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Halfmile Mine

Technical Report

Location

The Halfmile Mine is located in northern New Brunswick, Canada, approximately 60 kilometres southwest of Bathurst and 40 kilometres from the Brunswick 12 Mine in the Bathurst Mining Camp. The property consists of 73 claims and covers an area of 1,104 hectares.

Property Agreement

In 2008, Kria Resources (now a wholly-owned subsidiary of Trevali) entered into an agreement with Xstrata Canada Corporation -- Xstrata Zinc Canada Division (now Glencore Canada) whereby Kria had the right to gain 100% ownership of the Stratmat and Halfmile projects by paying US$18,000,000 (completed) and issuing units worth a total of Cdn$7,000,000 (completed). Glencore has the first right and option to purchase all or any portion of the concentrate off-take, as well as a 2% Net Smelter Return (NSR) royalty. Trevali has a 61.51% interest on certain claims in the north portion of the Halfmile Property (outside of the current mine plan) due to underlying ownership rights.

History and Resources

The property was heavily explored by Xstrata Zinc and its predecessor companies at intervals since the 1960s. In particular, extensive exploration activity occurred during the 1980s and 1990s when the Heath Steele and Stratmat Mines were in production.

A NI 43-101 compliant mineral resource estimate was completed on the Halfmile property by Tetra Tech Wardrop in February 2009, which estimated:
  • Indicated Mineral Resource of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade
  • Inferred Mineral Resource of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade
Table 1. Halfmile Resource Estimates - 5% Zn EQ Cut-Off
Indicated
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 30.78

Inferred
Zone Tonnes ZnEq % Zn % Pb % Cu Ag (g/t)
Upper 156,100 8.08 7.20 2.64 0.17 6.19
Lower 1,071,000 9.01 8.06 2.76 0.08 38.55
Deep 4,825,700 6.86 6.37 1.60 0.15 17.04
North 25,400 7.46 6.19 1.55 0.73 6.19
Total 6,078,200 7.27 6.69 1.83 0.14 20.51

(Please review Disclaimer)

Geology

The Halfmile Deposit contains four sulphide zones: Upper, Lower, Deep and North. The deposit is a volcanic-sediment-hosted massive sulphide deposit and is one of over 45 massive sulphide deposits in the Bathurst Mining Camp. Rocks are of Ordovician age and have undergone a complex history of polyphase folding and faulting. The deposit is structurally overlain by rhyolitic and dacitic rocks as well as disconformable quartz-wackes and pelites. To the footwall of the massive sulphide package are alkali basalts and thin bedded feldspathic wacke/shales. Rocks have been metamorphosed to the greenschist facies. The entire package of rocks has been stratigraphically over turned.

Property Potential

The upper sections of the deposits have been well covered with diamond drilling. There are three areas of interest for immediate exploration:
  • Along strike, especially to the south of the Upper / Lower zones, diamond drill holes have intersected mineralization that needs follow up.
  • The Deep Zone is a large massive sulphide body. To date, only 15 diamond drill holes have crossed this sulphide horizon. This zone is open in three directions: along strike and down dip.
  • Down dip of the North Zone requires investigation. A couple high-grade narrow diamond drill hole intercepts suggests good potential for additional discoveries in this area.

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. (Please review Disclaimer)

Production and Development Plan

Halfmile is a fully permitted underground mining operation that underwent initial trial mining and production from January to July 2012 from the Upper Zone of the deposit. Mineralized material was transported to and toll-processed through the Brunswick 12 mill facility, producing good quality, saleable metal concentrates of zinc, lead-silver and copper-gold. Trevali continues to advance studies on both its Halfmile and Stratmat projects in order to ascertain if they will support a second stand-alone milling facility in the Bathurst Mining Camp separate from the Caribou Mine and Mill Complex. (Please review Disclaimer)  

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