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63-472: Visitors describe Siocon as a "hidden paradise". Local industry includes the Canatuan mine . In 1955, the following barrios were created: In May 2003, the municipality was attacked by 150 Moro Islamic Liberation Front (MILF) and Abu Sayyaf guerrillas. The attack commenced at 12 a.m. on May 4. A small group of policemen led by 27-year-old police senior inspector Ranie Planilla Hachuela defended Siocon during

126-728: A Council of Elders, initially formed in 2002 at the instigation of the National Commission on Indigenous Peoples, but whose legitimacy is rejected by the traditional leadership group of the Subanon, the Gukom. The Gukom is not a permanent body, but is a gathering of the leaders of local territories. An additional complication is that the Certificate of Ancestral Domain Claim was awarded a named group of Subanon individuals, not to

189-536: A Valmin Valuation Report, while for JSE listings, a Competent Person's Report (CPRs), which is compliant with SAMREC and The South African Code for the Valuation of Mineral Assets (SAMVAL), needs to be submitted. In many cases, NI 43-101 and JORC Code technical reports are considered inter-changeable and may be accepted by either regulatory body in cases of dual listed entities and, indeed, are accepted as

252-421: A codified reporting scheme makes it more difficult for fraud to occur and reassures investors that the projects have been assessed in a scientific and professional manner. However, even properly and professionally investigated mineral deposits are not necessarily economic, nor does the presence of a NI 43-101-, JORC- or SAMREC and SAMVAL-compliant CPR or QPR necessarily mean that it is a good investment. Similarly,

315-404: A new feasibility assessment was carried out, which recommended further infill drilling to better define the deposit, and this drilling was carried out in 2004. Two more feasibility studies were carried out in 2004 and 2006 – the first examined mining only the gold and silver bearing oxidized portion of the deposit, the second examined mining of the sulphides (copper, zinc, gold and silver) underlying

378-507: A report titled “Mining a Sacred Mountain: Protecting the human rights of indigenous communities Environmental Management” which was critical of a number of aspects of the impact of the mine and actions of TVI, but also noting a history of conflict between groups in the area that preceded the TVI's presence in the region. The principal findings of the report were that the TVI operation created some jobs in an impoverished area and generated revenues for

441-615: A report, published in full, and presented in a particular way. Conversely, in Australia, technical reports are prepared in accordance with JORC guidelines and are not commonly published in full upon the Australian Stock Exchange as this is not required by Australian regulatory authorities. Therefore, often a summary of the key points is published, which can often preserve commercially sensitive information, and often this could allow deleterious information to remain out of

504-475: A representative organization. The 2007 Rights & Democracy report states that, subsequent to the agreements, The Commission on Human Rights of the Philippines investigated the matter of consent and concluded that the company had not obtained true prior consent from the indigenous people for the mine (the source referenced for this statement is unpublished and has not been confirmed). A second community in

567-651: Is a code derived from the Canadian Securities Authorities. The JORC Code, were it equal with NI 43-101 would be derived from the Australian Securities and Investment Commission, not the relevant industry bodies. The technical information required in a Reserve declaration under NI 43-101 exceeds that within the JORC Code, primarily by stipulating that certain geological parameters of the mineral reserve must be presented within

630-612: Is collected by a Multipartite Monitoring Team (MMT) at 14 locations on streams and rivers in and around the project area. Sampling for 2009 reported in the 2010 environmental protection program document indicates the water quality was within required ranges. TVIRD also carries out noise measurement, and air quality sampling both from stack emissions and for ambient air quality. As with most mining operations, rehabilitation activities are carried out progressively – with activities carried out each year to rehabilitate areas no longer active. These rehabilitation activities include rehabilitation of

693-725: Is comparable to the Joint Ore Reserves Committee Code (JORC Code) which regulates the publication of mineral exploration reports on the Australian Securities Exchange (ASX). It is also broadly comparable with the South African Code for the Reporting of Mineral Resources and Mineral Reserves (SAMREC). The reporting codes are, however, not entirely congruent in practice, in that NI 43-101 is more prescriptive in terms of

