PHLIPPINES based company TVI Pacific has earned a 10 per cent stake in the Amazon Bay iron sands project after providing A$2 million in exploration funding to complete phase one of a joint venture agreement.

The project, located about 270 kilometres southeast of Port Moresby, has the potential to be a very large iron, titanium and vanadium sand development.

The project is operated by Foyson Resources, which previously held a 50% stake in the project.

Foyson chairman Doug Halley said TVI had the financial resources and technical and managerial expertise needed to successfully develop the Amazon Bay project.

“We look forward to continuing to work with TVI to progress the project,” he said.

Meanwhile, TVI chairman and president Clifford James said its involvement represented an exciting opportunity to develop a major PNG project.

“We are pleased to explore the potential of the Amazon Bay project together with Foyson Resources,” he said.

Foyson, which has a 50% stake in Amazon Bay, has been encouraged by the continued strong government support for the company’s activities in PNG, as well as the overwhelming support of the local landowners. A recent Wardens’ Hearing on the renewal of exploration licence 1396 received unanimous approval from the local landowners.

The Amazon Bay project has been further advanced with the PNG Mineral Resources Authority advising the company that EL2281 has been granted.

EL2281 lies immediately to the east of EL1396 and covers more than 50 kilometres of coastline prospective for iron sands.

Over the past several months, a number of Chinese parties have expressed interest in the Amazon Bay project and due diligence, at varying stages of completion, is continuing.

A further sampling program is currently underway at Amazon Bay to allow a detailed metallurgical assessment of the potential processing routes to produce high purity metal products, the company said in its December quarter report.

TVI could earn a further 20% in the Amazon Bay project by spending an additional A$5.5 million within 12 months following the expiration of the initial earning period under the joint venture agreement.

TVI has also the option to advance A$10 million to Foyson to acquire the remaining 50% in the Amazon Bay project held by PNG-focused Titan Mines.