches that were dug, 19 trenches were mapped and sampled (Trench 1-17, and Trench 19-20). Two new trenches (Trench 21 and 22) were dug in the East of Miswi to chase the northeast extension of the Miswi veins prospect and another trench (Trench 23) in west of Lalab (100 meters southwest of Lalab outcrop) to test the southwest extension of the Lalab vein system. Likewise, trench 24 was dug in the East of Miswi to test the northeast extension of the Miswi Veins prospect where a total of 34 samples were collected and most recently dispatched. To date, a total of 952 samples were collected along these trenches, primarily located straddling the Tinago, Miswi, and Lalab prospects and totalling an aggregated 945.0 meters in length. The following table summarizes the more significant interval of mineralisation encountered during trenching.
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Table 14-1 Results from Trenching Samples

Trench No. 8 3 12 14 Sample No. BI 002851 BI 002858 BI 000581 BI 001395 BI 001396 BI 002425 BI 002461 BI 002462 BI 002472 BI 002473 BI 008112 BI 008113 BI 008114 BI 008115 BI 001172 BI 001181 BI 001182 BI 001226 BI 001227 BI 001168 BI 002022 BI 002041 BI 002048 BI 002061 BI 002062 BI 002063 BI 002265 BI 002276 BI 002277 BI 002278 BI 002281 BI 002282 BI 002928 BI 002936 BI 002937 BI 002954 BI 002955 BI 002956 BI 002957 Interval Length (m) 1.00 1.00 1.45 0.89 1.02 1.2 6.11 4.11 0.83 1.27 0.89 nd 1.04 0.72 1.02 0.91 1.12 0.95 1.02 1.04 0.45 1.02 0.81 0.85 1.00 1.00 0.95 3.61 0.99 0.89 1.17 1.08 0.99 1.00 1.08 0.92 1.03 0.86 1.08 ASSAYS Au (gpt) 1.162 2.901 1.113 5.404 0.844 1.080 2.066 0.741 2.612 0.684 2.156 7.277 0.544 1.055 1.036 0.953 0.964 6.374 1.323 1.028 1.173 2.324 0.807 1.563 12.429 4.047 0.967 6.186 2.042 2.719 1.613 2.548 1.604 1.307 1.314 1.038 6.158 2.624 2.760 Ag (gpt) 18.600 4.400 15.000 130.100 5.300 0.500 2.600 0.700 3.100 1.800 2.500 12.500 0.800 1.200 <0.5 <0.5 1.300 6.000 0.800 <0.5 7.600 2.500 147.800 6.400 526.100 41.300 2.200 205.000 11.000 24.800 14.000 19.900 30.400 16.500 14.400 8.100 66.900 32.800 33.500 AuEq (gpt) 1.548 2.992 1.425 8.106 0.954 1.090 2.120 0.756 2.676 0.721 2.208 7.537 0.561 1.080 nd nd 0.991 6.499 1.340 nd 1.331 2.376 3.877 1.696 23.356 4.905 1.013 10.444 2.270 3.234 1.904 2.961 2.235 1.650 1.613 1.206 7.547 3.305 3.456 Miswi Location Tinago Tinago Miswi Miswi
21
Miswi
Tinago
11
13
Miswi
17
Lalab
14.5 Compositing Samples

There are 1317 samples inside veins and 52% of those samples have 1.0m in length while 81% have between 0.5 and 1.5m in length (Figure 14-1). TVI has decided to use the original samples to perform the interpolation instead of P.J. Lafleur Geo-Conseil Inc
Page 53 of 95
doing compositing because they practically already have a standard length. This procedure is deemed acceptable. There are 44 samples with length greater than 1.5m and only 7 of those samples with length greater than 2.5m. There is no particular bias between sample length and gold grade values (Figure 14-2).
Normal Histogram
Just veins 100
80
Frequency Count
60
40
20
0 0 0.313 0.625 0.938 1.250 1.563 1.875 2.188 2.500 Length of Samples
Software By Gemcom
Figure 14-1 Histogram of original sample length

Scattergram Plot
50.000
33.333
AU_GT
16.667
0 0 0.375 0.750 1.125 1.500 LENGTH

Software By Gemcom
1.875
2.250
2.625
3.000
Figure 14-2 Scatter Plot of Au g/t and Sample Length
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14.6 Statistical and Geostatistical Analysis

Both gold and silver values have a lognormal distribution (Figure 14-4), which is a typical mode of distribution of these metals in mineral deposit in general. There are 5592 samples with gold assay values and 5360 samples with silver assay values available at the time of writing this report for all rock types. It includes in the veins only 1271 samples with gold assay values averaging 2.81 g/t and 1234 samples with silver assay values averaging 75.9 g/t available at the time of writing this report. More assays are expected to become available soon. Assaying is somewhat behind schedule. It is not expected that additional data will change statistics or geostatistics significantly. However, the classification of the mineral resources will be improved by additional in-fill data. Gold and silver values in the veins display a good correlation shown in Figure 14-3 below. The variogram model equation (Figure 14-5) is represented by the following equation for interpolation: Gamma = 0.3 + S (0.3/10m) + S (0.4 /50m) The model is isometric where the short range continuity (10m) is displayed by studying the data across the thickness of the vein. Otherwise, the actual data does not display a particular preference for grade continuity on strike or down dip. The same grade continuity structure is visible when filtering out the sample outside the veins (Figure 14-6). The variography is not particularly good or bad. Compositing samples using 1m equal length may improve its quality.
1e+004 AG
!
BALABAG
! !! !
1000
100
10
1
!
! ! ! ! ! !
! ! !! ! !! !! ! ! ! ! ! ! !! ! ! ! ! ! !! !! ! ! ! !! ! ! ! ! ! ! ! !! !! ! !! ! !! ! !! ! ! ! !! ! ! ! ! !!!! ! ! !! ! ! !! ! ! ! ! !! !! ! ! ! ! ! ! ! !! ! ! ! ! ! !!! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !! ! ! ! ! !! ! ! !!! !! ! ! ! ! ! ! !! !!! !! !!!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! !! !! ! ! !! !! ! ! ! !! !! ! !! !! ! !! ! ! ! !! ! ! ! ! ! !! ! ! ! ! ! ! ! !! !!!! !! !! ! ! !! ! ! !!! ! ! !! ! ! ! ! ! !! ! !! ! ! !!! !! ! ! ! ! ! !! !! ! ! ! ! ! !! ! !!! !! ! ! !! ! ! ! ! ! ! !! ! ! ! !! ! ! ! ! !! ! !! ! ! ! ! !! !! ! !! ! ! ! ! ! ! ! !! ! ! ! ! ! !! ! ! !!!!! ! !!! ! ! !! !! ! ! ! ! ! ! ! ! ! ! !!!! ! ! !!!!!! ! ! !! ! !!! ! ! ! !! ! ! ! ! !! ! !! ! ! !!! ! !! !! ! ! ! ! ! !!! ! !! ! ! ! ! ! ! ! !! ! !! ! ! !! ! ! !! ! ! !! ! ! !! ! !! ! !!! ! ! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! !! ! !! !! ! ! ! !! ! ! ! !! ! ! ! ! ! !! ! ! ! ! ! ! ! !!! !! ! ! !!!! ! ! ! !!! ! !! ! ! ! ! ! ! !! ! ! ! ! !! ! !! !! !! ! ! ! !! ! ! ! !!! ! ! ! ! !! ! ! !!! ! ! ! ! ! !! ! !!! ! !! ! !! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! ! !! ! ! ! ! ! ! ! ! !!! ! !! ! ! ! ! ! ! ! ! !!! !! ! ! !! ! !! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !! ! ! !! ! ! ! ! ! !! !! ! ! !! !! ! ! ! ! ! ! ! ! ! ! ! !! ! ! !! ! ! ! !! ! !! ! !! !! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! !! ! ! !! !! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! !!! !! !! ! !! ! ! ! ! !! !! ! !! !! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! !! ! ! ! ! !! ! ! ! ! ! !!! ! ! ! ! ! ! !! ! ! !!! ! ! ! ! !! ! !! ! ! ! ! ! !! ! ! ! !! ! ! !!! ! ! !! ! ! !! ! !! ! ! ! !! ! !!! ! ! !! ! ! ! ! ! ! !! ! ! ! !! ! ! ! ! !! ! ! ! ! ! ! !! ! ! ! !! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! !! ! ! ! !!! ! ! ! !! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !! ! ! ! ! ! !! ! !! ! ! ! ! !
! ! !
! !
! !!
! ! !! !!!! ! ! ! ! !
! !! !
0.1 0.001 0.01 0.1 1 10
AU 100
Figure
14-3
Gold
and
Silver
have
good
correlation
Page 55 of 95
LOG Normal Histogram

Just veins 128
102
Fre quenc y Count
77
51
26
0 0 0.000 0.001 0.010 AU

Software By Gemcom
0.100
1.000
10.000
100.000
LOG Normal Histogram

Just veins 103
82
Frequency Count
62
41
21
0 0.100
1.000
10.000 AG
100.000
1000.000
10000.000
Software By Gemcom
Figure 14-4 Histogram of Gold and Silver Assays in Veins
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1.200
BALABAG
ABS,AU
15 5 1
"
81 6 0 41 0 84 7 37 77
#
1.080 SILL 0.960

18
#
12
23 67
31
47
17
18
20
$
#
0.840
9
"
"
12 13 71 7 39
0.720
81
$
15
"
0.600
12 7
0.480
Nugget(0.3000) + Spherical(0.3000, 10.0/10.0/10.0, 0.0/0.0/0.0) + Spherical(0.4000, 50.0/50.0/50.0, 0.0/0.0/0.0)

2
0.360
"
0.240
0.120 Distance 0.0 12.5 25.0 37.5 50.0 62.5 75.0 87.5 100.0 112.5 125.0
0.000
14
1.200
BALABAG
ABS,AG
# #
27 0
13
11
0 63 61 17 46 20
14 6
15
26
76 0
SILL 0.960
!
$
13 0
29 9
26 7
10 6
"
0.600
15 9
0.720
11 9
06 0
0.480
"
#
0.360
0.240
0.120 Distance 0.0 12.5 25.0 37.5 50.0 62.5 75.0 87.5 100.0 112.5 125.0
0.000
Figure 14-5 Semi-variogram of Gold and Silver (below) of all samples
18 14 2 77 1
Nugget(0.3000) + Spherical(0.3000, 10.0/10.0/10.0, 0.0/0.0/0.0) + Spherical(0.4000, 50.0/50.0/50.0, 0.0/0.0/0.0)
57
0.840
01
8386 35 2 5 34
23
75 8
12
"
64
1.080
32 47
"
68
"
15 5
21 58
22 994 3 9 0 5 51 0 6
1 03 30 73 0 5
34
69
68 2
Page 57 of 95
1.200
BALABAG
ABS,AU
12
"
1.080
63 51 91 1 5 69 33 84 7 4 4 28 49 2 1
SILL 0.960
#
70
23
0.840
"
0.600
0.480
#
"
0.360
0.240
0.120 Distance 0.0 12.5 25.0 37.5 50.0 62.5 75.0 87.5 100.0 112.5 125.0
0.000
10
19 79
"
1.200
BALABAG
ABS,AG
43
$
35 5
0.720
33 7
63 5 19 11 5
10
1 702
"
"
12
0.840
84
$
#
35
41 9
0.960
69
SILL
"
2 8 4 49 11 2
"
0.600
23
"
0.360
0.240
0.120 Distance 0.0 12.5 25.0 37.5 50.0 62.5 75.0 87.5 100.0 112.5 125.0
0.000
Figure 14-6 Semi-variogram of Gold and Silver (below) of samples in veins only
49 2
0.480
19
0.720
79 2
20
13 4
18
#
52
79 0
14
1.080
21 1
13 4
49 2
41
20
21 1
79 18 01 54 2
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15 SAMPLE PREPARATION, ANALYSES A ND SECURITY

