The Stratmat Property is located in Northumberland County in northeast New Brunswick, Canada. It is situated approximately 45 km southwest of Bathurst. The property consists of 95 contiguous claims in the Stratmat 1613 claim group and covers an area of 1,827 hectares.
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. A portion of the property has a 2.5% NSR royalty to Teck Resources Limited.
History and Resources
The project has been heavily explored by Xstrata, and its predecessor companies, since the 1960s. The area was again extensively explored during the 1980s and 1990s when the Heath Steele and Stratmat Mines were in production.
In 1988, Noranda put an exploration decline into the Boundary Deposit and collected a 3,000-tonne bulk sample that was used to prepare a feasibility study for Boundary Deposit.
In 2009, Wardrop (now Tetra Tech) estimated the mineral resource for the Stratmat Project. The mineral resource estimate followed the guidelines outlined in NI43-101 and it was estimated using inverse distance square interpolation method with MineSightTM 3D block modeling software.
Between October 2011 and December 2014, Trevali drilled a total of 42,512 metres in 96 holes.
The Stratmat property hosts three mineral deposits and numerous showings. Of the three deposits, only the Boundary Deposit has been mined and was depleted in 1993. The remaining two areas were the focus of the recent exploration work, and contains a NI 43-101 compliant resource that estimates:
- an Indicated Mineral Resource of 4.7 million tonnes grading 5.31% zinc, 2.07% lead, 0.41% copper, 48.5 g/t silver and 0.6 g/t gold using a 5.0% zinc equivalent cut-off grade. (Please review Disclaimer)
- an Inferred Mineral Resource of 2.4 million tonnes grading 4.76% zinc, 2.07% lead, 0.70% copper, 38.8 g/t silver and 0.4 g/t gold using a 5.0% zinc equivalent cut-off grade. (Please review Disclaimer)
The Stratmat Project is within the Bathurst Mining Camp (BMC) which occupies a roughly circular area of approximately 70-km diameter in the Miramichi Highlands of northern New Brunswick. The area boasts some 46 mineral deposits with defined tonnage and another hundred mineral occurrences, all hosted by Cambro-Ordovician rocks that were deposited in an ensialic back-arc basin. The project is underlain by a magnetic northeast-southwest trending sequence of predominantly felsic volcanic rocks and lesser sedimentary rocks which are host to all massive sulphide deposits on the property. Provincial Government regional mapping projects have classified the rocks as belonging to the Flat Landing Brook Formation of the Middle Ordovician Tetagouche Group.
The sulphide minerals consist of disseminated and massive sphalerite-galena-pyrite and chalcopyrite. The sulphide minerals are fine to medium-grained, and are coarser than those typically found in deposits of the Bathurst-Newcastle district. Disseminated mineralization, commonly of economic grade also occurs in the phyllitic sedimentary rocks as well as in the talc layers which locally grade into massive sulphide.
Trevali plans to undertake a revised Halfmile-Stratmat preliminary economic assessment study in order to ascertain if the deposits will support a potential second stand-alone milling facility in the Bathurst Mining Camp separate from the Caribou Mine and Mill Complex. (Please review Disclaimer
The new study will incorporate the new independent Stratmat resource estimate from SRK Consulting (Canada) Inc. (see news release dated May 20, 2015), as well as additional work programs, including geotechnical analysis and metallurgical testwork, revised commodity price forecasts, fuel, labour, foreign exchange rates, and contractor rates and availability. It will also enable Trevali to utilize hard costs and technical data from its nearby Caribou zinc mine operation, where commissioning has recently commenced.
The Company's nearby Halfmile Mine is a fully permitted underground mining operation that underwent initial trial mining and production in 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.