TSX: TV Last: $1.47 Change: -0.01 Volume: 1,235,053

Operations

Santander Zinc Mine

Location

West-central, Peru

Mine Type

Underground Mine

Resource

Zinc-lead-silver

Operations

  • 2,000 tonne-per-day mine and mill complex
  • 44 km2 land package with significant additional exploration potential
  • Currently mining Magistral North, Magistral Central and Magistral South deposits (plus the Rosa, Fatima and Oyon zones) 

Santander Zinc Mine

The Santander mine is located approximately 200 kilometres north-northeast of Lima, Peru and is comprised of an underground mine, a 2,000-tonne-per-day (tpd) processing mill, flotation recovery plant, metallurgical and geochemical laboratories, and a tailings management facility.

Geology and Mineralization

The property is underlain by a package of Cretaceous clastic and carbonate sedimentary rocks that have been tightly folded into a series of northwest-trending anticlines and synclines. A large number of northeast to east-west trending faults and fractures are observed on the property and represent important mineralization controls. At a regional scale, the intersection of these faults and the northwest trending fold structures are the loci for intrusion of subvolcanic stocks, hydrothermal activity and associated polymetallic mineralization.

Mineralization at the Santander Property can be classified as a carbonate replacement deposit (“CRD”) or a high temperature carbonate (HTC) deposit type. Such deposits contain very significant Silver mineralization and are frequently observed in Mexico and Peru, the world’s number 1 and number 2 Silver producers, respectively.

At the Santander Property, Silver, Lead, Zinc, Copper and Iron sulphide mineralization is intimately associated with garnet-rich skarn and/or associated lower temperature gangue which forms pipe-like, as well as replacement or “manto” type concentrations.

Mineral Reserve and Resource Estimates

TonnesZn%Pb%Ag (oz/ton)
Proven & Probable Reserves2,540,0004.510.691.09
Measured & Indicated Resources3,800,0004.850.831.23
Inferred Resources12,000,0004.220.230.56

Mineral Reserves (Proven & Probable) included in Mineral Resources

Please refer to Disclaimer for important items relating to the resource estimates and production plans.

Ownership

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

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.

Property Background

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).

Santander Production Statistics

2014 

2015

2016

Tonnes mined

664,257

722,360

716,893

Tonnes milled

709,140

778,151

863,307

Average head grades:

Zinc

Lead

Silver

4.24%

1.89%

1.64 oz/ton

4.14%

2.09%

1.66 oz/ton

4.27%

1.23%

1.27 oz/ton

Average recoveries:

Zinc

Lead

Silver

88%

85%

75%

90%

89%

77%

89%

86%

71%

Concentrate produced:

Zinc (dry metric tonnes)

Grade (Zn %)

Lead-Silver (dmt)

Grade (Pb %)

Grade (Ag oz/ton)

54,204

50%

19,375

57%

46.7 oz/ton

58,232

50%

24,962

58%

40.5 oz/ton

67,397

49%

17,189

53%

45.2 oz/ton

Payable metal production:

Zinc (pounds)

Lead (pounds)

Silver (ounces)

50,449,145

23,326,597

914,637

54,148,660

30,237,351

1,055,965

61,255,238

19,256,247

813,807

Trevali Mining’s Santander Zinc Mine commenced commercial production in early 2014. (Please review Disclaimer).

2017 Production Guidance

  • Zinc – 52-57 million payable pounds
  • Lead – 12-14 million payable pounds
  • Silver – 700,000-900,000 payable ounces
  • Total site cash costs of US$35-40/tonne milled

(Please review Disclaimer)

Photo Gallery

  • Loading Underground Haul Truck
  • Mill Site Overview
  • Flotation Cells
  • Drilling Development Face
  • Scoop tram in Operation
  • Flotation Recovery Circuits
  • Flotation Recovery Circuits
  • Santander Grinding Mills
  • Santander Grinding Mills
  • Santander Mill Building

Maps

© 2017 Trevali Mining Corporation
All rights reserved.
Disclaimer

Subscribe to our Email List