All the sites sampled at their original locations, both surface and underground, that were comprised in the technical due diligence were duly revisited and inspected in 2005, by TVIs geologists. The sampled locations were readily identified, due both to the presence of spray-paint marking the site and also the sample marks from the chipped channels were readily evident. All other sampling sites, that were visited and inspected, comprised some 24 surface trenches, 21 (horizontal) tunnel sites (14 active and 7 abandoned) and an additional 8 shafts (vertical). Samples have been taken to confirm the presence of gold and silver and help make a geological model and develop the exploration drilling program. Wherever possible, the samples were surveyed to develop a 3D geological model to estimate the mineral resource tonnage and grade. As mentioned in the DRILLING section of the report, a total of 58 surface holes (some 7,011.3m) had been drilled at the end of 2006 to recognize the vein system on a 50 m drill spacing. Another 9 drill holes (some 1,120.4m) from an infill drilling program that was launched in early 2007 contributed additional core sample assays that were included in the database and that were used for upgrading the interpretation and resources modeling work. The drilling samples are prepared on site and transported to TVIs Canatuan Mine Laboratory. The Canatuan mine is some 80 km West of Balabag in a straith line, but it is a long and precarious road by land. Once at the Canatuan mine, the Balabag samples are shipped to a designated certified laboratory. More security details regarding samples transport and handling is described at the end of this section (Point 7). The McPhar laboratory was used by TVI in 2006 for assaying. It has been ISO 9001/2000 certified since 1992 and it normally undergoes two audits per year. McPhar is a regular participant in international round robin tests conducted by Geostats Pty Ltd, and Ore Research groups of Australia. Internal standards from Geostats, Ore Research and Rocklabs are used. During the past few years comprehensive audits have also been conducted by several major exploration companies. QA/QC conducted by both the McPhar laboratory, and TVI personnel, have been reviewed thoroughly. McPhar Laboratory of Manila, Philippines, an ISO 9001/2000 accredited laboratory, performed the sample preparation and assaying for the project. Gold analysis is by 50 gm fire assay fusion; where gold values are greater than 3 ppm assay values are by gravimetric finish and if less then by AAS. Silver is determined by AAS after an HCL-HNO3-HClO4 digest. Pulp and coarse duplicate results are included in the analytical report. A replicate assay is done on every 10th sample, and certified reference materials are used in every 20 samples. In addition to the laboratorys internal QAQC, TVI Pacific independently inserts blanks and standards randomly, on average every tenth sample. P.J. Lafleur Geo-Conseil Inc
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The Canatuan Mine laboratory was rarely solicited in 2006 because of its limited handling capacity it has since undergone upgrading and expansion to be made fully compliant and capable of handling an additional 100 samples per day to accommodate Exploration needs for 2007. A comprehensive QA/QC protocol describing sample preparation and analytical procedures is included in the section covering the Canatuan mine and mill operations. The sample preparation and analytical procedures conducted by McPhar Laboratory for the TVI samples area as follows: 1. Sample Preparation The samples are oven dried using a gas fired oven at a temperature of 105 degrees centigrade Drying time varies from a minimum of six hours to a maximum of ten hours Samples are crushed to using either a Bico Brawn Badger jaw Crusher or a TM Rhino Jaw Crusher. A Jones Riffle Divider with openings is used to split the sample, and a 1kg sub-sample produced. An additional 1 kg split (the Coarse Duplicate) is taken every 20th sample. The 1kg split is pulverized (90% passing -200 mesh (75 microns)) in an LM2 Ring mill or TMG/1500 Ring Pulveriser A 250 gram pulp is produced, together with a pulp duplicate every 10th sample. Pulp duplicates are alternately taken with coarse duplicates every 10th and 20 th samples thereafter. 2. Fire Assay The weight of the sample used for assaying is 50 grams Gold values greater than 3 ppm are determined with a gravimetric finish, and where less than 3ppm AAS is utilised. 3. Assay for other elements by AAS Cu,Pb,Zn is by AAS after an HCL-HNO3-HCLO4 digest on a hotplate at 140 degrees centigrade until incipient dryness 4. Quality Control During sample preparation, the jaws of the crusher are rinsed with barren rock and cleaned with compressed air. The ring mill is also rinsed with barren rock between each sample. One out of 20 pulverized sample is sieved to monitor the percentage passing -200 mesh (75 microns). P.J. Lafleur Geo-Conseil Inc
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A replicate assay is done on every 10th sample, and certified reference materials, both blanks and standards, are used in every 20 samples. In addition to the laboratorys internal QA/QC, TVI Pacific independently inserts blanks and standards randomly, but on average every tenth sample. Samples with anomalously high or low values are re-assayed automatically. 5. Reporting Analytical results are transmitted via fax, e-mail and hard copy reports. Standard formats are excel, CSV and Access. 6. Sample Storage Sample pulps and coarse rejects are retained and typically stored at the Lab for a maximum of six months, in case of the need to have the pulps re-assayed. 7. Sample Security To ensure that samples taken from the field or exploration sites are properly secured the following standard operating procedures have been adopted: As soon as the samples are collected, whether from surface outcrops or underground workings, and before the samples are tied and secured by tie wire or nylon rope, a sample tag is placed inside the sample and the code of the sample tag is also written on the surface of the sample bag. The geologist then records the specific sample code in the sample booklet, with the corresponding sample description and location. All samples taken from the same location are then placed inside a jute sack, this is taken to the exploration camp accompanied by the field assistant to ensure that sample integrity is not compromised. Upon arrival at the exploration camp, the geologist concerned then inspects the samples inside the jute sack to make sure tampering has not occurred. The samples are then doubled checked, to make sure that all the sample tags inside and outside the sample bags are one and the same. Prior to the transport of the samples to the base camp and eventual delivery to the courier in Zamboanga City, the sample dispatch documentation is prepared and double checked again.
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All samples sent for dispatch for assaying at the McPhar lab are properly listed and noted in the sample logbook dispatch for easy reference. The logbook is kept at the exploration camp in Balabag. The samples are delivered by TVIs logistic officer to the courier company in Zamboanga City, the samples are again counted and the listings compared with all the sample codes written on the surface of each sample bag. The samples are then dispatched to McPhar in Manila. Upon arrival and receipt of the samples by McPhar, the lab calls TVI to advise arrival. McPhar checks the dispatch listing and sample preparation proceeds when all is confirmed to be in order. The use of standards every 10 samples using the TVI standards giving to the laboratory by the customer. The Canatuan Mine laboratory was rarely solicited in 2006 because of its limited handling capacity it has since undergone upgrading and expansion to be made fully compliant and capable of handling an additional 100 samples per day to accommodate Exploration needs for 2007.
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16 DATA VERIFICATION
The first data verification corresponds to due diligence sampling which was conducted by TVIs geologists to identify whether the gold and silver values reported previously by RTEPC were in place. As mentioned above, the results obtained by TVI confirmed the presence of significant gold and silver grades within the area. One site visit were made by PJLGCI associated Geologist, M. A. Ben Ayad, to both TVIs Manila office and the Balabag project area. The visit was carried out between April 11th and the 21 st, 2007, with the period between April the 11th and April 13 th spent in Canatuan. During this visit, carried out while the 2006 drill program was completed, the geological data as described by TVI geologist observations, sampling and logging procedures was confirmed. The Quality Assurance program used by TVI at Balabag to monitor the analytical results relies on the use of control samples included by TVI and by the McPhar laboratory. TVI insert a standard every 10 samples (The tenth is always a TVI standard) to control the laboratory performance. Although lacking a full, formal, assay QA/QC procedure typical of current exploration programs, which would include the use of blanks (checking for contamination), commercial standards (checking accuracy), and duplicates (checking repeatability), quality assurance was monitored through a simple series of check samples, so no independent verification of the existing assay results prior to TVIs were possible by PJLGCI.
16.1 Check samples by PJLGCI

The 2005-2006 sampling and assay procedures utilized a full suite of standards as well as multi lab check assaying. These results, from both the geological and analytical perspectives, fit well with the earlier drilling and analyses on the Balabag deposit. The site visit confirmed the location, access, topography, MPSA ownership, the location of previous drilling and test pitting and confirmed by independent sampling (Check sampling) the presence of gold on the Balabag property. This visit confirmed the regional geology, geological sequence and ore geology as described by TVI from earlier sampling and drill programs. A total of 27 samples originated from 4 selected drill holes chosen to represent all the veins making the deposit, have been sampled by PJLGCI senior geologist and sent to INTERTEK JAKARTA. The sample corresponds to the quarter of the core sampled by TVI, collected by PJLGCI and sent for preparation and assays to INTERTEK. P.J. Lafleur Geo-Conseil Inc
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Three Standards have been included every ten samples. The samples list and locations are presented in Table 16-1 below. The results of comparative assays are presented in Table 16-2 and in Figure 16-1 Gold and Silver Check Assays and Figure 16-2 Gold and Silver Correlation. Figure 16-1 show very good checked values between TVI and PJLGCI assays. Figure 16-2 shows there is a good correlation between gold and silver assays in both set of data from TVI and PJLGCI and that gold silver ratio may be split in two domains based on high and low grade silver.
Table 16-1 Core check samples collected by PJLGCI.

