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Trevali significantly increases resources at Santander zinc-lead-silver project in Peru

November 2, 2010
Indicated tonnage +53%, inferred +452% at 3% ZnEQ cut-off Deposits remain open for expansion

Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (TSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce the results of its November 2010 mineral resource estimate update for the Santander zinc-lead-silver mine project in west-central Peru (Table 1).


  • The updated resource estimate is based on 171 diamond drill holes (with a combined length of approx. 33,240 metres). The resource estimate was conducted by and under the supervision of Kevin Palmer P.Geo., an independent qualified person and Senior Resource Geologist at Golder Associates Ltd. of Burnaby, Canada and utilized a 3% ZnEQ
  • Indicated Mineral Resource of 5.858 million tonnes with an average grade of 3.86% zinc, 1.35% lead, 44 g/t silver and 0.08% copper for an estimated in-situ metal inventory of 498 million lbs. zinc, 174 million lbs. lead, 8.25 million oz. silver and 9.7 million lbs. copper at 3% ZnEQ
  • cut-off.
  • Inferred Mineral Resource of 4.806 million tonnes grading 5.08% zinc, 0.44% lead, 21 g/t silver and 0.07% copper for an estimated in-situ metal inventory of 538 million lbs. zinc, 46 million lbs. lead, 3.19 million oz. silver and 7.8 million lbs. copper at a 3% ZnEQ
  • cut-off.
  • Mineralization remains open for expansion in all five deposits identified to date - Magistral North, Central and South, Puajanca South and the Santander Pipe (Figure 2).
  • cut-off grade - which is the nominal base case estimated grade of material that can be mined and processed considering all applicable costs.

    ADDITIONAL HIGHLIGHTS
  • Significant increases in contained in-situ metal in all resource categories - Indicated: Zn (lbs) +51%; Pb (lbs) +41%; Ag (oz) +49% -- Inferred: Zn (lbs) +605%; Pb (lbs) +216%; Ag (oz) +488% at the 3% ZnEQ
  • cut-off grade.
  • Discovery costs of approximately US$0.004 per in-situ pound of base metal excluding silver.
  • Identification and independent confirmation of very significant upside remaining in the historic Santander Mine - inferred resources of 3.321 million tonnes returning 5.78% Zn, 0.01% Pb, 0.08% Cu and 16 g/t Ag.

    Table 1: November 2010 Indicated and Inferred Mineral Resources (capped) at Santander Project

    "The resource estimate greatly increases the size of Santander and highlights the growing potential of the Company's flagship project." stated Dr. Mark Cruise, president and chief executive officer of the Company. "Given the anticipated compressed time-frame to production we are well poised to benefit from forecast base metal, and in particular zinc, price increases going forward due to increasing global demand coupled with the slated closure of several marquee mines worldwide."

    A comparison of the maiden 2009 Resource estimate and the latest November 2010 Resource estimate is tabulated below (Table 2). A break-down of the resource estimate by deposit is documented in Table 3.

    *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 ($14.90/oz) and that for Pb ($2,174), Zn ($2,079) and Cu ($6,504) is per tonne. A recovery of 85% was applied to Ag, 90% for Pb, 85% for Zn and 60% for Cu for calculating the ZnEQ formula. The pounds metal are in-situ and have not had any mining factors applied to them.
    The mineral resources identified in Table 1 are based on Ordinary Kriged (OK) capped values. Capping of samples has been applied in order to reduce the effect of high grade sample outliers. The resource block model was generated using Datamine Studio 3 software and utilized a parent block-size of 10m (x) by 10m (y) by 5m (z) based primarily on drill-hole spacing.

    Table 2: Comparison of March 2009 and November 2010 Resource Estimates

    Table 3: November 2010 Resources by deposit
Resource CategoryCutoff

(ZnEQ*

%)
TonnesAg

(g/t)
Pb (%)Zn

(%)
Cu

(%)
ZnEQ*

(%)
Ag (t.oz)Pb (lbs)Zn (lbs)Cu (lbs)
Indicated1.008,988,000341.033.080.064.179,725,000204,857,000610,343,00012,069,000
2.007,550,000381.173.430.074.689,276,000194,887,000570,449,00011,388,000
3.005,858,000441.353.860.085.318,253,000173,928,000498,680,0009,726,000
4.004,097,000511.594.370.086.096,720,000143,778,000394,915,0007,503,000
5.002,606,000621.964.830.097.025,219,000112,566,000277,327,0005,280,000
Inferred1.008,115,000180.403.680.063.794,599,00071,325,000658,196,00010,899,000
2.006,380,000190.434.350.074.413,978,00061,005,000612,378,0009,544,000
3.004,806,000210.445.080.075.043,194,00046,304,000538,238,0007,857,000
4.003,389,000220.475.790.085.682,353,00035,389,000432,767,0006,075,000
5.002,086,000230.576.550.096.441,545,00026,166,000301,396,0004,227,000
YearResource

