NI 43-101 EXPLORATION RESULTS AND

MINERAL RESOURCE UPDATE REPORT

ON THE BALABAG GOLD-SILVER PROJECT

TVI RESOURCE DEVELOPMENT (PHILS.) INC.

MPSA No. 086-1997-IX
Zamboanga Del Sur, Mindanao, Philippines
Owner: TVI RESOURCE DEVELOPMENT (PHILS.) INC.
Operator: TVI RESOURCE DEVELOPMENT (PHILS.) INC.

Prepared for

TVI Pacific Inc.

Suite 600, 505 – 2nd Street SW
Calgary, Alberta, Canada T2P 1N8

Prepared by

JAIME C. ZAFRA PGeo FAusIMM

390 Luis Tongco Street, Purok 3,
Barangca, Baliuag, Bulacan,
Philippines 3006
July 19, 2021
 NI 43-101 EXPLORATION RESULTS AND MINERAL RESOURCE UPDATE REPORT
ON THE BALABAG GOLD-SILVER PROJECT

DATE AND SIGNATURE PAGE

This Report entitled “NI 43-101 Exploration Results and Mineral Resource Update Report on
the Balabag Gold-Silver Project” was prepared on behalf of TVI Pacific Inc.

The Report was prepared in compliance with National Instrument 43-101. The effective date
of this Report is May 15, 2021.

Hereby signed by the following Qualified Person:

___________________________________ Signed at Bulacan, Philippines on July 19, 2021

JAIME C. ZAFRA, P. Geo
Geologist – Philippines Professional Regulation Commission Registration No. 671
Competent Person for Exploration Results and Mineral Resource Reporting
Geological Society of the Philippines - Philippine Mineral Reporting Code
PMRC CP Registration No. 14-05-01
Fellow - Australasian Institute of Mining and Metallurgy (AusIMM)
FAusIMM No. 992551

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 NI 43-101 EXPLORATION RESULTS AND MINERAL RESOURCE UPDATE REPORT
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Table of Contents

1 EXECUTIVE SUMMARY ................................................................................................................................ 22

2 INTRODUCTION ................................................................................................................................................ 26
2.1 Scope of Work .......................................................................................................................................... 26
2.2 Qualification and Experience ......................................................................................................... 26
2.3 Site Visit ....................................................................................................................................................... 27
3 RELIANCE ON OTHER EXPERTS .......................................................................................................... 28
3.1 Land Status, Environmental Studies and Permitting ...................................................... 28
4 PROPERTY DESCRIPTION AND LOCATION .................................................................................. 29
4.1 Property Area and Location ............................................................................................................ 29
4.2 Licenses and Mineral Tenure ......................................................................................................... 31
4.3 Agreements, Royalties and Encumbrances .......................................................................... 32
4.4 Environmental Obligations .............................................................................................................. 33
4.5 Permits .......................................................................................................................................................... 34
4.6 Significant Factors and Risks Related to the Property .................................................. 37
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY ........................................................................................................................................................ 38
5.1 Accessibility .............................................................................................................................................. 38
5.2 Climate .......................................................................................................................................................... 39
5.3 Local Resources ..................................................................................................................................... 40
5.4 Infrastructure ............................................................................................................................................ 40
5.5 Physiography ............................................................................................................................................ 41
5.6 Surface Rights.......................................................................................................................................... 41
6 HISTORY ................................................................................................................................................................ 42
6.1 History of Mining Claim ...................................................................................................................... 42
6.2 Exploration History ............................................................................................................................... 42
6.3 History of Mine Production .............................................................................................................. 44
7 GEOLOGICAL SETTING AND MINERALIZATION ........................................................................ 45
7.1 Regional Tectonic and Geological Setting ............................................................................ 45
7.2 Local Geology .......................................................................................................................................... 49
7.2.1 Sedimentary Rocks (Early to Middle Miocene)............................................................... 49
7.2.2 Volcanic Rocks (Late Miocene) ................................................................................................ 49
7.2.3 Intrusive Rocks (Late Miocene) ................................................................................................ 50
7.2.4 Andesite to Trachyandesite ........................................................................................................ 53

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7.2.5 Pyroclastic Rocks and Volcanic Breccias ......................................................................... 55

7.2.6 Dacite – Andesite Porphyry ........................................................................................................ 57
7.2.7 Diatreme Breccia ............................................................................................................................... 58
7.3 Structural Geology ................................................................................................................................ 59
8 DEPOSIT TYPES ............................................................................................................................................... 63
8.1 Alteration Type and Style .................................................................................................................. 63
8.2 Mineralization Type and Style ........................................................................................................ 68
8.3 Geological Ore Types .......................................................................................................................... 69
8.4 Types of Quartz Veins ......................................................................................................................... 71
8.4.1 Stage 1 ...................................................................................................................................................... 71
8.4.2 Stage 2 ...................................................................................................................................................... 72
8.4.3 Stage 3 ...................................................................................................................................................... 73
8.5 Localization of the Deposit .............................................................................................................. 79
8.5.1 Mineralization Controls ................................................................................................................. 79
8.6 Geometry of Mineralized Veins ..................................................................................................... 81
8.6.1 Tinago, Unao-Unao and Yoyon Vein Systems ................................................................ 81
8.6.2 Miswi Vein System ............................................................................................................................ 84
8.6.3 Lalab Vein System ............................................................................................................................ 84
8.7 Significant Drillhole Intercepts ...................................................................................................... 85
8.8 Mineralization Types ............................................................................................................................ 88
8.8.1 Low Sulphidation Epithermal Gold-Silver Mineralization of Balabag and
Malagak and Depore – Genaro Rivers ..................................................................................................... 89
8.8.2 Porphyry Cu – Mo Mineralization of Legumbong ......................................................... 90
8.8.3 Copper Skarn Mineralization of San Pedro-Dipili ......................................................... 90
8.8.4 Base Metal Mineralization of Upper Dipili .......................................................................... 90
9 EXPLORATION .................................................................................................................................................. 91
9.1 Survey Procedures and Parameters .......................................................................................... 91
9.1.1 Geologic Mapping and Sampling ............................................................................................ 91
9.1.2 Test Pitting and Trenching .......................................................................................................... 92
9.1.3 Underground Mapping and Sampling .................................................................................. 92
9.1.4 Exploration Geochemistry ........................................................................................................... 93
9.1.5 Geophysical Survey ......................................................................................................................... 93
9.2 Sampling Methods and Quality ..................................................................................................... 93
9.2.1 Rock and Stream Sediment Geochemical Sampling .................................................. 94
9.2.2 Sample Quality .................................................................................................................................... 95
9.2.3 Results of Exploration Works.................................................................................................... 95

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9.2.3.1 Geologic Mapping ................................................................................................................... 95

9.2.3.2 Exploration Geochemistry ................................................................................................. 95
9.2.3.3 Test Pitting and Trenching ................................................................................................ 99
9.3 Underground Mapping and Sampling ..................................................................................... 101
9.3.1 Lalab Area ............................................................................................................................................ 101
9.3.2 Miswi Area............................................................................................................................................ 103
9.3.3 Unao-Unao Area ............................................................................................................................... 104
9.5 Geophysical Exploration ................................................................................................................. 106
10 DRILLING ........................................................................................................................................................ 108
10.1 Drill Core Sampling ............................................................................................................................. 109
10.2 Density Sampling ................................................................................................................................. 112
10.3 Drilling Program Details .............................................................................................................. 114
10.3.1 Factors Influencing the Accuracy of Drilling Results .............................................. 117
10.3.1.1 Drillhole Location .................................................................................................................. 117
10.3.1.2 Downhole Survey ................................................................................................................... 117
10.3.1.3 Core Recovery ......................................................................................................................... 118
10.3.1.4 Core Handling .......................................................................................................................... 118
10.3.1.5 Core Photography ................................................................................................................. 118
10.3.1.6 Core Logging ............................................................................................................................ 119
10.3.1.7 Geotechnical Logging......................................................................................................... 119
10.3.1.8 Core Cutting .............................................................................................................................. 119
10.3.1.9 Core Storage ............................................................................................................................. 120
10.4 Comments on Section 10: Drilling ........................................................................................ 120
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................................... 121
11.1 Sample Preparation and Submission to Laboratory ..................................................... 121
11.2 Sample Preparation ....................................................................................................................... 121
11.3 Analyses................................................................................................................................................ 122
11.4 Security .................................................................................................................................................. 123
11.5 Quality Assurance and Quality Control ................................................................................. 123
11.5.1 Certified Reference Materials .................................................................................................. 125
11.5.2 Duplicates ............................................................................................................................................ 150
11.5.3 Blanks ..................................................................................................................................................... 154
11.5.4 Check Assay ....................................................................................................................................... 156
12 DATA VERIFICATION .............................................................................................................................. 159
12.1 Site Visit ..................................................................................................................................................... 159
12.2 Database Audit....................................................................................................................................... 159

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13 MINERAL PROCESSING AND METALLURGICAL TESTING .......................................... 161

13.1 Nature and Extent of Testing and Analytical Procedures .............................................. 161
13.2 Basis of Assumptions Regarding Recovery Estimates .................................................. 161
13.3 Representativeness of Samples ..................................................................................................... 161
13.4 Deleterious Elements for Extraction ............................................................................................ 161
14 MINERAL RESOURCE ESTIMATES ............................................................................................... 162
14.1 Data Set ................................................................................................................................................. 162
14.2 Exploratory Data Analysis .............................................................................................................. 162
14.2.1 Geological Domains ...................................................................................................................... 163
14.2.2 Outlier Values .................................................................................................................................... 165
14.2.3 Sample Support and Compositing ....................................................................................... 166
14.2.4 Bulk Density........................................................................................................................................ 171
14.3 Topography .............................................................................................................................................. 171
14.4 Variography ............................................................................................................................................. 171
14.5 Mineral Resource Block Model .................................................................................................... 174
14.6 Resource Block Model Validation.............................................................................................. 176
14.7 Mineral Resource Classification ................................................................................................. 179
14.8 Mineral Resource Statement ......................................................................................................... 181
14.8.1 Reasonable Prospect for Eventual Economic Extraction ..................................... 183
14.8.2 Resource Adjustments ................................................................................................................ 186
14.9 Mineral Resource Peer Review .................................................................................................... 187
14.10 Mineral Resource Risk Assessment ................................................................................... 188
15 MINERAL RESERVE ESTIMATES ................................................................................................... 189
16 MINING METHODS.................................................................................................................................... 189
17 RECOVERY METHODS .......................................................................................................................... 189
18 PROJECT INFRASTRUCTURE .......................................................................................................... 189
19 MARKET STUDIES AND CONTRACTS ........................................................................................ 189
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY
IMPACT .......................................................................................................................................................................... 189
21 CAPITAL AND OPERATING COSTS .............................................................................................. 189
22 ECONOMIC ANALYSIS .......................................................................................................................... 189
23 ADJACENT PROPERTIES .................................................................................................................... 190
24 OTHER RELEVANT INFORMATION ............................................................................................... 191
25 INTERPRETATION AND CONCLUSIONS ................................................................................... 192
26 RECOMMENDATIONS ............................................................................................................................ 194
27 REFERENCES ............................................................................................................................................. 196

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Table of Contents
(continued)

SCHEDULES

A CERTIFICATE OF QUALIFIED PERSON…………………………………………………………………….198

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List of Figures

Page

Figure 4-1 Geographical coordinates of MPSA No. 086-1997-IX 30

Figure 4-2 CADT areas within Balabag MPSA 30

Figure 5-1 Location of BALABAG MPSA relative to Bayog, Pagadian and Zamboanga 38
City

Figure 5-2 Climate map of the Philippines 39

Figure 7-1 Location of the Philippine Mobile Belt with respect to adjacent tectonic 46
plates

Figure 7-2 Tectonic map of the Philippines 47

Figure 7-3 Regional geologic map of Mindanao 48

Figure 7-4 Stratigraphic column for Zamboanga Peninsula, North-Central Zamboanga 48

and Sibugay Peninsula-Olutanga Island

Figure 7-5 Paleontological analysis of samples BL-65765 and BL-65766 have 49

identified several fossils of foraminifera (Lepidocyclina, Miogypsina, and
Cycloclypeus) with some algae and corals, with age range of Early to
Middle Miocene

Figure 7-6 Sample of amygdaloidal basalt 50

Figure 7-7 Local geologic map of Balabag MPSA and vicinity 51

Figure 7-8 TVIRD Updated Geologic Map of Balabag Hill and Vicinity, 2019 (colored 52
lithologies) superimposed on RTEPC, 1997 (uncolored lithologies)

Figure 7-9 TVIRD Detailed Geologic Map of Balabag Hill Au -Ag Deposit, 2019 52

Figure 7-10 Conceptual stratigraphic section of Balabag Hill and adjacent prospects 53

Figure 7-11 Sample of porphyritic andesite 53

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List of Figures
(continued)

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Figure 7-12 Microphotograph of Sample BAL-LAB-2010-16 under crossed polars; 54

altered porphyritic andesite illustrating complete replacement of
plagioclase phenocrysts (center left, bottom right) by fine-grained dense
sericite (tiny yellowish flecks), and replacement of hornblende

Figure 7-13 Microphotograph of Sample BAL-TIN-2010-13 under crossed polars; 55

altered porphyritic andesite cut by a veinlet (bottom) filled by small epidote
crystals (anomalous yellow and brighter colors), albite and epidote after a
plagioclase phenocryst (left half of view), albite after fine-grained felted
groundmass, and fine-grained chlorite filling ovoid to angular vesicles
(center right)

Figure 7-14 Weathered and oxidized outcrop of volcaniclastic breccia sequence at 56

Miswi

Figure 7-15 Microphotograph of altered tuffaceous samples under plain polarized light, 56
(left) clastic textured wall rock fragments enclosed by mosaic-chalcedonic
quartz & interstitial chlorite-illite; (right) pervasive adularia (impregnated
with ultra-fine-grained hematite) formed after clastic wall rock

Figure 7-16 Volcanic breccia specimen sample and microphotograph (BAL-TIN-2010- 57

15); porphyritic andesite clasts in a matrix (oriented NW-SE in this view)
composed of small angular crystals and lithic fragments in fine-grained
matrix

Figure 7-17 Altered dacite from drill hole BDDH-07-63 at 134.18m depth 57

Figure 7-18 Microphotograph of BAL-TIN-2010-11 under crossed polars; argillic 58

altered porphyritic andesite illustrates replacement of a plagioclase
phenocryst (upper right) by a dense mat of fine-grained illitic clay (pale
yellowish color), and replacement of a hornblende phenocryst (left) by
smectite clay (orange yellow) in fine-grained clay-altered groundmass

Figure 7-19 Outcrop of dacite dike intruding volcaniclastic and diatreme breccia 58
sequence outcropping in Unao-Unao area

Figure 7-20 Drill core sample of diatreme breccia (left); diatreme breccia outcrop along 59
Unao-Unao creek with carbonized wood fragments (mid-right)

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List of Figures
(continued)

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Figure 7-21 Lineaments map of North-Central and NE Zamboanga Peninsula 61

Figure 7-22 Interpreted structural map of Balabag MPSA based on satellite imagery 61

Figure 7-23 Interpreted local structural map within Balabag Hill and vicinity 62

Figure 8-1 Argillized porphyritic andesite of BLDH-10-139 (12.15-12.30m) with 0.05 64

g/t Au and 0.25 g/t Ag

Figure 8-2 Balabag MPSA alteration map 65

Figure 8-3 Close-up view of alteration present within Balabag ECC 66

Figure 8-4 Drillhole section looking NE at Tinago (Unao-Unao / Warik-Warik) 67

prospect showing the mineralized zones and alteration

Figure 8-5 Section looking NE of Lalab vein system showing alteration zonation 68
enveloping the mineralized vein system

Figure 8-6 Map showing major vein system and faults within Balabag Hill 69

Figure 8-7 (A) Gold interstitial to mosaic quartz (left 600 µm ppl/rl, right 70 µm ppl/rl); 70
(B) Gold/electrum intergrown with mosaic quartz and pyrite of silica vein
fragment (left 600 µm ppl/rl, right 70 µm ppl/rl); (C) Gold/electrum
intergrown with argentite intergrown with mosaic quartz and adularia (left
600 µm ppl/rl, right 70 µm ppl/rl)

Figure 8-8 BX1 samples that underwent petrographic analysis showing angular 72
volcanic clasts altered by clay and silica

Figure 8-9 (A) BX2 Massive Quartz Vein (VNQ) described as milky; (B) BX2 Banded 73
Quartz Vein (VNB) showing colloform / crustiform texture of alternating
dark and light-colored layers of ginguro bands; (C) BX2 Quartz Vein
Breccia (VNX) with varying sizes of angular-shaped altered clasts in a
quartz altered matrix

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List of Figures
(continued)

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Figure 8-10 Drill core sample of BX2 taken from Tinago Vein System with all three 73
classes of veins (VNB, VNX and VNQ) occurring alongside each other and
their corresponding assay grades

Figure 8-11 BX3 samples with multiple clasts of BX2 (VNB-VNX-VNQ) and 74
volcaniclastics cemented by white to grey quartz

Figure 8-12 BX3 zone intercepted by drilling at Lalab area showing high Au and Ag 74
values

Figure 8-13 (A) QSX1 domain with angular to sub-rounded altered wall rock clasts cut 75
by up to cm-size quartz stockworks; (B) QSW, quartz stockworks hosted by
volcanic wall rocks characterized by crosscutting of veinlets

Figure 8-14 Domain distribution within the Balabag major vein systems 77

Figure 8-15 Chronological sequence of deposition of the domains 77

Figure 8-16 Conceptual sequence of deposition of Balabag Au-Ag Deposit defined by 78

the five mineral domains. BX1 - early hydrothermal event related to diorite
intrusion and hosts BX2 and BX3 mineralization; BX2 - following BX1 event
related to high level dacite intrusions producing typical epithermal veins
cutting host BX1 and volcanic unit, Au - Ag rich; BX3 - late hydrothermal
explosion event resulting to further brecciation after the vein-type BX2
formation within the BX1 and volcanic rock bodies, Au – Ag rich; Dacite -
precursor of BX2 and BX3 (younger than BX1); Volcanic Rock - the country
rock; Fault - both pre- and post-mineral structure

Figure 8-17 Cross section of Balabag deposit showing the structural controls and 79
mineralization

Figure 8-18 Drill section along Line 100E looking SW showing intercepted faults 80
displacing the mineralized veins of Tinago

Figure 8-19 Drill section along Line 125 E looking SW showing intercepted faults 80
displacing the mineralized veins of Tinago and Lalab

Figure 8-20 Three-dimensional view of the main vein systems 81

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List of Figures
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Figure 8-21 Vein outcrop at Warik-Warik 82

Figure 8-22 Tinago and Unao-Unao ore shoots looking north 83

Figure 8-23 Drill section along Line 75W showing Tinago vein system 83

Figure 8-24 Drill section of Lalab ore shoots looking northeast 85

Figure 8-25 Map showing the inferred mineralization and/or deposit types within 89
Balabag MPSA and neighboring areas

Figure 9-1 Photo of channel sampling using rock saw 92

Figure 9-2 Stream sediment sample location map 93

Figure 9-3 Rocks and stream sediment sample locations 96

Figure 9-4 Gold results in stream sediments 97

Figure 9-5 Silver results in stream sediments 97

Figure 9-6 Gold results in rock samples 98

Figure 9-7 Silver results in rock samples 98

Figure 9-8 Section view of a test pit 99

Figure 9-9 Trench location map 100

Figure 9-10 Trenches in South Miswi Area 100

Figure 9-11 Location of small-scale tunnels in Lalab Area 102

Figure 9-12 Location of tunnels at Lalab and Unao-Unao Area 102

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List of Figures
(continued)

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Figure 9-13 Section looking northwest showing the location of small-scale tunnels at 104
Miswi Area

Figure 9-14 Plan view of Unao-Unao Vein System showing the location of small-scale 105
tunnels

Figure 9-15 Location of small-scale tunnels within Balabag Hill 106

Figure 9-16 IP map over Balabag Hill 107

Figure 9-17 Resistivity map over Balabag Hill 107

Figure 10-1 (A) Receiving of drill core samples from the drill site; (B) Core photography 109
by a core house aide; (C) Wrapping of samples using clear packaging tape
prior to cutting; (D) Core cutting by samples by designated core cutters; (E)
Geologist conducting detailed core logging; (F) Sample preparation by a
core house aide; (G) 25 samples with sample numbers ready for dispatch

Figure 10-2 Drilling operation protocol 110

Figure 10-3 Core logging and sampling procedure 111

Figure 10-4 Core handling and sampling procedures 112

Figure 10-5 Fabricated PVC pipes for specific gravity measurements 113

Figure 10-6 Formula used in computing specific gravity 113

Figure 10-7 Balabag drillhole location map 115

Figure 10-8 EDCO diamond drill rig set-up in Lalab Area 116

Figure 10-9 Three-dimensional view of the major veins in Balabag Hill as intercepted by 116
drillholes

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List of Figures
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Figure 11-1 Sample location map per laboratory submission 122

Figure 11-2 Standard control chart for OxC44 (Au ppm), analyzed at McPhar 126
Laboratory

Figure 11-3 Standard control chart for OxD43 (Au ppm), analyzed at McPhar 127
Laboratory

Figure 11-4 Standard control chart for OxE42 (Au ppm), analyzed at McPhar Laboratory 127

Figure 11-5 Standard control chart for OxF41 (Au ppm), analyzed at McPhar Laboratory 128

Figure 11-6 Standard control chart for OxG46 (Au ppm), analyzed at McPhar 128
Laboratory

Figure 11-7 Standard control chart for OxH372 (Au ppm), analyzed at McPhar 129
Laboratory

Figure 11-8 Standard control chart for OxI40 (Au ppm), analyzed at McPhar Laboratory 129

Figure 11-9 Standard control chart for OxL34 (Au ppm), analyzed at McPhar Laboratory 130

Figure 11-10 Standard control chart for OREAS 53Pb (Au ppm) analyzed at Canatuan 131
Mine Laboratory

Figure 11-11 Standard control chart for OREAS 15g (Au ppm) analyzed at Canatuan 132
Mine Laboratory

Figure 11-12 Standard control chart for OREAS 65a (Au ppm) analyzed at Canatuan 132
Mine Laboratory

Figure 11-13 Standard control chart for OREAS 18c (Au ppm) analyzed at Canatuan 133
Mine Laboratory

Figure 11-14 Standard control chart for OREAS 6Pc (Au ppm) analyzed at Canatuan 133
Mine Laboratory

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(continued)

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Figure 11-15 Standard control chart for OREAS 15d (Au ppm) analyzed at Canatuan 134
Mine Laboratory

Figure 11-16 Standard control chart for OREAS 16a (Au ppm) analyzed at Canatuan 134
Mine Laboratory

Figure 11-17 Standard control chart for OREAS 54Pa (Au ppm) analyzed at Canatuan 135
Mine Laboratory

Figure 11-18 Standard control chart for OREAS 60b (Au ppm) analyzed at Canatuan 135
Mine Laboratory

Figure 11-19 Standard control chart for OREAS 67a (Au ppm) analyzed at Canatuan 136
Mine Laboratory

Figure 11-20 Standard control chart for OREAS 16b (Au ppm) analyzed at Canatuan 136
Mine Laboratory

Figure 11-21 Standard control chart for OREAS 12a (Au ppm) analyzed at Canatuan 137
Mine Laboratory

Figure 11-22 Standard control chart for OREAS 62d (Au ppm) analyzed at Canatuan 138
Mine Laboratory

Figure 11-23 Standard control chart for OREAS 62c (Au ppm) analyzed at Canatuan 138
Mine Laboratory

Figure 11-24 Standard control chart for GBM996-3 (Ag ppm) analyzed at Canatuan Mine 139
Laboratory

Figure 11-25 Standard control chart for GBM300-5 (Ag ppm) analyzed at Canatuan Mine 139
Laboratory

Figure 11-26 Standard control chart for OREAS 600 (Au ppm) analyzed at Balabag Mine 140
Laboratory

Figure 11-27 Standard control chart for OREAS 607 (Au ppm) analyzed at Balabag Mine 141
Laboratory

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Page

Figure 11-28 Standard control chart for OREAS 601 (Au ppm) analyzed at Balabag Mine 141
Laboratory

Figure 11-29 Standard control chart for OREAS 608 (Au ppm) analyzed at Balabag Mine 142
Laboratory

Figure 11-30 Standard control chart for OREAS 602 (Au ppm) analyzed at Balabag Mine 142
Laboratory

Figure 11-31 Standard control chart for OREAS 602b (Au ppm) analyzed at Balabag 143
Mine Laboratory

Figure 11-32 Standard control chart for OREAS 60d (Au ppm) analyzed at Balabag Mine 143
Laboratory

Figure 11-33 Standard control chart for OREAS 61f (Au ppm) analyzed at Balabag Mine 144
Laboratory

Figure 11-34 Standard control chart for OREAS 603b (Au ppm) analyzed at Balabag 144
Mine Laboratory

Figure 11-35 Standard control chart for OREAS 62f (Au ppm) analyzed at Balabag Mine 145
Laboratory

Figure 11-36 Standard control chart for OREAS 600 (Ag ppm) analyzed at Balabag Mine 146
Laboratory

Figure 11-37 Standard control chart for OREAS 602 (Ag ppm) analyzed at Balabag Mine 146
Laboratory

Figure 11-38 Standard control chart for OREAS 602b (Ag ppm) analyzed at Balabag 147
Mine Laboratory

Figure 11-39 Standard control chart for OREAS 62f (Ag ppm) analyzed at Balabag Mine 147
Laboratory

Figure 11-40 Standard control chart for OREAS 61f (Ag ppm) analyzed at Balabag Mine 148
Laboratory

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List of Figures
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Figure 11-41 Standard control chart for OREAS 603b (Ag ppm) analyzed at Balabag 148
Mine Laboratory

Figure 11-42 Standard control chart for OREAS 60d (Ag ppm) analyzed at Balabag Mine 149
Laboratory

Figure 11-43 Standard control chart for OREAS 60d (Ag ppm) analyzed at Balabag Mine 149
Laboratory

Figure 11-44 Standard control chart for OREAS 607 (Ag ppm) analyzed at Balabag Mine 150
Laboratory

Figure 11-45 Standard control chart for OREAS 601 (Ag ppm) analyzed at Balabag Mine 150
Laboratory

Figure 11-46 Coarse Duplicates (Au ppm) analyzed at McPhar Laboratory 151

Figure 11-47 Pulp Duplicates (Au ppm) analyzed at McPhar Laboratory 151

Figure 11-48 Coarse Duplicates (Au ppm) analyzed at Canatuan Mine Laboratory 152

Figure 11-49 Coarse Duplicates (Ag ppm) analyzed at Canatuan Mine Laboratory 152

Figure 11-50 Coarse Duplicates (Au ppm) analyzed at Balabag Mine Laboratory 153

Figure 11-51 Coarse Duplicates (Ag ppm) analyzed at Balabag Mine Laboratory 153

Figure 11-52 Blank samples (Au ppm) analyzed at McPhar Laboratory 154

Figure 11-53 Blank samples (Au ppm) analyzed at Canatuan Mine Laboratory 155

Figure 11-54 Blank samples (Ag ppm) analyzed at Canatuan Mine Laboratory 155

Figure 11-55 Relative difference plot of coarse duplicates (Au), ALS vs primary assays 156

Figure 11-56 Percentile chart of coarse duplicates (Au), ALS vs primary assays 157

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Figure 11-57 Relative difference plot of pulp duplicates (Au), ALS vs primary assays 157

Figure 11-58 Relative difference plot of pulp duplicates (Au), ALS vs primary assays 158

Figure 11-59 Percentile chart samples analyzed at Agata Lab vs Ostrea Lab 158

Figure 14-1 Three-dimensional representation of mineralized bodies (plan view) 164

Figure 14-2 Interval length vs. gold grade for determination of optimum composite 166
length

Figure 14-3 Gold and silver histograms for true veins and stockworks 167

Figure 14-4 Scatter plot of gold vs silver 167

Figure 14-5 Gold and silver histogram for BX2 168

Figure 14-6 Gold and silver histogram for BX3 169

Figure 14-7 Gold and silver histogram for QSW 170

Figure 14-8 Variogram model for BX2 172

Figure 14-9 Variogram model for BX3 173

Figure 14-10 Variogram model for QSW 174

Figure 14-11 Block model details—origin and block size 175

Figure 14-12 Details of search ellipse per vein group (location) 176

Figure 14-13 Block model section at 50W, looking West 177

Figure 14-14 Block model section at 75W, looking West 177

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List of Figures
(continued)

Page

Figure 14-15 Block model section at 100W, looking West 178

Figure 14-16 Plan map showing reference plane in main Tinago area 178

Figure 14-17 Block model gold grade versus actual samples per elevation 179

Figure 14-18 Plan view showing the distribution of Measured, Indicated and Inferred 180
Resource relative to drillholes.

Figure 14-19 Distribution of Mineral Resource Blocks at 0.4 g/t AuEq cut-off grade 181

Figure 14-20 Formula for gold equivalent conversion 183

Figure 14-21 World Bank Price Forecast for precious metals (US dollars) 184

Figure 14-22 Block distribution relative to topography model 185

Figure 14-23 Resource grade-tonnage curve (BM: TVIAL042021) 186

Figure 14-24 Location of old tunnels (gray outline) relative to the resource block model 187

Figure 14-25 Cross-section view showing location of tunnels relative to October 2020 187
topography

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List of Tables

Page

Table 1-1 Mineral Resource Estimate of the Balanbag Gold-Silver Project, 25

May 15, 2021

Table 4-1 Geographical coordinates of MPSA No. 086-1997-IX 29

Table 4-2 Membership of MMT 34

Table 4-3 Membership of CLRF-SC 34

Table 4-4 Status of Key Balabag Project Permits Received 35

Table 5-1 Climate data of Bayog, Zamboanga del Sur 39

Table 8-1 Alteration zonation in relation to ore zones 65

Table 8-2 Gold grades of the five mineral domains 76

Table 8-3 Silver grades of the five domains 76

Table 8-4 Significant intercepts from Phase 1 to 4 drilling program 86

Table 10-1 Result of Density analysis 114

Table 10-2 Balabag exploration drilling statistics 115

Table 11-1 Total Balabag sample dispatch per laboratory from year 2005 to 2021 124

Table 11-2 Quality control pass/fail criteria for both gold and silver 125

Table 11-3 Certified reference materials used by McPhar Laboratory (2005-2007) 126

Table 11-4 Certified Reference Materials analyzed at Canatuan Mine Laboratory 130
(2007-2013)

Table 11-5 Certified Reference Materials analyzed at Balabag Mine Laboratory (2019- 140
2020)

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List of Tables
(continued)

Page

Table 11-6 Certified Reference Materials analyzed at Balabag Mine Laboratory (2019- 145
2020)

Table 11-7 Samples submitted to ALS Chemex for re-analysis 156

Table 14-1 Rock code assignment for each domain/ rock type 164

Table 14-2 Basic statistics of gold, silver assays and capped values 165

Table 14-3 Basic statistics for BX2 168

Table 14-4 Basic statistics for BX3 169

Table 14-5 Basic statistics for QSW 170

Table 14-6 Density factor for each domain / rock type 171

Table 14-7 Mineral Resource Estimate of the Balabag Gold-Silver Project, 181
May 15, 2021

Table 14-8 Breakdown of Measured and Indicated Mineral Resource of the Balabag 182
Gold-Silver Project arranged per AuEq* grade

Table 14-9 Breakdown of Inferred Mineral Resource of the Balabag Gold-Silver Project 182
arranged per AuEq* grade

Table 14-10 Baseline assumptions used in calculating the gold equivalent cut-off grade 183

Table 14-11 World Bank Price Forecast for Gold and Silver from Year 2021 to 2025 184

Table 26-1 Proposed Phase 1 Exploration Program Budget 195

Table 26-2 Proposed Phase 2 Exploration Program Budget 195

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NOTICE
This report was prepared as a National Instrument 43-101 Technical Report, in accordance
with Form 43-101F1, for TVI Pacific Inc. The quality of information, conclusions and estimates
contained herein is based on: (i) information available at the time of preparation; (ii) data
supplied by outside sources, and (iii) the assumptions, conditions and qualifications set forth
in this report.
TVI Pacific Inc. is authorized to file this report as a Technical Report with the Canadian
Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the
purposes legislated under provincial securities law, any other use of this report by any third
party is at that party’s sole risk.