HOLE-ID FROM TO LENGTH Zone LOCATIONX LOCATIONY LOCATIONZ
BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40
15,28 16,2 17,2 18,2 19,2 20,2 21,2 22,2 23,4 24,45 123,75 124,75 125,4 126,4 34,3 35,1 36,1 37,1 38,35 38,85 38,25 39,25 40,25 41,25 42,25 43,25 44,25
16,2 17,2 18,2 19,2 20,2 21,2 22,2 23,4 24,45 25,45 124,75 125,4 126,4 127,45 35,1 36,1 37,1 38,35 38,85 40,77 39,25 40,25 41,25 42,25 43,25 44,25 45,5
0,92 1 1 1 1 1 1 1,2 1,05 1 1 0,65 1 1,05 0,8 1 1 1,25 0,5 1,92 1 1 1 1 1 1 1,25
t t t t t t t t t t m m m m t t t t t t m m m m m m m
494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494048,11 873035,82 494351,62 872925,34 494351,62 872925,34 494351,62 872925,34 494351,62 872925,34 494119,97 873174,27 494119,97 873174,27 494119,97 873174,27 494119,97 873174,27 494119,97 873174,27 494119,97 873174,27 494288,55 872940,39 494288,55 872940,39 494288,55 872940,39 494288,55 872940,39 494288,55 872940,39 494288,55 872940,39 494288,55 872940,39
562,466 562,466 562,466 562,466 562,466 562,466 562,466 562,466 562,466 562,466 541,841 541,841 541,841 541,841 480,932 480,932 480,932 480,932 480,932 480,932 562,807 562,807 562,807 562,807 562,807 562,807 562,807
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HOLE-ID BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-08 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-30 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-35 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40 BDDH-06-40
FROM 15.28 16.2 17.2 18.2 19.2 20.2 21.2 22.2 23.4 24.45 123.8 124.8 125.4 126.4 34.3 35.1 36.1 37.1 38.35 38.85 38.25 39.25 40.25 41.25 42.25 43.25 44.25
TO 16.2 17.2 18.2 19.2 20.2 21.2 22.2 23.4 24.5 25.5 125 125 126 127 35.1 36.1 37.1 38.4 38.9 40.8 39.3 40.3 41.3 42.3 43.3 44.3 45.5
LENGTH 0.92 1 1 1 1 1 1 1.2 1.05 1 1 0.65 1 1.05 0.8 1 1 1.25 0.5 1.92 1 1 1 1 1 1 1.25
AU_GT 5.096 4.268 11.198 9.361 13.397 2.674 4.282 3.984 0.182 0.146 4.525 13.545 31.413 1.846 1.8 24.634 41.989 29.536 8.761 1 13.411 23.239 9.276 7.926 17.371 43.985 104.56
AG_GT 197.6 115.5 478.3 408.8 609.3 123.8 171.2 82.2 89.3 69.8 3.2 10.1 26.2 0 10.1 48 84.3 150.8 21.9 6.7 388.6 583.1 625.4 808.4 1329.3 5234.3 2983.9
AUEQ_GT 9.194 6.664 21.118 17.84 26.034 5.242 7.833 5.689 2.034 1.594 4.591 13.754 31.956 1.846 2.009 25.63 43.737 32.664 9.215 1.139 21.471 35.333 22.247 24.693 44.942 152.548 166.443
Sample_No BPJL01 BPJL02 BPJL03 BPJL04 BPJL05 BPJL06 BPJL07 BPJL08 BPJL09 BPJL10 BPJL11 BPJL12 BPJL13 BPJL14 BPJL15 BPJL16 BPJL17 BPJL18 BPJL19 BPJL20 BPJL21 BPJL22 BPJL23 BPJL24 BPJL25 BPJL26 BPJL27 BPJL28 BPJL29 BPJL30 DET.LIM SCHEME
Au1 4.45 4.97 11 8.35 12.3 3.04 4.5 2.31 0.546 0.074 4.91 9.27 19.5 7.51 2.01 18.9 33.2 23.1 7.32 1.08 17.9 26.2 8.55 6.24 15.8 25.3 8.28 0.02 0.011 0.007 0.005 FA50
Au2 5.29
Au3
Au4
Au5
Ag 219 229 479 488
Cu 32 30 57 96 116 76 73 44 69 49 142 212 605 107 163 1070 959 825 572 908 49 57 56 107 99 151 92 28 26 27 2 IC50
Pb 91 100 179 423 372 122 170 28 14 8 14 93 1030 13 539 5550 4750 3440 730 526 314 621 282 293 316 1150 246 <2 <2 <2 2 IC50
Zn 94 48 80 131 144 114 120 92 214 137 104 117 785 145 1230 6150 473 0 3570 1160 822 62 46 78 133 147 162 191 69 69 69 2 IC50
11.4
12
685 154 224 68.8 101 0.078 78.8 4 11.1 23.5 5.6 7.1 35
31.5
81.9 116 28 1.07 11.4 457 631 623 835 1430
26.3
26.5 0.011 0.007 0.008 0.005 FA50 0.005 FA50 0.015 0.005 FA50 0.019 0.005 FA50 0.012
3070 641 1.3 0.9 <0.5 0.5 IC50
standard samples all assays in ppm
Table 16-2 Results of Check samples by PJLGCI
1000.00
10000
Check data
100.00
Gold Check Samples Assays

1000
Silver (ppm)
Gold/Silver TVI Samples Assays
10.00
100 Maybe a decimal point error
1.00
10 0.10
TVI data
0.01 0.01
10000
Gold (ppm)
1
0.10
1.00
10.00
100.00
1000.00
0.01 10000
0.10
1.00
10.00
100.00
1000.00
Check data
Silver Check Samples Assays

1000
Silver (ppm)
Gold/Silver Check Samples Assays
1000
100
100
10
10
TVI data
1 1 10 100 1000 10000
Gold (ppm)
1 0.01
0.10
1.00
10.00
100.00
1000.00
Figure 16-1 Gold and Silver Check Assays
Figure 16-2 Gold and Silver Correlation
Figure 16-3 Location map of Check Samples Drill Holes
Page 67 of 95
17 ADJACENT PROPERTIES
No data from any adjacent property was used in this report. There are a few adjacent exploration or mining properties surrounding the Balabag tenements but none that interfere or could create conflict with TVI properties. It is believed that the main Tinago-Miswi mineralized vein system is well contained within the Balabag property, however the regional structures along which mineralisation could have developed are thought to be extensive and would require follow up exploration work. There are some other properties in the region as mentioned in the section describing the geology and the history of the Balabag project. The remoteness of the project and lack of road access is one reason why there are only few adjacent properties in spite of the presence of favourable geology as demonstrated by this project.
18 MINERAL PROCESSING A ND METALLURGICAL TESTING

Genivar is currently carrying a pre-feasibility study on the Balabag project. It will include milling and processing the ore using some form of Carbon in pulp (CIP) cyanidation. The study is considering the possibility to move the current mill used to process the gossan (oxidized) material to extract gold and silver from TVIs Canatuan mine some 80km to Balabag. Metallurgical recoveries and net smelter returns have not yet been determined for the Balabag project.
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19 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

