Trevali Mining Corporation (“Trevali” or the
“Company”) (TSX:TV) (BVL:TV) (OTCQX:TREVF) (Frankfurt:4TI) reports
its mineral reserves and mineral resources statements as of
December 31, 2017 and 2018 exploration plans.
Consolidated mineral reserves and mineral
resources are tabulated below on a contained metal basis (Tables 1
and 2). Detailed breakdowns for each of the active mines
(Santander, Caribou, Perkoa and Rosh Pinah) are provided by
category on a grade-tonnage-contained metal basis in Tables 3
through 10. Mineral resources in this document are reported
inclusive of mineral reserves.
HIGHLIGHTS
- Total proven and probable mineral reserves increased to 3.17
billion lbs (1.44 million tonnes) of contained zinc. Contained lead
increased to 542 million lbs (0.25 million tonnes lead) and silver
increased to 18.7 million ounces. Increases largely reflect the
Caribou Mine’s maiden mineral reserve statement.
- Total measured and indicated mineral resources increased to
6.59 billion lbs (2.99 million tonnes) of contained zinc and
inferred mineral resources comprise an additional 3.74 billion lbs
(1.70 million tonnes) of contained zinc. Total measured and
indicated mineral resources also included 1.53 billion lbs (0.69
million tonnes) of contained lead and 48.04 million ozs of
contained silver, with total inferred mineral resources comprising
an additional 0.81 billion lbs (0.37 million tonnes) of contained
lead and 33.48 million contained ozs silver.
- Inaugural exploration at Perkoa successfully replaced 2017
mined tonnages and increased mineral reserves to approximately 5
years at current extraction rates.
- Geologically, all deposits remain open for expansion and the
Company has commenced a sustained long-range exploration program
anchored in 2018 by a minimum committed 60,000-metre drill
campaign, the largest since the Company’s inception.
Table 1. Total Mineral Reserves (Contained
Metal) as of December 31, 2017 (1, 2)
|
|
2017 |
2017 |
2017 |
2016 |
2016 |
2016 |
Change |
Change |
Change |
|
|
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Project |
Category |
M
lbs |
M
lbs |
K
oz |
M
lbs |
M
lbs |
K
oz |
M lbs |
M lbs |
K oz |
Santander
Magistral |
Proven &
Probable |
186 |
32 |
1,911 |
253 |
39 |
2,769 |
(66) |
(7) |
(858) |
Caribou Mine |
Proven & Probable |
729 |
272 |
11,945 |
- |
- |
- |
729 |
272 |
11,945 |
Perkoa Mine |
Proven & Probable |
958 |
- |
- |
830 |
- |
- |
129 |
- |
- |
Rosh Pinah Mine |
Proven & Probable |
1,299 |
237 |
4,876 |
985 |
162 |
3,389 |
314 |
75 |
1,487 |
Total |
Proven & Probable |
3,173 |
542 |
18,732 |
2,067 |
201 |
6,158 |
1,106 |
341 |
12,574 |
(1) For additional detail respecting the mineral
reserve contained zinc, lead and silver grades, see "Detailed
Mineral Reserve and Mineral Resource Disclosure" and "Additional
Information" within this news release.(2) The M lbs (million
pounds) and K oz (thousand ounces) contained metal is the total
combined proven and probable mineral reserve estimates of all the
mines on a 100% basis. Trevali’s proportionate ownership interest
pursuant to the applicable joint venture/option agreements is:
Santander (100%); Caribou (100%); Perkoa (90%); and Rosh Pinah
(80%).
