Trevali Mining Corporation
(“
Trevali” or the “
Company”)
(TSX:TV) (BVL:TV) (OTCQX:TREVF) (Frankfurt:4TI) reports preliminary
consolidated first quarter (“
Q1-2018”) 2018
production of 99 million payable pounds of zinc, 12 million payable
pounds of lead and 336,927 payable ounces of silver (Table 1).
Table 1: Preliminary Consolidated Q1-2018
Production
|
Q1-2018 |
Q1-2017 (1) |
Tonnes Mined |
790,215 |
370,953 |
Tonnes Milled |
743,935 |
433,129 |
Concentrate Produced (dry metric tonnes): |
|
|
Zinc |
107,906 |
36,576 |
Lead |
14,933 |
12,510 |
Payable Production: |
|
|
Zinc (lbs) |
98,738,944 |
31,946,229 |
Lead (lbs) |
12,296,555 |
9,983,664 |
Silver (ozs) |
336,927 |
345,661 |
(1) Q1-2017 production includes only Santander and Caribou.
“Trevali’s operations continue to perform well
with first quarter production in line with our annual guidance
range,” stated Dr. Mark Cruise, Trevali’s President and CEO. “As
previously stated, first quarter production was planned to be lower
than subsequent quarters, reflecting scheduled maintenance at our
Santander operations and winter conditions at Caribou. We will
continue to further optimize the operations through the remainder
of the year and beyond.”
Perkoa Mine, Burkina
FasoPreliminary Q1-2018 Perkoa production was 45.9 million
lbs of payable zinc with an average zinc recovery of 94% (Table 2).
Mine output and mill throughput for the quarter were 192,158 tonnes
and 179,940 tonnes of ore, respectively. The re-introduction of the
zinc regrind mill to the circuit has continued to maintain high
recoveries while mill throughput is maximized.
Any update to Perkoa production guidance will
occur post second quarter of 2018.
Table 2: Perkoa Preliminary Q1-2018
Production
|
Q1-2018 |
Q4-2017 |
Tonnes Mined |
192,158 |
203,635 |
Tonnes Milled |
179,940 |
180,022 |
Average Head Grades: |
|
|
Zinc (%) |
14.49% |
15.00% |
Average Recoveries (%): |
|
|
Zinc |
94% |
94% |
Concentrate Produced (dry metric tonnes): |
|
|
Zinc |
47,413 |
48,579 |
Payable Production: |
|
|
Zinc (lbs) |
45,874,974 |
47,666,248 |
Rosh Pinah Mine,
NamibiaPreliminary Q1-2018 Rosh Pinah production was 22.8
million lbs of payable zinc, 3.9 million lbs of payable lead and
50,794 ozs of payable silver, which is within the mine’s planned
metal budget for the first quarter (Table 3). Mine output and mill
throughput for the quarter was 172,334 tonnes and 177,837 tonnes,
respectively.
Mine performance for the quarter maintained a
steady feed of ore to the mill with key improvements made from
fourth quarter-2017 business initiatives. Production drilling,
raise bore drilling, and mine planning optimizations continue to
improve mine performance. Commissioning of the new regrind circuit
also continued through the first quarter with realized improvements
to throughput and recovery on a quarter-to-quarter basis.
Table 3: Rosh Pinah Preliminary Q1-2018
Production
|
Q1-2018 |
Q4-2017 |
Tonnes Mined |
172,334 |
177,820 |
Tonnes Milled |
177,837 |
171,020 |
Average Head Grades: |
|
|
Zinc (%) |
7.92% |
8.40% |
Lead (%) |
1.40% |
1.40% |
Silver (ozs/ton) |
0.58 |
0.50% |
Average Recoveries (%): |
|
|
Zinc |
88% |
80% |
Lead |
77% |
60% |
Silver |
51% |
52% |
Concentrate Produced (dry metric tonnes): |
|
|
Zinc |
25,175 |
23,399 |
Lead |
4,268 |
3,086 |
Payable Production: |
|
|
Zinc (lbs) |
22,831,575 |
21,336,745 |
Lead (lbs) |
3,925,012 |
3,081,212 |
Silver (ozs) |
50,794 |
49,316 |
Caribou Mine, CanadaPreliminary
Q1-2018 Caribou production was 19.0 million lbs of payable zinc,
7.2 million lbs of payable lead and 216,087 ozs of payable silver
(Table 4). Mine production and mill throughput set new first
quarter highs of 238,650 tonnes and 235,531 tonnes,
respectively.
Overall seasonality effects were in line with
prior years and we anticipate performance to improve in subsequent
quarters.
Table 4: Caribou Preliminary Q1-2018
Production
|
Q1-2018 |
Q1-2017 |
Tonnes Mined |
238,650 |
222,264 |
Tonnes Milled |
235,531 |
232,880 |
Average Head Grades: |
|
|
Zinc (%) |
5.94% |
6.15% |
Lead (%) |
2.43% |
2.68% |
Silver (ozs/ton) |
2.14 |
2.29 |
Average Recoveries (%): |
|
|
Zinc |
75% |
75% |
Lead |
62% |
64% |
Silver |
41% |
38% |
Concentrate Produced (dry metric tonnes): |
|
|
Zinc |
22,769 |
22,539 |
Lead |
9,556 |
10,390 |
Payable Production: |
|
|
Zinc (lbs) |
19,079,123 |
19,619,395 |
Lead (lbs) |
7,200,955 |
8,107,773 |
Silver (ozs) |
216,087 |
217,085 |
Santander Mine, PeruPreliminary
Q1-2018 production was 11.0 million lbs of payable zinc, 1.2
million lbs of payable lead and 70,046 ozs of payable silver (Table
5). Recoveries averaged 89% for zinc, 79% for lead and 58% for
silver.
As previously disclosed, mill throughput during
the quarter was reduced to approximately 1,675 tonnes-per-day while
maintenance was performed on one of the ball mills; throughput for
the quarter was 150,627 tonnes. Mine production was maintained at
budgeted rates of approximately 2,000 tonnes-per-day, for 187,073
tonnes of ore for the quarter. All mill repairs were
completed on time and budget, and the mill is currently operating
at approximately 2,300 tonnes-per-day.
It is anticipated that milling operations will
make-up metal production shortfalls during the balance of 2018.
The newly installed mine pumping system was
commissioned in the quarter and this is expected to improve the
mine’s ability to manage water, whilst reducing power
consumption.
Table 5: Santander Preliminary Q1-2018
Production
|
Q1-2018 |
Q1-2017 |
Tonnes Mined |
187,073 |
148,689 |
Tonnes Milled |
150,627 |
200,249 |
Average Head Grades: |
|
|
Zinc (%) |
4.46% |
3.80% |
Lead (%) |
0.48% |
0.58% |
Silver (ozs/ton) |
0.77 |
0.96 |
Average Recoveries (%): |
|
|
Zinc |
89% |
88% |
Lead |
79% |
79% |
Silver |
58% |
63% |
Concentrate Produced (dry metric tonnes): |
|
|
Zinc |
12,549 |
14,037 |
Lead |
1,109 |
2,120 |
Payable Production: |
|
|
Zinc (lbs) |
10,953,272 |
12,326,834 |
Lead (lbs) |
1,170,588 |
1,875,891 |
Silver (ozs) |
70,046 |
128,576 |
Q1-2018 PRELIMINARY OPERATING COSTS AND ANNUAL COST
GUIDANCE (1, 2, 3)
Table 6: Q1-2018 Preliminary Operating
Costs and Annual Cost Guidance
Mine |
Annual Operating Cost Guidance (per tonne) |
Q1-2018 Preliminary Operating
Costs |
Perkoa (100%) |
$103-$113 |
$112 |
Rosh Pinah (100%) |
$49-$54 |
$56 |
Caribou |
$55-$61 |
$64 |
Santander |
$38-$42 |
$63 |
Total |
$60-$66 |
$73 |
(1) Constitutes forward-looking information; see “Cautionary
Note Regarding Forward-Looking Statements”.(2) Trevali’s interest
is 90% of Perkoa and 80% of Rosh Pinah.(3) Costs are preliminary
and subject to final reconciliation.
Perkoa first quarter preliminary operating costs
are within the published guidance range.
Rosh Pinah first quarter preliminary costs are
modestly above guidance due to one-time costs in securing
longer-term labour agreement, which was settled in Q1-2018, in
addition to ongoing mine training initiatives. We expect Rosh Pinah
to trend towards annual guidance costs through the remainder of the
year.
Caribou first quarter preliminary costs were
higher due to winter seasonality effects, as is consistent with
prior years. This cost was approximately $4-$5/tonne. Similar to
prior years, we expect costs to trend lower for the remainder of
the year and costs are expected to be within our annual guidance
range towards the latter part of 2018.