19.1 MINERAL RESOURCE ESTIMATE
19.1.1 Methodology The estimation method used to model the Balabag mineral resources is based on geostatistical block modeling techniques, using Ordinary Kriging grade interpolation and capping values set at 50gpt Au and 1000gpt Ag. The S.M.U. (small mining units) was set at 5m by 2.5m by 5m high. The block model directions match the vein strike and dip. TVI used 3D solids to compute the tonnage inside the veins, while PJLGCI used the 50% rule. The 50% rule was deemed fair to estimate tonnage and grade. The results are based on this method to count blocks in veins to compute grades and tonnages. The grades were computed for each block in veins, one vein at the time with its own samples located inside the vein. This prevents any values from crossing over to neighbouring veins. Interpolation used a maximum search sphere of 150m, a minimum of 2 and a maximum of 12 samples per block estimation with no more than 3 samples from the same drill hole. The level of discretisation of SMU is 2 x 2 x 2. The variogram was set to weigh samples according to the semi-variogram study. See sub-section 14.6. This methodology overcomes wrinkles, folds and fault in the veins.
Figure 19-1 Block Model Setup
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Figure 19-2 Plan View Showing Veins
Figure 19-3 Section 200W Showing Veins, DH and SMU Note: Section above is 25m thick. Hence it shows up to 5 overlapping blocks which can appear to spill over the vein limits.
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19.1.2 Results The results of using a 3D block model to estimate the Mineral Resources are as follow: Indicated resources of 1.37 million tonnes (Mt) averaging 2.9 grams per tonne (gpt) gold (Au), 84.3 gpt silver (Ag) o Using >0.5 gpt grade group: 126,507 ounces (Ozs) Au; 3,716,842 Ozs Ag 203,703 Ozs on a gold equivalent (AuEq) basis Inferred resources of 1.96 Mt averaging 2.6 gpt Au, 55.2 gpt Ag o Using >0.5 gpt grade group: 162,056 Ozs Au; 3,471,890 Ozs Ag 234,165 Ozs on a AuEq basis
(@ $650/Oz Au & $13.5/Oz Ag)
Class. Indicated Indicated Indicated Indicated
Tonnage 695,128 1,091,970 1,371,105 314,820
Au (gpt) 4.54 3.41 2.87 0.28
AU_OZ 101,452 119,912 126,507 2,834
Ag (gpt) 132.98 100.61 84.33 9.25
AG_OZ 2,972,660 3,531,287 3,716,842 93,665
AuEq (gpt) 7.30 5.50 4.62 0.47
AUEQ_OZ 163,192 193,254 203,703 4,779
Total Indicated
1,685,925
2.38
129,341
70.31
3,810,507
3.84
208,482
Class. Inferred Inferred Inferred Inferred
Tonnage 821,521 1,488,853 1,957,168 498,254
Au (gpt) 4.5 3.14 2.58 0.24
AU_OZ 118,864 150,300 162,056 3,845
Ag (gpt) 96.9 65.9 55.2 8.33
AG_OZ 2,560,532 3,152,794 3,471,890 133,411
AuEq (gpt) 6.51 4.51 3.72 0.41
AUEQ_OZ 172,045 215,781 234,165 6,615
Total Inferred
2,455,422
2.11
165,901
45.69
3,605,301
3.05
240,780
Notes: 7.
Indicated: within 25m Search Radius (SR) of at least two drill holes; Inferred: between 25 and 150m SR of at least one drill hole 8. The estimation method used geostatistical block modeling techniques, using Ordinary Kriging grade interpolation and capping values set at 50gpt Au and 1000gpt Ag 9. PJLGCI is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing of others issues that may materially affect the estimate of mineral resources 10. Mineral resources which are not mineral reserves do not have demonstrated economic viability 11. Metallurgical recoveries and net smelter returns have not yet been determined 12. There is no assurance, at this time, that the mineralisation at Balabag will support a commercial mining operation
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19.2 MINERAL RESERVE ESTIMATE

The mineral reserves are the part of the mineral resources that can be mined with a profit. It involves selecting parts of the mineral resources that can be mined because they have an average value after dilution and mining recovery factor as well as processing recovery factors have been applied are higher than mining and processing costs. The mineral reserves estimate depends on the mine plan which is being drawn by Genivar in its pre-feasibility study at the time of writing this report. There is no assurance, at this time, that the mineralisation at Balabag will support a commercial mining operation.
19.3 Mineral Resources Classification

There is no formal mine plan yet at the Balabag Project. Hence, there is no Measured mineral resource at the moment, in spite of the small scale mining activity going on at the moment. Drilling is still going on at the time of writing this report. The mineral resources in the Indicated category have to be within 25m Search Radius (SR) of at least two drill holes. See Figure 19-4 below. The mineral resources beyond that may be classified in the Inferred category if they are located between 25m and 150m of at least one drill hole. At the time of writing this report, it included all vein material not already classified as Indicated. Any mineralized material outside the veins has not been classified in any mineral resources.
19.4 Method to compute Reserves

19.4.1 Mining Dilution and Recovery These mining factors depend on the mine plan drawn by Genivar in its prefeasibility study at the time of writing this report.
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Figure 19-4 The Indicated Class Outlined on Plan View on Level 510
20 OTHER RELEVANT DATA AND INFORMATION

There is no other relevant data or information. PJLGCI is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing of others issues that may materially affect the estimate of mineral resources Commodity prices used in determining gold-equivalent values are USD 650 per ounce of gold and USD 13.50 per ounce of silver.
21 INTERPRETATION A ND C ONCLUSIONS
Mineral resources which are not mineral reserves do not have demonstrated economic viability. It should be noted that the methodology used in the technical report tends to understate the effect of small scale mining in the following ways: Because the original assays were used for interpolation, chips and channel samples that may represent a larger sample than the standard 1m drill hole sample are under weighed in the grade model; Because small scale miners are high grading, the samples taken after mining in the tunnels and stopes are likely to understate the grade of the vein; Because of the above, the samples in the drill holes may understate the true thickness and grade of the vein left over; Because of the above, the parts of the veins in the tunnel cannot be classified as measured where it should be. TVIs results and PJLGCI verification confirm the presence of significant gold and silver values associated with the Tinago vein at Balabag. TVI has demonstrated with its ongoing exploration program that the mineral resources at Balabag are of economic interest. The results warrant the pursuit of the exploration work while TVI has commanded a pre-feasibility study from Genivar to evaluate the potential viability of a stand alone mining operation at Balabag. At this stage of exploration, it appears the potential to find more mineral resources is limited by the geological setting. On the regional scale, the setting hosting the current gold bearing quartz veins is unlikely to be found nearby the existing discovery. However, TVI has more exploration work to do to complete the search for gold and maybe some other metals of economic interest. The remoteness of the area and problems of communications do leave the area in a state of relative virgin ground for exploration.
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22 RECOMMENDATIONS
TVI should continue to support the ongoing exploration program to its end. TVI should complete the ongoing pre-feasibility study by Genivar. The mineral resource estimate should be updated based on the latest results. If the project does not appear to fit TVIs criteria for mining, it may draw economic value from the project by searching business opportunity to use it otherwise.
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23 REFERENCES
1. Final Report on the Mineral Exploration Conducted Within the Zamboanga Mineral Corporation MPSA Area, Zamboanga del Sur, Mindanao, Philippines. Eduardo Manuel, Henry P. Agupitan and Wilmar R. Ladia Rio Tinto Exploration Philippines Corporation (A member of the Rio Tinto Group) 2. PHILIPPINE GEOLOGY AND MINERALIZATION: AN OVERVIEW, Mining and Geology Bureau, Philippines Government. 3. 2006 Annual Information Form, March 28, 2007, TVI Pacific, Inc.
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24 D ATE AND SIGNATURE PAGE
Prepared in Ste-Therese, this July 27th, 2007.

