Trevali Mining Corporation ("Trevali" or the "Company")
(TSX:TV)(TSX:TV.WT)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) is pleased
to announce the results of an independent mineral resource estimate
for its polymetallic Caribou Deposit in the Bathurst Mining Camp of
New Brunswick, Canada. A National Instrument 43-101 (NI 43-101)
compliant technical report will be filed on SEDAR within 45 days of
this press release.
Using a 5% ZnEq(i) cutoff, the estimate prepared by SRK
Consulting (Canada) Inc. returned 7.23 million tonnes grading 6.99%
zinc, 2.93% lead, 0.43% copper, 84.43 g/t silver and 0.89 g/t gold
in the Measured and Indicated categories and an additional 3.66
million tonnes grading 6.95% zinc, 2.81% lead, 0.32% copper, 78.31
g/t silver and 1.23 g/t gold in the Inferred category (Table 1
& Figure 1). The deposit remains open for expansion at depth
and along strike, and the Company considers the exploration
potential excellent.
The deposit also contains potentially significant copper and
gold mineralization. Data analysis indicates that the gold may be
under-estimated as it was not routinely analyzed in historic drill
holes. Of the 4,136 assay intervals in the drill hole database that
are located within a lens, only 963 samples were assayed for gold.
The average of these 963 samples is 1.67 g/t gold.
"This resource estimate is an important milestone for Trevali
and our growth plans for the Bathurst Mining Camp. Besides the
important addition of gold and copper to the estimate, the study
has highlighted the very significant exploration potential of the
property," stated Dr. Mark Cruise, Trevali's President and Chief
Executive Officer.
The Caribou property is a working, brown-field industrial site
with comprehensive surface infrastructure including a modern
concentrator, office / dry complex, mechanical shop, metallurgical
and geochemical laboratory, and a permitted tailings treatment
facility. Extensive underground workings are accessed by both shaft
and ramp, and include many developed levels and stopes that can be
rapidly and cost effectively brought on-line.
Table 1: 2013 Capped Measured, Indicated and Inferred Mineral Resources at
the Caribou Project at various Zn-equivalent cut-off grades as prepared by
SRK Consulting (Canada) Inc.
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Cutoff Tonnage Grade
---------- --------------------------------------------------------
Million Au Ag Pb Zn Cu ZnEq
ZnEq(i) % Class Tonnes g/t g/t % % % %
----------------------------------------------------------------------------
10 Measured 3.21 0.96 100.10 3.53 8.01 0.39 12.13
------------------------------------------------------------------
Indicated 1.06 1.15 96.22 3.37 7.91 0.33 11.91
------------------------------------------------------------------
M&I 4.27 1.01 99.13 3.49 7.99 0.38 12.08
------------------------------------------------------------------
Inferred 1.99 1.13 98.49 3.42 7.98 0.31 11.98
----------------------------------------------------------------------------
----------------------------------------------------------------------------
8 Measured 4.92 0.87 89.33 3.14 7.33 0.41 11.08
------------------------------------------------------------------
Indicated 1.51 1.09 86.16 3.03 7.46 0.33 11.09
------------------------------------------------------------------
M&I 6.43 0.92 88.59 3.11 7.36 0.39 11.08
------------------------------------------------------------------
Inferred 3.28 1.23 82.10 2.95 7.21 0.31 10.84
----------------------------------------------------------------------------
----------------------------------------------------------------------------
7 Measured 5.36 0.85 86.62 3.03 7.11 0.43 10.79
------------------------------------------------------------------
Indicated 1.59 1.07 84.37 2.97 7.35 0.33 10.91
------------------------------------------------------------------
M&I 6.96 0.90 86.10 3.02 7.17 0.41 10.82
------------------------------------------------------------------
Inferred 3.56 1.24 79.40 2.85 7.02 0.32 10.58
----------------------------------------------------------------------------
----------------------------------------------------------------------------
5 Measured 5.61 0.84 84.64 2.93 6.91 0.46 10.58
------------------------------------------------------------------
Indicated 1.62 1.06 83.68 2.94 7.28 0.34 10.83
------------------------------------------------------------------
M&I 7.23 0.89 84.43 2.93 6.99 0.43 10.64
------------------------------------------------------------------
Inferred 3.66 1.23 78.31 2.81 6.95 0.32 10.47
----------------------------------------------------------------------------
Table 1: 2013 Capped Measured, Indicated and Inferred Mineral Resources at
the Caribou Project at various Zn-equivalent cut-off grades as prepared by
SRK Consulting (Canada) Inc.
----------------------------------------------------------------------------
Contained Metal (millions of oz Au-Ag - millions of lbs
Cutoff Pb-Zn-Cu) in-situ
---------- --------------------------------------------------------
ZnEq(i) % Class Au Ag Pb Zn Cu
----------------------------------------------------------------------------
10 Measured 0.10 10.32 249.61 566.39 27.58
------------------------------------------------------------------
Indicated 0.04 3.29 78.99 185.40 7.73
------------------------------------------------------------------
M&I 0.14 13.61 328.60 751.79 35.31
------------------------------------------------------------------
Inferred 0.07 6.31 150.14 350.32 13.61
----------------------------------------------------------------------------
----------------------------------------------------------------------------
8 Measured 0.14 14.14 340.84 795.64 44.50
------------------------------------------------------------------
Indicated 0.05 4.18 100.89 248.40 10.99
------------------------------------------------------------------
M&I 0.19 18.32 441.73 1044.05 55.49
------------------------------------------------------------------
Inferred 0.13 8.66 213.25 521.21 22.41
----------------------------------------------------------------------------
----------------------------------------------------------------------------
7 Measured 0.15 14.93 358.18 840.47 50.83
------------------------------------------------------------------
Indicated 0.05 4.33 104.41 258.39 11.60
------------------------------------------------------------------
M&I 0.20 19.26 462.59 1098.86 62.43
------------------------------------------------------------------
Inferred 0.14 9.10 223.87 551.43 25.14
----------------------------------------------------------------------------
----------------------------------------------------------------------------
5 Measured 0.15 15.28 362.69 855.36 56.94
------------------------------------------------------------------
Indicated 0.06 4.36 104.95 259.87 12.14
------------------------------------------------------------------
M&I 0.21 19.64 467.64 1115.23 69.08
------------------------------------------------------------------
Inferred 0.14 9.21 226.60 560.44 25.80
----------------------------------------------------------------------------
(i)ZnEq= ((Cu GradexCu PricexCu Recovery)+(Pb GradexPb PricexPb
Recovery)+(Zn GradexZn PricexZn Recover)+(Au GradexAu PricexAu Recovery)+(Ag
GradexAg PricexAg Recovery))/Zn Price. In calculating ZnEq, SRK Consulting
(Canada) Inc. utilized the long term metal prices provide by Energy & Metals
Consensus Forecast. Price for Au is $1470 per ounce, Ag is $26 per ounce, Cu
is $3.39 per pound, Pb is $1.18 per pound, and Zn is $1.14 per pound. A
recovery of 83% was applied to Zn, 71% was applied to Pb, 57% was applied to
Cu, 45% was applied to Ag, and 40% was applied to Au. The pounds of metal
are in-situ and have not had any mining factors applied to them.
To View Figure 1, please visit the following link:
http://media3.marketwire.com/docs/tv117i.pdf.
DETAILS
Mineral resource estimates for the Caribou Deposit were
completed using Maptek Vulcan® software by Guy Dishaw, P.Geo., of
SRK Consulting (Canada) Inc. under the supervision of Dr. Gilles
Arseneau, P. Geo.
The mineral resource incorporates the results of 708 drill
historical drill holes. Three dimensional mineralized domains were
constructed by Trevali, and reviewed by SRK Consulting (Canada)
Inc., outlining mineralization greater than 7% (Pb+Zn). Underground
chip sample data were used to guide the 3-D modeling and
variography but were excluded from the resource estimation.
Original assays were composited to 1-metre lengths within the
mineralized domains. Silver, gold, lead, zinc and copper values
were capped, according to cumulative frequency plots of composites
within each mineralized domain. Capping resulted in a metal loss of
1.1%, 0.7%, 0.6%, 0.3%, and 1.5% for silver, gold, lead, zinc, and
copper respectively.
