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 June 04, 2008
Trevali Announces Two Phase Mill Refurbishment Plan at Santander Silver-Lead-Zinc Mine Project in Peru

 
$3 million to bring 1,500-tonne-per-day processing circuit online by year-end


TRC-NR-08-08


Vancouver, British Columbia: Trevali Resources Corp. ("Trevali" or the "Company") (CNQ: ZINC; Frankfurt: 4TI; Pink Sheets: TREVF) is pleased to announce its planned mill refurbishment and upgrade program at its Santander silver-lead-zinc project in west-central Peru.

Holland and Holland Consultants, of England, in conjunction with Resource Development Inc. of Denver, Colorado, have recently completed an engineering report reviewing refurbishment and upgrades at the existing mineral processing circuit at Santander -- to an initial capacity of 1,500-tonnes-per-day -- and have tabled a cost estimate of $3 million along with a timeline of approximately 6 months for completion of the initial phase of the program.

The engineering study involved a complete inventory of the existing processing circuit (crushing, milling, concentrating and flotation) -- that was contracted to BBA (Briceńo-Briceńo-Arcata) Ingenieros of Lima, Peru -- to ascertain which components can be refurbished and which require replacement.

BBA Ingenieros supplied Holland and Holland with the costs estimates for the repair of specific components of the circuit, and also for the replacement and installation of necessary equipment.

Phase I

The review indicates the existing 8-ft by 12-ft ball mill -- to be used in the regrinding of tailings -- will be refurbished in Phase One of the program. The plan will also see replacement of the flotation circuit at Santander with new tanks, mechanisms and motors being installed. New rougher-scavenger cells will be purchased based on specifications for Outokumpu 8-cubic-metre cells for bulk lead rougher-scavenger duty and Outokumpu 16-cubic-metre cells used for zinc rougher-scavenger duty.

The program also sees replacement of the dewatering circuit including new thickeners and filters with separate units for copper-lead duty and for zinc duty.

Phase II

Phase Two of the refurbishment-upgrade program will include a redesign of the grinding plant to include an additional rod mill (11-ft by 14-ft size) for planned processing of higher-grade hard rock feed.

The study shows the existing crushing plant is in good condition and will only require replacement of the secondary crusher, which will in turn allow for plus-4,000-tonne-per-day crushing capacity -- sufficient capacity for additional anticipated plant expansions and upgrades.

The Phase One program will be initiated imminently, currently anticipated as mid-June, with postulated commencement of zinc concentrate production from reprocessing of tailings material by late-2008 (see NR-08-03 for details).

The Tingo hydroelectric generating station (located about 17-km down valley to the west from Santander) is currently producing approximately 1.2 megawatts -- sufficient for initial power demands in reprocessing of the zinc-rich tailings at the Santander operation. The generating facility will require upgrades to meet increased future requirements with the Company's planned transition to hard rock feed in addition to potentially providing a fourth revenue stream through sale of excess power capacity.

Development Plans

Trevali continues to advance on its plan to recommence production from Santander by late-2008, targeting a potentially large bulk-tonnage and low-cost zinc resource.

Based on an early-1990s non-NI43-101 historic review, approximately 5.5 million tonnes of 2% zinc was estimated in the roughly 500-by-500-metre Santander tailings impoundment. Trevali recently completed a resource definition drill program on the tailings, drilled on 50-metre centres, and expects a resource estimate very soon. The recent program identified a significant zone within the northwest quadrant of the tailings that averaged 2.78% zinc and contains a significant coarse component (plus-200 mesh) suitable for reprocessing. The tailings are located only 150 metres from the concentrate plant and are predominantly comprised of dry material (see NR-08-06 for details).

Project Background

The Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima, in the western extent of Peru's prolific Cerro de Pasco mineral district. The mine operated from 1958-1993 -- targeting a single Carbonate Replacement Deposit-type pipe and manto structure. Approximately 8 million tonnes grading +7% zinc, 1-4% lead and 60 grams/tonne silver plus by-product copper was processed -- initially from open pit operations and then from underground mining reaching a depth of 500 metres below surface in rock grading about 11% zinc. Drilling by past operators indicates mineralization remains open to depth -- extending at least 200 metres further beneath the previous workings.

Recent exploration drilling by the Company has focused on three other similarly mineralized manto to pipe-type structures (Magistral North, Central and South) situated in favourable carbonate host rocks and located a couple of kilometres northwest -- along the same structural trend hosting the Santander orebody. Initial results are very encouraging with essentially every hole (of the more than 70 holes completed) encountering significant intercepts of polymetallic mineralization (Ag-Pb-Zn) to depths of approximately 200 metres below surface. Mineralization remains open at depth in all 3 bodies.

Site infrastructure at the formerly-producing operation includes a large camp and associated support facilities, an ore processing / concentrator plant (including various crushers, mills and cell houses) able to produce zinc, lead-silver and copper concentrates, and the Tingo hydroelectric power-station, located some 17-km down-valley to the west.

Trevali's current diamond drill program represents the first modern exploration on the large, 4,455-hectare (44 km2), mine and exploration lease.

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 Trevali were designed by, and are supervised by, Mark D. Cruise, President & CEO, Trevali, and Les Oldham, General Manager, Consultora Minera Anglo Peruana S.A.(independent geological consultants), who together are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ACME Laboratories, Vancouver, for assay. ACMEs 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.

About Trevali Resources Corp.

The Company is currently exploring and conducting various scoping level studies on the former Santander polymetallic mine Peru in order to ascertain as best as possible the cost and feasibility of re-commencing mining and milling operations in a timely manner should exploration prove to be successful.

The common shares of the Company are currently listed on the CNQ (symbol ZINC). For further details on the Company readers are referred to the Company's web site (www.trevaliresources.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.

On Behalf of the Board of Directors of
TREVALI RESOURCES CORP.

"Mark D. Cruise" (signed)
Mark D Cruise, President

Contact Information: Steve Stakiw, Manager -- Corporate Communications
Email: sstakiw@trevaliresources.com
Phone: (604) 408-7488 / Fax: (604) 408-7499

The CNQ has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
 
 

You can view the Next News item: Thu Jun 26, 2008, Trevali Intersects 165.2 metres of 3.24% Zinc at Magistral South Zone on Santander Silver-Lead-Zinc Mine Project in Peru

You can view the Previous News item: Wed May 28, 2008, Trevali Continues to Intersect Broad Zones of Silver - Base Metal Mineralization at Santander, Peru

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