Page 79 of 95
25 A DDITIONAL R EQUIREMENTS FOR TECHNICAL REPORTS O N D EVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES
The details for this section depend on the mine plan which is being drawn by Genivar in its pre-feasibility study at the time of writing this report. There is no assurance, at this time, that the mineralisation at Balabag will support a commercial mining operation.
Page 80 of 95
26 ILLUSTRATIONS
Most figures are already inserted in the text in each section. Some are found on the following pages.
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Figure 26-1 Location map of Balabag Project
Figure 26-2 Location map of TVI Due Diligence Sampled Sites
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Figure 26-3 Location map of the small scale miners tunnels
Page 84 of 95
Figure 26-4 Location map of TVI Due Diligence Results
Page 85 of 95
27 Appendices
Page 86 of 95
27.1 Analytical results

McPHAR
ANALYTICAL RESULTS
CLIENT: TVI RESOURCE DEVELOPMENT PHILS., INC. MCPHAR BATCH: 05-1329 DATE REPORTED: SEPTEMBER 15, 2005 SAMPLE NO TVI-000001 TVI-000002 TVI-000003 TVI-000004 TVI-000005 TVI-000006 TVI-000007 TVI-000008 TVI-000009 TVI-000009 rechecked TVI-000010 TVI-000011 TVI-000012 TVI-000013 TVI-000014 TVI-000015 TVI-000016 TVI-000017 TVI-000018 TVI-000019 TVI-000019 rechecked TVI-000020 OxI-23 Au BLANK OREAS 42P TVI-000021 TVI-000022 TVI-000023 TVI-000024 TVI-000025 TVI-000026 TVI-000027 TVI-000028 TVI-000029 TVI-000029 rechecked TVI-000030 TVI-000031 TVI-000032 TVI-000033 TVI-000034 TVI-000035 TVI-000036 TVI-000037 TVI-000038 Cu,ppm 69 53 53 49 77 215 173 209 247 249 103 <5 265 104 88 101 67 33 160 55 56 108 Pb,ppm 197 292 195 186 268 538 408 2269 1057 1060 625 <5 786 647 355 594 290 143 706 373 377 440 Zn,ppm 72 49 30 28 31 96 136 102 162 160 79 <5 65 87 90 97 49 46 100 36 37 97 Au,ppm 1.215 1.539 1.203 0.527 6.494 3.786 3.046 16.273 11.24 11.465 5.624 0.529 6.027 3.407 2.826 3.776 9.368 3.278 6.284 5.93 5.843 7.221 1.875 0.005 6.81 1.877 <0.005 7.723 8.455 11.162 5.753 7.712 5.18 5.152 4.411 20.224 8.583 10.35 2.169 <0.005 7.876 9.174 5.657 Ag,ppm 24.2 25.2 19.4 6.2 72.7 65.7 72.8 120.8 118.8 120 62.7 <0.5 266 68.7 25.4 40.1 85.2 63.3 270 74.1 74.5 94
382 151 <5 <5 56 186 150 172 109 47 42 38 48 92 143 196 <5 418 83 75
148 908 <5 35 281 940 683 737 640 382 389 218 201 250 576 2538 33 2406 459 838
618 106 5 <5 42 97 73 97 55 37 36 35 27 36 41 106 <5 224 57 46
<0.5 130.4 <0.5 <0.5 176.8 125.6 154.8 77.2 100.2 89.7 90.1 90.5 115 137 124.6 26.8 <0.5 50.9 195.6 43.7
Page 87 of 95
TVI-000039 TVI-000039 rechecked TVI-000040 OxA-26 Au BLANK GBM396-6C CDN-CGS-5 TVI-000041 TVI-000042 TVI-000043 TVI-000044 TVI-000045 TVI-000046 TVI-000047 TVI-000048 TVI-000049 TVI-000049 rechecked TVI-000050 TVI-000051 TVI-000052 TVI-000053 TVI-000054 TVI-000055 TVI-000056 TVI-000057 TVI-000058 TVI-000059 TVI-000059 rechecked TVI-000060 OxH-29 Au BLANK OREAS 42P TVI-000061 TVI-000062 TVI-000063 TVI-000064 TVI-000065 TVI-000066 TVI-000067 TVI-000068 TVI-000069 TVI-000069 rechecked TVI-000070 TVI-000071 TVI-000072 TVI-000073 TVI-000074 TVI-000075 TVI-000076 TVI-000077 TVI-000078 TVI-000079 TVI-000079 rechecked TVI-000080
88 88 504
790 788 651
55 55 63
14.632 14.027 4.918 0.079 0.005
62.8 62 155.1
13800 1520 85 89 88 61 101 <5 <5 119 106 109 54 69 67 112 81 108 89 45 <5 54 56 9
800 784 370 775 282 213 31 29 157 634 631 444 518 650 950 650 490 453 177 <5 141 145 69
260 58 78 54 74 83 <5 <5 92 88 88 45 77 73 64 91 68 52 33 5 27 27 10 5.314 9.437 4.647 7.562 1.987 <0.005 1.31 1.232 6.232 6.423 2.363 3.006 10.746 3.678 4.031 4.576 5.919 4.514 0.082 1.733 1.844 1.025 1.293 0.005 1.378 3.635 2.253 <0.005 1.142 1.542 14.429 7.043 1.359 1.393 11.555 4.773 8.045 11.998 16.013 62.22 1.839 13.743 1.378 9.968 9.858 2.705
5.4 120.2 132.1 25.3 100.9 54.4 <0.5 <0.5 33.5 128.1 128 29.8 43.7 170.3 28.1 76.5 27.1 265.7 72.8 <0.5 48.1 47.2 17.1
379 15 102 20 <5 11 9 18 25 12 13 43 98 49 71 31 54 <5 17 7 284 282 14
143 45 212 60 31 31 49 98 137 57 59 103 594 165 388 287 574 <5 264 29 268 272 48
615 6 183 11 <5 7 6 83 41 9 9 50 324 41 122 85 226 5 26 25 177 186 23
<0.5 64.1 141.3 25.1 <0.5 42.8 60.5 1494 272.4 26.4 26.2 929.6 410.4 571.2 706.8 1166.4 8175.2 <0.5 821.6 55.7 892.8 855.8 104.3
Page 88 of 95
OxE-20 Au BLANK OREAS 44P TVI-000081 TVI-000082 TVI-000083 TVI-000084 TVI-000085 TVI-000086 TVI-000087 TVI-000088 TVI-000089 TVI-000089 rechecked TVI-000090 TVI-000091 TVI-000092 TVI-000093 TVI-000094 TVI-000095 TVI-000096 TVI-000097 TVI-000098 TVI-000100 TVI-000100 rechecked TVI-000101 OxI-23 Au BLANK OREAS 44P TVI-000102 TVI-000103 TVI-000104 TVI-000105 TVI-000106 TVI-000107 TVI-000108 TVI-000109 TVI-000110 TVI-000110 rechecked TVI-000111 TVI-000112 TVI-000113 TVI-000114 TVI-000115 TVI-000116 TVI-000117 TVI-000118 TVI-000119 TVI-000120 TVI-000120 rechecked TVI-000121 OxA-26 Au BLANK GBM396-6C TVI-000122
0.54 0.005 400 11 49 102 14 18 12 <5 23 14 15 14 24 7 19 26 19 23 33 <5 18 18 28 195 94 220 246 126 67 37 35 28 46 45 98 138 35 176 523 382 235 382 <5 248 239 50 606 45 68 422 40 24 18 <5 7 20 24 24 35 8 81 49 33 36 100 5 52 48 29 5.534 11.318 53.387 3.675 4.754 2.415 0.005 0.492 7.954 7.982 3.86 12.277 1.561 12.036 7.588 6.183 11.358 9.267 1.289 7.21 7.313 6.614 1.832 0.005 47.96 4.858 6.034 5.335 4.152 14.253 1.336 7.007 6.288 6.38 13.195 0.005 3.612 14.675 0.078 1.061 5.663 10.435 7.693 6.598 6.661 17.535 0.081 0.005 2.037 0.7 179.1 494 4167.5 184.8 153.4 29.5 <0.5 4.6 268 268.8 124.4 260.8 11.2 1420 355.5 166 372.2 633.2 0.6 363.2 364 480
