News Release Details

View all news View all news

Trevali Enters LOI for Option on Murray Brook Deposit in Bathurst Mining Camp of New Brunswick

March 2, 2018

Forms Strategic Exploration Alliance with Puma Exploration

Vancouver, British Columbia: Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI) announces it has entered into a Letter of Intent (“LOI”) with Puma Exploration Inc. (“Puma”) for the acquisition of an option to acquire an interest in the Murray Brook Deposit and to form a proposed Strategic Exploration Alliance (the “Alliance”) in the northern portion of the Bathurst Mining Camp in New Brunswick. The option is subject to certain standard terms and conditions which include receipt of all requisite regulatory approvals, including the acceptance of the TSX Venture Exchange.

“Trevali is pleased to be partnering with Puma Exploration on the advanced-stage Murray Brook Deposit,” stated Dr. Mark Cruise, Trevali’s President and CEO. “The agreement comports well with Trevali’s Bathurst Mining Camp strategy whereby the Company will leverage our infrastructure and operational expertise to further expand our footprint within the region. The addition of Murray Brook builds on Trevali’s significant resource inventory of potential mill feed in the Camp that also includes our Halfmile Mine, Stratmat and Restigouche projects.”

Under the terms of the LOI, Trevali, at its option, will provide all or part of the remaining CDN$7.5 million in funding to Puma in order for them to finalize the 100-percent acquisition of the Murray Brook Deposit within the time frames outlined in the underlying agreements ultimately leading to a 75:25 percent ownership interest between Trevali and Puma, respectively, and a 51:49 percent ownership in the Murray Brook East Property, respectively. Further exploration and development of the Murray Brook Deposit are to be funded proportionally and are subject to industry standard dilution clauses. Contingent on consultation, permitting, mine planning and operational studies, the aim would be to advance the Murray Brook Deposit to a production decision to provide optionality to Trevali either alongside or post Caribou mine operations. Trevali will manage these programs including advanced engineering studies and any final production decisions.

Additionally, Trevali will subscribe for CDN$500,000 worth of units (the “Units”) of Puma at an issue price equal to the five-day volume weighted average trading price of Puma’s common shares ending on the date of announcement of the placement and terms of the letter agreement, subject to a permissible discount pursuant to the rules of the TSX Venture Exchange. Each Unit will consist of one common share and one-half of a warrant, with the warrants being fully transferrable, having a three-year term and an exercise price set 30% above the issue price of the common shares that form a part of the Units. The proceeds will be used to advance the Alliance.

Murray Brook Deposit
The Murray Brook Deposit is located approximately ten kilometres west of Trevali’s operating Caribou mine along Provincial Highway 180 and is comprised of 484 hectares under Mining Lease 252.  Geologically it is formed of a large low to moderate grade massive sulphide body within which higher grade zones occur. The system is divided into two distinct domains, the Zn-Pb rich West Zone which is approximately 200-metres wide, extending from surface to approximately 300-metres depth and with a true thickness varying from 75-100 metres. The Cu-Au rich East Zone is approximately 100-metres wide, also extending from surface to approximately 300-metres depth.

Murray Brook has a currently defined National Instrument 43-101 measured and indicated sulphide mineral resource of 5.28 million tonnes averaging 5.24% zinc, 1.80% lead, 0.46% copper, 68.9 g/t silver and 0.65 g/t gold containing approximately 610 million pounds of zinc, 209 million pounds of lead, 54 million pounds of copper, 11.7 million ounces of silver and 111,000 ounces Au (based on Puma’s December 21, 2016 news release and associated report lodged on SEDAR).

Table 1: Murray Brook Underground Mineral Resource Estimate at C$85/t NSR Cut-Off (based on Puma’s December 21, 2016 news release)

Zone Category Tonnes
M lb
M lb
M lb
K oz
M oz
Oxide Measured 434 1.13 10.8 1.44 13.8 4.51 43.2 0.31 4.3 60.5 0.8
Indicated 105 1.94 4.5 0.82 1.9 2.84 6.6 0.46 1.6 45.3 0.2
M+I 539 1.29 15.3 1.32 15.7 4.19 49.8 0.34 5.9 57.5 1.0
Inferred 4 3.94 0.3 0.19 0.0 0.62 0.0 0.46 0.1 26.6 0.0
Sulphide Measured 3,681 0.36 29.0 1.87 151.9 5.57 451.7 0.56 65.8 70.5 8.3
Indicated 1,603 0.70 24.8 1.63 57.4 4.48 158.4 0.88 45.1 65.3 3.4
M+I 5,284 0.46 53.8 1.80 209.3 5.24 610.1 0.65 110.9 68.9 11.7
Inferred 125 2.16 5.9 0.92 2.5 2.58 7.1 0.54 2.2 47.3 0.2

Notes to Table 1:
(1) Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
(3) The Mineral Resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

Strategic Exploration Alliance
The Strategic Exploration Alliance agreement between Trevali and Puma will cover all existing claims held by both companies (excluding Trevali’s Caribou and Restigouche leases) in the Murray Brook Deposit area as well as any new claims in the Restigouche–Armstrong Belt region in the northern portion of the Bathurst Mining Camp. Under the Alliance, Trevali will act as operator of the properties and intends to appoint Puma as project manager (acting under the operator) to leverage their in-house expertise. All exploration programs and budget plans to be applied on the properties will be under the guidance of a Joint Technical Committee.

The Alliance includes six properties for a total of 391 claim units (8,987 hectares) with the initial ownership set at 51% Trevali and 49% Puma with standard dilution provisions should one of the parties elect not to contribute. Trevali is including four exploration-stage properties (1,286 hectares) into the Alliance. Additionally, any new properties acquired by the Alliance within the area of interest will be held under the 51:49 percent interest terms with both companies having the choice to participate or not in the acquisition.

Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO, is a qualified person as defined by NI 43-101, has supervised the preparation of and has verified 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, director and shareholder.

Trevali is a zinc-focused, base metals company with four mines: the wholly-owned Santander mine in Peru, the wholly-owned Caribou mine in the Bathurst Mining Camp of northern New Brunswick, its 80% owned Rosh Pinah mine in Namibia and its 90% owned Perkoa mine in Burkina Faso.

For further details on Trevali, please refer to the Company’s website ( and to its 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, Vice President - Investor Relations and Corporate Communications
Phone: (604) 488-1661 / Direct: (604) 638-5623

Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the Company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the completion of the acquisition of the option, the completion of the acquisition of the Units and the formation of the strategic exploration alliance; the accuracy of estimated Mineral Resources, anticipated results of future exploration, and forecast future metal prices, expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of Mineral Resources; and the expected length of operations at the Caribou mill. These statements reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.

Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets; risks related to the technological and operational nature of the Company’s business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru, Namibia, Burkina Faso, or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining; diminishing quantities or grades of mineral resources as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company’s ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company’s title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

We advise US investors that while the terms "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources" are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize these terms. US investors are cautioned not to assume that any part or all of the material in these categories will ever be converted into reserves.

Categories: Press Releases
View all news View all news