Santander first quarter preliminary costs were
higher due primarily to the previously announced decrease in mill
throughput, from approximately 2,400 to 1,675 tonnes-per-day, to
accommodate mill maintenance. Mine production continued at full
nameplate through the quarter resulting in an ore-stock pile of
65,000 tonnes. With the mill now back to full operational levels of
approximately 2,300 to 2,500 tonnes-per-day, it is anticipated that
lost first quarter metal production will be recouped during the
remainder of 2018. Additionally, the new pumping system is now
fully operational and performing better than originally modelled,
resulting in further cost savings.
2018 CONSOLIDATED PRODUCTION GUIDANCE
Production guidance for the year remains unchanged and is
estimated between 400 and 427 million lbs of payable zinc, 43.8 and
46.0 million lbs of payable lead and 1.40 and 1.47 million ozs of
payable silver.
Table 7: 2018 Consolidated Production
Guidance (1&2)
Mine |
2018 Zinc Production(million lbs
payable) |
2018 Lead Production(million lbs
payable) |
2018 Silver Production(000 ozs
payable) |
Perkoa (100%) |
155-165 |
N/A |
N/A |
Rosh Pinah (100%) |
105-115 |
5.7-6.0 |
123-129 |
Caribou |
86-90 |
27.1-28.4 |
627-658 |
Santander |
54-57 |
11.0-11.6 |
654-687 |
Total |
400-427 |
43.8-46.0 |
1,400-1,474 |
(1) Constitutes forward-looking information; see
“Cautionary Note Regarding Forward-Looking Statements”. (2)
Trevali’s interest is 90% of Perkoa and 80% of Rosh Pinah.
Production guidance has been provided on an
annual basis and will vary by quarter reflecting detailed mine
plans and schedules at the various operations.
Perkoa 2018 Guidance:The mine
continues the positive performance from the fourth quarter of last
year with solid first quarter performance. The site is well placed
to meet or potentially exceed annual guidance. Any update to
guidance will occur post second quarter of 2018.
Rosh Pinah 2018 Guidance:Key
strategic improvements started in the fourth quarter of 2017
produced significant improvements in the overall site performance.
These improvements have positioned the site well for the year with
increasing metal output planned for the second half of 2018, and
going forward, as higher-grade stopes are sequenced.
Caribou 2018 Guidance:The first
quarter is always the most challenging due to the winter weather
conditions. Despite this, the mine was able to improve mining and
milling throughput compared to the corresponding quarter of 2017.
Production is scheduled to increase in the second quarter and for
the balance of 2018. The operation remains on track to achieve 2018
guidance.
Santander 2018 Guidance:The
mill repair is fully complete and the site will continue to process
fresh ore from the mine for the remainder of the year at higher
than designed throughput rates. During the first quarter the mine
was able to build a stockpile of approximately 65,000 tonnes of
run-of-mine ore. The newly commissioned pumping infrastructure is
expected to also allow water levels to be managed more efficiently
whilst consuming significantly less power.
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.
The shares of Trevali are listed on the TSX
(symbol TV), the OTCQX (symbol TREVF), the Lima Stock Exchange
(symbol TV), and the Frankfurt Exchange (symbol 4TI). For further
details on Trevali, readers are referred to the Company’s website
(www.trevali.com) and to 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 information” within the meaning of the Canadian
securities legislation and “forward-looking statements” within the
meaning of Section 27A of the United States Securities Act of 1933,
as amended, Section 21E of the United States Exchange Act of 1934,
as amended, the United States Private Securities Litigation Reform
Act of 1995, or in releases made by the United States Securities
and Exchange Commission, all as may be amended from time.
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
timing and amount of estimated future production, the estimation of
Mineral Resources and Mineral Reserves, costs and timing of
development, operating efficiencies, including the ability to
manage water, whilst reducing power consumption, costs and
expenditures, expectations regarding milling operations and metal
production shortfalls, metal output and throughput rates, cost
guidance and anticipated annual results, anticipated results of
future exploration, and forecast future metal prices.
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. If any assumptions are untrue, it could cause
actual results, performance or achievements to be materially
different from future results, performance or achievements
expressed or implied by such statements. Assumptions have been made
regarding, among other things, present and future business
strategies and the environment in which the Company will operate in
the future, including commodity prices, anticipated costs and
ability to achieve goals.
Forward-looking statements are subject to known
and unknown risks, uncertainties and other important factors that
may cause the Company’s actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to: risks related to joint venture operations;
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, as
well as those factors discussed in the section entitled “Risk
Factors” in the Company’s most recently filed annual information
form. 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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