Trevali provides Caribou Mill Update-Advances Focus to 'Stand-Alone' Operations in Light of Positive Progress With Province of New Brunswick
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/02/12 -- Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV)(TSX: TV.WT)(OTCQX: TREVF)(LMA: TV)(FRANKFURT: 4TI) wishes to provide an update on its progress to move to stand-alone mineral processing operations in the Bathurst Mining Camp of New Brunswick.
CARIBOU TRANSACTION
Since the announcement of the transaction to acquire the former Caribou Mill and Mine Complex from Maple Minerals in May 2012 (see NR-12-14 for details) the Company has been working closely with the Province of New Brunswick in order to facilitate re-start of milling operations in a timely manner.
In the intervening period the Company has submitted a 'stand-alone' site re-start business plan in addition to a final site closure plan to the Province, and progress to date has been excellent. Trevali and Provincial officials are working towards a definitive agreement whereby the Province will approve Trevali to operate the Caribou site. The Company cautions that the "New Environmental Liability Agreement" is currently being drafted and requires Cabinet-level sign-off, however based on progress to date it is anticipated that Trevali may be in a position to close the transaction by the end of Q3-2012.
FOCUS ON STAND-ALONE OPERATIONS
In light of these positive developments the Company has commenced to shift its efforts from short-term toll milling to long-term underground development and mine planning in order to facilitate the anticipated re-start of Caribou Mill in 2013.
Underground development and initial (pre-commercial) production mining to date has been very instructive and has provided excellent information on ground-conditions, potential production rates for a fully-ramped operation and metallurgical recoveries to produce saleable zinc, lead-silver and copper-gold concentrates. This information will enable further optimization and streamlining in order to support stand-alone mineral processing operations at the Caribou Mill as well as preserving the Upper Zone of the Halfmile deposit for anticipated lower cost stand-alone operations.
The Company plans to drive the main Halfmile ramp to the thicker and higher grade zones of the deposit where NI 43-101 Indicated resource grades are estimated to increase from 6.72% to 8.68% Zn, 2.31% to 2.81% Pb and 16.95 to 37.94 g/t Ag (Table 1 & Figure 1).
Table 1: Halfmile Deposit - Indicated Resource Estimate at 5% ZnEQ
Cut-Off after Wardrop-Tetratech
------------------------------------------------------------------------
Zone Tonnes ZnEQ Zn% Pb% Cu% Ag g/t
------------------------------------------------------------------------
Upper 1,192,700 7.96 6.72 2.31 0.43 16.95
------------------------------------------------------------------------
Lower 4,472,200 9.65 8.68 2.81 0.12 37.94
------------------------------------------------------------------------
North 597,200 7.56 6.78 1.40 0.49 4.84
------------------------------------------------------------------------
Total 6,262,100 9.13 8.13 2.58 0.22 30.38
------------------------------------------------------------------------
To view Figure 1 please click on the following link: http://media3.marketwire.com/docs/TV0802a.pdf
DEBT FACILITIES
The Company also continues to make major progress on securing a corporate level debt facility in order to support the Caribou Mill re-start where the Company plans to add a Cu-circuit and modify the mill so that it can treat all three of its deposits in the Bathurst Mining Camp; Halfmile, Stratmat and Caribou (upon closure of the transaction) (Figure 2).
To view Figure 2 please click on the following link: http://media3.marketwire.com/docs/TV0802b.pdf
Seven financial institutes and or end-users have signed Confidentiality Agreements and due diligence is progressing well. The Company hopes to be in a position to announce implementation of a facility in late summer.
CAUTIONARY STATEMENTS
The Company cautions that failure to finalize an agreement with the Province of New Brunswick by December 31st 2012 will result in delays to the Company's plans to move to stand-alone mining/milling operations and could jeopardize the announced Caribou transaction.
The Company also cautions that failure to secure such a debt facility will result in delays / deferrals to stand-alone operations until either a workable debt facility is secured and/or anticipated cash-flow from its Santander operation is sufficient to enable a re-start.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals producer with operations in Canada and Peru - the Halfmile and Santander mines respectively. In Canada, Trevali owns the Halfmile zinc-lead-silver mine and Stratmat polymetallic deposit, and has entered into a definitive agreement to acquire the Caribou Mine and Mill, all located in the Bathurst Mining Camp of northern New Brunswick. The Company also has the past-producing Ruttan copper-zinc mine in northern Manitoba. Initial production from the Halfmile mine commenced in early 2012 and development is ramping up to achieve a planned production rate of at least 2,000-tonnes-per-day to feed planned operations at the Company's Caribou Mill Complex (subject to closure of its acquisition).
In Peru, the Company has the Santander zinc-lead-silver mine 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 late-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 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.
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 anticipated use of proceeds, the incurring of expenses that qualify as "flow-through mining expenditures," 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 or Direct: (604) 638-5623
(604) 408-7499 (FAX)
sstakiw@trevali.com
www.trevali.com