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1 EXECUTIVE SUMMARY

Mr. Jaime C. Zafra was retained by Mr. Clifford M. James, President and CEO of TVI Pacific
Inc. (“TVIP”) to prepare an updated independent Mineral Resource Report (“updated Mineral
Resource Report”), according to the National Instrument 43-101 - Standards of Disclosure
for Mineral Projects (“NI 43-101”) on the Balabag Project (“Balabag”) in Zamboanga,
Philippines. TVIP has a 30.66% interest in TVI Resource Development (Phils.) Inc. (“TVIRD”),
a private Philippine resource company with operations, development and exploration projects
in the Philippines, including Balabag, which is 100% owned by TVIRD. The updated Mineral
Resource Report will be used by TVIP, a publicly traded Canadian resource company listed
on the TSX Venture Exchange, in fulfillment of their continuing disclosure requirements under
Canadian Securities laws, including NI 43-101. This updated Mineral Resource Report is
written in support of an updated Mineral Resource Estimate based on results of further
exploration works conducted in late 2017 to December 2020 for the Balabag gold and silver
deposit (part of the Balabag Hill Project).

Mr. Jaime C. Zafra, BSGeo. PGeo. FAusIMM is the Qualified Person (“QP”) for this report. He
has 42 years of experience in the field of geology, exploration of epithermal gold deposits and
Mineral Resource estimation in the Philippines, Laos, Indonesia and Papua New Guinea.

A site visit was undertaken by the QP who examined the style of mineralization in the explored
areas, reviewed the drilling and sampling conducted and the assaying of gold and silver
procedures during the period January 16 to January 19, 2021. Mr. Zafra observed that drilling
and sample protocols, including sample methodology, the preparation of samples and their
subsequent analyses, have been conducted in accordance with industry standards using
appropriate quality assurance/quality control procedures in all exploration activities of TVIRD.
The QP further considers that the geological and assay data during his verification of the
database, having found no inconsistencies, is robust and suitable for use as inputs into a
Mineral Resource Estimate.

To the best of the QP’s knowledge, there are no environmental, permitting, legal, title, taxation,
socio-political, market, political or other relevant factors that would materially impact the
Mineral Resource Estimate presented in this updated Mineral Resource Report.

Balabag is situated within the municipalities of Bayog, Province of Zamboanga del Sur, and
Diplahan and Kabasalan, Province of Zamboanga Sibugay, Mindanao Island, the Philippines.
Mineral exploration activities conducted by TVIRD such as detailed geological mapping,
outcrop sampling and diamond drilling since 2005 have confirmed the presence of mineralized
bodies within the east-west trending epithermal vein system in Balabag Hill. Gold and silver
are the two elements of economic interest which have been identified thus far in the Balabag
Project.

Three major quartz vein systems in the area were identified: Tinago-Unao-Unao-Yoyon veins
to the north; Miswi veins in the east; and Lalab veins to the south. The veins exhibit various
epithermal quartz vein textures such as colloform, crustiform, massive, drusy, vuggy, comb
and cockade textures. Multiphase brecciation texture are also dominant. Quartz stringers and
quartz stockworks also occur adjacent to most quartz veins ranging from hairline to centimeter
sizes. The geometry of the veins and the associated stockworks are generally sub-horizontal

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at the Tinago and Miswi areas while a sub-vertical attitude of veins is notable in the Lalab
area.

In 2007, an NI 43-101 technical report was prepared by P.J. Lafleur Geo-Conseil Inc.,
elaborating the first resource estimate of the Balabag Project based on 66 drillholes initially
completed by TVIRD from 2005 to early 2007.
As more drilling progressed after the initial resource estimate, TVIRD categorized the types of
quartz veins into two major geological domains. The previously known Domain 1 represents
the true veins having more predictable continuity and grade uniformity. Domain 2, on the other
hand, was characterized by quartz stockwork and silicified andesite. The stockworks were
considered as another domain due to the erratic nature of grades and thickness.
A second NI 43-101 technical report was produced by Georeference Online Ltd in June 2012.
Clinton P. Smyth, P. Geo authored the report and updated the Balabag resource table based
on drilling data gathered to the end of June 2011. Mr. Smyth estimated a total Indicated
Resource of 1.78 million tonnes at 2.34 g/t Au and 72.3 g/t Ag using a cut-off grade of 0.0 g/t
and applying the definition of the indicated resource only to the Domain 1 resource
mineralization as determined at that time. The Domain 2 resource mineralization was not
considered a mineral resource by Georeference.
With the resumption of TVIRD’s exploration works in late 2017 up to the present time, a
detailed mapping of surface outcrops and several underground tunnels has been conducted
to further understand the geology of the Balabag deposit. More infill drilling was carried out to
test the vein continuity and its cross-cutting relationships and to determine the stages of
mineralization. The total number of drillholes in the project reached 382 holes with a
cumulative meterage of 41,161.60 meters as of December 2020.
The resource drilling from October 2018 to December 2020 within Balabag Hill targeted the
vein system extensions at the Lalab, Miswi and Unao-Unao areas. The drilling program was
carried out in Phases:
● Phase 1 drilling aimed to increase the resource at the Lalab area. A total of twelve (12)
drillholes with an aggregate meterage of 1,068.10 meters were drilled. Drillholes were
oriented on a NW direction to intersect the true width of the vein. Four (4) sub-vertical
veins were encountered during drilling.
● Phase 2 drilling with fifteen (15) drillholes and an aggregate meterage of 1,211.95
meters focused on Miswi veins particularly on the up dip and down dip portions of the
holes that were drilled along the Duala tunnel.
● Phase 3 drilling focused on the up dip and down dip portions of the Monding
mineralized veins at the Unao-unao area. Twenty-four (24) drillholes with a total
meterage of 1,859.45 meters were drilled.
● Phase 4 drilling with 35 drillholes having an aggregate meterage of 2,866.50 meters
targeted the shallow and possible deeper mineralized veins in the Lalab, Miswi, Tinago
and Mossad areas.

A total of 109 drillholes, including the above noted eighty-six (86) drillholes and a further 23
drillholes completed in 2012 and 2013, have been added to the Balabag database since the
NI 43-101 technical report produced by Georeference Online Ltd in June 2012 and filed on
SEDAR on August 15, 2012.

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Recent drilling has provided the opportunity to further subdivide the previously generated
geological domains into five new mineral domains: BX1, BX2, BX3, QSW and QSX1. The
prefix “BX” stands for hydrothermal breccia while the succeeding number denotes the
sequence of deposition. Quartz stockworks that are hosted by wall rock are under the quartz
stockwork (“QSW”) domain whereas quartz stockworks that are hosted by BX1 are designated
as the QSX1 domain.
● BX1 is mostly silicified breccia with volcanic breccia clasts cemented by grey quartz
with crisscross hairline-millimeter white-translucent quartz stockwork. Clasts are
normally altered to silicification and argillized, and also appear in irregular shapes.
● BX2 displays overprinting of typical epithermal textures in one body. Clasts comprise
of wallrock and silicified matrix or cement material of the ore. Ginguro texture is also
common in BX2 and often reflects high gold grades.
● BX3 recorded the highest and consistent gold grades in the model. Breccia clasts here
are not only the altered and mineralized wallrock but also the gold-bearing quartz vein
itself. Sulphide minerals are notable in this rock type.
● QSX1 covers quartz stockworks which occur in between mineralized veins, particularly
associated with BX1.
● QSW are the typical stockworks found in the deposit.
The estimated Measured and Indicated Mineral Resource for Balabag using a cut-off grade of
0.4 g/t AuEq is 4.35 million tonnes at 1.79 g/t Au and 43.08 g/t Ag for 2.36 g/t AuEq. This is
equivalent to approximately 331,000 AuEq oz at metal prices of US$1,500/oz Au and
US$20/oz Ag. The estimated Inferred Resource is 140,919 tonnes at 2.78 g/t Au and 64.11
g/t Ag for 3.63 g/t AuEq. The overall Mineral Resource as of May 15, 2021 is summarized in
Table 1-1.
A nominal cut-off grade of 0.4 g/t AuEq was used in reporting the Mineral Resource. Gold
equivalent was used as the cut-off grade parameter to give credit to both gold and silver
values, at prices of US$1,500/oz and US$20/oz, respectively.

The mineral resource was estimated using a conventional geostatistical block modeling
approach constrained by mineralization wireframes. Geostatistical analysis, capping,
variography and estimation were conducted on the in-situ gold and silver data. As noted by
previous authors, particularly C.P. Smyth, grades at Balabag are extremely erratic due to
variograms unsuitable for use in kriging. This is expected, given the non-normal distribution of
gold and silver values in both true veins and stockworks. Hence, the Inverse Distance Squared
(“ID2”) method was deemed more practical to use instead of Ordinary Kriging. Grade
interpolation was done per major vein locations: Tinago and Unao-Unao; Miswi; and Lalab.
Separate search ellipses were used per general vein structure, following the strike of the
deposit. The orientation of each search ellipse was based on the geological interpretation
made on three major locations in the project area.
Roughly 70,000 tonnes with a grade of 2.18 g/t Au and 71.56 g/t Ag have been estimated as
potential small-scale mining volume depletion below the October 2020 topography model,
prior to the eviction of small-scale miners from Balabag in 2012. This estimated volume has
been deducted from the overall resource estimate.

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Table 1-1: Mineral Resource Estimate of the Balabag Gold-Silver Project, May 15, 2021

Category Tonnage Au (g/t) Ag (g/t) AuEq (g/t) AuEq (oz)

Measured 3,016,143 1.80 50.80 2.48 241.000
Indicated 1,338,029 1.74 25.69 2.08 90,000
TOTAL 4,354,172 1.79 43.08 2.36 331,000

Inferred 140,919 2.78 64.11 3.63 16,000

Sample protocols, including sample methodology, preparation, analyses and data verification
have been conducted in accordance with industry standards using appropriate quality
assurance/quality control procedures in all exploration activities of TVIRD. Quality Assurance
and Quality Control (“QA/QC”) measures were implemented to monitor the accuracy and
precision of assay data from analytical laboratories and have included:
● Monitoring the performance of laboratories in terms of analytical accuracy, precision
and bias via Certified Reference Materials (“CRMs”).
● Use of coarse blank material to detect sample preparation contamination.
● Sampling and sample preparation procedures were monitored via analysis of field
duplicates and laboratory duplicates.
● Exploration samples were submitted for analysis at an umpire laboratory as a check
on overall performance.
TVIRD led a comprehensive metallurgical test campaign at various times after earlier drilling
phases to evaluate the feasibility of processing the Balabag gold and silver ore. As a vital part
of the initial internal scoping studies, a bulk mineralogy and gold deportment study was
initiated in order to characterize the ore and acquire some guidance into developing the basic
process flowsheet. Several metallurgical test campaigns were undertaken to determine the
amenability of the ore to various unit operations and concentration processes.
There are numerous mining tenements surrounding the Balabag Mineral Production Sharing
Agreement (“MPSA”) tenements, however, there are no known exploration or development
activities in these areas despite the general area’s favorable geology. None of the tenement
holders or operators of adjacent properties have published a mineral resource. No
representation is made here implying continuity of mineralization from any adjacent property.
There is opportunity for the discovery of epithermal Au-Ag, porphyry Cu-Au and massive
sulfide-style mineralization within the region of Balabag. Historic mining shows that Au-Ag,
Cu, and Zn are present in the region and may contain significantly larger resources than the
current and historical workings have exploited and are currently exploiting.

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2 INTRODUCTION

Exploration works conducted by TVIRD such as detailed geological mapping, outcrop

sampling and diamond drilling confirm the presence of mineralized bodies within the east-west
trending epithermal vein system in Balabag Hill. The area is characterized by quartz-veining
and silica replacement within andesitic to dacitic volcanic and fine-grained laminated
tuffaceous host rocks.

Gold and silver are the two elements of economic interest which have been identified so far in
the Balabag Project.

2.1 Scope of Work

TVIP has retained the services of Mr. Jaime C. Zafra, BSGeo. PGeo., for this updated mineral
resource estimate based on results of further exploration works that have included mapping
and drilling conducted in the late 2017 to December 2020 period for the Balabag gold and
silver deposit (part of the Balabag Hill Project). An earlier NI 43-101 report on resource
estimates was authored by Mr. P.J Lafleur of Geo-Conseil Inc. in 2007 and was subsequently
updated by Georeference Online Ltd in June 2012. The June 2012 report was authored by
Mr. Clinton Smyth, P.Geo, of Georeference Online Ltd and provided an update of the Balabag
resource table based on drilling data gathered through to the end of June 2011. Mr. Smyth
estimated a total Indicated Resource of 1.78 million tonnes with grades of 2.34 g/t Au and 72.3
g/t Ag, using a cut-off grade of 0.0 g/t.

This updated Mineral Resource Report has been prepared to update the mineral resource
estimate for the Balabag Project as previously prepared in June 2012 by Georeference Online
Ltd for TVIRD.

2.2 Qualification and Experience

This updated mineral resource estimate has been produced for NI 43-101 reporting. Mr. Jaime
C. Zafra, BSGeo. PGeo. FAusIMM is the Qualified Person (“QP”) for this report. Mr. Zafra has
significant experience in the style of gold and silver deposition in the Philippines and other
epithermal gold-silver deposits in Laos, Indonesia and Papua New Guinea. Mr. Zafra has 42
years of experience in the field of geology, mineral exploration and mineral resource
estimation, project development, mineral resource / reserve modelling and studies and mineral
property evaluation.

Mr. Zafra has managed drilling programs, mine development, grade control, operations and
the performance of resource and financial modeling for the preparation of Mineral Resource
and Mineral Reserve reports for iron, magnetite sands, nickel and gold projects for companies
in the Philippines and Lao PDR.

Mr. Zafra is the Technical Consultant for the Phu Kham Gold Project of Nikki Lao Sole Co.
Ltd. (Laos), Consultant for the Sultan Kudarat Gold Project with GRCO Isulan Mining
Corporation (Philippines), Chairman of the Board of Directors and President of Geotechniques

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and Mines, Inc. in joint venture with F. A. Nepomuceno Construction & Development, Inc. for
its Mariveles, Bataan, Philippines Armour Rock and Rock Aggregates Project, and Director
and Senior Vice-President/COO of Batangas Exploration and Development, Inc. which worked
on the evaluation of projects in the Philippines, including gold, nickel and iron sand projects.

Mr. Zafra has also acted as a Project Consultant or Geologist (Philippine Competent Person
(“CP”)) with various other exploration projects, including Eramen Mining Corp. (Philippines),
Baraka Resources Ltd. (Philippines), Howerstock Ltd. (South Sudan), and Voco Point Trading
Pty. Ltd. (Papua New Guinea) with respect to gold-silver, iron sand and nickel laterite projects.

Mr. Zafra fulfills the requirements to be a QP for the purposes of NI 43-101 by being a Fellow
of the Australasian Institute of Mining and Metallurgy. Mr. Zafra is also an Accredited
Competent Person with the Geological Society of the Philippines and has considerable
involvement and significant experience with gold-silver, nickel and iron projects.

2.3 Site Visit

A site visit was undertaken between January 16 and January 19, 2021 by Mr. Jaime C. Zafra.
Mr. Zafra examined mineralization in the explored areas, reviewed the drilling and sampling
conducted and the assaying of gold and silver procedures.

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3 RELIANCE ON OTHER EXPERTS

In preparation of this report the author has relied upon others for information pertaining to land
status, environmental liabilities and historic exploration.

3.1 Land Status, Environmental Studies and Permitting

The QP, Mr. Zafra, has fully relied upon and disclaims responsibility for information provided
by TVIRD regarding property ownership and mineral tenure for the Balabag Project. Mr. Zafra
has not reviewed the property title or mineral rights for Balabag, nor has he reviewed the
permitting requirements or independently verified the permitting status or environmental
liabilities associated with Balabag, and also disclaims responsibility for that information, which
is presented in Sections 4 and 5 of the current report and presented as provided by TVIRD.

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4 PROPERTY DESCRIPTION AND LOCATION

4.1 Property Area and Location

The Balabag Project is situated within an approved MPSA registered under the name of
TVIRD. The approved and issued MPSA denominated as MPSA No. 086-1997-IX consists of
59 contiguous meridional blocks of half minute longitude and half minute latitude with a total
area of 4,779 hectares. The MPSA is bounded by the geographic coordinates as shown in
Table 4-1.
Table 4-1: Geographical coordinates of MPSA No. 086-1997-IX

The MPSA is located within the Municipalities of Bayog, Diplahan and Kabasalan, Provinces
of Zamboanga Del Sur and Zamboanga Sibugay, Island of Mindanao, Philippines (Figure 4-
1).

The northern portion of the Balabag MPSA is within Certificate of Ancestral Domain Title
(“CADT”) No. RIX-SIN-0908-075 issued by the National Commission of Indigenous People
(“NCIP”) to the Subanen Indigenous tribe. The CADT encompasses a total of 47,720 hectares
wherein approximately 15% of the northernmost portion of the MPSA is located. The central
to southern portion of the MPSA tenement is covered by a CADT application of the same
Subanen tribe.

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Figure 4-1: Geographical coordinates of MPSA No. 086-1997-IX.

Figure 4-2: CADT areas within the Balabag MPSA.

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4.2 Licenses and Mineral Tenure

The MPSA was approved on November 20, 1997 by the Department of the Environment and
Natural Resources (“DENR”) and was registered on May 6, 1998 with the Mines and
Geosciences Bureau (“MGB”) Regional Office No. IX in Zamboanga City. The MPSA was
originally granted under the name of Zamboanga Minerals Corporation (“ZMC”). ZMC
assigned the MPSA to TVIRD pursuant to a Deed of Assignment (“DOA”) executed by the two
companies on July 6, 2009 with an addendum to the DOA executed on August 27, 2009. The
DENR approved the DOA on September 28, 2009.

The approved MPSA has a term not exceeding 25 years from the date of the execution thereof
and renewable for another term not exceeding 25 years. The approved MPSA gives the right
to the Contractor to explore the MPSA area for a period of 2 years renewable for like periods
but not to exceed a total term of 8 years, subject to annual review by the MGB Director to
evaluate compliance with the terms and conditions of the MPSA and subject to extension for
another 2 years at the discretion of the MGB Director.

TVIRD is required to strictly comply with the approved Exploration and Environmental Work
Programs together with their corresponding budgets. These work programs are required to be
submitted by TVIRD as requirements in securing the renewal of the Exploration Period within
the MPSA term. TVIRD is likewise required to submit quarterly, bi-annual, and annual
accomplishment reports under oath on all activities conducted in the Contract Area. All the
reports submitted to the MGB are subject to the confidentiality clause of the MPSA.

If the results of exploration reveal the presence of mineral resource, TVIRD, during the
exploration period, shall submit a Declaration of Mining Project Feasibility (“DMPF”) together
with a Mining Project Feasibility Study; a 3-year Development and Utilization Work Program;
a Final Exploration Report; a Five-Year Social Development and Management Plan (“SDMP”);
an Environmental Protection and Enhancement Plan (“EPEP”); a Final Mine Rehabilitation
and Decommissioning Plan (“FMRDP”); an approved Survey Plan; an Environmental
Compliance Certificate (“ECC”); and endorsements from 2 out of 3 Local Government Units
(“LGUs”). Failure by TVIRD to submit a DMPF during the Exploration Period shall be
considered a substantial breach of the MPSA. In addition to these, a Contingent Liability Fund-
Steering Committee (“CLRF-SC”), a Mine Rehabilitation Fund Committee (“MRFC”) and a
Multi-partite Monitoring Team (“MMT”) need to be formed exclusive for the proposed mining
project.

The ECC was issued to TVIRD on October 1, 2013 and the DMPF approved on April 29, 2016.

The Balabag MPSA is in good standing as it is compliant with the terms and conditions of the
MPSA and the Implementing Rules and Regulations of the Philippine Mining Act of 1995.

On September 19, 2019, the Company commenced the renewal process of the Balabag
MPSA, which will expire on November 19, 2022. One of the major requirements for any
renewal is a passing grade on the Tenements, Social, Health, Environmental, Social

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(“TSHES”) audit, which TVIRD accomplished. On March 19, 2021, Secretary Roy A. Cimatu
of the DENR issued an Order approving the renewal of MPSA No. 086-1997-IX, the Balabag
MPSA, for an additional twenty-five (25) year period through to November 20, 2047.

4.3 Agreements, Royalties and Encumbrances

An MPSA is a form of Mineral Agreement, for which the Philippine government grants the
MPSA holder (the “Contractor”) the exclusive right to conduct mining operations within, but
not title over, the contract area during a defined period. Under this agreement, the Government
shares in the production of the Contractor, whether in kind or in value, as owner of the
minerals. The total government share in a MPSA shall be the excise tax on mineral products.
The excise tax is currently 4% of the actual market value of the gross output at the time of
extraction. In return, the Contractor shall provide the necessary financing, technology,
management, and personnel for the mining project. Allowable mining operations include
exploration, development, utilization of mineral resources, and rehabilitation of the areas
disturbed during each phase of mining.

Balabag is covered by the CADT of the Indigenous Cultural Community (“ICC”) of the Subanen
Tribe of Bayog. Under the Indigenous Peoples Reformed Act (“IPRA”) of 1997, no Tax
Declarations, Land Titles and other surficial or tenurial rights instruments are allowed within a
CADT area unless these have been issued prior to the effectivity of the IPRA Law in 1997.
TVIRD, after satisfying all the requirements of the Free and Prior Informed Consent (“FPIC”)
process set forth by the NCIP, signed a Memorandum of Agreement (“MOA”) with the ICC of
the Subanen Tribe of Bayog on August 19, 2014. The MOA between the Subanen Tribe of
Bayog and TVIRD allows TVIRD to conduct exploration, development and utilization activities
within Balabag. The MOA is co-terminus with the life of the MPSA. Once operational, the
Subanen Tribe of Bayog will receive a 1% royalty of the gross amount of the mineral products
that will be extracted from Balabag.

The harmonious relationship between TVIRD and the Subanen Tribe of Bayog and TVIRD’s
fulfillment of its obligations under the terms and conditions of the MOA have ensured that no
violations have been incurred by TVIRD.

TVIRD is required to pay an excise tax of 4% of the value of its production should it proceed
to the production stage. Other taxes, fees, and funds that will be imposed during the production
stage are Municipal and National Business Taxes, Environmental Fees, the Social
Development Fund and Final Mine Rehabilitation Fund, Corporate Tax and a net smelter
royalty (“NSR”) due to ZMC arising from the MOA signed with ZMC on April 26, 2005 (“the
ZMC MOA”). The NSR is to be calculated at 2.5% on the gross proceeds of gold and other
minerals produced from commercial mining operations, less all costs incurred in the smelting
and refining of such gold minerals and is to be paid quarterly.

TVIRD is further required to pay, at the same date every year determined from the date of the
first payment, an occupation fee over the Contract Area equal to 75.00 Philippine pesos per
hectare to the concerned LGU. If the fee is not paid on the date specified, TVIRD shall pay a

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surcharge of 25% of the amount due in addition to the occupation fees. A non-payment of the
occupation fees for two (2) consecutive years may result in cancellation of the MPSA.

TVIRD has been paying the Occupation Fees since the granting of the MPSA in addition to
the municipal business tax.

4.4 Environmental Obligations

All mining projects are typically evaluated and assessed for their economic, social, cultural,
and environmental impacts and contributions. This includes consideration of potential risks
associated with the respective project and how to mitigate such in response to the
requirements of the Philippine Mining Act and related compliance obligations. Compliance
obligations may be categorized as follows:

▪ Licensing and/or permitting requirements, that include but are not limited to:
➢ ECC;
➢ Wastewater Discharge Permit;
➢ Notice to Proceed; and,
➢ Others.
▪ Reportorial obligations;
▪ Laws and regulations;
▪ Best practice standards, that include but are not limited to:
➢ ISO 14001:2015;
➢ Tenements, Safety & Health, Environment and Social (“TSHES”) management
performance audits;
➢ Monitoring by stakeholders; and,
➢ Others.
▪ Requirements of interested parties, as considered relevant by the MPSA holder.

The Environmental Impact Assessment (“EIA”) relative to the project is integrated in the
planning process at the Project Feasibility Stage through which adverse environmental
impacts of proposed actions are considerably reduced through a reiterative review process of
project siting, design and other alternatives, and the subsequent formulation of environmental
management and monitoring programs. From these, a positive determination by the DENR
Environmental Management Bureau (“EMB”) results in the issuance of an ECC that assists
the MPSA holder in its development and operational plans. The ECC and the Environmental
Impact Statement from the EIA then serves as the basis in the preparation of the EPEP and
FMRDP.

The MPSA holder’s compliance with the conditions stipulated in the ECC, Environmental
Management Plan and Environmental Monitoring Plan from the EIA, and commitments made
in the EIA Report, EPEP, and FMRDP, is monitored quarterly, or more frequently, as may be
deemed necessary by the MMT. The MMT is responsible to monitor compliance and consists
of the following members:

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Table 4-2: Membership of MMT

Chairman Regional Office representative.

Member Department Regional Office representative.
Member EMB Regional Office representative.
Member Contractor / Permit Holder representative.
Member Affected Community representative.
Member Affected Indigenous Cultural Community (“ICC”) representative.
Member Environmental NGO representative.

The Chairman of the MMT is responsible to regularly submit to the MRFC a report on the
status and/or result of its monitoring activities with a copy to the CLRF-SC. The CLRF-SC
shall then evaluate and either approve or disapprove of the submitted EPEP and FMRDP
while reviewing the adequacy of control and rehabilitation measures and monitoring the
MRFC. The CLRF-SC is composed of the following members:

Table 4-3: Membership of CLRF-SC

Member A director of the MGB.

Member A director of the EMB.
Member A director of the Lands Management Bureau.
Member A director of the Bureau of Soils and Water Management.
Member A director of the Bureau of Fisheries and Aquatic Resources.
Member The Administrator of the National Irrigation Administration.
Member The Assistant Director of the MGB.

In addition to the above, a standardized monitoring system is also being implemented whereby
activities of the permit holder will be monitored annually and their performance scored and
rated through a Compliance Scorecard. Permit holders who fail to comply with the above
standards shall be deemed non-compliant and subject to penalties and/or their respective
permit(s) subject to suspension/cancelation.

In compliance with the Philippine Mining Act of 1995, TVIRD, holder of the Balabag MPSA
086-1997-IX, has a final mine rehabilitation and decommissioning plan (“FMRDP”) approved
by the CLRF-SC on March 11, 2016. Also, in coordination with the CLRF-SC, TVIRD has
started setting up the approved Final Mine Rehabilitation and Decommissioning Fund that will
fund the approved FMRDP of TVIRD with respect to the Balabag Project. The trust fund is
expected to be fully funded by November 2022.

There are currently no known environmental liabilities associated with the Balabag Project.

4.5 Permits

As required by the Philippine Mining Act of 1995 and its related Implementing Rules and
Regulations, TVIRD, prior to undertaking the development and production stages of the
Balabag Project, is required to submit:

✓ Proof of compliance with the provisions of the MPSA based on the results of the most
recent TSHES audit;

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✓ an ECC;
✓ Endorsements from two out of three of the respective provincial, municipal and
Barangay LGUs;
✓ A DMPF that includes:
▪ feasibility studies;
▪ a 3-year development and utilization work program;
▪ a final technical report on the exploration results in accordance with the
Philippine Mineral Reporting Code (“PMRC”);
▪ a 5-year Social Development Management Plan; and,
▪ an EPEP and FMRDP.

TVIRD has confirmed that it has satisfied all the above noted submission requirements, all of
which have been approved by the DENR – MGB on April 29, 2016

Business related permits, mining permits, environmental permits, Security, Safety and Health
permits and other associated permits are registered and maintained in the TVIRD-BGSP-
REG-SM-010 Permits and Licenses Monitoring Register.

The status of key permits received includes:

Table 4-4: Status of Key Balabag Project Permits Received

Date –
Permit Type Permit Issuing Agency
Expiry / Renewal
Department of
Mineral Production Sharing
MPSA No.086-1997-IX Environment and 20 November 2047
Agreement
Natural Resources
Certificate of DENR-Mines and
Deed of Assignment of MPSA Registration OR No. Geosciences Bureau Mine Closure
3637756 Regional Office IX
ECC-CO-1301-0004
ECC-OL-R09-2020-
Environmental Compliance DENR-Environmental
0131 Mine Closure
Certificate Management Bureau
ECC-OL-R09-2021-
0131
Declaration of Mining Project Notice of Issuance DENR-Mines and
Mine Closure
Feasibility 050216-0026 Geosciences Bureau
Environmental Protection and Mines and
Enhancement Program/ Final Geosciences Bureau –
Mine Closure/End of
Mine Rehabilitation or COA No. 111-2016-04 Contingent Liability and
Mine Life
Decommissioning Plan Rehabilitation Fund
Certificate of Approval Steering Committee
Social Development and DENR-Mines and
COA No. 042-2019-
Management Program Geosciences Bureau 01 December 2023
09IX
Certificate of Approval Regional Office IX
DENR-Environmental
Wastewater Discharge Permit DP-R09-20-02967 Management Bureau 22 July 2021
Regional Office IX
CWP No. 12-12-19-
013
National Water
CWP No. 12-12-19-
Water Permit Resources Board 12 December 2021
014
(NWRB)
CWP. No. 12-12-19-
015

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Table 4-4: Status of Key Balabag Project Permits Received (continued)

Date –
Permit Type Permit Issuing Agency
Expiry / Renewal
Department of 01 March 2019 / Date
STCEP No. RIX-02-
Special Tree Cutting Permit Environment and and Area Extension
2018
Natural Resources Application in Process
2019-POA-C-0973-
DENR-Environmental
Permit to Operate (Air Pollution 0052 20 March 2023
Management Bureau
Source and Control Installations) PTO-OL-R09-2021- 03 March 2026
Regional Office IX
01285
DENR-Environmental
Hazardous Waste Generator
OL-GR-R9-73-015201 Management Bureau Mine Closure
Registration Certificate
Regional Office IX
DENR-Environmental
Chemical Control Order CCOr-R09-CN-2020-
Management Bureau Mine Closure
Registration Certificate 00155-Amended
Regional Office IX
DENR-Environmental
Chemical Control Order CCOI-R09-CN-2021-
Management Bureau 21 December 2021
Importation Certificate 00325
Regional Office IX
Professional
Not applicable at the
Regulation
Certificate of Authority to moment. PRC is
Certification of Filing Commission-
Operate (for Chemical developing new
with OR No. 18257571 Professional
Laboratories) guidelines on
Regulatory Board of
issuance of COA
Chemistry
DENR-Mines and
Safety and Health Program
SHP-2021-IX-07 Geosciences Bureau 31 December 2021
Certificate of Approval
Regional Office IX
PNP-Civil Security
Group-Supervisory
Private Security Agency License PSA-R-09-165280-
Office for Security and 31 March 2023
to Operate 1671
Investigation Agency
(SOSIA)
Notice to Proceed (for Mining DENR-Mines and
073118-0010 Mine Closure
Project to Operate) Geosciences Bureau
Approved under Order DENR-Mines and
Approved Survey Plan of Survey issued on 10 Geosciences Bureau Mine Closure
September 2012 Regional Office IX
Free Prior and Informed National Commission
CPRIX-16-0585 Mine Closure
Consent/NCIP Certification on Indigenous Peoples
Municipality of Bayog,
Province of
Sanitary Permit 595 31 December 2021
Zamboanga del Sur,
Philippines
Certificate No.
ISO 14001:2015 Certification Intertek 25 May 2024
0114193
Bureau of Fire
Fire Safety Inspection Certificate R2020-09-056749 09 July 2022
Protection (BFP)
Approved 3YDUWP
DENR-Mines and
Mineral Processing Permit for CY 2020-2022 31 December 2022
Geosciences Bureau
012020-0003
License to Possess
Explosives/Explosive Philippine National
PIB28-150410-03488 15 April 2022
Ingredients/ Controlled Police (PNP)
Chemicals

TVIRD is a corporation duly incorporated and validly existing under the laws of the Philippines.
It is in good standing with respect to all applicable filing and regulatory requirements and has
all the legal capacity to conduct its business in the Philippines.