420 322 18 5 7 8 46 15 22 12 12 29 <5 27 23 <5 15 19 47 46 38 37 26
205 390 202 35 118 125 187 40 155 60 56 390 36 460 445 <5 67 780 350 743 629 624 325
601 245 22 18 12 18 62 19 39 29 28 55 <5 47 43 5 14 11 52 45 56 57 160
0.6 1347.2 297.6 250.6 251.7 147.2 2148.7 37.2 160.5 132.1 132 1148 4.8 158.7 495.2 <0.5 20.6 24.1 602 255.1 290.5 281.2 1550
13980 87
760 299
268 133
5.5 38.8
Page 89 of 95
TVI-000123 TVI-000124 TVI-000125 TVI-000126 TVI-000127 TVI-000128 TVI-000129 TVI-000130 TVI-000130 rechecked TVI-000131 TVI-000132 TVI-000133 TVI-000134 TVI-000135 TVI-000136 TVI-000137 TVI-000138 TVI-000139 TVI-000140 TVI-000140 rechecked TVI-000141 OxH-29 Au BLANK GBM396-6C CDN-CGS-5 TVI-000142 TVI-000143 TVI-000144 TVI-000145 TVI-000146 TVI-000147 TVI-000148 TVI-000149 TVI-000150 TVI-000150 rechecked TVI-000151 TVI-000152 TVI-000153 TVI-000154 TVI-000155 TVI-000156 TVI-000157 TVI-000158 TVI-000159 TVI-000160 TVI-000160 rechecked TVI-000161 OxE-20 Au BLANK OREAS 44P TVI-000178 TVI-000179 TVI-000180 TVI-000180 rechecked
91 177 216 77 <5 152 116 <5 <5 351 582 100 456 441 267 86 86 116 59 57 365
579 594 1707 308 38 365 298 <5 <5 486 606 580 1637 1212 387 1277 1710 1678 1072 1071 1514
125 213 303 78 <5 163 86 5 5 251 393 91 512 288 299 99 84 128 69 70 259
4.85 7.29 1.702 3.426 0.005 4.704 3.646 1.3 1.288 1.559 0.364 9.291 2.426 4.24 11.379 17.666 2.575 5.385 8.243 8.21 15.864 1.299 0.005
113.2 68.5 46.5 127.1 <0.5 65.4 134.1 <0.5 <0.5 57.3 27.8 42.6 24.5 16 70.4 39.4 2.5 4.9 23.7 21.7 76.1
794 1565 <5 122 330 592 256 243 397 125 1016 1011 202 224 154 <5 <5 1078 478 177 645 511 510 134 31 1072 1142 1350 659 1437 626 573 1562 1576 635 1448 636 <5 36 2617 1675 1229 3579 1899 1895 813
272 <5 101 165 412 243 107 115 127 452 478 553 179 136 5 <5 1567 576 281 3316 444 442 157 0.005 2.351 3.407 2.033 7.303 1.642 13.406 4.097 6.934 7.842 3.344 9.769 3.576 0.528 0.005 19.109 21.625 11.943 4.16 9.146 9.461 6.055 0.551 0.005 0.044 0.005 0.042 0.037
5.5 <0.5 9.6 31.1 17.5 17.3 6.8 26.9 24.9 38 37.4 60.8 40 17.2 <0.5 <0.5 152 145.2 31.3 41.4 30 30.7 15.5
410 86 <5 128 126
200 9 22 7 7
601 86 <5 124 125
0.7 1.2 <0.5 0.9 1
Page 90 of 95
TVI-000181 OxA-26 Au BLANK OREAS 42P TVI-000182 TVI-000183 TVI-000184 TVI-000190 TVI-000190 rechecked B1000281 detection limit
90
132
0.055 0.081 0.005 0.242 0.11 0.073 4.907 4.911 13.673 0.005
2.6
385 76 85 40 164 160 59 5
151 12 8 8 512 506 80 5
606 97 117 125 224 222 14 5
<0.5 9.6 6.2 1.7 58.5 58.4 80.5 0.5
ANALYTICAL METHOD Cu,Pb,Zn,Ag - by AAS following conc. HCI and HCI/HNO3/HCIO4 leach in latter stages on 1g. sample. Au - by fire assay on 50g. sample with AAS finish.
Page 91 of 95
28 Certification
QUALIFICATIONS CERTIFICATE
I, Pierre Jean Lafleur, Professional Engineer, do certify that: I am president of P.J. Lafleur Go-Conseil Inc. located at 933 Carr Valois, Ste-Thrse, Qubec, Canada, J7E 4L8 (Tel. 450-979-6488), a Corporation managing my professional services to TVI Pacific Inc, 2000, 736 6 Avenue S.W. Calgary, Alberta T2P 3T7 Tel: (403) 2654356.
This Certificate applies to the 43-101 Technical Report for the Mineral Resources at the Balabag Project of TVI Pacific Inc. completed in June 2007 for TVI Pacific Inc. I have practice my profession in exploration, geology and mining for more than 30 years, and I have experience in gold, base metals and industrial minerals as well. I have worked for Consolidated Goldfields (1980-81), Falconbridge (1981- 84), Audrey Resources (19851993). I have been a consulting P.Eng. since 1987. I have worked in Canada and abroad. I have specialised in computer modeling of mineral resources and mine planning. I am also a Senior Business Associate of Gemcom Software International Inc. I am a registered Professional Engineer in the Province of Qubec (OIQ # 39862). I am a member of the Canadian Institute of Mines and Metallurgy. I am graduated from cole Polytechnique of Montreal (B. ENG.) in Geology in 1976. I have not visited the Balabag Project site, but I did visit the Canatuan site in April 2006. I am responsible in part for section 16 to 26 the 43-101 Technical Report for the Mineral Resources at the Balabag Project of TVI Pacific Inc. I have not had prior involvement with the property that is the subject of the Technical Report. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report or the omission to disclose which makes the Technical Report misleading. I am an independent consultant in the sense set out in section 1.4 of NI 43-101. I have not received, nor do I expect to receive directly or indirectly any interest in any form for the Balabag project, or any property or project from TVI Pacific Inc. As of the date of this certificate, to the best of my knowledge, information and belief, the Technical report contains all scientific and technical information that is required to be disclosed to make the technical Report not misleading.
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I have read NI 43-101 and Form 43-101 F1, and the Technical Report has been prepared in compliance with that instrument and form 43-101 F1. Prepared in Ste-Therese, this July 27th, 2007.