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756-479: Is different from that required by the JORC Code, and the SAMREC and SAMVAL Codes, wherein the person must have 5 years experience relevant to the deposit type or style of mineralization but is otherwise similar in terms of who may or may not sign off on such a document. The Qualified Person must declare whether a qualified person has verified the data disclosed, including sampling, analytical and test data underlying

819-579: The Apu Manglang sub-tribe local to the Canatuan mining area (local IP's/owners of the ancestral lands); Subanon originally from tribes distant from the Canatuan mining area (migrant IP's), and non-Subanon that migrated to the area for the SSM activity (non-IP migrants). The settlement program involved a compensation package for migrants both indigenous and non-indigenous. The Subanon (indigenous) leadership

882-636: The Canatuan Creek watershed that are not captured by the smaller sediment ponds. A neutralization pond was also constructed in series with a sediment pond currently maintained downstream of the Nursery Area. This pond serves as a treatment pond during instances when acid mine drainage is observed. These series of ponds drain run off water from the Phase II Mine Area where acid mine drainage is anticipated to occur. Water quality data

945-501: The Canatuan mine include those related to controlling impacts of the operation, and those related to rehabilitating areas that are closed (i.e. In which mining activity ceases – either during the period of the overall mining operation, or at the end of mine life when the operation is permanently closed). The principal control activities related to the current operation are those of water management (runoff and process water), and water monitoring tailings management (permanent containment of

1008-686: The Earth Philippines). In the letter he states the case that: 7°44′00″N 122°16′48″E  /  7.7332°N 122.2800°E  / 7.7332; 122.2800 National Instrument 43-101 National Instrument 43-101 Standards of Disclosure for Mineral Projects (" NI 43-101 ") is a securities regulatory instrument that governs how companies can disclose mining-related information in Canada. Its rules aim to prevent companies from sharing inaccurate or misleading information about their mineral assets with prospective investors and

1071-519: The Gossan surface mine. Mining of the Sulphide ore will require excavation depths ranging from less than 1 m to approximately 60 m. Production capacity is 1,850 tonnes per day of ore, with a request to increase this to 2,500 tonnes per day. Total material moved has averaged 3,800 tonnes per day and will peak at 6,700 tonnes per day in 2012 (based on the current mining plan to 2013). The operating fleet of

1134-807: The Hong Kong Stock Exchange accepts reports prepared in accordance with NI 43-101, SAMREC or JORC. The purpose of National Instrument 43-101 is to ensure that misleading, erroneous or fraudulent information relating to mineral properties is not published and promoted to investors on the stock exchanges overseen by the Canadian Securities Administrators. NI 43-101 was created after the Bre-X scandal to protect investors from unsubstantiated mineral project disclosures. "The gold reserves at ( Bre-X 's) Busang were alleged to be 200 million ounces (6,200 t), or up to 8% of

1197-456: The MILF) who headed the attack. Eleven government troops and 25 civilians also lost their lives in the assault, including two seminarians. The public market was burned down, while civilians were taken out of their homes to be used as human shields as rebels withdrew. Some hostages were released hours later, while other strong men were held for days as they were tasked to carry wounded rebels through

1260-485: The Phase 1 mining area through erosion control, soil conditioning and revegetation. TVIRD's annual activities include progressive rehabilitation with the primary focus on slope stabilization and erosion control, revegetation and reforestation activities including soil conditioning and sediment control . Total spending by TVIRD in 2009 on the environmental program was 71,599,512 Php ( approximately US$ 1.5 million). One of

1323-487: The Philippine Government and TVI - including that the mining operation be halted until an independent monitoring procedure is in place. TVI expressed disappointment with the report, noting that the 3rd parties engaged by R&D to carry out the research and report writing were well known opponents of mining in the Philippines. TVI objected that the report provides no information on the positive benefits of