Category
Cutoff

(ZnEQ %)
TonnesAg

(g/t)
Pb (%)Zn (%)ZnEQ* (%)Ag (tr.oz)Pb (lbs)Zn (lbs)
2009Indicated2.005,298,000381.273.344.426,519,000148,723,000390,377,000
Inferred2.002,244,000180.502.923.251,333,00024,922,000144,345,000
2010Indicated2.007,550,000381.173.434.179,725,000204,857,000610,343,000
Inferred2.006,380,000190.434.354.413,978,00061,005,000612,378,000
% DifferenceIndicated43%0%-8%3%-6%49%38%56%
Inferred184%5%-14%49%36%198%145%324%
2009Indicated3.003,831,000451.473.915.165,527,000123,778,000330,457,000
Inferred3.00871,000190.763.984.40543,00014,645,00076,370,000
2010Indicated3.005,858,000441.353.865.318,253,000173,928,000498,680,000
Inferred3.004,806,000210.445.085.043,194,00046,304,000538,238,000
% DifferenceIndicated53%-2%-8%-1%3%49%41%51%
Inferred452%6%-43%28%15%488%216%605%
Magistral North
Resource

Category
Cutoff

(ZnEQ*

%)
TonnesAg

(g/t)
Pb

(%)
Zn

(%)
Cu

(%)
ZnEQ*

(%t)
Ag (t.oz)Pb (lbs)Zn (lbs)Cu (lbs)
Indicated2.002,587,000532.352.740.075.454,388,000133,747,000156,277,0004,053,000
3.002,159,000602.583.020.086.044,144,000122,949,000143,757,0003,648,000
4.001,719,000682.843.340.086.693,751,000107,495,000126,574,0003,141,000
Inferred2.00791,000342.182.590.074.83874,00038,040,00045,147,0001,155,000
3.00535,000432.613.320.085.99732,00030,820,00039,207,000943,000
4.00430,000472.823.750.086.62650,00026,730,00035,583,000796,000
Magistral Central
Resource

Category
Cutoff

(ZnEQ* %)
TonnesAg

(g/t)
Pb

(%)
Zn

(%)
Cu

(%)
ZnEQ*

(%)
Ag (t.oz)Pb (lbs)Zn (lbs)Cu (lbs)
Indicated2.002,982,000420.683.870.094.704,026,00044,569,000254,625,0005,826,000
3.002,466,000440.724.310.095.153,525,00039,126,000234,351,0004,998,000
4.001,668,000490.795.090.105.952,632,00029,177,000187,101,0003,649,000
Inferred2.001,116,000260.733.030.073.73950,00017,938,00074,533,0001,604,000
3.00761,000280.773.590.074.27692,00013,000,00060,262,0001,132,000
4.00437,000270.754.380.074.87381,0007,215,00042,172,000689,000

Magistral South
Resource

Category
Cutoff

(ZnEQ* %)
TonnesAg

(g/t)
Pb

(%)
Zn

(%)
Cu

(%)
ZnEQ*

(%)
Ag (t.oz)Pb (lbs)Zn (lbs)Cu (lbs)
Indicated2.001,717,000110.183.920.043.62588,0006,857,000148,501,0001,466,000
3.001,050,000110.174.840.054.37371,0003,942,000111,961,0001,050,000
4.00615,000110.155.620.055.00214,0002,086,00076,133,000698,000
Inferred2.00291,000110.192.840.032.75145,0001,778,00025,878,000260,000
3.00170,000110.163.990.053.6759,000582,00014,962,000174,000
4.0023,000130.145.460.054.899,00071,0002,768,00027,000
Puajanca
Resource

Category
Cutoff

(ZnEQ* %)
TonnesAg

(g/t)
Pb

(%)
Zn

(%)
Cu

(%)
ZnEQ*

(%)
Ag (t.oz)Pb (lbs)Zn (lbs)Cu (lbs)
Indicated2.00265,000321.671.900.013.66274,0009,758,00011,096,00044,000
3.00183,000361.962.140.014.19213,0007,896,0008,626,00030,000
4.0095,000402.402.430.014.90123,0005,035,0005,082,00015,000
Inferred2.00167,000140.711.960.012.5277,0002,625,0007,205,00029,000
3.0018,000312.221.980.014.2018,000882,000784,0003,000
4.0011,000

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