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The Balabag MPSA is duly registered and in good standing and there are no liens or
encumbrances registered against the property. There is neither any indication of any potential
issue that could result in the termination, revocation or suspension of the MPSA, nor any
evidence of grounds for the nullification of the ownership of the MPSA held by TVIRD.

4.6 Significant Factors and Risks Related to the Property

The author is not aware of any significant risk factors that may affect access, title, rights,
environmental issues or ability to perform and develop work on the property.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE

AND PHYSIOGRAPHY

5.1 Accessibility

The Balabag MPSA is situated in the Municipalities of Bayog, Province of Zamboanga del Sur,
and Diplahan and Kabasalan, Province of Zamboanga Sibugay, Mindanao Island.

The nearest Municipality to the mining property is Bayog. The town is accessible from either
Pagadian or Zamboanga City through the Zamboanga-Pagadian National Highway, then
through an 18-km gravel dirt road from the highway junction at Imelda or Buug, Zamboanga
del Sur. From the town center of Bayog, the project site can then be accessed through a 14-
km road using four-wheel-drive vehicles in just 45 minutes travel time.

Zamboanga City, the center of trade and commerce in Western Mindanao, is linked to Cebu
and Manila by weekly boat and daily airline services. Pagadian City is also connected to Cebu
and Manila through daily commercial flights.

Figure 5-1: Location of BALABAG MPSA relative to Bayog, Pagadian and Zamboanga City.

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5.2 Climate

According to the Modified Coronas Climate Classification Scheme used by the Philippine
Atmospheric Geophysical and Astronomical Services Administration (“PAGASA”), the climate
in Balabag and its adjoining area is classified under Type IV. This is characterized by mild
temperatures and moderate rainfall. Rainfall is evenly distributed throughout the year although
the heaviest downpours occur during the months of May to December. Annual rainfall ranges
from 1,599 mm to 3,500 mm. Average monthly precipitation is approximately 220 mm.
Temperature is constant throughout the year, varying only from a minimum of 22˚C to a
maximum of 31˚C. Recorded climate data from the nearest municipality of Bayog is shown in
Table 5-1.
Exploration work is generally conducted throughout the year considering that the area
experiences mild temperatures and moderate rainfall.

Figure 5-2: Climate map of the Philippines.

Table 5-1: Climate data of Bayog, Zamboanga del Sur

(Source: https://en.wikipedia.org/wiki/Bayog)

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5.3 Local Resources

Economic activity in the host community is primarily related to agriculture. The Sibugay River
Valley which runs through Bayog town is considered as the rice granary of the province of
Zamboanga Sibugay.

The northwest portion of the MPSA is dominated by secondary growth forest with few
remaining primary forests in the hinterlands. However, some ridges have been denuded of
forest cover and have been converted into upland farms or “kaingin”. These upland farms are
planted with rice, corn, ginger, cassava, sweet potato, various fruit trees and rubber.
Abandoned kaingins have been overtaken by lush growths of a fast-growing tree locally known
as “buyo-buyo”.

The Balabag project site was formerly occupied by thousands of illegal artisanal small-scale
miners since the mid-90s. The miners were extracting mineralized gold-bearing material from
the surface and from hundreds of shallow underground tunnels. The material extracted was
processed in rod mills to grind and recover the gold with mercury through the amalgamation
process. Carbon-in-Pulp (“CIP”) agitation tanks were later introduced to further recover gold
from rod mill tailings using activated carbon, cyanide and lime. The timber requirements of
artisanal miners for their underground tunnels and housing requirements also resulted in
Illegal logging activities and the deforestation of Balabag Hill and its immediate environs.

The illegal small-scale miners were evicted from their Balabag tunnels following the issuance
in 2012 of a Cease-and-Desist Order (“CDO”) by the MGB against all forms of illegal mining
activities in the region, including small-scale operations in the Balabag Hill area.

It is expected department managers and senior technical staff for the Balabag Project will be
drawn from outside of the Zamboanga Peninsula as well as from the local community as they
are available. Skilled and non-skilled workers will likely be recruited from qualified residents
living in the host and nearby communities.

5.4 Infrastructure

The nearest township to the project site is Bayog, a 3rd class Municipality under the jurisdiction
of the Province of Zamboanga del Sur. Bayog is one of the top revenue-producing
municipalities in the province, with an annual income mainly from mining, quarrying and some
business establishments.
Power is provided to Bayog by the Zamboanga del Sur Electric Cooperative II (“ZAMSURECO
II”) through its substation in the municipality of Buug, Zamboanga Sibugay. Bayog has a level
III water system that supplies the town and barangay Kahayagan. The types of water systems
used in the different barangays are classified into Level 1 (shallow well, deep well & spring);
Level II (spring development with communal faucets); and Level III (with individual household
connections).
Bayog has a collegiate school that caters to the educational needs of the entire populace and
of the neighboring municipalities. There are 32 public schools and 1 private school in the
municipality.

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Government facilities include the town’s public market, the newly constructed Municipal
Building, the Bayog Municipal Health Center and the 3,500-seat Municipal Gymnasium.
There are passenger buses and jeepneys that service the Bayog to Buug and Bayog to
Pagadian routes. To date, there are two buses servicing the Bayog to Zamboanga City route.
Two dams can be found in the Municipality, namely: the Sibugay Irrigation Dam and the Dipili
River Irrigation Dam, both responsible for irrigating some 100 square kilometers of rice fields.
A 12 kilometer all-weather road has recently been constructed by TVIRD connecting the
project site to the Bayog municipality. Within the project site, old logging roads exist which
were repaired and rehabilitated and are presently being used as access to the exploration
areas around the MPSA. Supply of water is tapped from several surface sources.
As for the specific requirements of the Balabag Project, it is expected that power will be
sourced from multiple diesel-powered generator sets located onsite and water supply will be
provided from a combination of sources including the Malagak Creek, the Digoman Creek and
the Depore Creek as well as commercial water filtration suppliers in Bayog town.

5.5 Physiography

The topography of the MPSA area is generally moderate to rugged. Relief is moderate to high,
characterized by steep slopes and V-shaped valleys. Elevation ranges from 200 to 928 meters
above sea level (“mASL”). The Balabag gold-silver deposit is located on an east-west
elongated hill with a peak elevation of 685 mASL.

The western section of the MPSA is drained by the tributaries of the Kabasalan River. The
eastern and southern sections are drained by the Dipili and Depore rivers, both major
tributaries of the Sibugay River. The dominant drainage pattern is dendritic although some
trellis and rectangular patterns are recognizable along the northern half of the MPSA.

5.6 Surface Rights

The Balabag Project is located within a valid and subsisting MPSA. It is also inside the CADT
of the Indigenous Cultural Community of the Subanen Tribe at the Municipality of Bayog,
Province of Zamboanga del Sur approved by the NCIP. As a CADT holder, this Subanen
Indigenous Tribe holds the surface rights over the Balabag Project but has provided their
consent to TVIRD for its mining project as confirmed through a Deed of Undertaking and MOA
dated August 19, 2014 and approved by the NCIP through an En Banc Resolution No. 07-05-
2016 Series of 2016, dated May 25, 2016. The MOA is co-terminus with the life of the MPSA.

Through the existing Balabag MPSA, TVIRD has the right to use surface lands sufficient for
many years of operation. Sufficient area exists at the property for all needed surface
infrastructure related to the life-of-mine plan, including processing, maintenance, fuel storage,
explosives storage and administrative offices as well as the tailings storage facility that is to
be constructed in stages to accommodate progressively increasing resources as they are
defined.

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6 HISTORY

Alluvial placer gold was discovered in Depore, Bayog in 1989 by artisanal small-scale miners
along the Depore River, several kilometers southeast of Balabag. Depore is the barangay that
has jurisdiction over Balabag. In 1995, the presence of gold veins in Miswi was discovered by
accident by a group of militiamen who were on routine patrol. Illegal artisanal small-scale
mining operations in Balabag Hill eventually started as early as June 1995 when the gold rush
slowed down in the Depore River due to dewatering problems. After that, several exploration
companies showed interest in the area, foremost of them being Rio Tinto Exploration
Philippines Corporation (“RTEPC”) and Templar Gold N.L. (“TGNL”).

6.1 History of Mining Claim

The Balabag MPSA was originally awarded to ZMC on November 20, 1997 and subsequently
registered with the MGB on May 6, 1998.
From October 15, 1996 to January 14, 1998, the ZMC MPSA tenement was optioned to
RTEPC.
When RTEPC relinquished its interest in the tenement, TGNL, an Australian company,
undertook a six-year option agreement with ZMC from February 18, 1999 to November 25,
2004 but the agreement was terminated prior to completion.
On April 26, 2005, ZMC entered into the ZMC MOA with TVIRD that provided TVIRD the
exclusive right to explore the property with the option to acquire ownership for the sum of US
$ 350,000 and a 2.5% NSR. The US $350,000 option to acquire ownership was paid in part
as cash (US $50,000) and shares of TVIP (2,993,697 TVIP shares). The NSR is to be
calculated at 2.5% on the gross proceeds of gold and other minerals produced from
commercial mining operations, less all costs incurred in the smelting and refining of such gold
minerals and is to be paid quarterly.
TVIRD initially conducted due diligence work which involved channel sampling of sites
previously sampled by RTEPC. During the latter part of that year TVIRD geologists
methodically mapped and sampled some artisanal miners’ accessible tunnel workings in the
Tinago-Miswi vein occurrences. Data gathered confirmed the presence of significant gold and
silver values associated with the Tinago vein at Balabag.
The MPSA originally held by ZMC was assigned to TVIRD pursuant to a DOA executed by
and between ZMC and TVIRD on July 6, 2009 and further amended on August 27, 2009. The
assignment in favor of TVIRD was approved by the DENR on September 28, 2009.

6.2 Exploration History

RTEPC conducted detailed geological mapping and rock sampling, stream sediment (-80
mesh) and grid-soil geochemical sampling and an IP-Resistivity survey within the Balabag
area and vicinity from October 15, 1996 to January 14, 1998.

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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 artisanal
small-scale mine tunnels. The IP-Resistivity survey was conducted over a total of 9.6-line
kilometers. In November 1997, RTEPC reported the following conclusions:
● High grade epithermal gold mineralization in Balabag is indicated by a north-south
trending high assay zone in the Tinago artisanal small-scale mining area measuring
20 meters by 130 meters. 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 were being worked on at that time by artisanal
small-scale miners, where gold-bearing quartz stockworks and veins were mined
underground.
● The presence of drainage geochemical anomalies of 100 to 360 ppm copper coupled
with 10 ppm molybdenum at Legumbong, located in the southwest part of the area, is
suggestive of possible porphyry copper mineralization. K-silicate alteration (secondary
biotite and magnetite) was also observed in the diorite intrusive in the same area.
● Rock geochemical anomalies in San Pedro, at the north-central section of the claims,
reflect copper skarn type of mineralization believed to be related to andesite porphyry.
High zinc and lead values were also obtained from outcrop samples in the headwaters
of Dipili River. 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 g/t Ag, 0.1 to 1.59% Pb
and 1.1% to 8.84% Zn. Stream sediment samples from the San Pedro copper skarn
area returned results that range from 0.14 ppm to 0.68 ppm Au, 40 ppm to 85 ppm Pb
and 100 ppm to 180 ppm Zn, while grab samples taken from the Upper Dipili skarn
base metal occurrence 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 (3)
drill-holes of 300 meters each to test identified targets, however the company withdrew from
its agreement with ZMC and eventually left the Philippines.
In 1999, TGNL signed an Option Agreement with ZMC for a six-year option term beginning
February 18, 1999. During this Option Agreement period, Goldminco Corporation, listed in
Canada, provided all the funding for a TGNL incorporated company in the Philippines by the
name of Templar Resources Phil. Inc. (“TRPI”). TGNL and TRPI gained access to RTEPC’s
results and progressed directly to drilling when they moved into the property. TRPI drilled five
(5) shallow drill holes employing relatively small diameter drill core sizes. Total meterage
drilled was 593.6 meters. The first two (2) holes missed the veins. Hole 3 was sited at Miswi
and between 79 meters to 93 meters (14 meters intersection), returned values of 5.2 g/t Au
and 85 g/t Ag (including 3 meters at 16.6 g/t Au, 311 g/t Ag). Holes 4 and 5 were drilled at
Tinago. Hole 4 penetrated an artisanal small-scale miner’s stope. Hole 5 intersected 9 meters
at 5.4 g/t Au and 122 g/t Ag (including 2 meters at 19.7 g/t Au and 450 g/t Ag). On November
25, 2004, the Option Agreement with ZMC was terminated by TRPI.
On April 26, 2005 ZMC entered into an agreement with TVIRD. TVIRD initially performed work
which involved channel sampling of sites previously sampled by RTEPC. During the latter part
of that year TVIRD geologists methodically mapped and sampled some artisanal miners’
tunnels within the Tinago-Miswi vein systems. Data gathered confirmed the presence of
significant gold and silver values associated with the Tinago vein at Balabag. Later in the same
year, TVIRD commenced its drilling program with the first hole collared on November 17, 2005.

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Considering the encouraging initial results, TVIRD decided to expand the program. As of the
end of the Phase 4 drilling program, TVIRD completed 382 holes with cumulative meterage of
41,161.60 as of December 2020.

6.3 History of Mine Production

The Balabag Hill gold-silver deposit has been subject to illegal artisanal mining at least since
1998. There is no official record of mining production from the artisanal mining but it is
estimated that illegal artisanal small-scale miners extracted 170,000 tonnes of Au -rich quartz
vein and silicified rocks from 1996 to 2012. This TVIRD estimate is based on projected
volumes extrapolated from the general orientation and width of the tunnels, with reference to
the portals and exit points mapped from the 2012 topography of Balabag Hill.

By October 2020, the present topography of Balabag Hill was surveyed and established by
TVIRD. Using the updated topography model, TVIRD has estimated a potential small-scale
mining volume depletion of approximately 70,000 tonnes with grades of 2.18 g/t Au and 71.56
g/t Ag. The volume estimate is based on the results of a more detailed mapping inside
accessible tunnels and underground workings. Average gold and silver grades were derived
from actual rock chip and channel samples collected from the tunnels. This estimate accounts
for the projected workings done by the small-scale miners below the October 2020 topography
model, prior to their eviction from Balabag in 2012.
Clearing and stripping of terrain prior to the October 2020 topography update has resulted in
the reduction of the small-scale mining volume depletion estimate.

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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Tectonic and Geological Setting

The Philippines is located in the West Pacific region, where movements of three lithospheric
plates, the Eurasian, Indo-Australian and Pacific Plates (including the Philippine Sea Plate),
are responsible for the tectonic development of the Philippines. The Pacific Plate, mainly
composed of oceanic crust, is moving west to west-northwest direction.
The Eurasian Plate is moving at north-northeast with some marginal basins on its eastern
periphery and the Indo-Australian Plate, part oceanic and part continental, is moving
northward, (Figure 7-1). Movements between these plates have produced the “Philippine
Mobile Belt” (Gervasio,1966), a complex zone consisting of transcurrent faults, collision zones
and subduction zones.
The Philippine archipelago is bounded on the eastern side by the East Philippine Arc, a west-
dipping subduction zone located along the Philippine Trench. On the western side, it is
bounded by the West Philippine Arc, an east dipping subduction zone where the Eurasian
Plate subducts.
The West Philippine Arc can be traced from the Manila Trench down to the Mindoro-Panay
Area marked by collision zones related to the Palawan Micro Continental Block and continuous
down to offshore Negros Trench and then to Zamboanga area where another collision zone
occurred between the Sulu-Zamboanga Arc and the West Philippine Arc. This zone is
represented by the Sindangan Fault system, a suture zone between two arcs: the northeast
trending Sulu-Zamboanga Arc located west of the Sindangan Fault and the NNW trending
West Philippine Arc located east of the Sindangan Fault (Pubellier, et. al.,1991). Transecting
the archipelago is the Philippine Fault Zone which is a left lateral strike slip fault that can be
traced from northern Luzon to southern Mindanao, (Figure 7-2).
The Zamboanga Peninsula area is divided into three distinct rock-stratigraphic assemblages
namely, SW-Zamboanga Zone, Cotabato-Sindangan Collision Zone, and NE-Zamboanga
Zone.
SW-Zamboanga Zone, where the Balabag MPSA is located, consists of a generally NE-
trending and relatively older suite of rock stratigraphic units. This includes a pre-Tertiary
basement complex consisting of Triassic schists and other metamorphics (Tungawan Schist),
Cretaceous ultramafics and ophiolitic rocks (Bungiao Melange), Paleocene to Miocene
sediments (Sirawai and Anungan Formation) and volcanics (Soleplep Volcanic Complex)
unconformably overlie the basement complex. Miocene intrusives and hypabyssal rocks (Vitali
Diorite) intrude preexisting rocks. Another episode of active volcanism occurred during Plio-
Pleistocene which deposited NE trending andesitic to basaltic plugs and pyroclastic flow
deposits (Sta. Maria Volcanic Complex).

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Figure 7-1: Location of the Philippine Mobile Belt with respect to adjacent tectonic plates.
Source: Geology of the Philippines 2nd Edition, 2010, Mines & Geosciences Bureau

The Cotabato-Sindangan Collision Zone is characterized mostly by NW-trending braided or

anastomosing sinistral faults and similarly trending lithostratigraphic units. Rock suites
comprise Cretaceous ultramafics and ophiolitic rocks, Paleocene-Eocene sediments, and
Oligocene to Miocene volcanics and sediments, Miocene intrusive and hypabyssal rocks,
Quaternary igneous sequences (both intrusive and extrusive), and alluvium comprise the
youngest sequences. The northeast Zamboanga Zone is mostly covered with the Pleistocene
Malindang Volcanic Complex and related lahar and alluvial deposits which have the same age
as the Sta. Maria Volcanic Complex of the southwest Zamboanga Zone.

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Figure 7-2: Tectonic map of the Philippines.

Source: Geology of the Philippines 2nd Edition, 2010, Mines & Geosciences Bureau

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Figure 7-3: Regional geologic map of Mindanao.

Source: Geology of the Philippines 2nd Edition, 2010, Mines & Geosciences Bureau

Figure 7-4: Stratigraphic column for Zamboanga Peninsula, North-Central Zamboanga and Sibugay
Peninsula-Olutanga Island.
Source: Geology of the Philippines 2nd Edition, 2010, Mines & Geosciences Bureau

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7.2 Local Geology

Four main rock units were identified within the Balabag MPSA tenement. These rock units
include the sedimentary rocks, volcanic rocks, diorite, and andesite-dacite porphyry. The
sedimentary rocks correlate with the Paleocene and Early Miocene Sirawai and Anungan
Formation, respectively. The volcanic rocks, on the other hand, correlate to the Late Miocene
Soleplep Volcanic Complex and the diorite to Late Miocene Vitali Diorite. The youngest rock
unit of RTEPC’s interpretive geology of the area is the andesite-dacite porphyry which can be
correlated to the Pliocene-Pleistocene Sta. Maria Volcanic Complex.

7.2.1 Sedimentary Rocks (Early to Middle Miocene)

The sedimentary rock units consist of a well-indurated sequence of bedded calcareous

mudstone-siltstone-sandstone-conglomerate intercalated with limestone. Outcrops were
noted north of the Upper Dipili River. Mudstone is thinly laminated and brown to dark gray in
color. Sandstone consists of lithic fragments cemented by a calcareous matrix. The
conglomerate is poorly sorted and usually contains clasts of limestone and other sedimentary
rocks. The limestone is white to gray and crystalline. Beds generally strike to northwest and
dip 60-70 southwest.

Figure 7-5: Paleontological analysis of samples BL-65765 and BL-65766 have identified several
fossils of foraminifera (Lepidocyclina, Miogypsina, and Cycloclypeus) with some algae and corrals,
with age range of Early to Middle Miocene.

7.2.2 Volcanic Rocks (Late Miocene)

The observed volcanic rocks in the area consist of altered volcanic flows and pyroclastic rocks.
The volcanic flows are massive and fine grained to porphyritic. They range in composition
from andesite to basalt. Pyroclastic rocks occur as interlayered with the volcanic flows. They
include tuffs and volcanic breccia. The volcanic breccia consists of fragments of altered
andesite and basalt embedded in a tuffaceous matrix.

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Basalt is fine grained and magnetic with magnetite being altered to hematite and other
ferromagnesian minerals altered to chlorite. It is vesicular and amygdaloidal.

Figure 7-6: Sample of amygdaloidal basalt.

7.2.3 Intrusive Rocks (Late Miocene)

Like most of the Philippines’ precious metal mineralization which occurred during the Middle
to Late Miocene period, active subduction-related arc volcanism brought about by the Sulu
Trench enabled the intrusion of diorite rocks at Sulu-Zamboanga Arc. These intrusive rocks
along with active volcanism served as a heat source for precious and semi-precious
mineralization in the area.
Although no diorite outcrop has been mapped yet at the MPSA area, an altered plagioclase
phyric diorite clast within a hydrothermal vein breccia was identified from drillhole BLDH-10-
145 at 147.8 meters and an altered diorite porphyry from drillhole BLDH-10-150 at 153.7
meters located north and west of the Tinago area, respectively.
K-feldspars of the plagioclase phyric diorite are pervasively altered to sericite-illite. Very fine-
grained tourmaline is noted locally, enclosed by mosaic quartz intergrown with illite of wall
rock replacement.
An altered microdiorite was also noted from a wall rock sample at the Unao-Unao area that
was subjected to petrographic identification by the MGB. It has hypidiomorphic texture as
exhibited by fine to medium-grained twinned sodic plagioclase + augite + enstatite. Poikilitic
texture has at times been observed in smaller augite crystals enclosed by larger plagioclases.
Accessory opaques occur as blocky to elongate/ acicular and web-like disseminations.
Plagioclase are altered with clay and some chlorite while pyroxenes are mostly or partly
altered by chlorite.
The MGB interpreted the ghosted hypidiomorphic plagioclase and less abundant ghosted
amphibole and relict or recrystallized primary quartz among wall rock material enclosed by
silica/silicate cement/fill as an indication of a high-level intrusion.

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Figure 7-7: Local geologic map of Balabag MPSA and vicinity.

Source: RTEPC, 1997

The TVIRD exploration team conducted further follow-up to detailed geologic mapping of the
property in the latter part of 2017 covering the central part of the MPSA, particularly focusing
on the Balabag Hill mineralized zone extending both northward and southward, chasing the
possible extent of the mineralization.
Figures 7-8 and 7-9 show the updated geologic map of the property based on consolidated
data from field mapping, drill core logs, and petrographic analysis of selected drill core and
outcrop samples.
The mapped areas around Balabag Hill and vicinity are dominated by andesitic flows, volcanic
breccias, pyroclastic and the youngest rock unit mapped as diatreme breccia. The above
stratigraphic units were intruded by high-level andesite to dacite dikes.

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Figure 7-8: TVIRD Updated Geologic Map of Balabag Hill and Vicinity, 2019 (colored lithologies)
superimposed on RTEPC, 1997 (uncolored lithologies).

Figure 7-9: TVIRD Detailed Geologic Map of Balabag Hill Au -Ag Deposit, 2019.

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Figure 7-10: Conceptual stratigraphic section of Balabag Hill and adjacent prospects.

7.2.4 Andesite to Trachyandesite

Andesites vary from fine grained to porphyritic with well-defined flow bands, and some exhibits
vesiculated and amygdaloidal texture. Some amygdules are filled with calcite. Andesite
mineralogy is mostly plagioclase with chlorite patches. Thin sections of altered porphyritic
andesite samples show complete replacement of plagioclase phenocrysts by fine-grained,
dense sericite. Hornblende is replaced by quartz and/or chlorite.

Figure 7-11:

Sample of porphyritic andesite.

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Several andesite samples from outcrops and drill cores that were sent to Applied Petrological
Services & Research (“APSAR”) in New Zealand (September 2018), Mason Geoscience Pty
Ltd (“Mason Geoscience”) in Australia (December 2010) and to the Petrological Section of
the MGB (initially in April 2010 with another batch of samples submitted in January and May
2019), further aid in the interpretation and correlation of the observed rock units in the area.
Both APSAR and the Mason Geoscience analyses interpreted that the andesite samples were
formed in two different occurrences:
i. Some contain minor to moderate weakly flow-foliated phenocryst abundances,
accompanied by flow-felted groundmass plagioclase laths with local angular vesicles,
and are inferred to have formed as extrusive lavas; and,
ii. Some are massive, with moderately abundant phenocrysts in fine-grained
groundmass, and are inferred to have formed as shallow intrusive bodies (e.g. dykes).
The andesite volcanic flow (trachyandesite) is characterized by pseudomorphed plagioclase
and amphibole phenocrysts contained within ghosted, plagioclase-rich trachytic to pilotaxitic
textured groundmass. The relict apatite together with pseudomorphed magnetite present in
the ghosted pilotaxitic to trachytic textured groundmass indicate probable intermediate
igneous classification.
In addition, ghosted plagioclase and amphibole crystal clasts together with plagioclase and
amphibole porphyritic lithic fragments defining clastic rock types may represent tectonic
brecciated andesite and trachyandesite or volcanic rock types.

Figure 7-12: Microphotograph of Sample BAL-LAB-2010-16 under crossed polars; altered porphyritic
andesite illustrating complete replacement of plagioclase phenocrysts (center left, bottom right) by
fine-grained dense sericite (tiny yellowish flecks), and replacement of hornblende phenocryst (upper
right) by quartz (pale yellow) and fine-grained dense chlorite (anomalous dull green).
Source: Mason Geoscience, 2010

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Figure 7-13: Microphotograph of Sample BAL-TIN-2010-13 under crossed polars; altered porphyritic
andesite cut by a veinlet (bottom) filled by small epidote crystals (anomalous yellow and brighter
colors), albite and epidote after a plagioclase phenocryst (left half of view), albite after fine-grained
felted groundmass, and fine-grained chlorite filling ovoid to angular vesicles (center right).
Source: Mason Geoscience, 2010

7.2.5 Pyroclastic Rocks and Volcanic Breccias

The pyroclastic rocks are medium to coarse grained tuffaceous sandstone, flow breccias,
agglomerates and tuffs. The tuffs are further subdivided into ash tuff, lithic tuff, and crystal tuff.
The ash tuff is buff to cream and thinly bedded. The lithic tuff is well indurated, greenish to
grayish black and propylitic. Flow breccias are either monomictic or polymictic. Monomictic
breccias are poorly sorted, matrix to clast supported and contain andesitic clasts cemented by
an andesitic sandy matrix. The polymictic breccias are poorly sorted, matrix supported and
contain clasts of limestone, porphyritic andesite, aphanitic andesite, and some mudstone and
clastic rocks.

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Figure 7-14:

Weathered and oxidized outcrop of

volcaniclastic breccia sequence at Miswi.

Figure 7-15: Microphotograph of altered tuffaceous samples under plain polarized light, (left) clastic
textured wall rock fragments enclosed by mosaic-chalcedonic quartz & interstitial chlorite-illite; (right)
pervasive adularia (impregnated with ultra-fine-grained hematite) formed after clastic wall rock.

Petrographic analysis by the MGB of three wall rock samples from Unao-Unao underground
tunnels (BL-65757, BL-65758 and BL-65759) identified relict clastic texture. Although
significantly altered, the samples still show relict clastic texture. Still recognizable are a few
angular to subrounded altered clasts afloat a microcrystalline quartz + fibrous illite matrix.
Clasts are fully replaced by illite-sericite fibers + opaques. Fragment sizes range from 0.04 to
2.94 millimeters in length.
The identified volcanic breccia is composed of abundant small to large (millimeter to
centimeter sized) angular to subrounded lithic fragments, mostly porphyritic andesite but also
including micro-dacite porphyry. This coarse volcanic breccia is inferred to have been sourced
from mixed intermediate to acid volcanic and subvolcanic terrain.

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Figure 7-16: Volcanic breccia specimen sample and microphotograph (BAL-TIN-2010-15); porphyritic
andesite clasts in a matrix (oriented NW-SE in this view) composed of small angular crystal and lithic
fragments in fine-grained matrix.

7.2.6 Dacite – Andesite Porphyry

During the Pliocene-Pleistocene period, another episode of active volcanism occurred, thus
the emplacement of the northeast trending andesitic to basaltic plugs and pyroclastic flow
deposits. Precious metal mineralization may have also occurred during this period. Some of
these hypabyssal intrusives observed in the vicinity of Balabag Hill and some drill cores have
dacitic composition. Like most wall rocks associated with Balabag Au – Ag mineralization, the
phenocryst and groundmass minerals are mostly altered or totally replaced by illite-sericite.
Shown in Figure 7-18 is a micropictograph BAL-TIN-2010-11. This sample analyzed by Mason
Geoscience is composed of moderately abundant phenocrysts of plagioclase and hornblende
which comprises 40% of the rock’s total composition suggesting that this sample may have
been emplaced as a small intrusive body.

Figure 7-17: Altered dacite from drill hole BDDH-07-63 at 134.18m depth.

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Figure 7-18: Microphotograph of BAL-TIN-2010-11 under crossed polars; argillic altered porphyritic
andesite illustrates replacement of a plagioclase phenocryst (upper right) by a dense mat of fine-
grained illitic clay (pale yellowish color), and replacement of a hornblende phenocryst (left) by
smectite clay (orange yellow) in fine-grained clay-altered groundmass.

Figure 7-19: Outcrop of dacite dike intruding volcaniclastic and diatreme breccia sequence
outcropping in Unao-Unao area.

7.2.7 Diatreme Breccia

A recently identified rock unit within the Balabag MPSA is composed of poorly sorted, rounded
to subrounded heterolithic clasts of older rock units with varying sizes (millimeter to meters
sizes) consisting of stratified but disorientated tuffaceous sedimentary rocks, pyroclastic fallout
and breccias, diorite and limestone within a fine ash-rich, tuffaceous sedimentary matrix.

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Initially the rock suite was identified as conglomerate but was later interpreted as a diatreme
breccia due to the presence of clasts of carbonized wood fragments, surrounding pyroclastic
volcanic ejecta and accretionary lapilli tuff, large slumped large blocks of limestone and sub-
rounded clasts of subvolcanic porphyries and/or diorite which were interpreted as a result of
explosive events related to the intrusion of subvolcanic dacitic dikes and possible event of
phreatomagmatic explosion.
Outcrops of the diatreme breccia were observed directly at the northeast side of the Balabag
Hill gold deposit. The breccia unit appears to be more than 50 meters thick. Based on cross-
cutting relationships and composition of its clasts, this unit is assigned to the Pliocene-
Pleistocene age.
Being located at the northeastern portion of Balabag Hill and with no identified associated
mineralization, the diatreme breccia could be considered as the eastern boundary of Balabag
Au -Ag mineralization. Brecciation may have occurred during the period of active volcanism in
the Pliocene-Pleistocene times. Existing diatreme breccia models show that it is common for
these structures to be intimately related to high-level magmatic intrusions, their apophysis or
feeder dikes. In the case of Balabag Diatreme Breccia, several dacite dike outcrops were
mapped at the vicinity of the proposed tailings storage facility area where this rock unit crops
out.

