TSX: T    /    Last: $1.05    /    Change: -0.01    /    Volume: 824984

Stratmat

Technical Report

Location

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 54 claims in the Stratmat 1613 claim group and covers an area of 828.6 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. A portion of the property has a 2.5% NSR royalty to Teck Resources Limited.

History and Resources

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

The Stratmat property hosts three mineral deposits and numerous showings. Of the three deposits, only the Boundary Deposit has been mined to date where reserves were depleted on June 30, 1993. The remaining two areas were the focus of Kria's past work, and contain a NI 43-101 compliant resource that estimates:
  • an Inferred Mineral Resource of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade. (Please review Disclaimer)


Geology

The Stratmat area is underlain by rocks of Ordovician age known as the Tetagouche Group. They form part of the Miramichi zone of northern New Brunswick and are composed of primarily dacitic to rhyolitic volcanic rocks of the Flat Landing Brook Formation and quartz-feldspar porphyries of the Nepisiquit Falls Formation. These units are disconformably underlain by sediments of the Miramichi Group. Thin-bedded feldspathic wacke/shale and alkali basalts of the Boucher Brook Formation conformably overlie the felsic package. The Ordovician rocks of the Bathurst Mining Camp have undergone a complex history of polyphase folding and faulting. At least five deformational events are recognized.

The Stratmat deposits are volcanogenic massive sulphide type (VMS) hosted in felsic volcanic and epiclastic rocks of the Nepisiquit Falls and Flat Landing Brook Formations. This Tetagouche Group of rocks hosts over 30 base metal-rich deposits including the giant Brunswick 12 deposit.

Property Potential

The current Stratmat resource definition drill program is designed to:
  • Aid in the reinterpretation of the historic geologic logging and modelling;
  • Convert the currently defined resources from the inferred to indicated category;
  • Collect sufficient geotechnical, environmental and metallurgical data to facilitate detailed permitting and mine planning studies regarding the potential of the Halfmile and Stratmat deposits to support a possible 4,000-to-5,000-tonne-per-day stand-alone milling operation (the company cautions that any decision regarding the potential construction of a second milling facility is contingent on results and numerous variables including, but not limited to, commodity prices. There is presently insufficient data and studies to support such a decision at this point in time).

Detailed interpretation of historic drill hole data combined with recent Trevali drilling have resulted in an improved understanding of the local geology and an enhanced 3-D interpretation of the mineral geometry.

The current phase II drill program is continuing, and it is anticipated, based on results to date, to expand upon the current and historic results.

Development Plan

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)

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.  
RSS