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/docs/TV0501.pdf). 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):
------------------------------------------------------------------------
Halfmile and Stratmat Deposit Resources
------------------------------------------------------------------------
Tonnes Zn% Pb% Cu% Ag (g/t)
------------------------------------------------------------------------
HALFMILE
------------------------------------------------------------------------
Indicated 6,262,043 8.13 2.58 0.22 30.78(i)
------------------------------------------------------------------------
Inferred 6,078,200 6.69 1.83 0.14 20.51(i)
------------------------------------------------------------------------
STRATMAT
------------------------------------------------------------------------
Inferred 5,524,500 6.11 2.59 0.40 54.21
------------------------------------------------------------------------
Calculated by Tetra Tech Wardrop engineers and geologists using a 5%
ZnEQ cutoff
(i) Silver and gold not routinely analyzed for in historic drilling.
------------------------------------------------------------------------
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
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