Figure 7-20: Drill core sample of diatreme breccia (left); diatreme breccia outcrop along Unao-Unao
creek with carbonized wood fragments (mid-right).

7.3 Structural Geology

The Sindangan-Cotabato-Daguma Lineament is a northwest-southeast trending left lateral

strike-slip fault that separates the island-arc-related eastern-central Mindanao and
Zamboanga Peninsula with continental affinity (Yumul et. al., 2004). The lineament is believed
to be the product of the ‘soft’ collision between Sundaland and the Philippine Mobile Belt,
during Late Miocene to Pliocene (Pubellier et al. 1997). The sinistral movements along the
Siayan-Sindangan-Suture-Zone forms and controls the structural grain of the north
Zamboanga area (Bobis, 2011).
Stresses along this northwest trending collision zone produced northeast trending dilatant
zones (tension gashes) and northwest trending fault jogs, dilational splays, dilational bends
and northwest striking dilatant zones in reverse and normal faults. These resultant structures
acted as passageways for mineralized hydrothermal fluids where precious and semi-precious
metals were deposited as in the case of Balabag.

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Inside the Balabag MPSA are northwest and east-north-east trending faults which act as
boundaries and guideways to gold-silver mineralization (Figure 7-22). A major northeast-
southwest dextral strike-slip fault known as the Kabayugan Fault, was interpreted to have
passed by the northwest portion of the MPSA. Several northwest-southeast trending strike slip
faults with related normal fault and low-dipping fault component traverses the central and
southeast corner of the MPSA.
Figure 7-23 shows an interpreted structural scenario within Balabag Hill gold mineralization
and vicinity. Two northwest trending sinistral strike fault couples running along the Depore,
Unao-Unao and Miswi areas characterized by fault gouges and manifested
geomorphologically by northwest trending ridges and straight stream courses bounding the
northeast and southwest portion of Balabag Hill have resulted in numerous dilatant zones
and/or fault structures that have been hosting the gold mineralization zones as veins and
breccias in Balabag Hill.
The known mineralization zones at Balabag Hill area either have an east-north-east (Tinago
and Unao-Unao), northeast (Miswi) or north-northeast (Lalab) trend. The east-northeast
striking mineralization zones have gentler dips (37-50°) to the north or northwest while north-
northeast and northeast trending vein zones are moderately to steeply dipping (50-80°) to the
northwest. The east-northeast to east-west trending and gently to moderately dipping vein
zones occur as tension fractures or gashes while the northeast and north-northeast trending
ones are the extension fractures which were filled with silica-quartz-sulfide veins.
A structural study of the Balabag Epithermal Gold Vein Deposit was performed by Dr. Mario
A. Aurelio in April 2013 to understand the nature of the vein system. Dr. Aurelio’s study
determined that:
1. The Balabag epithermal quartz gold veins are hosted by Late Oligocene to Early
Miocene volcano-sedimentary sequences built over the continental-ophiolite
basement mix. These arc sequences consist mainly of andesite flows (and their
intrusive equivalents) intercalated with clastic sequences of conglomerates,
sandstones, siltstones and minor shales. Limestones are seen occasionally
intertonguing or interlayered with the clastic sequences. Induration in the clastic
deposits is generally light to moderate.
2. The gently dipping geometry of the Balabag veins is the result of tilting of the entire
vein system as the Late Oligocene to Early Miocene volcano-clastic host rocks were
subjected to regional folding. This folding event appears to be associated with a major
tectonic event involving the collision of Zamboanga Peninsula with the central
Mindanao volcanic arc sometime in the Middle Miocene.
3. In Balabag, this folding event resulted in the formation of the Unao-unao anticline,
forming beds moderately dipping (~60°) to the south-west and north-east on either
bank of the easterly trending Unao-unao Creek. The folding of the host volcano-clastics
caused the tilting of the Balabag epithermal veins, giving rise to their present-day
gentle (~30°) northerly dips. This configuration suggests that the system remains open
to the west, east and at depth and should be tested by detailed surface geological
mapping, tunnel inventory and exploratory drilling.

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Figure 7-21: Lineaments map of North-Central and NE Zamboanga Peninsula.

Source: Bobis, Renato, 2011

Figure 7-22: Interpreted structural map of Balabag MPSA based on satellite imagery.

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Figure 7-23: Interpreted local structural map within Balabag Hill and vicinity
Source: Sosa, Leo. A, November 2018

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8 DEPOSIT TYPES

8.1 Alteration Type and Style

Geological mapping done within the MPSA tenement resulted in the identification of several
alteration zones consisting of propylitic, argillic, sericite (+adularia), silicic and quartz-adularia
zones. The latter is represented in the vein zone.
The primary rock types hosting the Balabag gold-silver deposit are composed of volcanic units
of andesite grading to trachytic and volcanic fragmental rocks or breccia that have been
invaded by mineralizing hydrothermal fluid producing varied alteration assemblages.
Various representative rock and drill core samples were analyzed and studied by Mason
Geoscience in 2010 using optical petrographic methods, supplemented by optical
mineragraphic observations, staining for K-feldspar, and fluid inclusion micro-thermometric
studies on some samples. The Geological Laboratory Services Section of the Philippines’
MGB Petrology Laboratory (“Petrolab”) was also commissioned for petrographic analysis
using thin sections in 2019. The services of APSAR were also utilized for studies of
considerable vein samples containing altered wall rock during the period November 2018 to
May 2019.
Propylitic alteration represents the outer alteration halo of the deposit. This broader alteration
zone is a manifestation of thermal and related metasomatic effects resulting from the
emplacement of intrusions, of possible quartz diorite to quartz monzodiorite classification, into
volcanic units, andesite to trachy-andesite eruptive rocks. Petrographic studies revealed the
presence of albite + chlorite + opaques (possibly hematite) + epidote + quartz + leucoxene
mineral assemblages giving the rock a greenish discoloration. The plagioclase phenocrysts
were replaced by albite + K-feldspar+ calcite ± epidote, the ferromagnesian phenocrysts
(probably pyroxene and hornblende) by chlorite + epidote + quartz, the groundmass
plagioclase laths by K-feldspar, and the vesicles were filled by chlorite + minor quartz +
leucoxene. Carbonates and epidote usually occur as fracture filling accompanied by quartz
and radial aggregates of needle-like epidote crystals. This type of alteration is present within
the footwall and hanging wall distal to the vein systems of the Balabag deposit. Likewise, it is
observed mostly in the host rock in lower parts of the drill core. In surface exposures, it is
represented by the gray to greenish color of volcanic unit host rock.
Argillic alteration consisting of illite/smectite + K-feldspar + quartz + pyrite + leucoxene/rutile
zone mainly occurs at the surface or near surface based on drill hole data appearing as
bleached, pale white to yellowish discoloration of the rock. This alteration replaces the
andesite, volcanic breccia, and tuff host rocks. Most of the primary minerals are replaced by
illite/smectite mixed layer minerals. Further, this alteration is commonly accompanied by
quartz veinlets and as vein’s immediate wall rock alteration at shallow depths.
Relics of rock textures may be visible depending on the intensities of argilization showing
replacement of illite and smectite pseudomorphed after prismatic crystals of plagioclase and
ferromagnesian phenocrysts. Traces of granules of leucoxene/rutile are scattered in a fine-
grained altered matrix of indeterminate clays. Pyrite is also found locally disseminated
throughout the rock matrix but predominantly oxidized.

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Figure 8-1:

Argillized porphyritic
andesite of BLDH-10-139
(12.15-12.30m) with 0.05 g/t
Au and 0.25 g/t Ag.

Sericite alteration is more prominent on the southern side of Balabag Hill, characterized by its
pale green to gray color in appearance. This type of alteration is common in hydrothermally
altered sequences and is formed at low to intermediate temperature ranging >200-350°C and
usually characterizing the margins of the main vein zones. Common alteration minerals
present are sericite being dominant and chlorite group minerals and rarely high temperature
kaolinite (Corbett and Leach, 1998). In the area, host rock is invaded by a significant volume
of relatively low-temperature hydrothermal fluid. This caused selective pervasive replacement
by the sericite alteration assemblage of sericite + chlorite + albite + minor quartz + leucoxene.
In more detail, plagioclase phenocrysts were replaced by sericite, ferromagnesian
phenocrysts were replaced by chlorite + quartz, magnetite micro-phenocrysts were replaced
by chlorite + leucoxene, groundmass was replaced by chlorite + albite + leucoxene, and minor
vesicles were filled by chlorite. At a deeper level, it envelops dominantly the main mineralized
vein zones, grading to argillic at shallow level and outwardly to propylitic peripheral to the
veins. Sericite alteration can grade into high temperature potassic type by increasing amounts
of K-feldspar and into the low temperature argillic type by increasing amounts of clay minerals
(Pirajno, 2009).
Silicic alteration is defined by fine-grained alteration assemblages of quartz ± albite ± opaques
(possibly pyrite). This alteration is closely related to the mineralized zone and occurs as narrow
haloes peripheral to vein walls. It is also apparently dominantly confined within dacite host
rock occurring as dike-like bodies dispersed in Balabag. Common features observed are gray
to pale green discoloration of the host rock partially to wholly destroying the phenocrysts
embedded in a silicified groundmass showing massive, chalcedonic textures with pyrite
clusters and disseminations.
Quartz-Adularia alteration represented the main vein zone alteration minerals consisting of
quartz – adularia – illite/smectite + chlorite group minerals. The vein zone is a multiple-stage
massive to crustiform banded fracture-fill and breccia cement assemblages mostly comprising
chalcedonic to mosaic quartz, in paragenetic association with less abundant adularia, chlorite,
illitic clay and carbonate enclosing and dispersed with only minor amounts of sulphides.
Alteration of breccia clasts composing wall rock, present as fluidized, milled, and sorted silt to
granule sized clasts within discrete deposition bands, or as coarser grained blocks more
broadly enclosed by multiple massive to banded silica/silicate fracture-fill/breccia cement,
comprises pervasive adularia, mosaic quartz, chlorite and interlayered illitic/smectitic/chloritic

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clay dispersed with grains and aggregates of pyrite and rutile. Under this breccia, increasing
sulphide appearing fine black lines or “ginguro” smeared along with the quartz fluids and
breccia cement carrying more gold in solution and/or interstitial to mosaic-chalcedonic quartz
and/or lock-in sulphides.
The argillic, sericite and silicic are most directly related to the gold-silver mineralization in
Balabag wherein the altered wall rocks are commonly bounding the mineralized quartz veins
and breccias. These alterations grade into a propylitic zone farther away from the vein as
shown in Table 8-1.
Table 8-1: Alteration zonation in relation to ore zones

Petrographic observations by Mason also identified potassic alteration consists of K-feldspar

+quartz + sulfide (possibly pyrite) ± zoisite + leucoxene/rutile. This is found as relict kernels in
some lithic fragments of veins in Balabag. However, no surface outcropping was observed nor
obtained during field studies.

Figure 8-2: Balabag MPSA alteration map.

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Figure 8-3: Close-up view of alteration present within the Balabag ECC.

Drillhole intercepts at the central portions of the Tinago, Unao-Unao and Warik-Warik areas
are comprised mainly of argillic alteration enveloping at the shallow depths ranging from 5
meters down to 60 meters. This was followed by extensive sericite alteration at deeper levels
that can be traced down to 100 meters depth. Both alterations are evidently bordering the
mineralized zones in Tinago defining sericite as the main immediate wall rock alteration at
depth then progresses to argillic near surface due to overprinting. Silicic alteration is also
present in drill holes mainly overprinted at sericite zones and occasionally at propylitic zones
and fault zones. Propylitic alteration predominated at the north Tinago. Drill core samples are
greenish color with distinguishable host rock textures. Chlorite, carbonate and epidote are the
main minerals identified but may also contain traces of sericite and pyrite.
Miswi drillholes are largely composed of argillic, silicic, sericite and to a lesser propylitic
alteration at deeper levels. These alterations are irregular down holes due to numerous
structural disruptions. Argillic alteration occurs dominated at shallow depths down to 80 meters
on some drill holes affecting both the volcanic rocks and dacites whilst sericite alteration is
affecting mainly volcanic rocks. Silicic alteration is dominant in the Miswi area compared to
Tinago and mainly occurs as the main alteration of the dacite dikes intruded within sericite,
argillic and propylitic altered volcanic rocks. Sericitic, silicic and argillic alteration can be
present either at the foot wall and hanging wall of the mineralized zone in Miswi and rarely
propylitic alteration at the footwall due to fault displacement.

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Figure 8-4: Drillhole section looking NE at Tinago (Unao-Unao / Warik-Warik) prospect showing the
mineralized zones and alteration.

Pervasive argillic and sericite alterations apparent at the Lalab surface extended at deeper
levels based on drillhole intercepts where argillic alteration covers the shallow depths with
some reaching 60 meters down hole as shown in Figure 8-5. Sericite alteration is extensive
down the holes following the argillic alteration and can be observed at the cliff side of the hill
and as isolated bodies protruding on the surface with minor overprinting of argillic alteration.
This alteration assemblage bounds the steeply dipping vein system of Lalab accompanied by
moderate to intense silicification both at the hanging wall and foot wall. Several silicic altered
bodies can also be found down hole. These are associated with the dacite dikes with drill hole
intercepts ranging from 15 meters to 30 meters wide bordered by sericitic and propylitic zones.
Propylitic alteration is also present outward from the Lalab vein system following the sericite
zones.

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Figure 8-5: Section looking northeast of Lalab vein system showing alteration zonation enveloping
the mineralized vein system.

8.2 Mineralization Type and Style

The Balabag gold-silver mineralization is interpreted as a low-sulphidation epithermal vein

system hosted in andesitic lava flows and pyroclastics. Multiple-stage massive to crustiform
banded fracture-fill and breccia cement assemblages mostly comprising of chalcedonic to
mosaic quartz, in paragenetic association with less abundant adularia, chlorite, illite and
carbonate enclosing and dispersed with only minor amounts of sulphide, define a low-
sulphidation epithermal environment of precious metal mineralization. The mineragraphic
study of APSAR in 2018 further indicates that the hydrothermal fluid flow and resulting
mineralization have taken place at around 220 to 240°C.
Three major quartz vein systems identified in the Balabag Hill area are the Tinago-Unao-Unao-
Yoyon veins to the north, Miswi veins in the east and Lalab veins to the south (Figure 8-6).
The veins exhibit various epithermal quartz vein textures such as colloform, crustiform,
massive, drusy, vuggy, comb and cockade textures. Multiphase brecciation textures are also
dominant probably because of several pulses of rising hydrothermal fluids. Quartz stringers
and quartz stockworks also occur adjacent to most quartz veins ranging from hairline to
centimeter sizes. The geometry of the veins and the associated stockworks is generally sub-
horizontal at the Tinago and Miswi areas while a sub-vertical attitude of veins is exhibited in
the Lalab area.

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Figure 8-6: Map showing major vein system and faults within Balabag Hill.

8.3 Geological Ore Types

Free gold or electrum dominates the gold-rich precious metal mineralogy of low-sulphidation
epithermal systems. The electrum/gold mostly occurs as interstitial to or as inclusions within
mosaic-chalcedonic quartz and less abundantly interstitial to or enclosed by adularia, chlorite
and illitic clay. Whilst also identified as intergrowths with and overgrowths to base metal
sulphides, relatively minor amounts of free gold/electrum are identified as inclusions within
pyrite, chalcopyrite, sphalerite, galena, argentite, and other unresolvable telluride and/or
sulphosalt minerals. Whereas pyrite and base-precious metal sulphides and possible
sulphosalts are leached and replaced by supergene hematite, hydrated Fe-oxides, and cuprite
in relation to localized oxidation, native gold appears to remain in situ and essentially
unmodified. In terms of the gold and silver alloy, electrum, silver may have been mobilized
leaving residual and less mobile gold in place (APSAR, 2018).
Repeated phase separation in association with rapid cooling of hydrothermal fluid including
some probable magmatic volatile contributions, is interpreted to have been a main cause for
precious and base metal mineral deposition (APSAR, 2018). Occurrence of gold and silver
are common in open space fillings such as in vughs, drusy cavities, cockscomb textures,
crustifications and colloform banding.

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Figure 8-7: (A) Gold interstitial to mosaic quartz (left 600 µm ppl/rl, right 70
µm ppl/rl); (B) Gold/electrum intergrown with mosaic quartz and pyrite of silica
vein fragment (left 600 µm ppl/rl, right 70 µm ppl/rl); (C) Gold/electrum
intergrown with argentite intergrown with mosaic quartz and adularia (left 600
µm ppl/rl, right 70 µm ppl/rl).

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8.4 Types of Quartz Veins

Previous exploration work done by TVIRD prior to the year 2017 categorized the types of
quartz veins into two major geological domains. The previously known Domain 1 represents
the true veins having more predictable continuity and grade uniformity which include the
following mineralized units: massive translucent to milky quartz vein (“VNQ”), banded, high
Au, quartz vein with banded black sulphides (“VNB”) and quartz vein breccia with angular
andesitic clasts (“VNX”). The second domain, on the other hand, was characterized by QSW
and silicified andesite (“VIAN-sil”). The stockworks were considered as another domain due
to erratic nature of grades and thickness.
With the resumption of TVIRD’s exploration work in late 2017 up to present, a detailed
mapping of surface outcrops and many underground tunnels has been conducted to further
understand the geology of the Balabag deposit. A further detailed review of core from old
drillholes has been completed and includes the recent drillholes generated from the
implementation of Phase 1, 2, 3 and 4 drilling programs in October 2018 to December 2020.
Overall, a total of 382 drillholes with a total length of 41,161.60 meters have been reviewed
focusing on understanding the quartz vein characteristics, alteration associated with
mineralization, host lithology and structural control on mineralized quartz veins and gold-silver
assay grades. Based on this detailed review, the cross-cutting relationships of the different
quartz veins, vein breccias and stockworks provided a clearer picture in terms of sequence or
stages of quartz deposition. Alterations related to mineralization were identified as well as
ranges of gold and silver grades on the different quartz veins, and breccias were determined
that gave information as to what type of quartz veins are giving higher grades. With this
information, the previously generated two mineral domains were further subdivided into five
new mineral domains that have provided a clearer understanding of the Balabag gold-silver
deposit and have served as target vectors in locating the mineralized quartz veins during
implementation of the resource drilling program.
The updated five mineral domains established in the Balabag gold-silver project are BX1, BX2,
BX3, QSW and QSX1. The “BX” stands for hydrothermal breccia while the succeeding number
denotes the sequence of deposition. Quartz stockworks that are hosted by wall rock are under
the QSW domain whereas quartz stockworks that are hosted by BX1 are designated as the
QSX1 domain. The characteristics of each domain and their stages of deposition and
associated Au and Ag mineralization are presented in the following sections.

8.4.1 Stage 1

BX1 appears to be the early hydrothermal event formed through an explosion breccia related
to what is perceived as a diorite intrusion at deeper depth. Due to its mode of formation, it
appears as irregular bodies. This domain hosts the main mineralized BX2 and BX3 domains.
This hydrothermal breccia is composed of volcanic breccia clasts cemented by grey quartz
that is crisscrossed by minimal hairline millimeter size white-translucent quartz stockwork.
Clasts for this breccia are usually altered to silica and clay. MGB Petrolab petrographic
analysis of the BX1 domain showed it to be mostly medium-grained, subhedral to euhedral
relict phenocrysts of altered volcanic rocks enclosed in a silicified and argillized groundmass.

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From the 600 BX1 core samples that were analyzed, assay values range from 0.025 g/t Au to
8.55 g/t Au and 0.5 g/t Ag to 191.79 g/t Ag with mean values of 0.25 g/t Au and 6.25 g/t Ag.

Figure 8-8: BX1 samples that underwent petrographic analysis showing angular volcanic clasts
altered by clay and silica.

8.4.2 Stage 2

Following the Stage 1 event, the BX2 domain is related to high level dacite intrusions
producing typical epithermal quartz veins cutting host BX1 and volcanic unit. This occurs as
continuous linear bodies exhibiting pinch and swell behavior. This domain mainly dominates
the Tinago vein system and has predictable continuity and thickness but is erratic in grade.
This type is classified into three classes: massive quartz vein (“VNQ”), banded quartz vein
(“VNB”) and quartz vein breccia (“VNX”). Previous exploration separated these three types;
however, recent reviews showed that VNQ, VNB and VNX usually occur alongside each other.
Due to being erratic in grade, BX2 generally results in low to high assay grades. A total of
1,421 core samples were analyzed with return value ranging from 0.095 g/t Au to as high as
268.69 g/t Au and 0.01 g/t Ag to 5,234.30 g/t Ag with mean values of 2.99 g/t Au and 87.10
g/t Ag.
BX2 domain is composed of the following:
● The VNQ sub-domain that is milky and translucent in appearance. This was formed
directly from hydrothermal fluids crystallized as a massive space filling vein displaying
anhedral grains quartz mostly an approximate 30 to 50 micrometer in size
(Mason,2010).
● The VNB sub-domain exhibits colloform to crustiform banding with notable ginguro
bands. These ginguro bands contain alternating dark and light-colored layers. The dark
bands are caused by the presence of fine-grained black sulphides composed mostly
of base metals while the light bands are of quartz. According to APSAR (2018),
crustiform banding is defined by the distribution and grain-size variation of fluidized
wall rock, early silica material and minerals such as adularia, mosaic quartz, chlorite,
illite, and sulphides.
● The VNX sub-domain contains sub-angular to angular clasts. These vein clasts are
composed of BX1, and volcanic rocks with VNQ-VNB usually acting as the cement
material. Thin sections of VNX showed angular silicified rock fragments afloat against
a matrix composed of mosaic of inequant microcrystalline to elongated, subhedral

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quartz crystals. These quartz aggregates occur in diverse grain sizes from fine to
coarse grained with some outlined by iron oxides. Fragmental size captured in thin
sections range from 0.50 cm to 1.20 cm (Madrigal, 2019).

Figure 8-9: (A) BX2 Massive Quartz Vein (VNQ) described as milky; (B) BX2 Banded Quartz Vein
(VNB) showing colloform / crustiform texture of alternating dark and light-colored layers of ginguro
bands; (C) BX2 Quartz Vein Breccia (VNX) with varying sizes of angular-shaped altered clasts in a
quartz altered matrix.

Figure 8-10: Drill core sample of BX2 taken from Tinago Vein System with all three classes of veins
(VNB, VNX and VNQ) occurring alongside each other and their corresponding assay grades.

8.4.3 Stage 3

The BX3 domain is formed through late hydrothermal explosion events after BX2 formation
within BX1 and within volcanic rock bodies. This resulted in further brecciation composed of
varying clasts consisting of altered and mineralized volcanic rocks - BX1 and BX2 breccias
that are cemented by white and gray quartz. The BX3 domain has appeared at drillholes in
Lalab and Unao-Unao areas. This type of breccia also appears in irregular bodies but exhibits
grade uniformity. Significant amounts of ginguro bands greatly contribute to its high Au and

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Ag grades. A total of 108 core samples analyzed gave values ranging from 6.38 g/t Au to
47.64 g/t Au and 1.62 g/t Ag to 1647.51 g/t Ag with mean values of 7.48 g/t Au and 202.85 g/t
Ag.
Analyzed samples of BX3 showed numerous phases of base and precious metal
mineralization as evidenced in relation to the multiple stages of brecciation and silica
cement/fracture fill. The fluidized breccia framework clast assemblage comprises silica
cement/fill material locally enclosing hydrothermally altered wall rock. Hydrothermal alteration
was also found along the breccia matrix dominated by illite, mosaic quartz and chlorite.
On rare occasions, BX3 may exhibit weak brecciation due to low pressure and low
temperature conditions. This specific type is exhibited by the BX3 of Tinago area intercepted
by drilling. This BX3 was described to be bounded by BX2 and have intensely silicic rock
fragments with some crushed white quartz vein materials in a silicic matrix.

Figure 8-11: BX3 samples with multiple clasts of BX2 (VNB-VNX-VNQ) and volcaniclastics cemented
by white to grey quartz

Figure 8-12: BX3 zone intercepted by drilling at Lalab area showing high Au and Ag values.

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During the stages of mineralization, hydrothermal fluids may enter thin linear cracks and
narrow open space fillings, which may result in quartz stockworks hosted by the early BX1 or
by host volcanic units. Two types of quartz stockwork have been established within Balabag
and these two types usually occur adjacent to mineralized zones but may also occur
independently in small and insignificant zones. The types of quartz stockwork are as follows:
● The QSX1 domain is BX1 that has been overprinted by millimeter-centimeter size
epithermal related sheeted veinlets or have been cross-cut by quartz stockworks. A
total of 286 core samples were analyzed that returned Au values ranging from 0.04 g/t
to 52.89 g/t Au and 0.01 g/t to 713.04 g/t Ag with mean values of 0.91 g/t Au and 12.56
g/t Ag.

● The QSW domain is millimeter-centimeter size quartz stockworks that are hosted by
volcanic rocks such as andesite flows and volcaniclastics. Quartz occurs as fracture
filling with varying quartz texture ranging from chalcedonic, combed to banded. One
sample petrographically analyzed by the MGB Petrolab (2010) showed illite - sericite
+ secondary quartz + chlorite altered rock cut by comb to polygonal quartz - iron oxide
- chlorite. A total of 1,573 core samples were analyzed returning Au values ranging
from 0.04 to 56.62 g/t and Ag values ranging from 0.001 to 1,214 g/t giving a mean
average of 0.48 g/t Au and 15.78 g/t Ag.

Figure 8-13: (A) QSX1 domain with angular to sub-rounded altered wall rock clasts cut by up to cm-
size quartz stockworks; (B) QSW, quartz stockworks hosted by volcanic wall rocks characterized by
crosscutting of veinlets.

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Table 8-2 and Table 8-3 show the summary of average or mean gold and silver grades of the
five mineral domains based on drill core samples analyzed. The BX3 domain gave the highest
Au (7.48 g/t) and Ag (202.85 g/t) grades followed by the BX2 domain with average Au (2.99
g/t) and Ag (87.08 g/t) grades. QSX1 has 0.91 g/t Au and 12.56 g/t Ag while QSW has 0.48
g/t Au and 15.78 g/t Ag. The earliest formed domain, BX1, has the lowest grades giving 0.25
g/t Au and 6.50g/t Ag.
Table 8-2: Gold grades of the five mineral domains

Table 8-3: Silver grades of the five domains

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Figure 8-14: Domain distribution within the Balabag major vein systems.

Figure 8-15: Chronological sequence of deposition of the domains.

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Figure 8-16: Conceptual sequence of deposition of Balabag Au-Ag Deposit defined by the five
mineral domains. BX1 - early hydrothermal event related to diorite intrusion and hosts BX2 and BX3
mineralization; BX2 - following BX1 event related to high level dacite intrusions producing typical
epithermal veins cutting host BX1 and volcanic unit, Au - Ag rich; BX3 - late hydrothermal explosion
event resulting to further brecciation after the vein-type BX2 formation within the BX1 and volcanic
rock bodies, Au – Ag rich; Dacite - precursor of BX2 and BX3 (younger than BX1); Volcanic Rock -
the country rock; Fault - both pre- and post-mineral structure.

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8.5 Localization of the Deposit

8.5.1 Mineralization Controls

Quartz veins in Balabag occur in all types of volcanic rocks, from pyroclastics such as lithic
tuff, crystal tuff and tuff breccia to andesitic lava flows such as trachytic andesite. However, it
does not occur on intrusive contacts such as in dacites. BX1 as early hydrothermal breccia
acts as the main vector of the overprinting of gold-rich epithermal veins.
Geologic structures are one of the strongest mineralization controls in the distribution of
mineral deposits in the Balabag low sulphidation epithermal vein system. Prior to
mineralization, hydrothermal fluids related with the cooling of shallow intrusive bodies are
accountable for the emplacement of the mineral deposits. These mineral deposits are formed
by direct crystallization of hydrothermal fluids in cracks, fractures and voids within the wall
rocks.
In Balabag, faults and fissure vein systems that are frequently irregular in trend and attitude
with the mineralized vein have generally been produced by the filling of open spaces within
pre-existing structures. Common open space filling textures are exhibited by the three types
of BX2. Veins are later cut and displaced by several post-mineral faults resulting in breakage,
tilting and rotation, and subsidence of the mineralized bodies as best presented by Tinago and
Miswi. High grade Au rich zone with quartz veins have relatively restricted vertical extent.

Figure 8-17: Cross section of Balabag deposit showing the structural controls and mineralization.

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Figure 8-18: Drill section along Line 100E looking southwest showing intercepted faults displacing the
mineralized veins of Tinago.

Figure 8-19: Drill section along Line 125 E looking southwest showing intercepted faults displacing
the mineralized veins of Tinago and Lalab.

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8.6 Geometry of Mineralized Veins

Field mapping, channel and trench sampling, and diamond drilling have established three
main vein systems in Balabag. These are at Tinago and Unao-Unao to the north, Miswi to the
southeast, and Lalab to the south.

Figure 8-20: Three-dimensional view of the main vein systems.

8.6.1 Tinago, Unao-Unao and Yoyon Vein Systems

The broadest mineralized zones are situated in the Tinago–Unao-Unao vein system. Surface
manifestations are mostly covered by oxidized, argillic altered volcanic rocks. The zones
primarily consist of continuous sub-parallel sets of veins. These are largely composed of VNQ,
VNB and to a more complex VNX categorized under the BX2 domain. General trends of the
veins are east-west, gently dipping to the North. The veins have pinch and swell characteristics
that typically vary in width from centimeters to several meters with a maximum down dip
continuity of about 155 meters. Colloform to crustiform quartz texture are widespread in the
Tinago veins and are commonly bounded by quartz stringers and stockwork hosted within
volcanic rocks. The veins appear to have been locally slightly displaced by northwest-
southeast trending sub vertical faulting that would be post-mineralization suggesting uplifting
of the northern portion of the Tinago veins. This faulting persisted from Unao-Unao towards
the Yoyon area farther east then extending on to the north Miswi prospect.
The thickest BX2 zone exposed on the surface of Tinago is known locally as “Warik-warik”.
This was previously mined by small-scale miners and is gently dipping at about 30-40 degrees
to the north. The outcropping vein is generally banded with a crustiform quartz texture

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associated with dark sulphide bands. The banded portions are about 3 meters to 10 meters
thick and bordered by massive silica illite/ sericite zones. It can be traced up to 500 meters in
strike length towards the east-northeast direction extending to Unao-Unao where a slight
plunge was observed. QSX1 zones are also recognized on the northern portion of Tinago sub-
parallel to the main veins but are erratic in occurrence and are limited in dimension.

Figure 8-21: Vein outcrop at Warik-Warik.

Unao-Unao veins are characterized by their base metal sulphide prevalent in mineralized
zones. These sulphides include chalcopyrite, sphalerite, galena with lesser amounts of
covellite and bornite specks and secondary minerals such as azurite and malachite occurring
as staining. The dominant occurrence of sulphide is in the form of ginguro banding commonly
associated with the colloform to crustiform quartz texture of the BX2 zone and often as the
main constituent of the BX3 zone.
Two BX1 zones are identified as irregular mineralized bodies located to the northwest and
southeast of Unao-Unao, both trending towards the northeast. Drilling data suggests the
northwest BX1 zone was partially overprinted by the east-northeast lateral extension of the
BX2 zone of Tinago. In the southeast portion of Unao-Unao lies the second BX1 zone, which
is considered to be the larger of the two zones. This was tapped by the BX3 zone and appears
to be an irregular body as well which can be observed in most underground small-scale adits.
The BX3 zone is the later event of hydrothermal brecciations and has thus yielded much higher
grade compared to BX1 and BX2 zones. BX3 zones are also present in Tinago but occur as
narrow zones within BX2 zones.
The Yoyon vein is located at the eastern-most part of Tinago-Unao-Unao vein system, about
200 meters east of the Monding tunnel. It is a near surface mineralized zone and was first
highlighted from the several surface samples yielding an average of 2.4 g/t Au and 10 g/t Ag.
Drilling has intercepted two (2) BX2 domain bodies, present at two different strike directions,
northeast-southwest and northwest-southeast but both dip roughly 50 degrees to the north.
This vein is mostly VNX and VNB zones, with evident ginguro texture in the latter. Hole BLDH-

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20-330R intercepted a 50-centimeter-VNB that assayed a high gold value of 268 g/t Au and
41 g/t Ag whilst to its east extension drilled by hole BLDH-20-378 intercepted 1.25 meters of
VNX assaying 16 g/t Au and 180 g/t Ag. QSX1 and QSW are also delineated by drill core
assaying 2.47 g/t Au and 5 g/t Ag taken from drillhole BDDH-06-55 at over an interval of 0.50
meters and at a depth of 9.80 meters to 10.30 meters.