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Certificate of author : BEN AYAD Mohammed Ali

933 Carre Valois, Ste-Therese, Quebec, Canada, J7E 4L8, Telephone : +1 (450) 979-6488 ;
E-mail : ali.benayad1@menara.ma Ben_ayad@yahoo.com I, professional geoscientist with a PhD degree from the University of Toulouse III of France (1987) and an MBA of the University of Sherbrooke, Qubec, Canada (2002), am a consulting geologist since 1997. Since 2006; I am an associate geologist with P.J. Lafleur Go-Conseil Inc.
I have been member of the APGGQ (Association Professionnel des Gologues et Gophysiciens du Qubec) before the recent creation of the OGQ (Ordre des Gologues du Qubec) where my memebership is ongoing. Ive also been member of AMBAQ (Association des MBA du Qubec).
My 20 years of experience goes from mine geologist; senior mine exploration geologist and senior exploration geologist in different geological environments for different precious, semi-precious metals and base metals companies. I have been involved in different mineral and mining projects at various stage of development in Abitibi Greenstone Belt (Qubec, Canada) since 1992; in West Africa since 1996 and recently in the establishment of the 43 101 Technical report for different companies having projects around the world (West Africa; North and South America and Southeast Asia). I am presently a consulting geologist and an associate geologist with PJLGCI Inc. I have visited The Balabag Project in April 2007 for PJLGCI Inc to control the geological data and verify sampling procedures in the field in compliance with the 43101 Technical report for TVI Pacific Inc. All the geological data was obtained from the geological department and controlled by myself on the site. The exploration works and results are generally compiled from different internal reports of TVI. The information provided by the various parties is, to the best of my knowledge and experience, correct.
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No disclosure of information relating to permitting, legal, title, action and related issues were verified in this mission. This has been done in previous technical report by others consultants. I have relied on information provided to me by TVI Pacific. In the disclosure of environmental, socio-economic, marketing, political and related issues I have relied on information provided to me by TVI Pacific. I am not aware of any material fact or material change with respect to the subject matter of this technical report which is not reflected in this report, the omission to disclose which would make this report misleading. I am independent of TVI Pacific Inc and all its subsidiaries in accordance with the application of Section 1.5 of National Instrument 43-101. I have read National Instrument 43-101, Form 43-101FI and this report has been prepared in compliance with NI 43-101 and Form 43-101FI. Dated at Montreal, Qubec, this 27th day of July, 2007.
___________________________ Mohammed Ali Ben Ayad
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Balabag Resource Estimate

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Balabag Resource Estimate

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1 TITLE PAGE

SUMMARY .............................................................................................................. 5 INTRODUCTION AND T ERMS OF REFERENCE ...................................................... 19

RELIANCE ON OTHER EXPERTS .......................................................................... 22 PROPERTY DESCRIPTION AND L OCATION............................................................ 23

GEOLOGICAL SETTING ........................................................................................ 30

Geological and mineral insight of the Philippines:............................................ 30

Regional geology................................................................................................... 32 Local geology ........................................................................................................34

DEPOSIT T YPES ............................................................................................... 37 MINERALISATION ............................................................................................ 38

DRILLING ........................................................................................................ 45 P.J. Lafleur Geo-Conseil Inc

13.1 13.2 13.3

SAMPLING METHOD AND APPROACH .............................................................. 50

SAMPLE PREPARATION , ANALYSES AND SECURITY ......................................... 59 DATA VERIFICATION ....................................................................................... 63

19.2 19.3 19.4

25 ADDITIONAL REQUIREMENTS F OR T ECHNICAL R EPORTS ON DEVELOPMENT P ROPERTIES AND PRODUCTION P ROPERTIES.............................................................. 80 26 27

ILLUSTRATIONS ............................................................................................... 81 Appendices ..................................................................................................... 86

P.J. Lafleur Geo-Conseil Inc

2.2 List of Figures

2.3 List of Tables

P.J. Lafleur Geo-Conseil Inc

Property Description and Location

Accessibility, Climate, Local Resources, Infrastructure And Physiography

P.J. Lafleur Geo-Conseil Inc

Sampling Method and Approach

Sample Preparation, Analyses And Security

P.J. Lafleur Geo-Conseil Inc

P.J. Lafleur Geo-Conseil Inc

Mineral Processing and Metallurgical Testing

Mineral Resource and Mineral Reserve Estimates

P.J. Lafleur Geo-Conseil Inc

(@ $650/Oz Au & $13.5/Oz Ag)

Class. Indicated Indicated Indicated Indicated

Tonnage 695,128 1,091,970 1,371,105 314,820

Au (gpt) 4.54 3.41 2.87 0.28

AU_OZ 101,452 119,912 126,507 2,834

Ag (gpt) 132.98 100.61 84.33 9.25

AG_OZ 2,972,660 3,531,287 3,716,842 93,665

AuEq (gpt) 7.30 5.50 4.62 0.47

AUEQ_OZ 163,192 193,254 203,703 4,779

Class. Inferred Inferred Inferred Inferred

Tonnage 821,521 1,488,853 1,957,168 498,254

Au (gpt) 4.5 3.14 2.58 0.24

AU_OZ 118,864 150,300 162,056 3,845

Ag (gpt) 96.9 65.9 55.2 8.33

AG_OZ 2,560,532 3,152,794 3,471,890 133,411

AuEq (gpt) 6.51 4.51 3.72 0.41

AUEQ_OZ 172,045 215,781 234,165 6,615

P.J. Lafleur Geo-Conseil Inc

Other Relevant Data and Information

Interpretation and Conclusions

P.J. Lafleur Geo-Conseil Inc

Pierre Jean Lafleur, P.Eng.,

P.J. Lafleur Geo-Conseil Inc

4 INTRODUCTION AND TERMS O F R EFERENCE

P.J. Lafleur Geo-Conseil Inc

Field Validation Work

P.J. Lafleur Geo-Conseil Inc

RELIANCE O N O THER EXPERTS

P.J. Lafleur Geo-Conseil Inc

6 PROPERTY DESCRIPTION A ND LOCATION

P.J. Lafleur Geo-Conseil Inc

P.J. Lafleur Geo-Conseil Inc

7 ACCESSIBILITY, CLIMATE, LOCAL R ESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

P.J. Lafleur Geo-Conseil Inc

Figure 7-1: Histogram of Monthly Precipitations (Projected)