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1386-457: The Poblacion (town center). Responding government troops were ambushed as they tried to aid the outnumbered policemen. That frightening feeling was expressed by Wiljun "Pido" Cubero as he narrated how the rebels stormed the municipal hall and fire station right next to their house at Micubo's compound. Thirteen of the 150 rebels were killed, including Jairullah Hassan (aka Commander Hairon of

1449-562: The SSM community flourished, Subanon control of Canatuan diminished. Once established, these miners also became concerned that TVI activities could force them out of the area. The introduction of Small Scale Mining (SSM) also introduced the Subanons to the cash economy. Migrants operated SSM in the area, which displaced the Subanons. Many Subanons worked for the SSM operators (typically for low wages with very poor working conditions); some of them became small SSM operators themselves. A few of

1512-729: The ancestral domain was of two types. Some of them opted for a smaller multiplier but with a housing package, while others chose to be paid an amount similar to those received by migrant SSMs. In the early years of TVIRD in Canatuan, the company had to contend with various layers of conflicts. Large-scale mining, after many years of practically being dormant, was being “reintroduced” by the Philippine government and being put forward as an industry that can be an engine of economic growth. This reintroduction created friction between large-scale mining companies and SSM interests. The Indigenous Peoples Rights Act (IPRA) that finally recognized that IPs have

1575-561: The area and to purchase the Mineral Production Sharing Agreement (MPSA) that had been applied for in 1992, and which was still making its way through the government approval process (and subsequently approved in 1996). In 1995 a pre-feasibility study was carried out, and in 1996 a two feasibility studies were completed (each examining a different approach to the potential mining operation). These studies did not proceed to any project implementation. In 2003

1638-463: The assault, which lasted nine hours. Hachuela managed to rally his men in putting up stiff resistance against the wave of attacks by the rebels trying to overrun the municipal hall, police station, and hospital. For this reason he was awarded the Medal of Valor for risking his life and for rescuing the town mayor and his family. The rebels created an intricate plan of securing the entry and exit points of

1701-582: The author of the report, but in attributing the report as being compliant with the National Instrument, they are vouching for it. This is a matter of professional integrity and carries legal risk, as misleading statements can result in legal sanctions in Canadian and other jurisdictions. A qualified person is defined in the National Instrument as: The requirement for a Qualified Person in NI 43-101

1764-478: The contract area. From 2004 to 2008 TVIRD operated an open pit mine, milling and processing operation producing gold and silver doré from the Gossan ore deposit. Over that period the operation produced in the order of 100,000 oz of gold (Au) and 1,700 oz of silver (Ag). The mill process consisted of crushing, milling and processing of mined ore. A hybrid process consisting of a Merrill-Crowe and Carbon in Leach circuit

1827-466: The de facto industry reporting standard by many other jurisdictions which lack similar rigorous reporting standards or internationally recognized industry professional bodies. The LSE, for instance, accepts CPRs, Qualified Person's Reports (QPRs), and Mineral Resource Statements, compiled using JORC, SAMREC and SAMVAL, or NI 43-101, when accompanied by a NI51-101 Valuation Form, for listing on the LSE. Likewise,

1890-467: The earlier artisanal mining both removed ground cover and likely increased sediment content in rivers The principal community is the local indigenous people, known as the Subanon . The Apu Manglang sub-tribe inhabits the area around the Canatuan mine, and are represented in the ancestral domain claim. The MPSA held by TVI requires payment of a royalty of 1% of the market value of the minerals produced to

1953-427: The entire world's gold reserves at that time. However, it was a massive fraud and there was no gold. The core samples had been faked by salting them with outside gold. An independent lab later claimed that the faking had been poorly done, including the use of shavings from gold jewelry. In 1997, Bre-X collapsed and its shares became worthless in one of the biggest stock scandals in Canadian history." The promulgation of

