Inferred resource of 1.3 million oz Silver, 25 million lbs Lead and 144 million lbs Zinc
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce results of the first independent National Instrument 43-101-compliant resource estimate for the three Magistral zones at the Santander Silver-Lead-Zinc Mine project in Peru -- confirming three significant polymetallic deposits.
The resource estimates on the Magistral North, Central and South deposits were conducted by and under the supervision of Kevin Palmer P.Geo., an independent qualified person employed by Golder Associates Ltd. of Vancouver, Canada and reviews a total Indicated Mineral Resource of 5,298,000 tonnes with an average grade of 3.34% zinc, 1.27% lead and 38 g/t silver (using a 2% ZnEQ* cut-off grade -- that is the nominal base case estimated grade of material that can be mined and processed considering all applicable costs) -- for a contained metal inventory of 390 million lbs. zinc, 149 million lbs. lead and 6.5 million oz. silver in the Indicated category (Table 1).
An Inferred Mineral Resource of 2,244,000 tonnes grading 2.92% zinc, 0.50% lead and 18 g/t silver was also reviewed in the three deposits using the same cut-off grade -- for contained metals of 144 million lbs. zinc, 25 million lbs. lead and 1.3 million oz. silver. The resource estimates for the three Magistral orebodies are based on 104 diamond drill holes (with a combined length of approx. 20,600 metres) completed by Trevali over a 12 month period ending late-2008. All three Magistral bodies remain open at depth and to the East (Figure 1).
Additionally, a further 100 million contained lbs. of zinc are estimated to be present in the 1,656,000 indicated tonnes grading at 2.74% zinc (using a 2.0% zinc cut-off grade) at the Santander Tailings Impoundment (Table 2). The Santander Tailings resource estimate is based upon 55 percussion drill holes totalling 910 metres.
"We are very excited with the initial resource estimate for the three Magistral deposits as it exceeds the Company's resource threshold and provides sufficient confidence to enable reactivation of mining operations at Santander," states Mark Cruise, Trevali's President and CEO. "We are confident that Trevali is strongly positioned to advance to production based on these new deposits and the substantial pre-existing infrastructure in place at the project, including our own low-cost power supply from the Tingo hydroelectric generating station."
"The Company's track-record speaks for itself, in a compressed timeframe and under less than ideal market conditions the team has advanced Santander on all fronts - geological, engineering, metallurgical, power and permitting. We've drilled three targets and have delineated substantial deposits in the Magistral zones, all of which remain open and have very significant depth potential," further states Dr. Cruise. "The blue-sky exploration potential on the large property package is exceptional and we are very confident that the planned drilling on the Puajanca prospect and incorporation of remaining mineralization in the Santander Pipe will add to our initial resource base in a very short timeframe."
Table 1: March 2009 Indicated and Inferred Mineral Resources at Santander
Table 2: March 2009 Indicated Mineral Resource at Santander Tailings
The Golder Mineral Resource Estimate forms the foundation for a Scoping Study, currently underway, evaluating Trevali's development plans and options for the Magistral Deposits. Given the current metal commodity markets, the Company envisages an initial focus on the silver-rich Magistral North and Central deposits. The indicated resource components for these two deposits are as follows (Table 3 & 4):
Table 3: March 2009 Magistral North Mineral Resource
Table 4: March 2009 Magistral Central Mineral Resource
*ZnEQ = ((Ag Price(g) x Ag Recovery x Ag Grade) + (Pb Price(t) x Pb Recovery x (Pb Grade(%)/100)+(Zn Price(t) x Zn Recovery x (Zn Grade(%)/100)))/Zn Price(t). Golder utilized the three year rolling average price for all three metals. Price for silver is per gram ($0.43339) and that for Pb ($1,983) and Zn ($2,742) is per tonne. A recovery of 85% was applied to Ag, 94% for Pb and 91% for Zn based upon Trevali's metallurgical testwork.
The Mineral Resource Estimate used a geostatistical-block model technique with ordinary kriging methods and the DATAMINE Studio 3 software package.
An independent National Instrument 43-101 technical report documenting the mineral resource estimate will be filed on SEDAR within 45 days.
Click to Enlarge
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, the Santander Orebody.
Substantial site infrastructure at the formerly-producing operation includes a fully refurbished 200-man camp and associated support facilities, an ore processing / concentrator plant (including various crushers, mills, flotation cells and filters able to produce zinc, lead-silver and copper concentrates) currently undergoing a refurbishment program, and the Tingo hydroelectric power-station located approximately 17 km down-valley to the west. The Santander project and the considerable existing infrastructure form a highly strategic asset in this mining district. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date.
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 Santander were designed by, and are supervised by, Mark D. Cruise, President & CEO, Trevali, and Tim Kingsley (independent geological consultant), 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. ACME's 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 in Peru to ascertain as best as possible the feasibility of re-commencing mining and milling operations in a timely manner upon successful exploration and engineering studies.
Additionally, through its wholly-owned subsidiary Trevali Renewable Energy Inc., the Company is undertaking a significant upgrade of the Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of the Company are currently listed on the CNSX (symbol TV). For further details on the Company 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 RESOURCES CORP.
"Mark D. Cruise" (signed)
Mark D. Cruise, President
Steve Stakiw, Manager -- Corporate Communications
Phone: (604) 488-1661 / Fax: (604) 408-7499
adequacy or accuracy of this release.