Figure 8-22: Tinago and Unao-Unao mineralization looking north.

Figure 8-23: Drill section along Line 75W showing Tinago mineralization.

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8.6.2 Miswi Vein System

Different vein systems were also recognized in Miswi located on the southern section of
Balabag Hill. This area is pervasively affected by argillic and sericite alteration at its surface
affecting volcanic rocks. Three domains were identified in Miswi, namely BX1, BX2 and QSX1.
BX2 zones are predominant in the area followed by QSX1 and to a lesser extent the BX1
zone.
The BX1 zone, interpreted to be the earlier hydrothermal brecciation, is still preserved in this
area having a general trend sub-parallel to BX2 zones. However, the majority are significantly
overprinted by millimeter to centimeter size epithermal veining that can be categorized under
QSX1 zone.
BX2 zones are less continuous in Miswi compared to Tinago-Unao-Unao vein system due to
structural complexity. Numerous artisanal tunnels can be observed in the area traversing
towards the mineralized bodies. Historic and recent geologic mapping of these tunnels defined
the trends of the veins and were referenced during the drilling phase. Drilling data have
identified veins orientated in varying directions ranging from sub-horizontal to steeply dipping
but generally in northeast direction. The sizes of these veins vary considerably, with some
reaching to 180 meters strike length and down dip extension of 65 meters depth having pinch,
swell and less often bifurcated structures.
Veins in Miswi are generally broken due to post-mineral faulting. Distinguishing vein textures
are predominantly massive to brecciated with associated dark sulphide clusters. Millimeter to
centimeter size chalcedonic to banded quartz stringers cross cutting the massive vein can
also be observed on drill core samples. Identified clasts in breccia zones are volcanic rocks
such as trachytic andesite and volcaniclastics affected by hydrothermal alteration, including
argillic, but often flooded by silicification.

8.6.3 Lalab Vein System

Lying on the southern border of Balabag is the Lalab vein system with surface manifestations
of broad zones of argillic and sericite alteration hosting millimeter to centimeter size quartz
veining. Recent underground mapping and drilling have defined BX1, BX2, BX3 and QSX1
mineralized zones. Several sub-parallel BX2 zones are also observed with the majority
trending toward the north-northeast and steeply dipping at 50-70 degrees in a southeast
direction.
The thickest BX2 zone is found cutting through and surrounded by the voluminous BX1 zone.
This has a strike length of 160 meters in a north-northeast direction and extends down dip to
approximately 54 meters. Recent drilling data suggests the north-northeast extension of the
vein was truncated by sub-vertical post-mineralized faulting traversing east-west direction.
The BX3 zone is also apparent a few meters from the footwall of the main BX2 zone. This is
interpreted to be the later stage of re-brecciation in Balabag following the epithermal veining.
This zone is also irregular in geometry tapping the earlier BX1 zone of Lalab. It is characterized

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by breccia clasts of BX1 and BX2 with associated ginguro bands cemented by gray quartz to
quartz-sericite/ chlorite-pyrite + galena/ sphalerite + chalcopyrite.
Among the three vein systems in Balabag, Lalab has the largest BX1 zone. Although irregular
in occurrence, trends can be traced towards the north-northeast. It was interpreted to be
subjected to earlier hydrothermal brecciation which later became host to quartz veins and
breccias.

Figure 8-24: Drill section of Lalab mineralization looking northeast.

8.7 Significant Drillhole Intercepts

The recent resource drilling from October 2018 to December 2020 (covering Phase 1, 2, 3
and 4 drilling programs) within Balabag Hill targeted the vein system extensions at Lalab,
Miswi and Unao-Unao areas.
● Phase 1 drilling aimed to increase the resource at the Lalab area. A total of 12 drillholes
with an aggregate meterage of 1,068.10 meters were drilled. Drillholes were oriented
on a northeast direction to intersect the true width of the vein. Four (4) sub-vertical
veins were encountered during drilling.
● Phase 2 drilling with 15 drillholes and an aggregate meterage of 1,211.95 meters
focused on Miswi veins particularly up dip and down dip of the holes that were drilled
along the Duala tunnel.
● Phase 3 drilling focused up dip and down dip of the Monding mineralized veins at
Unao-Unao area. Twenty-four (24) drillholes with a total meterage of 1,859.45 meters
were drilled.

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● Phase 4 drilling with 35 drillholes having an aggregate meterage of 2,866.50 meters

targeted the shallow and possibly deeper mineralized veins in the Lalab, Miswi,
Tinago and Mossad areas.

Table 8-4 shows the summary of significant Au and Ag grades from Phase 1 to 4 drillhole
intercepts.

Table 8-4: Significant intercepts from Phase 1 to 4 drilling program

Hole ID From (m) To (m) Length (m) Au (g/t) Ag (g/t) Litho

Phase 1 Drilling
BLDH-18-293 27.15 30.50 3.35 2.761 43.842 BX2
BLDH-18-294 63.90 67.85 3.95 0.789 29.762 BX1-BX2
BLDH-18-300 102.45 103.45 1.00 3.60 16.034 PYCL
BLDH-18-301 40.00 42.30 2.30 2.125 31.809 BX3
BLDH-18-302 56.50 78.40 21.90 9.985 462.46 BX3
BLDH-18-302 96.30 101.90 5.60 8.047 189.73 BX2
BLDH-18-304 56.75 68.70 11.95 8.491 477.8 BX3
BLDH-18-304 75.80 77.80 2.00 12.06 414.01 BX3
BLDH-18-304 102.50 107.30 4.80 3.037 72.498 BX2
Phase 2 Drilling
BLDH-19-305 45.80 48.80 3.00 14.73 32.33 BX3
BLDH-19-305 53.85 56.15 2.30 25.07 180.53 BX3
BLDH-19-306 34.10 46.25 12.15 2.486 6.443 BX3
BLDH-19-306 52.90 54.95 2.05 4.513 23.854 BX2
BLDH-19-307 42.50 44.70 2.20 6.748 140.41 BX2
BLDH-19-307 48.10 52.1 4.00 3.74 150.17 BX2
BLDH-19-307 67.20 68.80 1.60 2.50 35.86 BX2
BLDH-19-307 72.80 77.30 4.50 1.584 16.094 BX2
BLDH-19-307 84.80 86.80 2.00 4.64 34.64 BX2
BLDH-19-307 99.80 100.85 1.05 2.66 16.57 BX2
BLDH-19-308 62.45 64.50 2.05 1.43 16.34 BX2
BLDH-19-308 71.50 73.00 1.50 2.94 50.08 BX2
BLDH-19-309R 72.30 78.10 5.80 2.545 50.475 BX2
BLDH-19-309R 93.70 97.50 3.80 3.938 46.132 BX2
BLDH-19-310 94.10 101.90 7.80 2.034 51.176 BX2
BLDH-19-313 36.40 54.20 17.80 10.73 444.87 BX3
BLDH-19-314 27.80 31.90 4.10 3.105 15.282 BX3
BLDH-19-316 4.80 5.50 0.70 1.29 9.72 BX2
BLDH-19-317 10.20 11.00 0.80 3.90 36.03 BX2

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Table 8-4: Significant intercepts from Phase 1 to 4 drilling program (continued)

Hole ID From (m) To (m) Length (m) Au (g/t) Ag (g/t) Litho

Phase 3 Drilling
BLDH-20-321 13.30 14.60 1.30 4.20 44.84 BX2
BLDH-20-322 14.00 15.80 1.80 4.228 120.87 BX2
BLDH-20-322 98.45 99.60 1.15 13.15 362.03 BX2
BLDH-20-323 36.75 37.45 0.70 2.24 10.50 BX2
BLDH-20-323 38.70 39.25 0.55 1.83 11.35 QSX1
BLDH-20-324 35.60 36.40 0.80 1.21 22.51 PYCL
BLDH-20-324 43.40 44.40 1.00 1.92 10.76 BX2
BLDH-20-325 56.40 57.40 1.00 3.03 0.07 QSX1
BLDH-20-328 25.40 26.40 1.00 1.21 4.50 QSX1
BLDH-20-329 22.70 23.70 1.00 1.09 3.60 PYCL
BLDH-20-330 17.90 18.60 0.70 1.08 0.40 QSW
BLDH-20-330 27.00 28.95 1.95 3.40 13.408 QSW
BLDH-20-330R 4.40 6.80 2.40 5.49 45.113 PYCL
BLDH-20-330R 16.50 17.00 0.50 268.69 41.20 BX2
BLDH-20-330R 18.65 19.10 0.45 10.18 12.09 QSW
BLDH-20-331 18.45 19.55 1.10 1.96 1.30 FLTZ
BLDH-20-331 20.50 21.45 0.95 2.033 5.8947 BX2
BLDH-20-333 42.30 48.45 6.15 10.09 16.589 QSX1
BLDH-20-333 53.80 55.33 1.53 3.752 4.649 BX2
BLDH-20-333 62.35 63.05 0.70 27.83 127.80 BX3
BLDH-20-333 67.05 69.90 2.85 15.83 14.719 BX3
BLDH-20-336 0.50 3.30 2.80 2.2 40.324 PYCL
BLDH-20-338 75.20 75.80 0.60 2.08 39.02 BX2
BLDH-20-340 34.90 36.40 1.50 9.44 7.07 QSX1
Phase 4 Drilling
BLDH-20-344 38.90 39.67 0.77 1.270 1.634 PYCL
BLDH-20-344 73.50 75.95 2.45 0.807 4.810 BX2
BLDH-20-345 97.70 100.10 2.30 0.816 2.396 QSX1
BLDH-20-345 109.20 109.75 0.55 3.880 9.871 BX2
BLDH-20-348 89.10 94.50 5.40 1.084 15.869 BX2
BLDH-20-351R1 67.60 68.60 1.00 1.145 4.041 PYCL
QSX1/
BLDH-20-351R1 73.00 84.15 11.15 4.249 102.362
BX2
BLDH-20-351R2 77.15 79.10 1.95 3.520 91.959 BX2
BLDH-20-351R2 80.10 88.65 8.55 15.595 493.923 BX2
BLDH-20-353 4.35 5.55 1.20 1.135 48.505 BX2
BLDH-20-353 61.15 63.75 2.60 15.58 515.57 BX3/BX2
BLDH-20-353 74.65 77.50 2.85 8.55 134.13 BX3 / BX2
BLDH-20-353 107.40 110.10 2.70 9.39 222.74 BX3 / BX2
BLDH-20-353 111.60 113.55 1.95 2.81 6.26 BX2

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Table 8-4: Significant intercepts from Phase 1 to 4 drilling program (continued)

Hole ID From (m) To (m) Length (m) Au (g/t) Ag (g/t) Litho

BLDH-20-354 136.85 137.25 0.40 8.625 127.330 BX2
BLDH-20-355 5.40 6.00 0.60 3.610 34.743 PYCL
BLDH-20-355R 16.90 19.00 2.10 1.16 5.69 BX1/ BX2
BLDH-20-358 5.20 6.00 0.80 2.650 7.733 BX2
BLDH-20-358 19.50 20.50 1.00 1.735 2.083 PYCL
BLDH-20-360 14.00 19.10 5.10 2.14 34.62 QSW/BX2
BLDH-20-361 41.25 46.35 5.10 1.384 20.295 BX2
BLDH-20-361 86.90 87.30 0.40 1.025 43.216 QSX1
BLDH-20-361 87.70 88.05 0.35 1.550 56.206 QSX1
BLDH-20-368 36.35 36.95 0.60 0.760 20.715 BX2
BLDH-20-369 93.25 94.75 1.50 2.620 49.486 BX2
BLDH-20-370 52.80 54.60 1.80 2.442 88.353 BX2
BLDH-20-370 56.65 57.05 1.80 1.420 8.352 BX2
BLDH-20-370 120.30 123.10 2.80 0.297 38.746 BX2
BLDH-20-372 101.15 102.15 1.00 1.625 3.135 QSX1
BLDH-20-372 105.00 109.65 4.65 2.402 62.031 BX2
BLDH-20-375 96.15 96.70 0.55 2.460 13.530 QSX1
BLDH-20-375 96.70 103.80 7.10 1.287 5.716 QSW
BLDH-20-375 105.85 107.05 1.20 1.290 12.406 BX2
BLDH-20-376 47.00 47.95 0.95 3.390 26.635 QSW
BLDH-20-377 9.75 11.35 1.60 1.605 17.016 QSW
BLDH-20-377 63.70 64.90 1.20 4.465 258.777 BX2
BLDH-20-378 8.70 9.95 1.25 15.980 180.979 BX2

8.8 Mineralization Types

Reconnaissance geological and geochemical surveys were conducted covering the whole
Balabag MPSA tenement. Principal mineralization and/or deposit types that have been
recognized and delineated because of the reconnaissance survey include the following:
● Epithermal Au – Ag mineralization in Balabag
● Epithermal Au prospect in Malagak and Depore – Genaro Rivers
● Porphyry Cu – Mo style of mineralization at Legumbong
● Cu skarn style of mineralization at San Pedro – Dipili
● Base metal mineralization in Upper Dipili
The most prominent mineralization is the high-grade epithermal Au-Ag mineralization at
Balabag Hill. Follow-up mapping and sampling, detailed geological surveys and resource
drilling have been implemented at the Balabag Hill area.

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8.8.1 Low Sulphidation Epithermal Gold-Silver Mineralization of Balabag and

Malagak and Depore – Genaro Rivers

The Balabag Project hosts quartz-gold-silver mineralization associated with a low-sulphidation

epithermal vein system characterized by quartz veining, brecciation, stockworks and silica
replacement. High gold and silver grades are associated with quartz veins and breccias having
multiple and overprinting epithermal quartz textures and hydrothermal brecciation.
The Depore prospect is located adjacent to, but outside, the Balabag MPSA tenement. Based
on geological mapping and sampling within the area, the mineralization may imply a deeper
level, medium to high-sulphidation epithermal Au system as evidenced by the increased
content of base-metal sulfides with very Ag and the medium crystalline-translucent nature of
the vein quartz. Underground tunnels exhibited epithermal overprints described as intense in
the form of sub-parallel to cross-cutting veins. Significant base metal minerals associated with
copper are galena, light brown sphalerite, chalcopyrite, bornite and covellite. A sample from a
tunnel yielded 2.0 g/t Au, 26 g/t Ag, 0.06% Cu, 1.1% Pb and 1.7% Zn.

Figure 8-25: Map showing the inferred mineralization and/or deposit types within the Balabag MPSA
and neighboring areas.

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8.8.2 Porphyry Cu – Mo Mineralization of Legumbong

Based on Rio Tinto’s Final Exploration Report (Manuel, Agupitan and Ladia, 1997), the
suspected copper mineralization in Legumbong is expressed by the geochemical anomalies
of stream sediment samples showing anomalous values of copper and molybdenum and the
presence of potassium silicate alteration of secondary biotite and magnetite. Cu anomalies in
four adjacent streams range from 100 ppm to 360 ppm Cu and 5 ppm to 10 ppm Mo.

8.8.3 Copper Skarn Mineralization of San Pedro-Dipili

A reconnaissance survey conducted by Rio Tinto revealed copper skarn mineralization in the
San Pedro-Dipili area. The skarn along the tributary of the Dipili River is hosted by epidotized
sediments with limestone interbeds. The skarn mineralization is defined by discontinuous or
irregular lensoid calcareous body with associated copper sulphide minerals. Adjacent to the
copper skarn mineralization is a low dipping quartz vein with drusy quartz crystals (Manuel,
Agupitan and Ladia, 1997).

8.8.4 Base Metal Mineralization of Upper Dipili

Base metal mineralization in association with high zinc and lead hosted by indurated
calcareous/carbonaceous sediments is suspected in Upper Dipili River. The mineralization is
believed to occur as sulphide veinlets and clusters. Mineragraphic analysis of the sample
collected shows the presence of pyrite-arsenopyrite-(tetrahedrite-tenantite)-galena-sphalerite-
chalcopyrite. A grab sample of this material assayed 0.86 g/t Au, 1.24% Zn, 0.27% Pb and
0.06% Cu.

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9 EXPLORATION

TVIRD has collated all historical work and integrated the databases from previous owners with
the more current and on-going activities. A systematic exploration program was implemented
by TVIRD including surface detailed geologic mapping and sampling, test-pitting, and
trenching, underground tunnel mapping and sampling, Stream sediment geochemical
exploration and drilling activities. The geophysical survey work conducted by RTEPC in 1997
was also consulted to aid in the interpretation aspect of the program.
The key elements completed to date include:
● Geologic mapping and sampling, both surface and underground, including subsurface
test-pitting and trenching including the collation of available regional geochemical and
geological data from previous workers;
● Review of previous exploration and drilling programs, including the re-logging of old
drill cores;
● Exploration target prioritization through implementation of drilling programs.

9.1 Survey Procedures and Parameters

9.1.1 Geologic Mapping and Sampling

Surface geologic mapping was usually done on major creeks and their tributaries, on all road
cuts as well as on ridges and spurs using GPS, topographic maps of 1:50,000 to 1:25,000
meter-scale and compass and tape. Outcropping rocks and float as well as rock alteration and
geologic structures were mapped, measured, and delineated and reflected on the topographic
map to generate a geologic map.
Surface grab and channel sampling were carried out during geological mapping. Grab
samples from vein and altered outcrops were collected. Significant veins and vein breccias
were ultimately channel sampled using a diamond rock saw in combination with hammer and
moil. The geologists together with experienced field assistants routinely marked sample sites
with flagging tapes for rock chips and grab samples and spray paint markings for channel
samples so they could be easily located and identified.
Standard sampling procedures for grab, rock chip, channel and trenches sampling have been
systematically executed by TVIRD field samplers with the supervision of geologists and field
assistants.

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Figure 9-1: Photo of channel sampling using rock saw.

9.1.2 Test Pitting and Trenching

Test pitting was conducted to determine if gold values defined a vertical zonation along
projected vein zones. The test pits were also used to correlate the intensity of weathering and
oxide minerals with gold values at identified projected vein zones.
Test pitting was initiated after several surface samples returned anomalous gold values. The
test pits have a one (1) meter by one (1) meter dimension and a maximum depth of three (3)
meters. Samples were collected by creating a channel (10 centimeters wide and 10
centimeters deep) on two opposite walls of the test pit. Samples were collected for every meter
downwards.
Trenching was undertaken when deemed appropriate to get preliminary information as to the
width and structural integrity of possible exploration targets. The trenches were surveyed by
the field surveyor after or during the course of geological mapping and sampling of the trench.
The trenches were dug by using an excavator. All dug trenches were barricaded with caution
or flagging tapes. The saprolite exposure and regolith profile in the trench were mapped and
the thicknesses measured with reference to the profile line. The starting point or collar
coordinates of each trench, rock type, lithological boundaries, structural measurements,
visible mineralization and sample intervals were recorded in a field data collection sample
sheet.

9.1.3 Underground Mapping and Sampling

Underground mapping and sampling of small-scale mining tunnels were conducted to

measure the correct attitudes of the veins and to verify their width and strike continuity as well
as to collect vein samples. Sample points selected underground were recorded with reference
to distance from the tunnel’s portal.

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The locations of underground samples collected were determined by the geometry of the
tunnels. Samples were taken perpendicular to dip, and therefore reflect true widths.
Predetermined sampling sites were marked with spray paint. A channel cut was about six
inches wide and two inches deep. Chip sampling was from bottom to top, or from “sill” of the
workings to the “back”. This system eliminated contamination from top material adhering to
the lower portions of the channel if sampling was taken from top to bottom. After the samples
were taken, the sample locations were sprayed for easy identification. The samples were
chipped manually using a heavy hammer and a steel moil/chisel. The chipped rock was caught
on a canvass sheet placed immediately below the sampling area. Channel spacing on veins
was one (1) meter.

9.1.4 Exploration Geochemistry

Stream sediment samples were collected along major creeks and tributaries at a sampling
density of one (1) sample per (1) square kilometer. Minus 80 mesh size stream sediment
fractions were collected with an approximate weight of 500 grams. Closely spaced sampling
at 200 meters to 300 meters was also conducted within areas where possible mineralization
was suspected.

9.1.5 Geophysical Survey

A ground geophysical survey conducted by RTEPC in 1997 was referenced during TVIRD’s
exploration program. It consisted of a frequency domain induced polarization chargeability and
resistivity survey. A total of 9.6 line-kilometers consisting of six (6) lines spaced at every 200
meters was surveyed within the Balabag Hill area.
An induced polarization (“IP”) survey tests the capacity of rocks to hold charge and hence can
be used to locate clay and other chargeable minerals such as sulphide minerals including
those hosting gold, silver and copper.
A resistivity survey tests for the resistance of rocks and minerals and, inversely, the
conductivity, as well. Because of the conductive properties of various metal-bearing minerals,
resistivity can be used in mineral exploration to locate metallic-rich rocks. As well, it can detect
the presence of resistant silicified bodies such as quartz veins.

9.2 Sampling Methods and Quality

The sampling methodology and procedures used by TVIRD are deemed best practice and are
described below. Channel samples derived are assayed in the TVIRD’s internal laboratory.

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9.2.1 Rock and Stream Sediment Geochemical Sampling

Identified outcropping veins and mineralized zones were continuously channel sampled using
diamond rock saws in combination with hammer and moil. Separate samples were collected
on veins as well as on surrounding or enveloping zones of alterations. Channel cut samples
were collected across the mineralized zones, veins and alteration from outcrops, trenches and
underground workings. The procedure for test pit sampling was essentially the same as for
sampling any continuous geologic exposure, e.g. outcrop or trench. The sampling dimension
was dictated by the mapped geology, structure and mineralogy and based on the individual
geologic boundary that each feature would indicate to be a mineralization control.
Veins and breccia zones were sampled at 30 centimeters to a maximum one (1) meter width
while alteration zones were sampled at two (2) meters to a maximum of three (3) meters width.
The sample sites were then marked with flagging tape and spray paint.
Stream sediments were collected along predetermined sample locations using a minus 80
mesh size fraction. A 300 to 500 gram of sediment sample was collected, placed in a plastic
sample bag and labelled.
A sufficient number and type of duplicate/replicate samples were taken for QA/QC purposes.
Standard samples and blank samples were submitted to check laboratory precision and
accuracy.

Figure 9-2: Stream sediment sample location map.

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9.2.2 Sample Quality

The sampling procedures adopted are consistent with current industry best practices. The
methodologies are considered appropriate, and the samples collected from all exploration
activities are considered representative of the respective orebodies.

9.2.3 Results of Exploration Works

9.2.3.1 Geologic Mapping

In 2006-2007, detailed drainage geological mapping and sampling were conducted around
Balabag Hill in Genaro Creek and Minda Creek, located in the southeast, Depore River, Lalab
Creek and Baby Creek in the southwest-west and at Unao-Unao Creek in the north. Total
traverse length was 13.5 kilometers. Balabag Hill’s surface geological map was reconstructed
based on drill hole data during the period.
A more detailed geological mapping was conducted at Balabag Hill and vicinity during the
latter period of 2017 to the end of 2020. All roadcuts, creeks and major streams were mapped
using compass and tape. Mapping continued further north, west and south of the Balabag Hill,
covering a major portion of the Balabag MPSA tenement.

9.2.3.2 Exploration Geochemistry

Stream sediment sampling covering the entire MPSA over Balabag Hill was implemented
during the time of RTEPC, the results of which have been assessed by TVIRD. Follow-up
stream sediment sampling was also conducted in the later part of 2020 covering Upper Dipili
and Valiant areas. In addition, rock samples were also collected covering the Balabag Hill
area as well as the surrounding areas.
Compiled rocks and stream sediment samples collected are presented in the following maps.

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Figure 9-3: Rocks and stream sediment sample locations.

Figure 9-4: Gold results in stream sediments.

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Figure 9-5: Silver results in stream sediments.

In Figures 9-4 and 9-5, stream sediment gold and silver values are located around the Balabag
Hill area. High gold anomalies are in the range 1 to 15 ppm while the high silver anomalies
are in the range 3 to 80 ppm.
For rock samples, most of the high gold and silver values are located within and around the
Balabag Hill area as shown in Figures 9-6 and 9-7.

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Figure 9-6: Gold results in rock samples.

Figure 9-7: Silver results in rock samples.

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9.2.3.3 Test Pitting and Trenching

Test pitting was conducted to determine if gold values define a vertical zonation along
projected vein zones. Geological observations of the test pits were used to correlate the
intensity of weathering and oxide minerals with gold values at projected vein zones.
Test pitting was initiated after several surface samples returned anomalous gold values. The
test pits have a one (1) meter by one (1) meter dimension with a maximum depth of 3 meters.
Samples are collected from 10 centimeter wide by 10 centimeter deep channels on two
opposite walls of the test pit. Samples are collected vertically at one (1) meter intervals.

Figure 9-8: Section view of a test pit.

Trenching along the projected strike of the Tinago, Lalab and Miswi veins was also
implemented to determine vein continuity. The trenches were spaced about 50 meters apart
and oriented almost perpendicular (northwest to southeast) to the general trend of the veins.
A total of 33 trenches with a total length of 1,066 meters were dug. Channel samples were
taken along the trenches at one (1) meter intervals.

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Figure 9-9: Trench location map.

Figure 9-10: Trenches in South Miswi Area.

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9.3 Underground Mapping and Sampling

TVIRD conducted mapping and sampling of some of the artisanal miners’ underground tunnels
after small-scale mining activities were stopped in Tinago, Unao-Unao, Lalab and Miswi. This
was done to precisely measure the attitudes of the veins, verify their width and strike continuity
as well as collect vein samples. Sample points selected underground were recorded with
reference to the distance from the tunnel’s portal.
Underground sample locations were determined by the geometry of the tunnels. Samples
were taken perpendicular to dip to reflect true widths. However, none of the samples represent
the full width of the veins as the footwall was not exposed. The samples in any one stope
represented the same preferred, approximately planar, portion of the vein. In the wider stopes,
it was occasionally possible to take composite samples, as vein width was more than a meter
wide.
Predetermined sampling sites were marked with spray paint. A channel cut was about six
inches wide and two inches deep. Chip sampling was from bottom to top, or from “sill” of the
tunnels to the “back”. This system eliminates contamination from top material adhering to the
lower portions of the channel if sampling was taken from top to bottom. After the samples were
taken, the sample locations were spray-painted. The samples were chipped manually using a
heavy hammer and a steel moil/chisel. The chipped rock was caught on a canvas sheet placed
immediately below the sampling area. Channel spacing on the vein was 1.5 meters.
When Balabag exploration resumed during the 4th quarter of 2017, the artisanal small-scale
miners’ tunnels were prioritized for re-mapping and sampling prior to drilling. A total of 89
artisanal small-scale mine tunnels were rehabilitated, mapped, and sampled. The majority of
the tunnels were in Lalab, Miswi and Unao-Unao.

9.3.1 Lalab Area

Underground mapping of the small-scale-tunnels in Lalab, revealed stacked quartz veins

showing a northeast-southwest and southeast strike, steeply dipping vein attitude. At the Bola
tunnel, two main massive veins were mapped. The first intercept was around 0.6 to 0.8meters
wide striking at N35°east dipping 55°southeast located about 45 meters from the portal. The
second vein measured 1.1 meters wide with N35°E strike and dipping 50°SE. Textures of both
veins were dominantly massive, oxidized and pyritic with sections of brecciation. A strong fault
was manifested in both walls of the vein, indicating that the hydrothermal fluids tapped the
fault for mineralization.

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Figure 9-11: Location of small-scale tunnels in Lalab Area.

Figure 9-12: Location of tunnels at Lalab and Unao-Unao Area.

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9.3.2 Miswi Area

Unlike the steeply dipping vein system in Lalab, Miswi veins tend to be gently to moderately
dipping (40°-70°) as clearly shown at the Bob Lopez tunnel. The vein trend is almost the same
as Lalab on a NNE-SSW trend. On the eastern flank from the Bob Lopez tunnel, several
tunnels were found to be of the same trends with varying dip angles:
● Epher Tunnel – Quartz veining is fine to subhedral ranging from 0.2 meters to 1.0
meters in width, highly oxidized with no traces of fresh pyrite, also vuggy often lined
with goethite possibly a pseudomorph of pyrite. A younger normal fault trending north-
northeast, dipping 65°SE cuts the vein around 20 meters from the portal and has
displaced it at around 0.8 meters length. The drive runs at the apparent down dip of
the vein. About 48 samples were collected returning an average assay of 1.7 g/t Au
and 15.5 g/t Ag.
● De Los Reyes 1 Tunnel – Located close to Epher tunnel it is only a short drift. It has
similar characteristics of the Epher vein, being its downdip extension. The vein at this
section swelled a little to more than one (1) meter width.
● Teddy 1 Tunnel – Quartz vein shows similarly fine-subhedral, oxidized and vuggy
appearance but likely starting to pinch out at this section. Yet, unlike Epher and De Los
Reyes 1, this has two sub-parallel veins as seen at the portal – one has 0.4 meters
width while the other is much thinner at 20 centimeters width. These veins represent
the further down dip continuity of the Epher-De Los Reyes intercept. Five samples
were collected with an average grade of 0.30 g/t Au and 4.19 g/t Ag.
● Teodore Ductin Tunnel – Has three sub-parallel veins ranging from 0.20 meters to 0.60
meters widths, highly oxidized and broken. Veins behave similarly, striking east-
northeast and dipping north-northwest. These three veins separately lie further down -
deeper from the above Epher-De Los Reyes-Teddy 1 intercepts.
● Gino Tunnel – With fine to massive texture, oxidized and broken for around 0.40
meters width it similarly has an ENE/NNW attitude. This vein is a separate vein. It is
exposed by the side-cut trench on the road.
● Fajardo 2 Tunnel – Located about 50 meters southwest of the Gino 2 tunnel, this vein
represents the up-dip extension of the Epher-De Los Reyes-Teddy 1 vein intercept.
Vein samples returned insignificant gold values.
● Bob Lopez Tunnel – The vein inside the tunnel varies from massive, chalcedonic to
subhedral texture and is enveloped by a variably altered argillic hanging wall zone
containing <4 centimeters crisscrossing milky quartz-pyrite oxidized to goethite
veinlets. Its footwall displayed a clay-FeO assemblage, often with associated gouge at
the immediate vein contact. The quartz vein is coarsely crystalline and brecciated on
the inferred swelled portion to nearly 3 meters true width. The vein strikes north-
northeast gradually shifting to a northeast direction, dipping southeast, and averaging
an approximately 30 degrees angle. Along its strike, the vein plunges due north and is
cut sharply by a reverse fault at the middle drive making the succeeding block uplifted
and exposed for an almost 3 meters vein width. Total vein exposure is almost 40
meters strike length with >0.5 meters to <3 meters width. The quartz vein is still open
northeast and southwest and along southeast dip.

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Figure 9-13: Section looking northwest showing the location of small-scale tunnels at Miswi Area.

