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Trevali and Glencore sign MOU to develop the Santander silver-lead-zinc mine project in Peru

May 15, 2009
Secures long-term concentrate off-take agreement

Glencore to provide 2,000-tonne-per-day Concentrator Plant in addition to
operational expertise


Vancouver, British Columbia...Trevali Resources Corp.
("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with one of the world's largest commodity suppliers, Glencore International AG ("Glencore") of Switzerland, regarding the development of and metal concentrate sales from the Company's Santander Silver-Lead-Zinc mine project in Peru.

Under the terms of the MOU Trevali and Glencore will immediately form a joint project evaluation team in order to fast-track internal feasibility studies covering all technical aspects necessary to take Santander to production in an efficient and cost-effective timeframe. It is anticipated that these studies and definitive agreements will take approximately 4 to 6 weeks to complete and, contingent on results, will allow Trevali to fully reach its development and production goals.

"We are incredibly pleased to secure a major partner with the global financial stature, operational experience and concentrate marketing expertise such as Glencore," stated Trevali president and CEO Dr. Mark Cruise. "Clearly this is a huge vote of confidence for the project and speaks volumes for Santander's future and its significant blue-sky potential. This deal represents a fantastic win-win for both parties: Glencore achieves a long-term and secure supply of zinc and lead concentrates, while Trevali can realize its full commercial potential in a compressed timeframe."

Key highlights of the proposed joint business venture, structured to minimize dilution to Trevali and its shareholders, are as follows:

  • Glencore will provide and operate a 2,000-tonne-per-day (tpd) concentrate plant thereby allowing Santander to commence production at significantly higher levels than the 1,250 tpd production initially envisaged.
  • Trevali will have the option to acquire the plant and associated infrastructure over time on a 'toll' basis, thereby acquiring 100% ownership in the new mill and processing complex over the coming years.
  • Trevali will maintain its full control and ownership of the Santander project.
  • Glencore will provide its operational excellence on a 'contractor / toll basis' from mining through to concentrate production enabling Santander to reach optimum concentrate production levels in an efficient manner.
  • Glencore will provide financial assistance to Trevali to cover exploration, resource definition, development and operational requirements, the exact terms of which are subject to ongoing discussions.
  • Trevali has secured a long-term concentrate off-take agreement whereby Glencore will buy 100% of the Santander project production at benchmark terms.

Glencore is intending to provide a mill and processing plant currently located in Peru. The plant is an efficient, modern complex that is anticipated to perform well at Santander.

About Glencore

Glencore International AG is one of the world's largest suppliers of a wide range of commodities and raw materials to industrial consumers. Headquartered in Baar, Switzerland, Glencore directly or indirectly employs over 2,000 people worldwide in some 50 offices in over 40 countries at its marketing operations. In its industrial operations, Glencore directly or indirectly employs over 50,000 people in 16 plants in 12 countries.

On a consolidated basis, Glencore's turnover for the 2008 fiscal year was US$152.2 billion, Total Assets were US$61.3 billion and Total Glencore Shareholders' Funds were US$15.4 billion at December 31, 2008.

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, 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.

A recently completed independent resource estimate of the three Magistral deposits 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. An additional 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. All three Magistral bodies remain open at depth and to the East.

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.

*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.

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, Dr. 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 ( and to Canadian regulatory filings on SEDAR at

On Behalf of the Board of Directors of

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

Contact Information: Steve Stakiw, Manager -- Corporate Communications

Phone: (604) 488-1661 / Fax: (604) 408-7499

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