Trevali Encounters Wider Than Expected Mineralization in Operations at Halfmile Mine in New Brunswick
01.05.2012 | Marketwired
Reconciliation Indicates 25% More Tonnage on Halfmile Level 130,000-Tonnes Processed at Xstrata's Brunswick 12 Mill
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/01/12 -- Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV)(TSX: TV.WT)(OTCQX: TREVF)(LMA: TV)(FRANKFURT: 4TI) is very encouraged by the results of initial mining at its 100%-owned Halfmile Mine in New Brunswick. Reconciliation of planned-versus-actual mined production indicates the massive sulphide body is approximately 25% wider than modelled on the first level (Figure 1: http://media3.marketwire.com). The Company is also pleased to report it has processed approximately 30,000 tonnes of mineralized material at Xstrata's Brunswick-12 Mill during April - results of which will be released upon receipt of the final reports.
Recent underground definition drilling indicates increased widths continue in the mineralized body above the current production level with 22 of the 24 drill holes intersected semi-massive to massive sulphide mineralization outside the currently defined mineralized body for the Upper Zone. These production-definition holes have been sampled and the geochemical assay results will be released upon receipt.
HALFMILE UPPER ZONE
Since 2009, the Company has drilled an additional 2,519 metres from surface targeting the Upper Zone of the Halfmile deposit in order to obtain fresh material for metallurgical testing and to gain a better understanding of the sulphide body configuration and grade distribution.
Considering the successes of the Company's diamond drill campaigns coupled with this new and ongoing mining and underground information, Trevali anticipates that production from the Upper Zone may be moderately higher than anticipated. While this is a positive development, it does not materially change the Company's current production schedule as this zone represents less than 10% of the current Halfmile deposit as presently defined.
Approximately 37,000 tonnes grading 6.39% Zn, 1.9% Pb, 0.65% Cu, 40.57 g/t Ag and 0.4 g/t Au were mined in the initial phase and 30,000 tonnes have been processed at Xstrata's Brunswick-12 processing plant. The Company is presently awaiting final metallurgical results which will be released upon receipt.
The Company will update the Halfmile - Stratmat National Instrument 43-101 ("NI 43-101") report upon receipt and QA/QC analysis of the final surface and underground drill results.
HALFMILE AND STRATMAT DEPOSITS
The Halfmile and Stratmat deposits are a multi-lens zinc-lead-silver-copper-gold rich volcanogenic massive sulphide (VMS) deposits located in the renowned Bathurst Mining Camp of northern New Brunswick in eastern Canada. They contain significant NI 43-101 Resources - all of which remain open for expansion (Table 1):
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Halfmile and Stratmat Deposit Resources
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Tonnes Zn% Pb% Cu% Ag (g/t)
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HALFMILE
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Indicated 6,262,043 8.13 2.58 0.22 30.78(i)
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Inferred 6,078,200 6.69 1.83 0.14 20.51(i)
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STRATMAT
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Inferred 5,524,500 6.11 2.59 0.40 54.21
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Calculated by Tetra Tech Wardrop engineers and geologists using a 5%
ZnEQ cutoff
(i) Silver and gold not routinely analyzed for in historic drilling.
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Table 1: National Instrument 43-101 Resource Estimates for Halfmile and
Stratmat Deposits.
An independent Preliminary Economic Assessment(i) from Tetra Tech Wardop engineering in September 2010 indicated a pre-tax Net Present Value (6%) of C$343 million at metal prices of US$1.03/lb Zinc, US$3.03/lb Copper, US$0.92/lb Lead and US$15.08/oz Silver. The study did not take into account any potential gold credits.
(i) Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ABOUT TREVALI MINING CORPORATION
Trevali has two advanced-stage polymetallic (zinc-lead-silver-copper) deposits in Canada and Peru - the Halfmile and Santander mine projects respectively. In Canada, Trevali owns the Halfmile Mine and Stratmat polymetallic deposit in the Bathurst Mining Camp of northern New Brunswick, and the past-producing Ruttan copper-zinc mine in northern Manitoba. Production from the Halfmile Mine commenced in early 2012 and will ramp up to a planned production rate of 2,000-tonnes-per-day.
In Peru, the Company has the Santander zinc-lead-silver mine project and the former-producing Huampar silver mine, both located in the Central Peruvian Polymetallic Belt. Mine commissioning is anticipated to commence at the Santander operation in mid-2012 with ramp up to full 2,000-tonnes-per-day production to follow shortly thereafter. Additionally through its wholly-owned 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). Warrants to purchase common shares of Trevali are listed on the TSX (symbol TV.WT). 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 NI 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 program at Stratmat was designed and supervised by, Dayle Rusk, P.Geo - VP-Exploration, Trevali, who is responsible for all aspects of the work, including the quality control/quality assurance programs.
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.
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