9.3.3 Unao-Unao Area

At Unao-Unao, four (4) tunnels were rehabilitated, mapped and sampled, namely: Monding,
Sitong, Langlang and Monarca tunnels. At the Monding tunnel, quartz sulphide veins with a
presence of base metals returned significant gold values ranging from 2.0 g/t Au to117.43 g/t
Au. The quartz sulphide vein breccia is characterized with crackled breccias composed of BX2
domain (VNQ-VNX-VNB + black sulphides) cemented by epithermal quartz veins.
● Sitong Tunnel – Massive quartz veining with 30-50 centimeters width located 34
meters from the portal was mapped. Sulphides were disseminated in this vein
composed of pyrite, chalcopyrite, sphalerite with minor amounts of bornite and galena.
Visible amounts of azurite and malachite fill are on fractures. The vein generally strikes
northwest and dips southeast and northwest.
● Allan Monarca Tunnel – Generally, the tunnel is on porphyritic/brecciated andesite flow
altered to an assemblage of clay +silica ±chlorite ±pyrite and cut by a fault striking
northwest and dipping northeast. The alteration gets intense inside the tunnel to
silicified brecciated andesite flow with millimeter-sized hairline quartz stringers partly
chloritic with 5-6% pyrite. There is another fault striking northeast and dipping 48°NW
which cuts a 10 centimeter to 50 centimeter quartz vein. Several meters before the
tunnel’s face, a 0.9 meter to 1 meter vein zone was identified with 20 centimeters to
25 centimeters VNQ in the hanging wall and 75 centimeters QSW in the footwall. Four
(4) samples were collected returning average assays of 0.29 g/t Au and 7.12 g/t Ag.
● Monding Tunnel – the mineralized zone in this tunnel is approximately 6 meters to 7
meters wide and exhibits several mineralization styles and textures. This mineralized

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zone width or thickness is open at both the hanging wall and footwall. Several mineral
domains were identified in this area consisting of the following: quartz-sulfide banded
breccia (“QSB”), VNX, VNQ, QSW, and silica flooding or silica replacement. QSB,
characterized by light to dark grey color, monomict quartz vein clasts cemented by
chalcedonic quartz matrix with common dark grey color sulfide bands and clusters
appears in both the foot wall and hanging wall of the identified mineralized zone. QSB
also exhibits a pinch and swell characteristic ranging from 15 centimeters to 1.20
meters thick. Historic assays from this vein type returned bonanza gold and silver
grades. VNX is characterized by its light grey color, monomict clasts of phyllic altered
andesite and cryptocrystalline quartz veins cemented by chalcedonic quartz matrix
with common fine sulfide clusters. VNQ is characterized by its pale to bleached color
massive cryptocrystalline quartz vein, in some portions it is highly fractured and
manganiferous. Quartz stockworks were observed near hanging walls and
characterized by silicified wall rock and centimeter wide saccharoidal quartz
stockworks with occasional sulphide bands. These other mineralization domains may
contain lower gold grades than QSB but due to its large volume these mineralization
domains are a great potential target. A total of 306 samples were collected giving an
average grade of 12.6 g/t Au and 97.26 g/t Ag.
● Lang-Lang Tunnel – This tunnel is located 50 meters northeast of Monding tunnel on
a lower elevation with four short drives at both sides of the tunnel; one drive crossed
the down dip extension of Monding tunnel. A mineralized hydrothermal breccia zone
was observed comprising a clast supported breccia with angular wall rocks cemented
with epithermal quartz veins with visible stains of malachite and manganese. The rock
sample assays are less than 2.0 g/t Au. A total of 153 samples were collected with an
average grade of 0.42 g/t Au and 14.99 g/t Ag.

Figure 9-14: Plan view of Unao-Unao Vein System showing the location of small-scale tunnels.

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Figure 9-15: Location of small-scale tunnels within Balabag Hill.

9.5 Geophysical Exploration

An Induced Polarization and Resistivity survey was conducted over Balabag Hill by RTEPC
with McPhar Geo-services as the contractor. A total of 9.6 line-km consisting of six (6) lines
were surveyed. No ground geophysical work was done by TVIRD. The results of the survey
are shown in Figures 9-16 and Figure 9-17.
Three areas with IP and resistivity anomalies are identified – Unao-Unao, Miswi East and
Lalab West.
Unao-Unao shows a high resistivity zone along Unao-Unao creek. This anomaly is prominent
in 500 meter to 200 meter level plans with a diameter of around 500 meters. There are no drill
holes yet to the north of the creek where the high resistivity anomaly is found.
Miswi East shows a high IP anomaly similar to that found in Balabag Hill.
The fault zone in Lalab West could contribute to the shallow high resistivity and truncated high
IP anomalies. However, following the high resistivity anomaly pattern at lower elevations
points towards Lalab on the east. This may be an extension of the Lalab veins. Also, the high
IP zone can be traced further west of the area.
McPhar Geo-services recommended drill-testing the high-chargeability anomalies since the
higher the response would indicate a higher likelihood of sulphide mineralization.

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Figure 9-16: IP map over Balabag Hill.

Figure 9-17: Resistivity map over Balabag Hill.

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10 DRILLING

The drilling program in Balabag Hill was implemented by a single drilling contractor,
Exploration Drilling Corporation (“EDCO”) which is wholly owned by TVIRD. Several types of
diamond drill machines were used, including four LY-38s, two CS-1000s, one Gopher-160,
two Edson 150s, one HYDX-150 and two EDCO-150s. Core sizes varied from PQ-HQ with
the core diameter reduced to NQ in the lower portions of the deep holes. PQ size core diameter
is 85 millimeters, HQ is 63.5 millimeters while NQ is 47.6 millimeters. Drilling was done using
a triple tube.
The proposed drill hole coordinates were prepared by the geologist and approved by the
project manager. The geologist provided the field surveyor with the proposed drill hole
coordinates and corresponding location map and in turn the drill hole collar location was
marked and surveyed using a Nikon Total Station (NPL -322+) with an accuracy of one (1)
centimeter on the ground. If any deviations in the proposed drill hole location are encountered
due to topography or other reasons, an alternative location was determined by the surveyor
and communicated to the geologist for approval before pad construction began.
Prior to any drilling commencement, the assigned rig geologist prepared a Drill Hole
Commencement Approval Form to signify the formal start of drilling operations on a
corresponding drill hole. The form included information on the drilling parameters, drill hole
design and site set-up.
During the drilling operation, all real-time monitoring and related activities at the drill site were
noted by the Core Checker on the Core Checker’s Report. These include, but were not limited
to:
a) Mixing of mud and additives;
b) Actual time the operation started;
c) Coring and retrieval;
d) Time duration of stand-by due to mechanical breakdown, oil spillage, limited water
supply and the like’
e) Adding of rods (PQ/HQ);
f) Pulling out and putting down of rods due to drill bit replacement or loss core; and,
g) Hole conditioning.
Orientation runs (using spear and crayon) were undertaken by the driller at least every six
meters. In cases where the orientation mark was of poor quality, another attempt was made
in the next run. A straight line was also marked along the nearest edge of the bottom split tube
closest to the notch as core orientation reference. The drill core was transferred from the split
tubes to the core boxes after the marks had been made.
Once the drill hole had been completed, the surveyor returned to pick up the “final collar
coordinate” using a total station GPS. This information was sent to the senior geologist and
the database administrator who then saved the file.

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10.1 Drill Core Sampling

Drill core sampling was undertaken after geological, structural and geotechnical core logging.
Sampling intervals are selected by the geologist, and for both PQ and HQ drill core sizes (with
drill core diameter of 85 millimeters and 63.5 millimeters, respectively) conform to a minimum
sample length of 30 centimeters and maximum of 100 centimeters, (Figure 10-2, Drilling
Operation Protocol). Sampling is confined and should not cross along lithological boundaries
as defined by the logging and are defined within similar alteration zones and structural
features.
● A colored orientation line is marked along the length of the core to indicate where the
core should be cut in two equal halves. The line is traced perpendicular to the
stratification; where there is mineralization the optimum distribution is used so that 50%
of mineralization is represented in each half of the core. The same side of the cut core
is removed consistently throughout the drill hole (i.e. the right-hand side from the top
to the bottom of the hole).
● A sampling form is completed with the intervals indicated for the samples. Ticket forms
are completed with the drill hole ID number and FROM-TO interval for the sample. The
sample numbers must be in consecutive order and are derived from the sample ticket
book. Only the sample numbers are written on the plastic sample bags.
● Marker blocks are inserted at the start and end of each sample and the number of the
corresponding sample is written with a felt-tip pen on the core box to the side of the
marker. Samples of approximately 2 to 3 kilograms are collected carefully and placed
in plastic bags. The sample number is written on the plastic sample bag with a
permanent marker pen. The sample ticket is stapled on the upper part of the bag, and
the bag sample number is checked against ticket sample number. The bag is sealed
with plastic ties.

Figure 10-1: (A) Receiving of drill core samples from the drill site; (B) Core photography by a core
house aide; (C) Wrapping of samples using clear packaging tape prior to cutting; (D) Core cutting by
samples by designated core cutters; (E) Geologist conducting detailed core logging; (F) Sample
preparation by a core house aide; (G) 25 samples with sample numbers ready for dispatch.

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Figure 10-2: Drilling operation protocol.

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Figure 10-3: Core logging and sampling procedure.

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Figure 10-4: Core handling and sampling procedures.

10.2 Density Sampling

Dry bulk density is measured using the paraffin method. Samples are selected at 10 meter
intervals but also ensuring that mineralized intersections are well represented. Long core
samples (up to 30 centimeters) are prioritized because the bigger the samples the more
representative they are of the rocks. Each sample is placed in an aluminum tray and a sample
card is filled in detailing the hole ID, core size, meterage interval, tray number and date. The
core sample is tied with a thin cotton thread at its approximate midpoint and then hang-dried
and weighed using an electric digital scale to 0.10 gram accuracy, after which the core sample
is then totally immersed in pre-heated and liquefied paraffin and again hang-dried to harden
the paraffin. Once dry, the sample is again weighed and the captured data is recorded in the
Bulk Density Measurement Sheet.

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A one-meter long, 150-millimeter PVC-pipe, is fabricated for dry bulk density measurements.
The bottom 10 centimeters of the pipe is concreted and sealed. A spout is fitted at 70
centimeters from the bottom of the pipe.

Figure 10-5:

Fabricated PVC pipes for

specific gravity measurements

The PVC pipe is then filled with water up to the level of a spout and the water is drained until
there are no more drops dripping from the spout. The paraffin coated sample is totally
immersed in the PVC pipe (leaving the untied end of the cotton thread outside the pipe so the
sample can be pulled out easily) and displaced water is collected in a small plastic bucket at
the end of the spout and weighed. The plastic bucket is initially weighed empty before being
placed under the spout and the weight of the displaced water is calculated as the difference
between the two weights. Once all data gathered is entered into the log sheet, the dry bulk
density, which is also equivalent to the specific gravity, is automatically calculated for each
sample using the following mathematical formula:

Figure 10-6:

Formula used in computing dry density or

specific gravity.

Bulk dry density is equivalent to the specific gravity as normal density of water of 1 ton /cubic
meter or 1 gram / milliliter is being used as the conversion factor to arrive at the volume of the
core sample.
Table 10.1 shows the result of density analysis done on different mineralized domains as well
as the host volcanic rocks.

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Table 10-1: Result of Density analysis

Number of Samples
Rock Type / Domain Average Dry Density
Analyzed

BX1, BX2, BX3 (massive, banded veins/

197 2.422
vein breccias)

QSW, QSX1 (quartz stock works,

sheeted veinlets in silicified and 410 2.495
brecciated rock)

Andesite, Volcanic breccia 636 2.628

10.3 Drilling Program Details

TVIRD started its own drilling program on November 17, 2005 with the first hole, BDDH-05-
01, collared at central Tinago area. Two drill holes were completed during the year incurring
a total meterage of 131.30 meters.
The following year, drilling accelerated and 57 drill holes at 50-meter intervals were completed
with a total meterage of 6,822.10. Further to the encouraging results, TVI embarked on an
infill drilling campaign in 2007 with drillhole spacing reduced to 25 meters. Accumulated drilling
meterage incurred through this initiative in 2007 was 4,021.30 meters from 42 drillholes.
In February 2010, TVI resumed infill drilling after a three-year hiatus with the collaring of
BLDH-10-100 in Unao-Unao. Several subsequent phases of drilling were completed until the
second quarter of 2012, including sterilization holes along the proposed sites of the mill, mine
camp, waste dump and tailings storage area. A total of 177 drillholes incurring a total of
21,960.35 meters were generated from the year 2010 to 2012.
Several holes were also drilled to the west of Balabag Hill to chase the possible western
extension of the Tinago vein system. Drilling restarted in February 2013 and another 18 holes
with a total of 1,220.55 meters were completed until April 2013. In-fill drilling consisting of the
Phase 1 to 4 drilling program resumed in the latter part of the year 2018 and continued through
to the end of year 2020, incurring an additional 86 drill holes with a total of 7,031.90 meters
(Figure 10-7).
The total number of holes drilled by TVIRD since 2005 to the end of 2020 at Balabag is 382
drill holes equivalent to 41,161.60 meters (Table 10-2).

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Figure 10-7: Balabag drillhole location map.

Table 10-2: Balabag exploration drilling statistics

Number

Year of Drillholes Meterage

2005 2 131.30

2006 57 6,822.10

2007 42 4,021.30

2010 54 7,595.15

2011 118 13,185.60

2012 5 1,179.60

2013 18 1,220.55

2018 12 1,068.10

2019 15 1,211.95

2020 59 4,725.95

Total 382 41,161.60

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Figure 10-8:

EDCO diamond drill rig set-up in

Lalab Area.

The initial drilling program in 2005-2006 consisted of holes drilled at a 50 meters x 50 meters
grid on a baseline oriented N60°E. From 2007 onwards, the drillhole spacing was reduced to
25 meters in order to upgrade the resource into the indicated and measured category. The
holes were generally oriented S20°E with inclination of -60 degrees. In 2019, drillhole
directions at Lalab were oriented at different directions after the review and interpretation of
the previous drill cores using structural studies and results from underground tunnel mapping.
The depth of the holes ranged from 9 meters to 505 meters with an average depth of 115.4
meters.

Figure 10-9: Three-dimensional view of the major veins in Balabag Hill as intercepted by drillholes.

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10.3.1 Factors Influencing the Accuracy of Drilling Results

10.3.1.1 Drillhole Location

The proposed drill hole coordinates are prepared by the geologist and approved by the project
manager. The geologist provides the surveyor with the proposed drill hole coordinates and
corresponding location map; and the proposed coordinates are saved in the drill hole
database.

The drill hole collar location is marked and surveyed using a Nikon Total station. If any
deviations in the proposed drill hole location are encountered due to topography or other
reasons, alternative locations should be determined by the field surveyor and communicated
to the geologist for approval before pad construction begins.

Once the position of drill hole collar is defined, it is marked up using a stake labelled with the
hole ID, azimuth and dip (the stake is either painted or marked with fluorescent tape). Once
the planned hole has been marked up the drill platform is then constructed (usually by an
excavator or bulldozer) based on the requirements of the drilling equipment to be utilized.

With the platform constructed, the geologist and field technician return to re-mark the proposed
collar location with a single stake where the hole is to be collared. If the proposed drill hole is
inclined, the geologist marks-up the orientation of the drill hole (azimuth) with two additional
stakes referred to as a front-site and a back-site and finishes by marking the line (created by
the three points) with flagging tape. If the proposed drill hole is vertical, the topographer leaves
the single stake.

Once the drill has been installed and setup based on the stakes and/or flagging tape line the
geologist completes a pre-start geology checklist ensuring that the drill is on the correct
platform and correctly aligned.

Before the drill crew initiates its activities a senior geologist, drilling supervisor and/or a
representative from the safety department completes a pre-start safety checklist.

Once the drill hole has been completed, the surveyor returns to pick up the final coordinate
with a total station. This information is then sent to the senior geologist and the database
administrator who save the file.

10.3.1.2 Downhole Survey

A single shot downhole survey using the Reflex EZ Shot survey tool is completed in all
diamond drill holes. Hole ID and depth are manually entered into the EZ palm. The drill crew
is responsible for completing the survey. The first survey or shot is collected within the first
run (3 rods or 9 meters) and subsequently at 30 meter-intervals. The last run to the end of
hole (“EOH”) must be surveyed. The down hole survey is monitored by the rig geologist while
drilling so that any excessive deviation (0.2 degrees per meter) can be identified and
resurveyed.

The Reflex EZ Shot tool is a completely manual single shot tool and only gives a read out of
the basic azimuth (“AZ”), dip (“Incl”), temperature (“Temp”) and magnetic susceptibility (“Mag
Field”) data which are manually recorded and reported via a Reflex data template which is
signed by the drilling supervisor.

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Once the survey has been completed the driller communicates with the project geologist to
report the results (Az, Incl, Mag Field and Temp data). The driller also notes the data in a
prepared sheet which is submitted to the drill supervisor or project geologist at the end of each
drill hole. The Project geologist is responsible for downloading the raw data from the EZ palm
(via USB) on a weekly basis.

10.3.1.3 Core Recovery

Core recoveries are typically calculated at the drilling site by qualified core checkers and
recorded in the geological logs. The core is transferred from the trays and pieced together on
a V-rail (angle iron) rack and the recoveries calculated. Alternatively, core recoveries are
recorded once the trays are delivered back to the core facility/yard and recorded in the
geological logs. The recording of recoveries is the responsibility of the geologist. Core
recoveries are typically in excess of 92%.

10.3.1.4 Core Handling

Core is carefully handled by the drill crew, correctly oriented with regard to the down hole
direction and then carefully placed directly on to pre-marked core trays. Prior to loading with
core, core boxes are labelled with the drill hole number, box sequence and depth recorded in
permanent marker. The core is placed in the trays starting from the top left corner. The core
is placed neatly in the trays. Wooden block markers are inserted by the driller to record depth.

Orientation runs using spear and crayon are undertaken by the driller at least every 6 meters
of run. In cases when the orientation mark is of poor quality, another attempt is made in the
next run. A straight line is also marked along the nearest edge of the bottom split tube closest
to the notch as core orientation reference. The drill core is transferred from the split tube to
the core box after the marks have been made.
The core is marked with a red permanent marker in the bottom hole position and a directional
arrow put on at regular intervals to record the down hole direction.

The core is transported carefully back to the core yard. The core is laid out in plastic core trays
that can accommodate 5 meters of core.

The transporting personnel turn over the Core Collection Form to the assigned core house
personnel upon arrival of the transported core samples to the core house. The assigned core
house personnel check if delivered core boxes and core blocks are properly and correctly
labeled. The Core House Leadman supervises the cleaning and labeling of meterage intervals.

10.3.1.5 Core Photography

The core house leadman supervises the whole core photography of every core box. The
method of taking photographs is from top to bottom of every hole. Natural sunlight is needed
when conducting this activity so as not to alter the color of the photo. Orientation of the core
box and the photo is in landscape position and a wooden stand where the core box is placed
is used to properly follow this orientation. A small white board is placed at the top of the core
box where labels such as hole ID, box number and meterage (from and to) are written. In
taking the photo, the drill core should be wet to show the natural colors of the core.

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10.3.1.6 Core Logging

After unloading the boxes in the core logging room and placing them on the logging table, the
geologist checks all the boxes to verify the correct box numbering and the correct place for
the wood depth markers. Ideally several lengths of core are placed together in order to provide
an overview of a number of drill core runs. Logging records include the prospect name, hole
ID, person logging, date of logging, depth from/to.

Core logging includes lithological identification, defining alteration intensity and minerals
including the presence of sulphide minerals and type. Structures, including the dip and strike,
veining and veining density are also recorded.

Once logged, the core is boxed and stored. The logging detail is considered appropriate for
the nature and style of the mineralization and suitable for Mineral Resource estimation and
related studies.

10.3.1.7 Geotechnical Logging

The geologist records the data of the depth markers in the geotechnical logging form; the
geologist verifies that the blocks are marked in the box trays and checks the run length data.
The geotechnical characteristics of the rock mass are described based on international
standard practices and is structured to provide all necessary data for rock mass classification
schemes. Geotechnical logging records include:

● Depth from/to;
● Core diameter;
● Recovery - determined by adding the length of all core pieces greater than 10 cm. If
the core is split by natural fractures, this technically does not qualify as an intact
piece of core;
● Rock quality designation - calculated by dividing the total length of core pieces
greater than 10 cm with the total length of core run and multiplying it by 100%;
● Lithology;
● Weathering, Alteration;
● Planarity, roughness;
● Infill type and thickness;
● Hardness;
● Broken zone; and,
● Orientation.

10.3.1.8 Core Cutting

Once logged, the core is carefully marked for sampling. Core boxes are arranged in an
organized manner by placing one next to the other horizontally on an appropriate stand. The
core is carefully removed and placed in the core holder such that it fits and can be taken out
with ease. Loaded blocks are placed in the core feed area in sequential order and the
sequence of core blocks is maintained. Broken cores are wrapped with clear packaging tape
to keep the core intact during half-core cutting.

The core is cut completely in two halves using an electric diamond blade saw. The core holder
containing the cut core is removed from the machine and the core is replaced in its original
position in the core tray.

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The standard protocol is that the cut is made 1 cm to the right in a down hole direction of the
orientation line, with the left side being retained and the other half submitted for assay.

10.3.1.9 Core Storage

After samples are dispatched to the laboratory, drill core boxes are stored in order. The drill
core boxes are properly labelled with the drill hole ID, box number and from and to depths.
Core boxes are sent for final storage. The core is stored following geological logging,
photography, core cutting and sampling.

TVIRD has the temporary core shed facility located at the project site with a dedicated core
saw. A permanent core shed facility is located at Ipil, Zamboanga Sibugay which has a more
spacious core logging facilities and core storage with elevated core box racks on concrete
floors that are sheltered from wind and rain.

10.4 Comments on Section 10: Drilling

The QP has reviewed the details of the drilling program implemented by TVIRD during his visit
to the Balabag site, including the drilling and sampling procedures and the quality of the
geological, geotechnical, collar and down-hole survey data collected. In the opinion of the
QP, the procedures employed and the data collected are sufficient to support the mineral
resource estimation as follows:

• Drilling procedures and core logging meet industry standards;

• Collar surveys have been performed using industry-standard survey instruments;

• Down-hole surveys were collected at the time of the drilling programs using industry-
standard instrumentation;

• Drill orientations are generally appropriate for the mineralization style and have been
drilled at directions that aimed to give optimal information regarding the orientation and
projections of mineralized zones;

• Drill spacing has been adequate to first outline and to then infill and define mineralized
zones;

• Recovery data from drill core data is acceptable with core recoveries typically in excess
of 92%;

• All assay samples and lithology intervals have been reviewed for overlaps and
duplicate records and no issues have been identified;

• No factors were identified with the data collection from the drill program that could
materially affect resource estimation accuracy or reliability.

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 Sample Preparation and Submission to Laboratory

After core logging, the Exploration Geologist identifies the drill core intervals for sampling and
fills out the Drill Core Sampling Sheet (TVIRD-BGSP-FOR-EXP-010). Once the sampling
sheet is completed, the drill cores are turned over to the core house leadman for sample
preparation.
Significant drill hole intercepts are prioritized for sampling. The intervals are marked with paper
tapes to ensure that correct samples are taken. The core samples are placed in a clear sample
bag with its sample number.
Twenty-five (25) samples for every sample batch are prepared. Three QA/ QC samples are
inserted in the set of samples of each batch to ensure and check the quality of sample
preparation, possible contamination of samples and accuracy and precision of laboratory:
● Certified Reference Material (CRM) – insert 1 CRM sample for every batch;
● Blank Sample – insert 1 blank sample for every batch;
● Duplicate Sample – insert 1 duplicate sample for every batch.
The CRM, blank, and duplicate samples are assigned sample numbers in sequence with the
sample number of the whole sample batch using the Sample Ticket Booklet.
The Data Specialist of the GIS team prepares the Sample Submittal Form (TVIRD-BGSP-
FOR-EXP-009) for laboratory dispatch of samples indicating details of sample preparation and
analyses, as needed. Two copies of the form are prepared, one copy for the exploration file
and one copy for the laboratory.

11.2 Sample Preparation

Sample preparation is carried out at the Balabag onsite laboratory. Samples are initially hand
crushed into ≤40 mm diameter. The samples are then poured into two clean sample pans with
the accompanying sample tag and barcode placed over the sample. The sample pans are
then placed in an oven with a maintained temperature of 105°C and dried for 6-7 hours. The
dried samples passed through a Boyd crusher to a final reduction of ≤2 mm. The crushed
sample is then split progressively into a 1 kg sample using a Jones splitter. The 1 kg split is
then packed, with a duplicate of the sample ticket, in a plastic bag inside a calico bag for
submission to the Balabag Fire Assay Laboratory.
The remaining crushed split sample is properly labeled and stored at site.
Sample preparation equipment at the Balabag onsite laboratory includes:
● Drying oven –used to dry samples prior to their preparation for assaying. All samples
are dried as metal contents are reported in dry weights.
● Boyd crusher –designed to finely crush the sample to not more than 2mm.
● Jones Splitter –used to evenly reduce the volume of samples for pulverizing.

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● Pulverizer – A Rocklabs Ring Mill, used to pulverize the samples to a fine grind of 90%
passing -75 microns.

11.3 Analyses

From 2005 to 2006, all samples were analyzed by the Mcphar Laboratory in Manila. From
2007 until 2012, all samples were analyzed by the company’s internal assay laboratory at the
Canatuan Mine, Siocon, Zamboanga del Norte. During the resumption of exploration activities
in 2017-2018, samples were analyzed at the Agata Mine Site, Agusan. Commencing in 2019
to present, all samples are analyzed in the Balabag laboratory. TVIRD’s Balabag Fire Assay
Laboratory has appointed an Analytical Chemist to ensure that sampling procedures are
strictly followed and to implement and monitor the internal QA/QC program of the laboratory.
The various stages in fire assaying are described as follows:
a) Fusion – a 50g sample is fused in the furnace with the aid of a flux (litharge, soda ash,
borax) at a temperature of 1100°C. Silver is added in the flux mixture when silver is to
be determined (1pc silver in quartz). The precious metal is collected by the lead in the
flux and the slag is decanted. When the melt solidifies, the resulting lead button is
pounded with a hammer into a cube.
b) Cupellation – the lead cube is charged in a magnesia cupel into the furnace set at a
temperature of 900°C. The lead is absorbed in the cupel leaving the button or “prill”.
c) Weighing – The “prill” or “dore” is weighed if silver is to be determined.
d) Finishing –This is the final step undertaken wherein gold is dissolved in the acid and
the gold in the acid solution is determined.
● Gravimetric Method – the prill is placed in the porcelain crucible with nitric acid,
the silver is dissolved but not the gold. After dissolution of the silver, the prill is
annealed.
● Atomic Absorption Spectroscopy (“AAS”) Finish –the prill is dissolved in aqua
regia and gold solution is directly aspirated in the AAS.

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Figure 11-1: Sample location map per laboratory submission.

11.4 Security

All samples are collected by well-trained core and/or field samplers under the supervision of
the geologist and geologic assistant on site. All drill core and rock and samples from the field
are bagged in polyethylene. The duplicate copy of the sample number from the sample card
is then inserted into the bag and sealed by a twist tie. The plastic bag is, in turn, inserted into
a calico bag and tied using the built-in cord. The calico bag is then labeled on its side with the
corresponding sample number as the sample card using a permanent marker. The samples
are then arranged, packed in sacks, sealed, and stored in the camp while waiting for dispatch
to the Fire Assay Balabag laboratory or to the Exploration Sample Preparation Facility
(“ESPF”) located at Ipil, Zamboanga Sibugay.

11.5 Quality Assurance and Quality Control

Quality Assurance and Quality Control (“QA/QC”) measures were implemented to monitor the
accuracy and precision of assay data from analytical laboratories.
The following quality control materials were processed along with regular core samples:
● Commercially purchased standards were inserted at random intervals.
● Coarse blanks were inserted to detect potential contamination during the sample
preparation.
● Duplicate split (1-kg) samples were included in the sample dispatch.

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● Pulp duplicates were also analyzed to check the degree of repeatability of assay
results.
● Some samples were also submitted for analysis at the umpire laboratory.
Four laboratories were engaged in processing the Balabag core samples. From 2005 to 2007,
samples were analyzed at the McPhar Laboratory in Manila, an ISO 9001/2000 accredited
laboratory. A total of 4,045 samples were sent to McPhar which is 16% of the overall number
of drilling exploration samples used in the resource modeling.
In mid-2007 to 2013, drill samples were analyzed at the Canatuan Mine Laboratory, an
independent company-run laboratory situated at TVIRD’s Sulphide Project in Zamboanga del
Norte. The total number of samples submitted (17,208) represents 70% of the overall drill core
samples analyzed for the Balabag Project.
Meanwhile, a total of 721 (3%) samples were dispatched to the Agata Mine Laboratory in the
years 2018 to 2019 when Phase 1 drilling resumed. The Agata Mine Laboratory is certified
with the Environmental Management System – ISO 14001:2005 and is located at TVIRD’s
Nickel Project in Agusan del Norte. The transfer of sample dispatch to Agata Mine was due to
the closure of the Canatuan Mine as a result of Canatuan having reached the end of its mine
life.
Phase 2, Phase 3 and Phase 4 drilling samples from year 2019 to 2021 were analyzed at the
Balabag Mine Laboratory, another independent laboratory of TVIRD that is currently
undergoing the ISO certification process. A total of 2,779 (11%) samples have been analyzed
in the Balabag Mine Laboratory.
Table 11-1 shows the breakdown by laboratory of all drill core samples submitted commencing
in 2005 and through to 2021. A total of 24,753 core samples were analyzed through this
period, though to the end of Phase 4 drilling.

Table 11-1: Total Balabag sample dispatch per laboratory from year 2005 to 2021

Analytical Lab → McPhar Canatuan Agata Balabag Total

Year 2005-2007 2007-2013 2018-2019 2019-2021 2005-2021

Number of Samples 4,045 17,208 721 2,779 24,753

Percentage 16% 70% 3% 11% 100%

All analytical data were reviewed on the day of receipt and were examined per batch to ensure
that unacceptable delays to the flow of assay data did not occur. The internal QC data
generated by the laboratory in the course of conducting analysis were also supplied to the
Exploration Department for examination.
Assay results for blanks, standards and duplicate samples were monitored and verified along
with the bulk of the data being collected. Routine data verification procedures involved
checking outliers and abnormal values in duplicates. Graphs and scatter diagrams were
generated to look for trends and biases.
In the evaluation of standards, results were required to fall within the 2 x Standard Deviation
in order to pass the quality control requirement. Assay data were plotted on a scatter diagram
superimposed on the predetermined running mean value and standard deviations.

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Assay results of blanks plotted above the threshold value were investigated to detect any
possible contamination.
For duplicate samples, a comparison of the original assay and duplicate assay was conducted.
Both assays were required to return values within the limits of the laboratory precision.
Table 11-2 summarizes the reference material, the target value quality control threshold, the
threshold acceptable values and failure criteria applied for both gold and silver.
Table 11-2: Quality control pass/fail criteria for both gold and silver.

