Trevali Mining’s Santander Zinc Mine commenced commercial production in early 2014.
Production for the fiscal-year 2016 (as of December 31, 2016) at Santander operations saw the processing of approximately 863,307 tonnes of feed to produce approximately 61.3 million lbs of payable zinc in concentrates and approximately 19.3 million lbs of payable lead in concentrates plus 813,807 ounces of payable silver.
2017 Santander production guidance in payable metals is approximately:
- Zinc - 63-65 million pounds
- Lead - 12-14 million pounds
- Silver - 700,000 to 900,000 ounces
- Cash costs for 2017 are estimated at approximately US$35-US$40 per tonne milled (Please review Disclaimer).
The three Magistral deposits (North, Central and South), form the basis of the current NI43-101 measured and indicated mineral resource estimate of 3,800,000 tonnes grading 4.85% Zn, 0.83% Pb and 1.23 oz/t Ag (for a contained metal inventory of 406.5 million lbs. zinc, 69.3 million lbs. lead and 4.7 million oz. silver) and an additional inferred resource of 12,000,000 tonnes at 4.22% Zn, 0.23% Pb and 0.56oz/t Ag (for a contained metal inventory of 1.1 billion lbs. zinc, 60.5 million lbs. lead and 6.7 million oz. silver). The 2017 Santander mine mineral resource estimate was independently estimated by the company’s consultant Arseneau Consulting Services Ltd. The new resource estimate is reported at a $40 (U.S.) cut-off and calculated to the end of December, 2016, mining limits. For reference, Santander’s 2017 operation cost guidance ranges from $35 (U.S.) to $40 (U.S.) per tonne. (Please review Disclaimer)
Mining and mineral processing operations at Trevali’s 100%-controlled Santander Mine are undertaken with development partner Glencore plc that has provided the 2,000-tonne-per-day mill/concentrate plant and also serve as contract mill operator and contract miner, and report to senior Trevali personnel. Glencore has entered into a life-of-mine concentrate offtake agreement with Trevali for 100% of Santander project production (at 2,000tpd) at International Benchmark (market price) terms.
The Company’s production decision is based only on Indicated and Inferred Mineral Resources and not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is therefore no certainty that the conclusions of the production decision will be realized. Additionally where Trevali discusses exploration/expansion potential, any potential quantity and grade is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Property is located on the western edge of the Altiplano, which forms the Western Cordillera of the Andes, in the Central Peruvian Polymetallic Belt.
Situated in Lima Department, Peru, approximately 200 northeast of Lima, the Santander Mine enjoys ease of accessibility with regional highway/road networks.
The Company, through its Peruvian subsidiary, Trevali Peru S.A.C., has acquired from Compañia Minerales Santander S.A.C. (“Santander”) of Lima, Peru, owners of the Santander Property, the exclusive right for a period of 50 years (with an automatic 50-year extension) to engage in exploration, development, exploitation, processing and commercialization activities at the Santander Property.
In addition, the Company, through its Peruvian subsidiary, Trevali Peru S.A.C., has effectively acquired approximately 97% of the current outstanding qualified liabilities of Santander.
(Note: remaining ownership held by combination of Peruvian tax authorities and minor creditors)
Infrastructure includes a 400-person camp plus associated support facilities. Glencore, as part of the formal agreement, has provided and will operate (on a contract basis) the 2,000-tonne-per-day concentrate plant to produce zinc and lead-silver concentrates. The mine site is connected to the Peruvian National Energy Grid.
The former Santander Mine is classified as a polymetallic High Temperature Carbonate (HTC) or Carbonate Replacement Deposit (CRD). Modern mining activities commenced on the principal Santander Pipe from 1958 until 1991 to an approximate depth of 480 metres. Approximately 8 million tonnes of mineralized material were mined historically grading +7% zinc, 1- 4% lead and 60 g/t silver with additional copper credits. Due to a combination of hyper-inflation and low metal prices, mining ceased in approximately 11% zinc mineralization at 480-500 metres below surface. Mineralization remains open at depth with reported zinc grades of 11% in multiple replacement or manto bodies.
Typically, such Carbonate Replacement Deposits (CRDs) can comprise multiple lens and have the potential to form significant mining camps.
The 4,455-hectare (44 km2) property contains numerous outcropping polymetallic mineralized bodies (Magistral North, Central, South and Puajanca South).
Average head grades:
Zinc (dry metric tonnes)
Grade (Zn %)
Grade (Pb %)
Grade (Ag oz/ton)
Payable metal production: