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 DepositThe 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(‘000’s) |
Cu % |
CuM lb |
Pb% |
PbM lb |
Zn% |
ZnM lb |
Au g/t |
AuK oz |
Agg/t |
AgM 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
AllianceThe 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 AssuranceEurGeol 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.
ABOUT TREVALI MINING
CORPORATIONTrevali 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 (www.trevali.com) and to its Canadian
regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors ofTREVALI MINING
CORPORATION“Mark D. Cruise” (signed)Mark D. Cruise,
President
Contact Information:Steve Stakiw, Vice
President - Investor Relations and Corporate CommunicationsEmail:
sstakiw@trevali.comPhone: (604) 488-1661 / Direct: (604)
638-5623
Cautionary Note Regarding
Forward-Looking StatementsThis 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.
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