Target Pass Acceptable Pass Practical Failure

QC Material
Criteria Criteria Criteria

<1 Standard <2 Standard >2 Standard

Deviation Deviations Deviations
Certified Reference Materials
(CRM) 0% Bias <2.5% Bias >5% Bias
90% within 5% 90% within 10% <90% within 10%
Coarse Blanks 0.03g/t <0.05g/t >0.05g/t
90% within 20% 90% within 30% <90% within 40%
Coarse Duplicates
0% Bias <5% Bias >5% Bias
90% within 5% 90% within 10% <90% within 15%
Laboratory Repeats
0% Bias <2.5% Bias >5% Bias
90% within 10% 90% within 20% <90% within 20%
Independent Check Assays
0% Bias <2.5% Bias >5% Bias

11.5.1 Certified Reference Materials

The insertion of Certified Reference Materials (“CRMs”) aims to monitor the accuracy and
precision of the assay results relative to standard values. Significant variations from the
recommended values of certified reference materials indicate that bias is present in the
laboratory procedure and rectification is in order.
McPhar Laboratory
From November 2005 to the first quarter of 2007, core samples were submitted to McPhar
Laboratory. During this period, the monitoring of assay quality was mostly based on the
internal CRMs used by the laboratory.
Eight (8) different CRMs were used by McPhar in the analysis of the core samples. These
CRMs were obtained from ROCKLABS Ltd. (New Zealand). Table 11-3 details the certified
values and corresponding standard deviations.

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Table 11-3: Certified reference materials used by McPhar Laboratory (2005-2007)

The gold assays of the CRMs generally plotted within the first-degree standard deviation. Bias
above the mean value is apparent with the first half of the analyzed CRMs while low bias was
evident in the latter portions. No CRM data for silver were provided for review during this stage
of drilling. The following control charts demonstrate the gold results of the CRMs analyzed at
McPhar Laboratory.

Figure 11-2: Standard control chart for OxC44 (Au ppm), analyzed at McPhar Laboratory.

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Figure 11-3: Standard control chart for OxD43 (Au ppm), analyzed at McPhar Laboratory.

Figure 11-4: Standard control chart for OxE42 (Au ppm), analyzed at McPhar Laboratory.

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Figure 11-5: Standard control chart for OxF41 (Au ppm), analyzed at McPhar Laboratory.

Figure 11-6: Standard control chart for OxG46 (Au ppm), analyzed at McPhar Laboratory.

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Figure 11-7: Standard control chart for OxH372 (Au ppm), analyzed at McPhar Laboratory.

Figure 11-8: Standard control chart for OxI40 (Au ppm), analyzed at McPhar Laboratory.

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Figure 11-9: Standard control chart for OxL34 (Au ppm), analyzed at McPhar Laboratory.

Canatuan Mine Laboratory

The majority of the Balabag core samples were analyzed at the Canatuan Mine Laboratory
since the latter part of 2007. Fourteen (14) commercial reference materials or standards were
routinely employed, and these were prepared by Ore Research and Exploration Pty. Ltd. in
Australia. Table 11-4 is a summary of CRMs which accompanied the drill samples submitted
to the laboratory.
Table 11-4: Certified Reference Materials analyzed at Canatuan Mine Laboratory (2007-2013)

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Low grade CRMs were used to monitor the assays of materials with grade below 1.0 g/t Au.
Included in this set are OREAS 53Pb, OREAS 65a and OREAS 15g.
OREAS 53Pb was mainly used in 2010. The gold results of this CRM were fairly acceptable
during the first half of the year with minor deviations. However, pronounced low bias was noted
by the second half with significant outliers below second-degree standard deviation.
OREAS 65a and OREAS 15g, on the other hand, were then used in 2011, showing relatively
precise results yet low bias at second degree standard deviation.

Figure 11-10: Standard control chart for OREAS 53Pb (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-11: Standard control chart for OREAS 15g (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-12: Standard control chart for OREAS 65a (Au ppm) analyzed at Canatuan Mine
Laboratory.

The second group of CRMs included those with standard values ranging from 1.5 g/t to 3.5 g/t
Au. These were categorized as the intermediate grade CRMs that were intended to monitor
the accuracy of medium grade samples. Eight sets of CRMs were analyzed under this group:
OREAS 6Pc, OREAS 15d, OREAS 16a, OREAS 16b, OREAS 67a, OREAS 60b, OREAS
54Pa and OREAS 18c. Plots are presented from Figure 11-12 to 11-19.

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These CRMs exhibited variable assay performance and outlying values that are attributed to
possible mix-ups in sample insertion. Results were generally plotted below the first-degree
standard deviation indicating significant low bias.

Figure 11-13: Standard control chart for OREAS 18c (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-14: Standard control chart for OREAS 6Pc (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-15: Standard control chart for OREAS 15d (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-16: Standard control chart for OREAS 16a (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-17: Standard control chart for OREAS 54Pa (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-18: Standard control chart for OREAS 60b (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-19: Standard control chart for OREAS 67a (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-20: Standard control chart for OREAS 16b (Au ppm) analyzed at Canatuan Mine
Laboratory.

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The high-grade CRMs which include OREAS 12a, OREAS 62d and OREAS 62c range from
8.0 g/t Au to 12.0 g/t Au. These standards are intended to monitor the laboratory performance
in analyzing high grade samples.
Although some outliers were noted, the majority of the CRM results were plotted within first-
degree standard deviation. Analytical drift was apparent in some of the early OREAS 12a
results. Improvements were observed with the latter portions of OREAS 62c and OREAS 62d
as the results are within the first-degree standard deviation with minor outliers. Plots are
presented in charts Figure 11-20 to Figure 11-22.
In assessing the silver grades, laboratory CRMs were used: GBM996-3 and GBM300-5.
Results are shown in Figures 11-23 and 11-24.

Figure 11-21: Standard control chart for OREAS 12a (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-22: Standard control chart for OREAS 62d (Au ppm) analyzed at Canatuan Mine
Laboratory.

Figure 11-23: Standard control chart for OREAS 62c (Au ppm) analyzed at Canatuan Mine
Laboratory.

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Figure 11-24: Standard control chart for GBM996-3 (Ag ppm) analyzed at Canatuan Mine Laboratory.

Figure 11-25: Standard control chart for GBM300-5 (Ag ppm) analyzed at Canatuan Mine Laboratory.

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Balabag Mine Laboratory

Ten (10) CRMs, also from Ore Research and Exploration Pty. Ltd. were utilized to monitor the
assay quality of samples submitted to the Balabag Mine Laboratory. The standard gold grades
and corresponding standard deviations are presented in Table 11-5.
Table 11-5: Certified Reference Materials analyzed at Balabag Mine Laboratory (2019-2020)
Certified
(-) (+) (-) (+) (-) (+)
REFERENCE MATERIAL Value
1SD 1SD 2SD 2SD 3SD 3SD
(Au ppm)
OREAS 600 0.200 0.194 0.206 0.189 0.211 0.183 0.217
Low Grade OREAS 607 0.690 0.666 0.714 0.641 0.739 0.617 0.763
OREAS 601 0.780 0.749 0.811 0.717 0.843 0.686 0.874
OREAS 608 1.210 1.171 1.249 1.130 1.290 1.090 1.330
OREAS 602 1.950 1.884 2.016 1.820 2.080 1.750 2.150
Intermediate
OREAS 602b 2.290 2.196 2.384 2.100 2.480 2.010 2.570
OREAS 60d 2.470 2.391 2.549 2.310 2.630 2.230 2.710
OREAS 61f 4.600 4.466 4.734 4.340 4.870 4.200 5.010
High grade OREAS 603b 5.210 5.001 5.419 4.790 5.620 4.580 5.830
OREAS 62f 9.710 9.471 9.949 9.240 10.190 9.000 10.430

The low-grade CRMs include: OREAS 600, OREAS 607 and OREAS 601. Gold results were
generally within 3rd degree standard deviation. Some notable outliers with OREAS 600 and
OREAS 607 were observed. Plots of CRMs are shown in Figures 11-25 to 11-27.

Figure 11-26: Standard control chart for OREAS 600 (Au ppm) analyzed at Balabag Mine Laboratory.

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Figure 11-27: Standard control chart for OREAS 607 (Au ppm) analyzed at Balabag Mine Laboratory.

Figure 11-28: Standard control chart for OREAS 601 (Au ppm) analyzed at Balabag Mine Laboratory.

Four intermediate grade CRMs were used: OREAS 608, OREAS 602 and OREAS 602b and
OREAS 60d. From the plots presented in Figures 11-28 to 11-31, results are generally low-
biased relative to the standard gold values.

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Figure 11-29: Standard control chart for OREAS 608 (Au ppm) analyzed at Balabag Mine Laboratory.

Figure 11-30: Standard control chart for OREAS 602 (Au ppm) analyzed at Balabag Mine Laboratory.

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Figure 11-31: Standard control chart for OREAS 602b (Au ppm) analyzed at Balabag Mine
Laboratory.

Figure 11-32: Standard control chart for OREAS 60d (Au ppm) analyzed at Balabag Mine Laboratory.

To monitor the high grades, the following CRMs were used: OREAS 61f, OREAS 603b and
OREAS 62f. Results of the high-grade CRMs are also low biased relative to the standard gold
grades. Figure 11-32 to 11-34 show the trend of the assay data.

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Figure 11-33: Standard control chart for OREAS 61f (Au ppm) analyzed at Balabag Mine Laboratory.

Figure 11-34: Standard control chart for OREAS 603b (Au ppm) analyzed at Balabag Mine
Laboratory.

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Figure 11-35: Standard control chart for OREAS 62f (Au ppm) analyzed at Balabag Mine Laboratory.

The silver assays of the same CRMs used to monitor gold were plotted to assess the
performance of the Balabag Mine Laboratory. Details of the standards used are presented in
the following table.

Table 11-6: Certified Reference Materials analyzed at Balabag Mine Laboratory (2019-2020)

Certified Value (-) (+) (-) (+) (-) (+)

Reference Material
(Ag ppm) ]1SD 1SD ]2SD 2SD 3SD 3SD

OREAS 61f 3.64 3.49 3.79 3.34 3.93 3.19 4.08

OREAS 60d 4.57 4.39 4.75 4.22 4.93 4.04 5.11

OREAS 62f 5.42 5.10 5.74 4.78 6.06 4.46 6.38

OREAS 607 5.88 5.69 6.07 5.50 6.26 5.31 6.44

OREAS 608 14.70 14.18 15.22 13.60 15.70 13.10 16.20

OREAS 600 24.80 23.790 25.810 22.700 26.800 21.700 27.800

OREAS 601 49.40 47.93 50.87 46.50 52.40 45.00 53.80

OREAS 602 115.00 110.00 120.00 105.00 125.00 100.00 130.00

OREAS 602b 118.00 114.00 122.00 109.00 126.00 105.00 130.00

OREAS 603b 297.00 289.00 305.00 282.00 313.00 274.00 321.00

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The following CRM charts show the trend of the silver assays analyzed at the Balabag Mine
Laboratory. Majority of the results fall outside the second-degree standard deviation.
Generally, results are low biased relative to the standard silver values.

Figure 11-36: Standard control chart for OREAS 600 (Ag ppm) analyzed at Balabag Mine Laboratory.

Figure 11-37: Standard control chart for OREAS 602 (Ag ppm) analyzed at Balabag Mine Laboratory.

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Figure 11-38: Standard control chart for OREAS 602b (Ag ppm) analyzed at Balabag Mine
Laboratory.

Figure 11-39: Standard control chart for OREAS 62f (Ag ppm) analyzed at Balabag Mine Laboratory.

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Figure 11-40: Standard control chart for OREAS 61f (Ag ppm) analyzed at Balabag Mine Laboratory.

Figure 11-41: Standard control chart for OREAS 603b (Ag ppm) analyzed at Balabag Mine
Laboratory.

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Figure 11-42: Standard control chart for OREAS 60d (Ag ppm) analyzed at Balabag Mine Laboratory.

Figure 11-43: Standard control chart for OREAS 608 (Ag ppm) analyzed at Balabag Mine Laboratory.

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Figure 11-44: Standard control chart for OREAS 607 (Ag ppm) analyzed at Balabag Mine Laboratory.

Figure 11-45: Standard control chart for OREAS 601 (Ag ppm) analyzed at Balabag Mine Laboratory.

11.5.2 Duplicates

Coarse and pulp duplicates were inserted to test the repeatability of gold and silver assays.
The results of the duplicates were compared with the original assay values derived during the

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first round of analysis and were plotted in percentile chart and relative difference plot. Notable
deviations are not untypical for vein type gold deposits.
McPhar Laboratory
Coarse duplicates, split of a collected sample at the collection site were submitted in the
sample stream. A total of 144 pairs were analyzed. Gold results of the coarse duplicates are
generally plotted within the +20% pass/fail criteria as shown Figure 11-38.
Retrieved pulp rejects were also analyzed as pulp duplicates. Results of 196 pairs are shown
in Figure 11-39. The data on silver were not processed for analysis during this time.

Figure 11-46: Coarse Duplicates (Au ppm) analyzed at McPhar Laboratory.

Figure 11-47: Pulp Duplicates (Au ppm) analyzed at McPhar Laboratory.

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Canatuan Mine Laboratory

The insertion of coarse duplicates remained a part of the sample submission protocol at the
Canatuan Mine Laboratory. A total of 427 pairs were analyzed during this phase of drilling.
The gold results are generally within +20% pass/fail criteria as shown in Figure 11-40.
Meanwhile, the silver assays of the duplicates are also within the acceptable limit, however,
bias on the original sample was noted. (Figure 11-41).

Figure 11-48: Coarse Duplicates (Au ppm) analyzed at Canatuan Mine Laboratory.

Figure 11-49: Coarse Duplicates (Ag ppm) analyzed at Canatuan Mine Laboratory.

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Balabag Mine Laboratory

A total of 82 pairs of coarse duplicates were analyzed during the 2019-2020 drilling campaign.
Gold and silver plots are presented in Figure 11-42 and Figure 11-43, respectively.
The scatter plot shows notable dispersion outside 10% acceptable limit.

Figure 11-50: Coarse Duplicates (Au ppm) analyzed at Balabag Mine Laboratory.

Figure 11-51: Coarse Duplicates (Ag ppm) analyzed at Balabag Mine Laboratory.

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11.5.3 Blanks

Blanks are used to monitor contamination during laboratory sample comminution. In the
submission of samples to the Canatuan and Balabag Mine Laboratory, blanks were randomly
inserted and, at times, adjacent to a suspected high-grade sample.
Like the CRMs, internal blanks from the McPhar Laboratory were analyzed and assessed for
quality control.
McPhar Laboratory
The control chart (Figure 11-44) for blanks analyzed at the McPhar Laboratory from the last
quarter of 2005 to early 2007 shows consistent grades below cut-off (0.010 g/t Au) except for
few major outliers which were possibly results of erroneous data capture. The assays were
generally reported as ‘below detection limit’ which is 0.005 g/t Au. A value that is half of the
detection limit was used for database input.

Figure 11-52: Blank samples (Au ppm) analyzed at McPhar Laboratory

Canatuan Mine Laboratory

The control charts for coarse blanks, as analyzed, at the Canatuan Mine Laboratory used a
pass/fail criteria of 10% of the resource modeling cut-off grade (0.1 g/t Au). From the total
number of coarse blanks analyzed, 80% are below the designated limit (0.01 g/t Au) while
roughly 17% reached up to 0.03 g/t Au.

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The silver grades of the coarse blanks were also plotted against a cut-off of 0.5 g/t Ag. It has
been noted that 75% of the samples are below the assigned limit while the rest fall in the range
of 0.5 g/t to 1.0 g/t Ag (Figure 11-46).

Figure 11-53: Blank samples (Au ppm) analyzed at Canatuan Mine Laboratory.

Figure 11-54: Blank samples (Ag ppm) analyzed at Canatuan Mine Laboratory.

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11.5.4 Check Assay

Coarse and pulp rejects from the Canatuan Mine Laboratory were submitted to ALS Chemex
in Australia for independent check assaying. Table 11-7 summarizes the number of samples
dispatched to ALS Chemex in 2010 and 2011.
Table 11-7: Samples submitted to ALS Chemex for re-analysis

2010 2011
Coarse Duplicate 120 289
Pulp Duplicate 80 148
Total no. of samples for re-assay 200 437

The relative % difference plot (Figure 11-47) of the coarse duplicates shows that ALS Chemex
assays returned higher grades than the equivalent Canatuan Mine Laboratory assays. This is
also evident from the percentile chart and scatter plot which may imply bias. Dispersion
beyond the +20% passing criteria is notable at grades below 1.0 g/t Au. At intermediate and
higher grades, results are mostly confined within the acceptable limit.

Figure 11-55: Relative difference plot of coarse duplicates (Au), ALS vs primary assays.

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Figure 11-56: Percentile chart of coarse duplicates (Au), ALS vs primary assays.

Likewise, ALS Chemex assays returned higher grades than the Canatuan Mine Laboratory
assays with the pulp samples. Dispersion beyond the passing +10% criteria is apparent below
0.5 g/t Au.

Figure 11-57: Relative difference plot of pulp duplicates (Au), ALS vs primary assays.

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Figure 11-58: Relative difference plot of pulp duplicates (Au), ALS vs primary assays.

Pulp rejects of Balabag core samples retrieved from Agata Mine Laboratory in 2018 were
submitted to Ostrea Laboratory in Australia for analysis. A total of 146 samples were
dispatched to the said third party laboratory. A high bias of 10% was noted from samples
analyzed in Agata as shown in Figure 11-51.

Figure 11-59: Percentile chart samples analyzed at Agata Lab vs Ostrea Lab.

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12 DATA VERIFICATION

Verification of data serving as critical input for this report was limited to confirmation, by the
author, of the existence, in good order, of:
a) The Balabag drill core remaining after cutting for assay;
b) Photographs of all drill core before cutting;
c) The associated assay results in both their paper and digital form and associated drill
logs in their digital form;
d) Documentation of the quality control carried out on borehole sample assays;
e) Interpreted geological sections drawn on down hole borehole log and assay plots,
which were reviewed in detail with project staff both in Manila and at Balabag,

12.1 Site Visit

The QP, Mr. Jaime Zafra, visited the site between January 16 and January 19, 2021, at which
time he verified the property access and logistics, audited drilling and logging procedures as
well as assaying procedures for both Au and Ag and visited both surface exposures of the
deposit and the rehabilitated underground tunnels left by small-scale miners at the Balabag
Hill area.
Mr. Zafra checked and examined some of the remaining half drill cores that were core logged,
sampled and submitted for assaying and verified that the database given in both hard and
digital copies, including the assay results, is true and correct and that the data coincides with
the actual drill core interval and/or drillhole length.
The geology and interpreted selected drill hole sections, including assay results and their
plotting, were further checked and discussed in detail between the QP and the TVIRD
exploration staff. Selected drillholes at TVIRD’s core house logging area were also further
verified and inspected. Overall, the selected drillhole sections discussed agreed with the
examined drillholes at the logging area.
The QP also visited TVIRD’s fire assay laboratory located at the Balabag project site.
Together with the copy of procedures for Au and Ag assaying, Mr. Zafra verified and
interviewed the analytical chemist responsible for the laboratory to confirm the step-by-step
methodology employed in the assaying procedure. The QP is satisfied with the current set-
up of the fire assay laboratory, the QA/QC procedures implemented and that the assay results
are accurate and can be used for the estimation of mineral resource.

12.2 Database Audit

Collar and Survey Data

Drill collar locations, in addition to the downhole survey table, were audited through
examination in the three-dimensional GEMs software to ensure that collars were properly
located and coincide with the surveyed topographic surface and to examine the changes from

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one survey to the next in all holes for both azimuth and dip. No anomalies were noted by the
QP.

Assay Data

A check was performed between the gold and silver values in the GEMs database and values
on the assay certificates for assays from within the resource solids for possible gaps, non-
numeric assay values, negative numbers and duplicates. Assays from the years 2018 to 2020
were validated by comparing the database values to certificates obtained directly from the
Balabag analytical laboratory. Assays from certificates representing selected samples from
each year were evaluated. No discrepancies were found.

The QP is satisfied that all the above currently exist in a form readily available for inspection,
either in TVIRD’s office in Manila or at its Balabag site office in Zamboanga, and that they are
of a quality that supports the accurate estimation of project mineral resources using the
methods described in this report.

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

13.1 Nature and Extent of Testing and Analytical Procedures

No new metallurgical tests have been conducted related to this resource update. It is
anticipated that the mineralogy and metallurgical characteristics will not significantly differ from
those identified following earlier drilling campaigns because of their proximity within the
targeted resource.

13.2 Basis of Assumptions Regarding Recovery Estimates

Recoveries of 90% for gold and 95% for silver were assumed to initially determine whether
the mineralization is economically extractable. These are consistent with the recoveries
achieved by cyanidation of similar high silver gold ores and recoveries achieved from the initial
internal scoping studies.

13.3 Representativeness of Samples

No new metallurgical tests were conducted related to the resource update.

13.4 Deleterious Elements for Extraction

No minerals detrimental to processing were identified other than trace amounts of As/Sb -
bearing minerals. It is anticipated that these deleterious elements are not present in significant
amounts that will affect economic extraction of the mineral resource.

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14 MINERAL RESOURCE ESTIMATES

The Mineral Resource Estimate for the Balabag Gold and Silver Project was completed using
exploration drillhole data, constrained by geologic vein boundaries with an Inverse Distance
Weighted (“ID”) algorithm. The metals of interest at Balabag are gold and silver.
The Mineral Resource contained within this report has been classified under the categories of
Measured, Indicated and Inferred in accordance with standards as defined by the 2019 CIM
Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.
Classification of the resource reflects the relative confidence of the grade estimates.

14.1 Data Set

As of December 2020, the Balabag Project exploration database includes a total of 382
diamond drillholes with a cumulative meterage of 41,161.60 meters.
From 2005 to 2013, 268 drillholes with an overall meterage of 31,945 meters were drilled and
used in prior resource estimations. As exploration drilling resumed in 2018, Phase 1 drilling
was initiated to further infill the Lalab and Miswi targets and included 12 holes drilled with a
total meterage of 1,068.10 meters. A further 15 drillholes summing up to 1,211.95 meters
were completed in Phase 2 drilling in 2019 while the Phase 3 drilling program completed in
2020 added an additional 24 drillholes with a total meterage of 1,859.45 meters. This report
also includes the most recently completed Phase 4 drilling program that included 35 drillholes
with a total meterage of 2,866.50 meters and was completed in December 2020.
Drillholes intended for sterilization and geotechnical drilling, which are mostly located outside
the target area, were excluded from the resource modeling process. Drillhole data from
Templar Gold N.L., which included five surface boreholes of 593.20 meters, was not
considered in the interpolation of grades. The exclusion of Templar Gold N.L. drillhole assay
data is due to lack of quality control reports to support the validity of the grades of the core
samples. However, lithologic logs were considered in the geological interpretations.
The drilling data includes downhole survey information, taken at 50-meter increments from the
collar. Other datasets include specific gravity measurements; assay results for quality control
samples (standard, blank, duplicate and check samples); Rock Quality Designation (“RQD”)
measurements; lithological logs; gold and silver assays of core samples as well as results
from multi-element analysis.
Grab, chip and channel samples from outcrops and tunnels were also collated and used in the
delineation of the mineralized zones together with surface and tunnel mapping information.

14.2 Exploratory Data Analysis

The Balabag Project database is being managed by TVIRD’s in-house Resource Geologist
and GIS/Database Specialist. Raw data from the field is encoded and compiled in MS Excel
format while the main dataset used in resource modeling is updated and organized using 3D
modeling software, GEMS 6.8.2.

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The Database Specialist ensures the accuracy of data prior and during compilation. The
encoded information is verified against the actual field data on a regular basis. The validated
data is submitted to the Resource Geologist to update the main database organized in the
GEMS 6.8.2 software. This software has a data validation tool used to further review the
datasets. Exploration data is managed in a central database and data management protocols
are followed to eliminate redundancy and to maintain integrity and accuracy of stored
information.
During the geological interpretation process, gold and silver grades were plotted against the
lithologic logs in vertical sections. Field geologists reviewed each interval to make sure grades
and vein interpretations were consistent. Anomalous intervals were verified along with the
actual core samples or by visually reviewing the core photos.
Analytical results for quality control materials were monitored and verified along with the bulk
of the data collected. Routine data verification procedures involved checking outliers and
abnormal values in duplicates with the use of graphs and scatter diagrams.

14.2.1 Geological Domains

Five mineralized rock units were established in the Balabag Project identified as: BX1, BX2,
BX3, QSW and QSX1. The “BX” stands for hydrothermal breccia while the succeeding
number denotes the sequence of deposition. Quartz stockworks that are hosted by wall rock
are under the “QSW” domain whereas quartz stockworks that are hosted by BX1 are
designated as QSX1 domain.
● BX1 is mostly silicified breccia with volcanic breccia clasts cemented by grey quartz
with crisscross hairline-mm white-translucent quartz stockwork. Clasts are normally
altered to silicification and argillized, and also appear in irregular bodies.
● BX2 displays overprinting of typical epithermal textures in one body. Clasts consist of
wallrock and VNQ-VNB matrix or cement material of the ore. Ginguro texture is also
common in BX2 and often reflects high Au grades.
● BX3 recorded the highest and consistent Au grade in the model. Breccia clasts here
are not only the altered and mineralized wallrock but also the Au-bearing quartz vein
itself. Ginguro texture is palpably substantial and so reflects a much higher Au grade
than BX2. This type of breccia also appears in irregular bodies but exhibits grade
uniformity. Sulphide minerals are notable in this rock type.
● QSX1 covers quartz stockworks which occur in between mineralized veins, particularly
associated with BX1.
● QSW are the typical stockworks found in the deposit.
BX2 and stockworks have been observed in the main vein systems - Tinago, Miswi and Lalab.
BX1 and BX3 are notable along the Lalab and Unao-Unao trend. It was observed that the
mineralized stockworks are common along structures and true veins.
The vein interpretation was based mainly on lithological logs of drill core samples. Vein
textures, mineral assemblages and wallrock alteration were considered in the rock
classification.

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The three-dimensional wireframe of the lithological domains was generated by modeling the
vein interpretations plotted in each cross section at 25 meter-intervals. Geological solid
models (Figure 14-1) were checked for triangulation errors using the modeling software,
GEMS.

Figure 14-1: Three-dimensional representation of mineralized bodies (plan view).

Geological domains were validated by running basic statistics with the intersected drillhole
sample points and by visual check of the lithologic logs and assay relative to the geologic
interpretation in each cross section. This statistical approach has included analysis on mean,
mode, median and distribution of grades in each domain.
To further constrain the veins, a nominal cut-off grade of 0.2 g/t Au was used as a guide in
delineating the trend of mineralization. BX3, BX3 and QSW were found to carry gold and
silver grades, so these were considered in the block model domaining process.
The BX2 domain covers the majority of the deposit while BX3 is mostly observed in the eastern
portion of Tinago and the Unao-Unao area. The mineralized stockworks are found in between
layers of main vein systems. Some thin layers of BX1 and QSX1 were observed to occur
within BX2. To simplify the domaining process, these materials were already lumped as part
of BX2 in the final domains.
Three wireframes were used to generate blocks in the resource model. Each domain was
assigned a numerical code to facilitate identification in the block modeling process. Table 14-
1 presents the rock codes used in the block model.
Table 14-1: Rock code assignment for each domain / rock type

Domain / Rock Type Rock Code

BX2 12
BX3 13
QSW 14

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14.2.2 Outlier Values

A total of 24,735 samples were extracted from the drillhole database and used in the resource
model data analysis. Grade capping is the practice for replacing any statistical outliers with a
maximum value from the assumed sample distribution. This is done statistically to better
understand the true mean of the sample population. The estimation of highly skewed grade
distribution can be sensitive to the presence of even a few extreme values.

Table 14-2: Basic statistics of gold, silver assays and capped values

The highest gold assay reported among the samples is at 286.69 g/t Au while 5,234.3 g/t Ag
was the highest reported for silver. Cumulative frequency plots were used to define the
capping of high-grade outliers.

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Gold and silver grades were capped at 30 g/t and 500 g/t, respectively. A total of 23 samples
were capped at 30 g/t Au. The 500 g/t Ag top-cut, on the other hand, was applied on 66
samples.

Table 14-2 shows the comparison of gold and silver grades relative to the capped values.

From a calculated mean of 0.31 g/t Au, the grade was reduced to 0.28 g/t Au after applying
the capped value. Similarly, the average silver grade was reduced from 9.33 g/t Ag to 7.96
g/t Ag after capping.

14.2.3 Sample Support and Compositing

Basic statistics on gold and interval lengths in the assay table were carried out to determine
the optimum length for compositing. From the plot shown in Figure 14-2, one meter (1 m) is
the optimum composite length for the core samples. Since the sampling was done at every
one-meter interval on average, no compositing in the assay data was necessary.

Figure 14-2: Interval length vs. gold grade for determination of optimum composite length.

Summary statistics and histograms for the key variables gold and silver were generated to
further validate the rock domains.
Statistical analysis in Figure 14-3 shows that both gold and silver histograms are strongly log-
normal in their distributions in both massive veins and stockworks. The scatter plot (Figure
14-4) also shows correlation between gold and silver.
Histograms for the mineralized domains are presented in Figure 14-5, Figure 14-6 and Figure
14-7. The corresponding gold and silver statistics are also provided next to each chart.

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Figure 14-3: Gold and silver histograms for true veins and stockworks.

Figure 14-4: Scatter plot of gold vs silver.

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Figure 14-5: Gold and silver histogram for BX2

Table 14-3: Basic statistics for BX2

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Figure 14-6: Gold and silver histogram for BX3.

Table 14-4: Basic statistics for BX3

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Figure 14-7: Gold and silver histogram for QSW.

Table 14-5: Basic statistics for QSW

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14.2.4 Bulk Density

The average rock densities for each mineralized domain are presented in Table 14-6. Figures
were based on the calculated average density of the core samples.
Table 14-6: Density factor for each domain / rock type
Domain / Rock Type Density (g/cm3)
BX2 2.4
BX3 2.6
QSW 2.5

The stockworks exhibit higher density than the true veins due to the presence of denser host
rocks (i.e. andesite). Meanwhile, the true veins have been observed to be generally altered
and brecciated in fractured zones. It is recognized that the density and hardness
characteristics of ore-grade material will vary locally, primarily as a function of weathering and
alteration. The density of BX3 is relatively higher due to the presence of sulphide minerals.

14.3 Topography

A digital terrain model (“DTM”) has been generated from the survey data captured by the
project surveyor. Total stations — Topcon GTS-229 and South NTS-325 — were used in
conducting the ground survey. The map projection used in the Balabag Project is Philippine
Transverse Mercator (“PTM”) Zone 4. The latest update of the topography model was
completed in October 2020.

14.4 Variography

A variography analysis was completed to establish the continuity of gold within the modeled
veins. Variograms were generated to determine the presence of anisotropy for a given plane.
The selection of the orientation of the plane was based on the geometry of the three-
dimensional zone containing the gold data points.
Variography was analyzed using the GEMS 6.8.2 software. The continuity is established by
analyzing variogram contour fans, in the horizontal, across-strike and dip planes to determine
the direction of maximum continuity within each plane. The primary variogram was first
calculated to determine the orientation of the major axis which has the lowest variance for the
longest distance. The semi-major axis was then calculated based on the selected direction of
the maximum continuity in the secondary variogram. The minor axis was automatically
calculated based on the orientation of the semi-major axis.
The subsequent variograms defining maximum continuity along the strike of the vein were
modeled with a spherical variogram. Three variograms were generated for domains BX2, BX3
and QSW. It was noted that gold grades are generally not continuous beyond 75 meters.
The resulting ranges were used as a guide in projecting solid interpretations and in generating
the search ellipse for grade interpolation.

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Figure 14-8: Variogram model for BX2.

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Figure 14-9: Variogram model for BX3.

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Figure 14-10: Variogram model for QSW.

14.5 Mineral Resource Block Model

The Balabag Mineral Resource was estimated using a conventional geostatistical block
modeling approach constrained by mineralization wireframes. Geostatistical analysis,
capping, variography and estimation were conducted on the in-situ gold and silver data.
A resource block model was generated using the software, GEMS 6.8.2, to represent the
lithological and structural characteristics specific to the Balabag deposit. A block size of 5
meters x 2.5 meters x 2.5 meters was determined to be an appropriate size along strike and

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down dip, with consideration of the narrow vein nature of the deposit. Details of the block
model such as origin (x, y, z coordinates), number of columns, rows and levels as well as
block size are presented in Figure 14-11. The extent of the north-south oriented block model
was based on the data limits of the drillholes and geological data.