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2016-486: The evolving, often confusing, milieu. One source of controversy is the view held by some that the Subanon of the southern peninsula consider Mount Canatuan to be a sacred place. The peak of Mount Canatuan, according to some of the Subanon was not for occupation, flamboyant use, or architectural manifestations. However, there are different views within community regarding the accuracy and interpretation of this designation. In May 2007, Rights & Democracy (R&D) issued

2079-447: The first test pit was sunk that year. Reports of the discovery drew experienced artisanal and small scale miners (SSM's) from elsewhere in the Philippines, as well as local people to form several small co-operatives. By 1994, the area was being worked by nearly 1,500 small scale miners. In 1994 TVI Pacific reached an option agreement with the initial prospectors and continued extensive exploration. The agreement allowed TVI to explore

2142-441: The formal and informal leaders of the tribe greatly benefited from the SSM as the migrant mine operators ingratiated themselves to the leaders. When TVIRD started to operate in Canatuan, the company implemented a “settlement program” for those who were to be affected by the company's activities for reasons of safety or displacement due to mining activities. This program had to address three different groups of residents: Subanon from

2205-409: The indebted national government. However, that it also displaced many families; divided the local indigenous people; deprived thousands of small-scale miners of their livelihood; negatively affected rice farmers and fishers living downstream; and that it is located on the peak of Mount Canatuan, which the Subanon living in the area consider to be sacred. The report made recommendations for action both by

2268-542: The indigenous people who had a valid ancestral domain claim. TVI agreed to pay the royalty to the Siocon Subanon Association Inc. One source of disagreement regarding the mining activity is that the Certificate of Ancestral Domain Claim for the Subanon with respect to the mining area was issued after the MPSA was issued to TVI. Within the Subanon community there is both support for and opposition to

2331-712: The local population was also painted in a 2005 letter from TIMUAY JUANITO TUMANGKIS, President of the Siocon Subano Association Inc. and Chairman of the 30 member Council of Elders of the Subanons of Siocon, Zamboanga del Norte. Among others, the six page "open" letter is addressed to Christian Aid , MiningWatch Canada , the DIOPIM Committee on Mining Issues (DCMI), Tebtebba, KAIROS , Survival International , "LRC-KSK" (the Legal Rights and Natural Resources Kasama sa Kilikasan/Friends of

2394-446: The manner in which mineral exploration reporting is presented, although the content of the technical reports, and the scientific rigors to which the mineral resource classifications within them are put, are often very similar. For TSX listing purposes, an NI 43-101 Technical Report would have to be accompanied by a Report prepared in accordance with NI 43-101. For ASX listings, a JORC Mineral Resource Statement needs to be accompanied by

2457-490: The market than the equivalent JORC Code, because the JORC Code is primarily a code for reporting the status of a mineral resource, whereas NI 43-101 is a code of securities disclosure. This distinction is based on the derivation of the two codes: the JORC Code is derived from the Joint Ore Reserves Committee, an independent mineral industry body formed from industry professional associations; NI 43-101

2520-432: The mine (including both TVIRD and contractor owned) includes 54 haul trucks, 9 excavators, six bulldozers, and four loaders. The company's operations have had a huge economic impact both for the Subanons and for the Philippine economy at large: Also a direct beneficiary are TVIRD's Subanon hosts, who have been receiving royalty payments from the company equivalent to one percent of gross sales. Environmental activities at

2583-501: The mine. The relationship between the mining activity and the Subanon community is complicated by the fact that the Siocon Subanon Association Inc. is not a traditional Subanon political structure, and its leader is not of a lineage that would traditionally be allowed a leadership position in the community, and therefore there is dispute over the ability of the Association to make agreements. Similarly, TVI's agreement gives status to

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2646-453: The mining area is that of small scale and artisanal miners. As of 2007, eight thousand small scale miners had started activity in the area and worked without official permits. Although some of these miners are Subanon, many of them are not and only arrived in the area since the 1990s when the mineral deposit was discovered. Canatuan became the haven for migrant small-scale miners who armed themselves to maintain control over their interests. As