Ordinary kriging was used to interpolate grades within each of
the mineralized domains in three successively larger passes. Each
pass used a maximum search radius of 25, 35 and 100 metres,
oriented parallel to each domain. Each block was interpolated with
at least three composites representing at least two drill holes. A
maximum of 12 composites were used for any given block. Block bulk
densities were fixed to 4.27 for the sulphide mineralization and
2.7 for the waste rock based on data provided by Trevali. Metal
values were estimated into blocks measuring 6x6x6 metres,
sub-blocked to a minimum of 2x2x2 metres. Previously mined areas
were removed, based on available surveys of the existing
underground development drifts and stopes.
Mineral resources are classified in the Measured category for
all blocks generally above the lowest mined levels, developed
within the mineralized domains. Within this volume, most blocks are
estimated by at least three composite samples from a minimum of two
drill holes from the first and second interpolation pass, which
searched out to 35 metres. Mineral resources are classified in the
Indicated category where most blocks are estimated by at least
three composite samples from a minimum of two drill holes from the
first and second interpolation pass which searched out to 35 metres
(exclusive of the volume classified as Measured). All remaining
blocks within the estimation domains are classified as
Inferred.
Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and M.
Dayle Rusk, P.Geo, Trevali's VP of Exploration, are qualified
persons as defined by NI 43-101, have 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, director and shareholder. Ms. Rusk is not
independent of the Company as she is an officer and
shareholder.
Other News
The Company reports that it has paid a finder's fee to an arm's
length third party in connection with the Company's acquisition, in
November 2012, of Maple Minerals Corporation ("Maple Minerals").
Maple Minerals held the Caribou Property in New Brunswick that is
now within Trevali Mining (New Brunswick) Ltd. The fee paid was
$615,000 (exclusive of HST) and was paid, as to $311,850, by way of
the issuance of 330,000 common shares (issued at an agreed value of
$0.945 per share) of Trevali, and the balance paid in cash. The
shares issued bear a resale legend that expires on April 19,
2013.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals development company with
operations in Canada and Peru - the Halfmile and Santander mines
respectively. In Canada, Trevali owns the Halfmile zinc-lead-silver
mine, the Caribou mine and mill, and Stratmat polymetallic deposit
all located in the Bathurst Mining Camp of northern New Brunswick.
The Caribou deposit is subject to a 10% NPI and the Halfmile and
Stratmat deposits to a 2% NSR respectively. The Company also has
the past-producing Ruttan copper-zinc mine in northern Manitoba.
Initial trial production from the Halfmile mine was successfully
undertaken in 2012 and underground development is ramping up to
achieve a planned production rate of approximately
3,000-tonnes-per-day to feed planned operations at the Company's
Caribou Mill Complex in 2013.
In Peru, the Company has the Santander zinc-lead-silver mine and
the former-producing Huampar silver mine, both located in the
Central Peruvian Polymetallic Belt. Mine commissioning is
anticipated to commence at the Santander operation in Q1-2013 with
subsequent ramp up to full 2,000-tonnes-per-day production.
Additionally through its wholly-owned subsidiary, Trevali Renewable
Energy Inc., Trevali plans to undertake a significant upgrade of
its wholly-owned Tingo run-of-river hydroelectric generating
facility to allow, in addition to supplying power to the Santander
mining operation, the potential sale of surplus power into the
Peruvian National Energy Grid.
The common shares of Trevali are listed on the TSX (symbol TV),
the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol
TV). Warrants to purchase common shares of Trevali are listed on
the TSX (symbol TV.WT). For further details on Trevali, readers are
referred to the Company's web site (www.trevali.com) and to
Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of TREVALI MINING
CORPORATION
Mark D. Cruise, President
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
accuracy of estimated mineral reserves and resources, anticipated
results of future exploration, and forecast future metal prices,
anticipated results of future electrical sales and expectations
that environmental, permitting, legal, title, taxation,
socio-economic, political, marketing or other issues will not
materially affect estimates of mineral reserves. 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.
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 (such as the Peruvian sol versus
the U.S. dollar); 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 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 reserves 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.
Trevali's production plans at Halfmile-Caribou-Stratmat and
Santander are 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 plans and Preliminary Economic Assessment (PEA)
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 TSX has not approved or disapproved of the contents of this
news release.
Contacts: Trevali Mining Corporation Steve Stakiw VP, Investor
Relations and Corporate Communications (604) 488-1661 / Direct:
(604) 638-5623 (604) 408-7499 (FAX)sstakiw@trevali.com
www.trevali.com
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