Figure 14-11: Block model details—origin and block size.

Given the erratic nature of gold and silver grades, and the varying geometry of the mineralized
veins, the estimation method used was Inverse Distance Squared (“ID2”). This method is
preferred over ordinary kriging because the configuration of the veins vary per location and
structures such as faults are apparent in the deposit, resulting to a number of discontinuous
veins. The ID2 method of estimation is a more practical approach to run grade interpolation
for this project since it relies mainly on the neighboring samples.
Gold and silver grade interpolation was carried out per major vein location. Separate search
ellipses were used for each general vein structure, following the strike of the deposit. The
orientation of each search ellipse was based on the geological interpretation made on three
major locations in the project area which include Tinago, Miswi and Lalab (Figure 14-12).
The dimension of the search ellipse was constrained to 30 meters in X and Y directions to
prevent overestimation of grades.

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Figure 14-12: Details of search ellipse per vein group (location)

14.6 Resource Block Model Validation

The block model validation was undertaken to ensure the interpreted geological and grade
characteristics have been correctly modelled and estimated.
The block model grade distribution has been visually validated comparing the drill hole
composites with the estimated grade in the block model. A reference plan and example
sections are shown below in Figure 14-13 to Figure 14-15, showing blocks located in the main
Tinago zone and considered to be potentially mineable prospects due to proximity to surface.
All figures display drill holes as lines colored by gold grade (legend displayed) and with blocks
also colored with the same legend. The QP considers that the composite grades correlate
well with the block model grades with no inconsistencies identified in plan or vertical section
views.

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Figure 14-13: Block model section at 50W, looking West

Figure 14-14: Block model section at 75W, looking West

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Figure 14-15: Block model section at 100W, looking West

Figure 14-16: Plan map showing reference plane in main Tinago area

A comparison of gold grades between the block model and actual ground samples was made
to further validate the resource model. Selected blocks from the model were located on the
ground thru survey. Samples were collected from exposed zones and submitted to the
Balabag analytical laboratory for assaying. The gold assays of the actual samples were found
to be consistent with the block model data (lithology and gold grade).
The trend of gold average of actual samples per elevation relative to the block model data is
presented in Figure 14-17.

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Figure 14-17: Block model gold grade versus actual samples per elevation

14.7 Mineral Resource Classification

Mineral resource categories used in this report are Measured, Indicated and Inferred. Several
methods were used to determine the resource category. Blocks generated within 25 to 50
meter-drill-spacing were classified as Indicated Resource while blocks within a 25 meter-drill
spacing were coded as Measured Resource.
The average drill spacing in the Balabag Hill is within 25-50 meters and therefore the majority
of the resource blocks fall within the Measured and Indicated categories.
Meanwhile, Inferred blocks were generated in areas with significant gold intercepts, where
more drilling is required to better define a resource category.
The distribution of Measured, Indicated and Inferred blocks is shown in Figure 14-18.

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Figure 14-18: Measured

Plan view showing the distribution of Measured, Indicated and Indicated

Inferred Resource relative to drillholes. Inferred

The following definitions were used as a guide in categorizing the blocks:

• Indicated Mineral Resource

An “Indicated Mineral Resource” is that part of a Mineral Resource for which quantity,
grade or quality, densities, shape and physical characteristics can be estimated with a
level of confidence sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the economic
viability of the deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings, and drillholes that are spaced closely enough for
geological and grade continuity to be reasonably assumed.

• Measured Mineral Resource

A “Measured Mineral Resource” is that part of a Mineral Resource for which quantity,
grade or quality, densities, shape, and physical characteristics are so well established
that they can be estimated with confidence sufficient to allow the appropriate
application of technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits, workings and
drill holes that are spaced closely enough to confirm both geological and grade
continuity.

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• Inferred Mineral Resource

“Inferred Mineral Resource” is that part of a mineral resource for which tonnage, grade
and mineral content can be estimated with a low level of confidence. It is inferred from
geological evidence, sampling and assumed but not verified geological and/or grade
continuity. It is based on information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drillholes which maybe limited
or of uncertain quality and reliability.

14.8 Mineral Resource Statement

As of May 15, 2021, the estimated Measured and Indicated Mineral Resource for the Balabag
Gold-Silver Project using a cut-off grade of 0.4 g/t AuEq is 4.35 million tonnes at 1.79 g/t Au
and 43.08 g/t Ag for 2.36 g/t AuEq. This is equivalent to approximately 331,000 AuEq oz at
metal prices of US$1,500/oz Au and US$20/oz Ag. The estimated Inferred Resource is
140,919 tonnes at 2.78 g/t Au and 64.11 g/t Ag for 3.63 g/t AuEq at a cut-off grade also of 0.4
g/t AuEq. The overall Mineral Resource as of May 15, 2021 is summarized in Table 14-7.
Table 14-7: Mineral Resource Estimate of the Balabag Gold-Silver Project, May 15, 2021

Category Tonnage Au (g/t) Ag (g/t) AuEq (g/t) AuEq (oz)

Measured 3,016,143 1.80 50.80 2.48 241.000
Indicated 1,338,029 1.74 25.69 2.08 90,000
TOTAL 4,354,172 1.79 43.08 2.36 331,000

Inferred 140,919 2.78 64.11 3.63 16,000

Figure 14-19: Distribution of Mineral Resource Blocks at a 0.4 g/t AuEq cut-off grade.

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The breakdown of the Measured and Indicated Resource per AuEq grade range is presented
in Table 14-8 and the Inferred Resource is detailed in Table 14-9.

Table 14-8: Breakdown of Measured and Indicated Mineral Resource of the Balabag Gold-Silver
Project arranged per AuEq* grade

*No Au and Ag recovery applied in calculating the AuEq.

Table 14-9:

Breakdown of Inferred Mineral

Resource of the Balabag Gold-Silver
Project arranged per AuEq* grade.

*No Au and Ag recovery applied in calculating

the AuEq.

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14.8.1 Reasonable Prospect for Eventual Economic Extraction

For determination of a resource cut-off grade, a preliminary analysis including a review of cost
information from similar gold projects was performed. The following assumptions were used:
• Gold and silver price

• Metal recovery

• Mining cost

• Processing cost

• General and site administration cost

The baseline assumptions have been provided in Table 14-10.

Table 14-10: Baseline assumptions used in calculating the gold equivalent cut-off grade

A nominal cut-off grade of 0.4 g/t AuEq was used in reporting the Mineral Resource. Gold
equivalent was used to give credit to both gold and silver values at prices of US$1,500/oz and
US$20/oz, respectively. A metallurgical recovery factor of 95% for silver, as discussed in
Section 13 of this report, was used to calculate the gold equivalent.
Below is the formula used to compute the gold equivalent value for each block:

Figure 14-20: Formula for gold equivalent conversion

The gold and silver prices used in calculating the gold equivalent are guided by the World
Bank five-year forecast (Table 14-11). The projected average gold price from year 2021 to

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2025 is US$1,596/oz Au while silver price is expected to approximate US$17.38/oz Ag. Figure
14-21 shows the trend of gold and silver price in the next five years.
The current resource estimate of the Balabag Project has been evaluated using a gold price
of US$1,500/oz Au and silver price of US$20/oz Ag.
Table 14-11: World Bank Price Forecast for Gold and Silver from Year 2021 to 2025

Metal Unit 2021 2022 2023 2024 2025 Average

Gold $US/oz 1,730 1,661 1,594 1,528 1,465 1,596
Silver $US/oz 18 17.7 17.4 17.1 16.7 17.38

Figure 14-21: World Bank Price Forecast for precious metals (US dollars).

The geometry of the mineralized veins, particularly in Tinago, are generally gently dipping to
the north, following the contour of the Balabag Hill, and the majority are located relatively
proximal to the surface. Based on the initial mining assessment done supported by preliminary
pit shell and cost assumptions, the geometry of the Balabag Mineral Resource is potentially
extractable by open pit method at the specified cut-off grade. Figure 14-22 shows the
configuration of the Mineral Resource at a cut-off grade of 0.4 g/t AuEq relative to the
topography model.

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Figure 14-22: Block distribution relative to topography model

The grade-tonnage curve shown in Figure 14-23 demonstrates the intersection of tonnage
and gold equivalent at 0.4 g/t AuEq. This implies that the tonnes can be maximized above
this cut-off grade.

Given the shape of the deposit and cut-off grade used, the QP considers that the reported
Mineral Resource has reasonable prospects for eventual economic extraction.

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Figure 14-23: Resource grade-tonnage curve (BM: TVIBAL042021).

14.8.2 Resource Adjustments

Roughly 70,000 tonnes grading 2.18 g/t Au and 71.56 g/t Ag have been estimated as small-
scale mining depletion below the October 2020 surface. This has been deducted from the
overall resource estimate. A solid model of the small-scale mining workings was generated
based on the tunnel mapping data. This solid wireframe was used to constrain and code
blocks that have been potentially mined by the small-scale miners.
Location of excavated tunnels relative to the resource model are shown in Figure 14-24 and
Figure 14-25.

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Figure 14-24: Location of old tunnels (gray outline) relative to the resource block model.

Figure 14-25: Cross-section view showing location of tunnels relative to October 2020 topography,

14.9 Mineral Resource Peer Review

The successful Canatuan Gold Plant Operations and the Copper-Zinc Mine of TVIRD formed
the basis for laying out the baseline assumptions for the Balabag Project with adjustments
made to reflect the necessary ore processing requirements.
A preliminary valuation study patterned after the Canatuan Mine was initiated to assess the
economic potential of the Balabag Mineral Resource. A sensitivity analysis was conducted to

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test the impact of varying economic and operating criteria to the project. The resource model
is found to be sensitive to variations in gold and silver price as well as metal recovery.
The actual experience of TVIRD in selective mining approach (i.e. equipment size)
demonstrated in Canatuan also served as a basis in determining the practical block size for
the Balabag resource model.

14.10 Mineral Resource Risk Assessment

There are no additional environmental, permitting, legal, title, taxation, socio-economic,

marketing, political, or any other relevant factors that the author of this report is aware of that
could materially affect the Mineral Resource estimate.
TVI Pacific announced on November 22, 2019, that TVIRD had determined to advance the
Balabag project towards commercial production and clarified also that in making the decision
to put Balabag into production, TVIRD, a Philippine corporation that TVI Pacific does not
control, relied exclusively on technical and economic analysis prepared under Philippine
regulations and did not rely on any feasibility study classifying mineral reserves prepared in
accordance with NI 43-101. Historically such projects have a much higher risk of economic
and technical failure.
The exploration for and development of mineral deposits, which includes the Balabag project,
involves significant risks which even a combination of careful evaluation, experience and
knowledge may not eliminate. While the discovery of an ore body may result in substantial
rewards, few properties that are explored are ultimately developed into producing mines.
Major expenses may be required to locate and establish mineral reserves, to develop
metallurgical processes and to construct mining and processing facilities at a particular site.
It is impossible to ensure that such exploration or development programs will result in a
profitable commercial mining operation. Whether a mineral deposit will be commercially viable
depends on a number of factors, some of which are: the particular attributes of the deposit,
such as size, grade and proximity to infrastructure; metal prices which are highly cyclical; and
government regulations, including regulations relating to prices, taxes, royalties, land tenure,
land use, importing and exporting of minerals and environmental protection. The exact effect
of these factors cannot be accurately predicted but, as noted previously, the author of this
report has indicated that, with specific reference to the Balabag project, he is not aware of any
additional environmental, permitting, legal, title, taxation, socio-economic, marketing, political,
or other relevant factors that could materially affect the current Mineral Resource estimate.

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15 MINERAL RESERVE ESTIMATES

Not applicable at this stage of the Project.

16 MINING METHODS

Not applicable at this stage of the Project.

17 RECOVERY METHODS

Not applicable at this stage of the Project.

18 PROJECT INFRASTRUCTURE

Not applicable at this stage of the Project.

19 MARKET STUDIES AND CONTRACTS

Not applicable at this stage of the Project.

20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR

COMMUNITY IMPACT

Not applicable at this stage of the Project.

21 CAPITAL AND OPERATING COSTS

Not applicable at this stage of the Project.

22 ECONOMIC ANALYSIS

Not applicable at this stage of the Project.

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23 ADJACENT PROPERTIES

At the effective date of this report, the Balabag Gold-Silver Project database does not contain
any records for mineral exploration properties in the areas adjacent to the Property that could
influence the findings of this report.
There are numerous mining tenements surrounding the Balabag MPSA tenements, however,
there are no known exploration or development activities in these areas despite the general
area’s favorable geology. None of the tenement holders or operators of adjacent properties
have published a mineral resource. No representation is made here implying continuity of
mineralization from any adjacent property.
One mining tenement worthy of mentioning is the Depore gold prospect which is owned by
Cebu Ore Mining and Mineral Resources Corporation (“COMMRC”). The mining claim lies
directly south of the Balabag MPSA where history of gold small -scale mining activities began
during the early 1980’s. The technical information below has been sourced from the geological
evaluation report dated September to December 2017 prepared by O.B. Garcia, (2017)
(“Garcia”).

The gold mineralization in Depore is hosted by a volcanic breccia exhibiting pervasive

phyllic/argillic and propylitic alterations. Its rock composition is more defined under propylitic
wherein the rock is composed of andesite, lithic lapilli and tuffaceous clasts. But the greater
part of the gold mineralization as manifested by old small-scale tunnels is mostly in
phyllic/argillic alteration (silica-clay-pyrite-FeO) which occur very extensive from the central
north-half of the tenement towards its north boundary. This zone within the COMMRC claim
is delineated for over 1.5kmx 2km wide exposed surfaces.

Garcia reported an epithermal vein type system and associated hydrothermal breccia. The
breccia is pyrite-rich silicified/argillized hydrothermal breccia with silica-pyrite-clay altered
angular clasts cemented by grey-quartz with fine sulphide dissemination cut by oxidized drusy
quartz veinlets. The vein samples range in gold assay from 1.5g/t Au to as high as 11.8g/t
Au. Some significant base-metals and copper minerals are associated with quartz veins
consisting of galena, sphalerite, chalcopyrite, bornite and covellite. Assay results returned
2g/t Au, 26g/t Ag, 0.06%Cu, 1.1%Pb and 1.7%Zn.

The mineralization type may imply: (1) likely deep level low-sulphidation epithermal gold
system as evidenced by the increased content of base-metal sulfides and low silver and the
medium crystalline-translucent nature of the vein quartz; and, (2) sulphide-bearing
silicified/argillized hydrothermal breccias. The hydrothermal breccia is enveloped by a vast
variably altered phyllic/argillic (silica-clay-pyrite-FeO) zone and later overprinted by gold-base
metal veins.

The reader is cautioned that the Qualified Person has been unable to verify the information
in this section and such information is not necessarily indicative of the mineralization on the
property that is the subject of this Report.

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24 OTHER RELEVANT INFORMATION

Philippine mining tenements are geographically precise, and the MGB manages the
processing and granting of titles for tenements diligently. These factors, combined with the
fact that the resource is well within the Balabag property, suggest the risk of conflict with other
tenements or property holders is remote.
There is opportunity for the discovery of epithermal Au-Ag, porphyry Cu-Au and massive
sulfide-style mineralization within the MPSA boundaries and region of the Balabag Gold-Silver
Project. Historic mining shows that Au-Ag, Cu, and Zn are present in the region and may
contain significantly larger resources than the current and historical workings have exploited
and are currently exploiting.
TVI Pacific announced on November 22, 2019, that TVIRD had determined to advance the
Balabag project towards commercial production and development works have been ongoing
since that time. TVI Pacific clarified also that, in making the decision to put Balabag into
production, TVIRD, a Philippine corporation that TVI Pacific does not control, relied exclusively
on technical and economic analysis prepared under Philippine regulations and did not rely on
any feasibility study classifying mineral reserves prepared in accordance with NI 43-101.
Historically such projects have a much higher risk of economic and technical failure.
Commissioning of the front-end circuits of the Balabag plant commenced in December 2020
and in May 2021 the carbon-in-leach (“CIL”) tanks were loaded with activated carbon and
leaching at the CIL tanks commenced. In May 2021 also, ore from the low grade run of mine
ore stockpile started to be fed on a test basis in preparation for the commencement of
continuous milling operations. The last remaining major equipment arrived onsite in April 2021
and infrastructure including the gold room, power plant, water supply, the assay and
metallurgical laboratory, explosives magazine, helipad, warehouse and shops, offices,
accommodation facilities, mine roads and other access roads has been constructed.
Completion of the Tailings Storage Facility (“TSF”) remains as the critical path to bringing the
Balabag Mine online with first doré production, which is being constructed in stages to
accommodate progressively increasing resources as they are defined.

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25 INTERPRETATION AND CONCLUSIONS

Geology and Mineral Resource:

● The Balabag gold-silver mineralization is categorized as a low-sulphidation epithermal
vein system hosted in andesitic lava flows and pyroclastics. It is characterized by
multiple-stage massive to crustiform banded fracture-fill and breccia cement
assemblages mostly comprising of chalcedonic to mosaic quartz, in paragenetic
association with less abundant adularia, chlorite, illite and carbonate enclosing and
dispersed with only minor amounts of sulphide, which define a low-sulphidation
epithermal environment of precious metal mineralization.

● Three major quartz vein systems identified in the Balabag Hill area are the Tinago-
Unao-Unao-Yoyon veins to the north, Miswi veins in the east and Lalab veins to the
south (Figure 8-6). The veins exhibit various epithermal quartz vein textures such as
colloform, crustiform, massive, drusy, vuggy, comb and cockade textures. Multiphase
brecciation textures are also dominant probably because of several pulses of rising
hydrothermal fluids. Quartz stringers and quartz stockworks also occur adjacent to
most quartz veins ranging from hairline to centimeter sizes. The geometry of the veins
and the associated stockworks are generally sub-horizontal at Tinago and Miswi areas
while a sub-vertical attitude of veins is exhibited in the Lalab area.

● Appropriate quality assurance / quality control procedures for all phases of exploration
activities have been implemented in accordance with industry best practices. The
sample preparation, analysis and security procedures were carried out to a high
standard and are therefore appropriate in performing the mineral resource estimation.

● The review of the Balabag Gold and Silver Project concluded that the practices and
procedures used to generate the Balabag database are acceptable to support a
Mineral Resource estimation.

● The assumptions, parameters, and methodology used for the Balabag Mineral
Resource estimates are appropriate for the style of mineralization. The review of
provided data and the site visit have shown the exploration activities at Balabag to be
reliable for resource estimation.

● The recent diamond drilling, logging, sampling, and assaying have been carried out in
a manner consistent with industry best practice.

● The core handling and sample security protocols employed are consistent with industry
best practice.

● Balabag has used its own assay laboratory for most of the assay database but
implemented QA/QC exercises consistent with industry best practice.

● The assay database for the Balabag Project is considered appropriate for use in
estimation of its mineral resources, and the samples analysed for this database are
considered representative of the deposit.

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● Any significant risks or uncertainties that could reasonably be expected to affect the
reliability or confidence in the exploration information or mineral resource estimates
have not been observed.

● Additional new gold prospects have been outlined by in-house geological staff that
warrant further detailed exploration.

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26 RECOMMENDATIONS

The following recommendations are offered:

● It is recommended that exploration continue on prospect areas that have shown
indications of mineralization in drill core with limited drilling and to also drill in
mineralized areas identified by surface mapping that are currently untested.

● Drilling of prospect areas should be in two (2) phases. One phase should include drill
holes that are exclusively for exploration purposes while the second phase should
include drill holes that define resources. If results from the first phase are satisfactory,
the next phase should commence.

● It is recommended that with the mineral resource defined already, the mineral reserves
must be estimated now with the definition of an appropriate mining plan.

● New metallurgical tests should be conducted in order to update the average metal
percentage recoveries for gold and for silver derived from the metallurgical test work
previously conducted.
The QP considers that there are several prospective targets within the Balabag MPSA with
potential of hosting similar mineralization with the main Balabag mineral resource. The
projected vein splays beyond the known Balabag vein system represent good exploration
targets that could potentially add to the present resource tonnage.
In following the recently completed four-phase drilling program, a further two-phase
exploration program is hereby proposed within the Balabag MPSA.
Proposed Phase 5A Exploration Program
This exploration program is proposed to involve both resource definition and exploratory
drilling. The resource definition drilling would aim to: (a) fill the gaps between areas of the
defined deposit such as in Central Miswi to Unao-unao and in Yoyon to Unao-unao as they
may be linked as one ore body; (b) prove the west continuity of the West Tinago vein and the
east continuity of the Miswi vein; and (c) prove the down dip continuity of the Lalab vein
system.
The target for exploratory drilling would be the prospective areas for gold mineralization at the
Upper Dipili - Daguman -Banzai areas. These prospects are defined based on recent follow-
up geological and geochemical exploration work undertaken. Potential of the Daguman -
Banzai areas to host gold-bearing veins is high as the mineralization zone is hosted by a silicic
to argillic alteration appearing to about 100m x 100m wide, open at both ends in a northwest
direction. The proposed drilling would prove the lateral and down dip continuity of the
identified three gold-bearing veins. Drilling would be expected to total 4,000 meters.
An exploration budget for the proposed Phase 5A exploration program is presented below.
The Phase I exploration program is expected to be implemented during the year 2021.

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Table 26-1: Proposed Phase 5A Exploration Program Budget

Phase 1 Exploration Program Budget
Item Amount
($US)
I. Capital Expenses 125,000
II. Operating Expenses
2.1 Salaries and Wages 510,000
2.2 Supplies and Materials 220,000
2.3 General and Administrative 165,000
2.4 Drilling (4,000 meters) 1,280,000

Total Estimate $ 2,300,000

Proposed Phase 5B Exploration Program

The following exploration program is recommended to follow the previously proposed Phase
5A pending the receipt of favorable results. This program would involve further resource
definition drilling that would aim to continue to prove the extensions of the Lalab, Miswi and
West Tinago vein system in both lateral and down dip extensions. Drilling would be expected
to total 5,000 meters.
The budget of the proposed Phase 5B exploration program is presented below. It is expected
that this phase 5B exploration program will be implemented between 2021 and 2022.

Table 26-2: Proposed Phase 5B Exploration Program Budget

Phase 2 Exploration Program Budget
Item Amount
($US)
I. Capital Expenses 150,000
II. Operating Expenses
2.1 Salaries and Wages 640,000
2.2 Supplies and Materials 270,000
2.3 General and Administrative 200,000
2.4 Drilling (5,000 meters) 1,600,000

Total Estimate $ 2,860,000

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27 REFERENCES

Angeles, Ciceron, Jr., 2012. April 2012 Progress report for TVI Resource Development (Phils.)
Inc. (TVIRD internal report)

Angeles, Ciceron, Jr., 2012. October 2012 Progress report for TVI Resource Development
(Phils.) Inc. (TVIRD internal report)

Aurelio, Mario A., 2013. Structures in the Balabag Epithermal Gold Vein Deposit, Bayog,
Zamboanga del Sur, Mindanao

Acharya,H.K. and Aggarwal, Y.P., 1981. Seismicity of the Philippine Islands, Philippine
Geologist, v. 35, no 2, pp 36-81, June 1981.

Corbett, G., 2002. Controls to Low Sulphidation Epithermal Au-Ag Mineralization.

Flint, A. R., 2005. Technical due diligence: Balabag Gold Project, Zamboanga, Philippines
(TVI internal report)

Flores, R.A.L., 1999. Prioritization of Exploration Areas With a Possible High-Grade 0.5 Moz
Contained Gold Resource in the Bicol, Eastern Mindanao and Zamboanga Mineral Districts,
Philippines for P.T. Austindo Mining Corporation

Garcia, O. B. 2017. Geological Evaluation Report on the Depori Gold Prospect.

Genivar LP, 2008. Scoping Study of the Balabag Project.

Knight Piesold and Co., 2013. Balabag Gold Project Tailings Facility Design Report Prepared
for TVI Resource Development (Phils.) Inc.

Lafleur, P.J., 2007. 43-101 Technical Report for the Mineral Resources at the Balabag project
of TVI Pacific, Inc.

Manuel E..et. al. Final Report on the Mineral Exploration Conducted Within the Zamboanga
Mineral Corporation MPSA Area, Zamboanga del Sur, Mindanao, Philippines. Rio Tinto
Exploration Philippines Corporation (A member of the Rio Tinto Group)

Mason, D. R. Jr., 2010. Petrographic and fluid inclusion studies of rock samples from the
Balabag epithermal Au-Ag deposit in Mindanao, Philippines (unpublished report)
.
Medina, C., 2009. Review of the Balabag Gold Project: Implications to Further Exploration
(TVI Internal Report)

Mumm, A.S. 2010. Balabag gold: fluid inclusion analysis of samples BAL-TIN #2010-02 and
BAL-TIN 2010-03. (unpublished report)

Plata, O., 2012. Technical Report: Metallurgical Feasibility Study on the Balabag Gold – High
Silver Ore

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ON THE BALABAG GOLD-SILVER PROJECT

SGS Lakefield Research Ltd., 2007. An Investigation into the Recovery of Gold and Silver
from the Balabag Project.

Smyth, C.P., 2012. NI-43-101 Technical Report on the Balabag Gold Project, Zamboanga
Province, Philippines.
TVIRD, 2012. Environmental Impact Statement Report for the Balabag Gold-Silver Project.

TVIRD, 2014. Environmental Protection and Enhancement Program and Final Mine
Rehabilitation and Decommissioning Plan Balabag Gold-Silver Project.

Zhou Jou, 2011. Deportment study of gold in five head samples from the Balabag Gold-Silver
Deposit, Philippines

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SCHEDULE "A"

CERTIFICATE OF QUALIFIED PERSON

I, Jaime C. Zafra, of Baliuag, Bulacan, Philippines, hereby certify that:

1. I am a Professional Geologist who has worked as an independent consultant for a

period of more than 20 years.

2. I supervised the preparation of the technical report titled `NI 43-101 EXPLORATION
RESULTS AND MINERAL RESOURCE UPDATE REPORT ON THE BALABAG GOLD
- SILVER PROJECT, MPSA No. 086-1997-IX Zamboanga del Sur, Mindanao,
Philippines', dated July 19, 2021 with an effective date of May 15, 2021 concerning the
Balabag gold and silver project owned by TVI Resource Development (Phils.) Inc.
("TVIRD") located within the Municipalities of Bayog, Diplahan and Kabasalan,
Provinces of Zamboanga Del Sur and Zamboanga Sibugay, Island of Mindanao,
Philippines (the "updated Mineral Resource Report").

3. I am a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) with

Member No. 992551.

4. I am a Registered Geologist No. 0000671 with the Philippines' Professional

Regulations Commission.

5. I am a Member of the Geological Society of the Philippines and accredited as a

Competent Person on Reporting Exploration Results and Mineral Resources for
Philippine Mineral Reporting Code with Registration No. 14-05-01.

6. I am a graduate of the Mapua Institute of Technology (now Mapua University) of

Manila, Philippines (B. S. Geology 1979).

7. I have practiced my profession continuously for the past 42 years. I have been involved
in mineral exploration, project development, mining operations, resource/reserve
modeling and studies and property evaluation on gold and silver properties in the
Philippines, Indonesia, Papua New Guinea, South Sudan and Lao PDR. More
specifically, my experience is spread approximately 50% over hard rock projects such
as base metals and gold, 30% over nickel laterite/saprolite and onshore/offshore
magnetite sand projects and 20% over non-metallics cement raw materials and
construction rock aggregates/armor rocks. My most relevant experience has been in
Lao PDR as Technical Consultant with the comprehensive drilling of the Phu Kham
Gold Project of Nikki Lao Sole Co. Ltd., as Consultant to the Sultan Kudarat Gold
Project (Philippines) under GRCO Isulan Mining Corporation, and as Chairman of the
Board of Directors and President of Geotechniques and Mines, Inc. in joint venture
with F. A. Nepomuceno Construction & Development, Inc. for its Mariveles, Bataan,
Philippines Armor Rock and Rock Aggregates Project.

My experience also includes:

i. Gold Resource and Geological modeling with Phu Kham Gold Mine where the
most advanced 3D geological modeling system was used (primarily Surfac);

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ii. Working with Placer Dome in joint venture with BHP-Utah to:

a) Perform due diligence and exploration programming of projects in North

Sulawesi, Indonesia primarily for gold;

b) Supervise exploration, geology, resource and reserve modeling; and

c) Manage a team of 24 geologists in Indonesia.

iii. Formation of an exploration and mining company to work on gold, nickel,

chrome, manganese and cement raw materials and rocks for construction
purposes;

iv. Managing large drilling programs, mine development, grade control, operations
and performing resource and financial modeling for the preparation of Mineral
Resource and Mineral Reserve Reports for iron ore, magnetite sands, nickel
and gold projects for companies in the Philippines and Lao PDR;

v. Director and Senior Vice-President/COO of Batangas Exploration and

Development, Inc. which worked on the evaluation of projects in the
Philippines, including gold, nickel and iron sand projects;

vi. Preparation of a preliminary economic evaluation, exploration and mine

development as Chairman of the Board and President of Geotechniques and
Mines, Inc. for Iron Ore and Gold Projects (Philippines);

vii. Preparation of a Nickel laterite resource report and completion of a pre-

feasibility study for nickel laterite projects in the Philippines; and

viii. Various other exploration projects as a Project Consultant or Geologist

(Competent Person) with Eramen Mining Corp. (Philippines), Baraka
Resources Ltd. (Philippines), Howerstock Ltd. (South Sudan), Voco Point
Trading Pty. Ltd. (Papua New Guinea), and other mining companies with
respect to gold, iron sand and nickel laterite projects.

8. I certify that by reason of my education, Fellow of Australasian Institute of Mining and

Metallurgy, registration as an Accredited Competent Person with the Geological
Society of the Philippines and past relevant work experience, I fulfill the requirements
to be a "Qualified Person" for the purposes of NI 43-101.

9. I am independent of TVIRD and its affiliates for the purposes of NI 43-101 and as set
out in the Companion Policy to NI 43-101, as a result of the following:

i. I do not have any employment relationship or ongoing contractual arrangement

with TVIRD or its affiliates.

ii. Other than compensation for my services in supervising the preparation of the
technical report certified hereunder and compensation for the applicable site
visit performed in connection therewith, I received no compensation from
TVIRD or its affiliates in 2021 or 2020.

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iii. I do not own or expect to receive any interest (direct, indirect or contingent) in
the properties described herein. I do not own any securities of TVIRD, TVI
Pacific Inc. or any of their respective affiliates.

iv. The compensation I received from TVIRD in 2020 and 2021 represented less
than 10% of my annual income for those years. I am not aware of any other
factors that would impair my objectivity with respect to the Balabag project and
the technical report certified hereunder.

10. This technical report is based on my personal visits to the property, review of available
published data and company reports. I have spent a total of 3 days visiting the project
site. My visit to the property was in January 16 to 19, 2021.

11. The resource estimates of the Balabag Gold-Silver Project are, in my professional
opinion, valid, have passed quality assurance and controls, and the estimation
methods used are in accordance with NI 43-101 and the standards of the Canadian
Institute of Mining and Metallurgy.

12. I have read NI 43-101 and Form 43-101F1. The Technical Report has, in my
professional opinion, been prepared in accordance with both documents.

13. 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.

14. I consent to the filing of the Technical Report with any stock exchange and other
regulatory authority and any publication by them for regulatory purposes. I consent to
the filing of extracts from the Technical Report. I also consent to the inclusion of parts
of the Technical Report as electronic publication on the companies' websites that are
accessible to the public.

Signed in Baliuag, Bulacan, Philippines on July 19, 2021.

JAIME C. ZAFRA
FAusIMM, No. 992551

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