Trevali Provides Construction Update on Santander Mine Project in Peru
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/19/11 -- Trevali Mining Corporation ('Trevali' or the 'Company') (TSX: TV)(OTCQX: TREVF)(FRANKFURT: 4TI)(BVLAC: TV) is pleased to provide a construction update on its previously announced Santander zinc-lead-silver mine development project in Peru. Construction is advancing on multiple-fronts including: Mine Camp Facilities, Mine Operation Facilities, Mineral Processing Plant, and Mine Electricity and the Tingo Hydroelectric Power Plant Expansion. Production is anticipated to commence in late-Q1 to early-Q2-2012.
MINE CAMP
Construction and up-grades of various mine camp facilities, sufficient to support a modern 4,000-tonne-per-day mining facility commenced in late April, 2011, and is now approximately 90% complete (see Figure 1). Specific progress includes:
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Santander Construction Project Percent Complete Completion Date
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New Offices 95% October-2011
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Improved Communication Systems 100% August-2011
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Additional Housing, total site capacity
500 100% September-2011
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New Dining Facility, capacity 400 90% October-2011
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Health Facilities / Emergency Room 80% October-2011
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New Camp - Water Treatment System 85% October-2011
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Waste Management Plant 100% August-2011
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Explosives Magazines (3) 100% August-2011
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OPERATIONS INFRASTRUCTURE
Construction of infrastructure to support underground mining operations began in July 2011; work is now approximately 70% complete and is on track to be finished by mid-November. Progress includes preparation of the main mine adit, compressor house, construction of mine offices, trackless equipment maintenance facilities, installation of mine electrical and ventilation systems, construction of a mine-water treatment facility, dry and lamp house, training center and other ancillary facilities.
Following a sealed tendering process JRC Ingeneria y Construcion S.A.C. (JRC Engineering and Construction) has been selected as the mining contractor for initial development and planned production at the Magistral deposits. JRC provides contracting mining services at partner Glencore's Iscaycruz and Yauliyacu polymetallic operations also located in the Central Peruvian Polymetallic Belt.
MINERAL PROCESSING PLANT
Processing plant site preparation is advancing - the former Santander plant structures and equipment have been rehabilitated and earth-moving and foundation preparation is in ongoing (Figure 2). The Santander development team is in the final phases of selecting the lead-contractor to disassemble, move and reconstruct the Rosaura processing plant at Santander.
POWER INFRASTRUCTURE
Construction is underway at the Santander main electric sub-station (50 KW). Concurrently a 65.5-km power line is being constructed and is approximately 60% complete. The sub-station and power line will connect the Santander mine project to the national grid and is on schedule.
TREVALI FILES AMENDED ANNUAL INFORMATION FORM
Trevali has filed an Amended and Restated Annual Information Form ('A&R AIF') for the year ended December 31, 2010 on SEDAR. The A&R AIF is being filed to update Trevali's previously filed amended and restated annual information form in response to comments received from the British Columbia Securities Commission as part of a continuous disclosure review performed in conjunction with Trevali's current short form prospectus offering. Changes include the consolidation of disclosure on the Halfmile and Stratmat properties into one property, removal of information from earlier technical reports and the addition of two risk factors.
ABOUT TREVALI MINING CORPORATION
Trevali is advancing two polymetallic (zinc-lead-silver-copper) deposits to production in Canada and Peru - the Halfmile and Santander projects respectively. In Canada, Trevali has the Halfmile and Stratmat polymetallic deposits near Bathurst, New Brunswick, and the Ruttan copper-zinc deposit in northern Manitoba. Mine development is underway at Halfmile with a proposed production rate of 2,000-tonnes-per-day anticipated to commence in late 2011. In Peru, the Company has the Santander zinc-lead-silver mine project and the formerly-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt.
At the planned 2,000-tonne-per-day Santander operation, in conjunction with Glencore International A.G., mine commissioning is anticipated to commence at in early 2012 with full production to follow immediately thereafter. Additionally through its subsidiary Trevali Renewable Energy Inc., Trevali is undertaking a significant upgrade of its wholly-owned Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). For further details on Trevali, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and a qualified person as defined by National Instrument 43-101, has supervised the preparation of the scientific and technical information that forms the basis for this news release. Dr. Cruise is not independent of the Company, as he is an officer and shareholder.
The work programs at Santander were designed by, and are supervised by, Mark D. Cruise, President & CEO of Trevali, Tim Kingsley (Senior Geologist) and Tansy O'Connor-Parsons (Chief Geochemist), who together are responsible for all aspects of the work, including the quality control/quality assurance programs. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ACME Laboratories, Vancouver, for assay. ACME's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Trevali personnel in order to independently assess analytical accuracy. Finally, representative blind duplicate samples are routinely forwarded to ACME and an ISO compliant third party laboratory for additional quality control.
On Behalf of the Board of Directors of TREVALI MINING CORPORATION
Mark D. Cruise, President
This news release contains 'forward-looking statements' within the meaning of the United States private securities litigation reform act of 1995 and 'forward-looking information' within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the accuracy of estimated mineral reserves and resources, anticipated results of future exploration, and forecast future metal prices, anticipated results of future electrical sales and expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.
These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets (such as the Peruvian sol versus the U.S. dollar); risks related to the technological and operational nature of the Company's business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding);
risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining,; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company's ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
Trevali's production plans at Halfmile-Stratmat and Santander are based only on Indicated and Inferred Mineral Resources and not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the production plans and Preliminary Economic Assessment (PEA) will be realized. Additionally where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
To view Figure 1 and Figure 2, please visit the following link: http://media3.marketwire.com/docs/tmc_f1_f2_1019.pdf
The TSX has not approved or disapproved of the contents of this news release.
Contacts:
Trevali Mining Corporation
Steve Stakiw
Manager - Corporate Communications
(604) 488-1661
(604) 408-7499 (FAX)
sstakiw@trevali.com
www.trevali.com