2709-540: The mining operation, and that “We expect it is more than simple coincidence that the conclusions and recommendations set out in the Philippines Case Study coincide with positions advocated by members of the "research team" over the past decade". TVI offered clarifying information in a separate document detailing specific biases and inaccuracies in the R&;D report. An alternate view of the situation of

2772-536: The non-mineral material that is physically separated from the ore in the process plant). During Year 2009, five sediment ponds were maintained within the MPSA. These ponds serve as control strategies to mitigate the impacts of soil erosion and sediment conveyed by surface water runoff to Canatuan Creek and Lumot Creek. This does not include the Sulphide Tailings Impoundment which serves as a large sediment pond to control sediment materials within

2835-484: The oxide portion of the deposit. In 2004 TVI began operations to mine the oxide layer. In April 2006 TVI requested Geostat Systems International Inc (Geostat) to produce a 43-101 Technical Report (publicly available on www.sedar.com). Another 43-101 Technical Report was completed in April 2008 by Pierre Jean Lafleur Géoconseil Inc (PJLGCI). These reports pertained to potential investments to start mining and processing

2898-405: The principal concerns raised regarding impacts of the mining activities has been complaints from local fishermen about increased sediment in local rivers affecting fish spawning. However, there have been other activities in the area that could also contribute to sediment, and there has not been a clear link established between sediment levels and fish stocks in the area. Both forestry operations and

2961-483: The public forum. The instrument requires that a "qualified person" be attributed to the information. This Qualified Person, in the spirit of the National Instrument, is required to be a reputable professional who is knowledgeable of the mineral property concerned, and who has sufficient experience and qualifications to make the statements which are made within the report. Often the Qualified Person need not be

3024-617: The public. It is overseen and enforced by the Canadian Securities Administrators . NI 43-101 applies broadly to companies both public and private, and to a variety of disclosures types including mineral exploration reports, reporting of resources and reserves , presentations, oral comments, and websites. NI 43-101 covers mineral products such, precious metals and solid energy commodities as well as bulk minerals, dimension stone , precious stones and mineral sands commodities. National Instrument 43-101

3087-541: The publication of a complex technical report with all the inherent jargon , technical wording and abstract geological, metallurgical and economic information may not actually significantly advantage an investor who is not able to fully nor properly understand the content or importance of this information. In this way, NI 43-101 may not serve the interests of those it is designed to protect —the retail investors who may easily misinterpret such information. Because of this, many investors hire independent geology consultants to review

3150-478: The reports for them. NI 43-101 stipulates and codifies the form and content of a compliant report (i.e.; a report that complies with the Reporting Standard). Prescribed disclosure within the National Instrument relates to; Proscribed disclosure within the National Instrument precludes a company from reporting; The National Instrument 43-101 requires substantially more technical disclosure to

3213-525: The reserves have been delineated covers an area of approximately 508 hectares. The basis of the 508 hectare mining concession is the Mineral Production Sharing Agreement (MPSA No. 054-96-IX) under the authority of the Philippine Government, registered in the name of TVIRD. The MPSA has a term of 25 years (starting from 1996), renewable for another period, and grants the contractor the "exclusive right to explore, develop, and utilize for commercial purposes gold, silver, copper, zinc and other minerals existing within

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3276-552: The right over their ancestral domains was still new then, and vested interest groups were being affected. The IPs had to familiarize themselves with their “new found” rights under IPRA. Meanwhile, local government units were fighting with the national government over the sharing of benefits over the latter's minerals development program. Communities then were not as familiar as they are now with large-scale mining operations. Consequently, civil society organizations and church groups took it upon themselves to raise emerging issues generated by

3339-547: The second half of Year 2008 include addition of soil cover material on top of the tailings at the Lower Tailings Dam while waiting for further tailings consolidation. In Year 2010, topsoil cover will be placed on the tailings surface in preparation for planting. Current progressive rehabilitation also includes closure of an overburden stockpile by establishing erosion control, coverage with non-acid drainage (NAG) material, and revegetation; and rehabilitation of parts of

