|November 25, 2013|
Trevali Provides Update on Halfmile-Stratmat Work Programs in New Brunswick
|Vancouver, British Columbia...Trevali Mining Corporation ("Trevali" or the "Company") (TSX: TV and TV.WT; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) provides an update on activities at its Halfmile and Stratmat Polymetallic Deposits in the Bathurst Mining Camp of New Brunswick, Canada.|
The following work programs, designed to build upon the 2010 Halfmile-Stratmat Preliminary Economic Assessment Study (the "2010 PEA") completed by Tetra Tech Wardop engineers, are in progress at Halfmile and Stratmat:
The Company's current strategy for its Bathurst Mining Camp projects is as follows:
Short-Term (approx. 12-24 months): Complete re-start of the Caribou Mine Project through the reactivation of the 3,000 tonne-per-day Caribou Mill Complex and the associated underground deposit. If warranted and economically viable, potential incremental or 'make-up' mineral feed sourced from the Halfmile deposit on a short-term basis may be used to enhance mill performance while the Company sufficiently expands its current Caribou underground infrastructure in order to sustain steady-state 3,000 tonne-per-day mining operations. The Caribou deposit remains open for expansion primarily at depth and the Company classifies the exploration potential on the large property package as good to excellent.
Long-Term (approx. 5 years-plus): The Company 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. Details on these initial and ongoing work programs are provided below and upon completion will be utilized to update the current PEA study.
The Company cautions that any production plans at Caribou and Halfmile-Stratmat are based only on Indicated and Inferred Mineral Resources and not Mineral Reserves, as neither Caribou nor Halfmile-Stratmat 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 any production plans and preliminary economic assessment ("PEA") will be realized.
Trevali recently completed two programs of drilling for a total of 5,025 metres in 15 holes on its Halfmile Mine project that currently hosts a NI-43-101 indicated resource of 6.26 million tonnes grading 8.1% zinc, 2.6% lead, 0.2% copper and 30.8 g/tonne silver, plus additional inferred resources of 6.08 million tonnes grading 6.7% zinc, 1.8% lead, 0.14% copper and 20.5 g/tonne silver (Figure 1).
The program targeted the lower portion of the Upper Zone and upper portion of the Lower Zone, and was successful in gaining confidence and detail in the resource at tighter spacings (Figure 2). Final assay results for the Upper Zone drilling are shown in Table 1. Final assay results for the Lower Zone drilling are pending. In 2012, the upper portion of the Upper Zone underwent trial mining of approximately 125,000 tonnes of mineralized material that was toll-milled at the nearby Brunswick 12 Mill and produced saleable zinc, lead-silver and copper-gold concentrates.
Results from this drill program will assist in Halfmile Mine planning and development for potential future production from a combined Halfmile-Stratmat processing complex.
Figure 2: 3D View (Looking N130°) of Halfmile Upper Zone with recent drill holes and current mine infrastructure.
Table 1: Halfmile Upper Zone drill results
In mid-July 2013, a drill program commenced on the Company's Stratmat Deposit that currently hosts a NI-43-101 inferred resource of 5.5 million tonnes grading 6.1% zinc, 2.6% lead, 0.4% copper, 54 g/tonne silver and 0.6 g/tonne gold.
The program consisted of 5,510 metres in 18 drill holes and was designed to (Figure 3):
Table 2: Stratmat Deposit 2013 Phase-One drill results
As previously announced in 2011-12, Trevali successfully completed a drill program on the Stratmat Main Zone that is located approximately one kilometre northeast of the current drilling. See News Releases February 6, 2012 (TV-NR-12-04), April 12, 2012 (TV-NR-12-11) and June 6, 2012 (TV-NR-12-15). Results from all three drill programs will be used for an updated NI 43-101 resource estimate planned for H2-2014.
In support of an Environmental Impact Assessment study for the Stratmat site, an Archeological Impact Assessment was initiated in 2012 by Stantec Consulting and is ongoing. This study includes a review of the area surrounding the preliminarily planned mine site. Additionally a review of the site hydrology is also underway and will be used to evaluate potential tailings dam options. Further geotechnical, environmental and metallurgical studies required for the PEA will be carried out in early 2014.
The Company also confirms that it has filed an amended National Instrument 43-101 report entitled "Independent Technical Report for the Caribou Massive Sulphide Project, Bathurst, New Brunswick, Canada", prepared by SRK Consulting (Canada) Inc. to, among other things, expand on the infrastructure located at the Caribou Project.
Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and M. Dayle Rusk, P.Geo, Trevali's Director, Geology, are qualified persons as defined by NI 43-101, have 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, director and shareholder. Ms. Rusk is not independent of the Company as she is an officer and shareholder.
In the case of the Halfmile drill program, on-site personnel rigorously collected and tracked samples which were then security sealed and shipped to Activation Laboratories Ltd. ("Actlabs") preparation facility in Fredericton, New Brunswick. Following preparation, the samples are sent to Actlabs in Ancaster, Ontario for assay. In the case of the Stratmat drill program, on-site personnel rigorously collected and tracked samples which were then security sealed and shipped to Acme Analytical Laboratories Ltd. ("AcmeLabs") preparation facility in Timmins, Ontario. Following preparation, the samples are sent to AcmeLabs in Vancouver, British Columbia for assay. Quality control systems of both ActLabs and AcmeLabs comply 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.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals mining company with operations in Canada and Peru.
In Peru, the Company has commenced commissioning and concentrate production at its Santander zinc-lead-silver mine and metallurgical plant with subsequent ramp up to 2,000-tonnes-per-day production scheduled in December 2013. The Company anticipates declaring Commercial Production at the Santander Mine shortly.
In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat polymetallic deposit all located in the Bathurst Mining Camp of northern New Brunswick. Initial trial production from the Halfmile underground mine was successfully undertaken in 2012 and the Company anticipates commencing operations at its 3,000-tonne-per-day Caribou Mill Complex in 2014.
All of the Company's deposits remain open for expansion.
The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). Certain 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.
On Behalf of the Board of Directors of
TREVALI MINING CORPORATION
"Mark D. Cruise" (signed)
Mark D. Cruise, President
Vice President, Investor Relations and Corporate Communications
Phone: (604) 488-1661 / Direct: (604) 638-5623
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 Caribou-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.
We advise US investors that while the terms "measured resources", "indicated resources" and "inferred resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize these terms. US investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into reserves.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.
The TSX has not approved or disapproved of the contents of this news release.
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