3402-718: The small-scale mining areas operated by others prior to the opening of the TVIRD mine. As of the end of the Year 2009, approximately 39,300 trees were planted within and outside the MPSA. This is 11,000 tree seedlings short of the 55,00 targeted for 2009. In addition to the trees planted, various grasses and shrubs were also planted. Some of the species of trees planted include income-generating species such as rubber trees and mahogany. In community consultations on closure planning fruit-bearing trees such as marang, lanzones, durian among others were requested. In this regard, an experimental study

3465-453: The sulphide deposit. In April 2008 operations to mine and recover gold and silver from the oxide layer were concluded, and the related ore processing facilities were being converted to process the sulphide deposit. Also in April, manpower was reduced by 168 personnel as part of the transition to the sulphide operation. The sulphide deposit mining and processing achieved commercial operations on March 1, 2009, producing copper concentrate, with

3528-555: The thick forest in the municipality of Sibuco. The day after the attack, MILF spokesman Eid Kabalu expressed that it was a show of force by the MILF and Abu Sayyaf within the area. Siocon is politically subdivided into 26 barangays . Each barangay consists of puroks while some have sitios . Poverty incidence of Siocon Source: Philippine Statistics Authority Most of its 26 barangays have their respective public elementary schools and only few have public secondary schools. In

3591-439: The town proper has its elementary and secondary public schools and a state university. Canatuan mine The Canatuan mine was a gold/silver, copper /zinc open-pit mine located in the province of Zamboanga del Norte on the southern island of Mindanao , Philippines. The mine was operated from 2004 to January 2014 by TVI Resource Development (Phils) Inc., a former subsidiary of Canadian-based TVI Pacific Inc. The mine

3654-681: The zinc recovery circuit expected to be fully operational by late April 2010. In January 2010 TVI announced a joint venture with the Philippine-based company DACON (part of the DMCI Group of Companies ) to carry out further mineral exploration in the Greater Canatuan Tenement. The property comprises two Exploration Permit Application (EPA) areas totaling 32,400 hectares and three claim blocks totaling approximately 4,755 hectares. The main claim block within which

3717-588: Was in March 2009 and completion of the zinc circuit is expected in April 2010. Mining of the Sulphide ore deposit will be the same as surface mining method used during the Gossan Phase. The overall surface mine area will encompass approximately 26 ha. This includes portions of the Gossan Surface Mine which is outside the boundaries of the Sulphide ore reserve and the Sulphide ore reserve underlying

3780-567: Was initiated to identify the heavy metal absorption potential of certain root crops on tailings surface and later determine whether these root crops are safe for human consumption. The study will further determine the final land use plan of the Tailings impoundment areas. The Gossan Dam and Impoundment plus the Upper and Lower Tailings Dam Impoundments are no longer used for tailings disposal. Progressive Rehabilitation activities were initiated during

3843-405: Was not amenable to a relocation program within the ancestral domain for the migrants. The compensation package – 8 to 12 times higher than those prescribed by the provincial ordinance governing real properties – was meant to provide the families a good opportunity to earn a decent and lawful living and have a fresh start outside Canatuan. The settlement program for SSM IPs who are considered owners of

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3906-547: Was operated within Mount Canatuan , a sacred mountain of the Subanen people , who protested against the mining company and its operations. Gold panning activity in the Canatuan Creek area was first recorded in the mid 1980s. The substantial quantities of gold being recovered prompted prospecting efforts to find the bedrock source of the gold. In 1990 prospectors discovered an extensive field of gold-bearing boulders and

3969-480: Was used for the recovery of gold and silver. In 2008, as the mining operation moved into an ore zone with different composition, the gold/silver doré operation was decommissioned and the operation converted to copper and zinc concentrates. The Sulphide Phase operation will use the same front end crushing and grinding process from the Gossan operation and will use a Flotation Circuit for the recovery of copper and zinc concentrates. The first shipment of copper concentrate

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