Table 2. Total Mineral Resources (Contained
Metal) as of December 31, 2017(1, 2, 3)
|
|
2017 |
2017 |
2017 |
2016 |
2016 |
2016 |
Change |
Change |
Change |
|
|
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Project |
Category |
M
lbs |
M
lbs |
K
oz |
M
lbs |
M
lbs |
K
oz |
M lbs |
M lbs |
K oz |
Santander
Magistral |
Measured &
Indicated |
314 |
54 |
3,297 |
394 |
60 |
4,342 |
(80) |
(6) |
(1,045) |
|
Inferred |
345 |
35 |
3,135 |
195 |
15 |
1,752 |
150 |
19 |
1,383 |
Santander Pipe |
Inferred |
911 |
40 |
4,871 |
911 |
40 |
4,871 |
0 |
0 |
0 |
Puajanca Prospect |
Indicated |
12 |
9 |
313 |
12 |
9 |
313 |
0 |
0 |
0 |
|
Inferred |
9 |
6 |
204 |
9 |
6 |
204 |
0 |
0 |
0 |
Caribou Mine (4) |
Measured & Indicated |
1,198 |
448 |
19,449 |
1,115 |
467 |
19,625 |
83 |
(19) |
(176) |
|
Inferred |
856 |
327 |
14,597 |
561 |
227 |
9,215 |
295 |
100 |
5,382 |
Halfmile Mine |
Measured & Indicated |
1,199 |
407 |
8,980 |
1,122 |
356 |
6,197 |
77 |
51 |
2,783 |
|
Inferred |
806 |
216 |
4,720 |
896 |
245 |
4,008 |
(90) |
(29) |
712 |
Stratmat |
Indicated |
550 |
214 |
7,300 |
550 |
214 |
7,300 |
0 |
0 |
0 |
|
Inferred |
252 |
110 |
3,000 |
252 |
110 |
3,000 |
0 |
0 |
0 |
Perkoa Mine |
Measured & Indicated |
1,468 |
- |
- |
1,370 |
- |
- |
97 |
- |
- |
|
Inferred |
134 |
- |
- |
465 |
- |
- |
(331) |
- |
- |
Rosh Pinah Mine |
Measured & Indicated |
1,844 |
395 |
8,702 |
1,721 |
330 |
7,734 |
123 |
65 |
968 |
|
Inferred |
430 |
75 |
2,951 |
386 |
68 |
2,829 |
44 |
7 |
122 |
Total |
Measured &
Indicated |
6,585 |
1,528 |
48,041 |
6,285 |
1,437 |
45,511 |
301 |
90 |
2,530 |
|
Inferred |
3,743 |
808 |
33,478 |
3,676 |
712 |
25,879 |
68 |
97 |
7,599 |
(1) For additional detail respecting the mineral
resources contained zinc, lead and silver grades, see "Detailed
Mineral Reserve and Mineral Resource Disclosure" and "Additional
Information." within this news release.(2) All mineral resources
referred to in this news release are inclusive of stated mineral
reserves. Mineral resources that are not mineral reserves do not
have demonstrated economic viability.(3) The M lbs (million pounds)
and K oz (thousand ounces) contained metals is the total measured +
indicated and inferred mineral resource estimation of all the mines
on a 100% basis. Trevali’s proportionate ownership interest
pursuant to the applicable joint venture/option agreements is:
Santander (100%); Caribou (100%); Perkoa (90%); and Rosh Pinah
(80%).(4) A mineral resource estimate was not completed for the
Caribou Mine in 2016; instead the comparison change references the
previous mineral resource estimate for the Caribou Mine with an
effective date of May 14, 2014.
Detailed Mineral Reserve and Mineral
Resource Disclosure:
Santander MineThe annual mineral reserve and
mineral resource estimate at the Company’s Santander mine utilized
a more conservative approach compared to prior years, increasing
the net smelter return cut-off-value from US$40 to $50 per tonne
for reserves as a result of the increased 2017 water ingress.
Table 3. Santander (Peru) Mineral Reserves as at December 31,
2017(1, 2)
|
|
|
Grade |
|
|
Metal |
|
|
Quantity |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Category |
Mt |
% |
% |
g/t |
M lbs |
M
lbs |
K
oz |
Santander Magistral (3) |
|
|
|
|
|
|
|
Proven |
0.46 |
3.83 |
0.76 |
26.44 |
38.8 |
7.7 |
391 |
Probable |
1.46 |
4.55 |
0.74 |
32.04 |
146.5 |
23.8 |
1,504 |
Proven & Probable |
1.93 |
4.38 |
0.75 |
30.79 |
186.4 |
31.9 |
1,911 |
(1) All mineral reserves have been
estimated in accordance with the Canadian Institute of Mining,
Metallurgy and Petroleum (“CIM”) — Definition Standards adopted by
CIM Council on May 10, 2014 (the “CIM Definition Standards”).
Numbers may not add due to rounding.(2) The technical report
entitled “Mineral Reserve Estimation Technical Report for the
Santander Zinc Mine, Province de Huaral, Perú” dated March 31,
2017, is the current technical report for the Santander
property.(3) The Santander Magistral Underground Mine mineral
reserve estimate is reported based on optimized stopes designed on
an incremental net smelter return cut-off-value of US$50/tonne with
metal prices of: US$1.16/lb zinc, US$0.91/lb lead, US$18.50/oz
silver. The Santander Magistral Underground Mine mineral reserve
estimate has been prepared by technical consultants to the Company
with an effective date of December 31, 2017, under the supervision
of and approved by Professional Geologist Aline Cote (OGQ), a
Qualified Person as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”). Ms.
Cote is an employee of a related party to the Company and
accordingly, is not independent.
Table 4. Santander (Peru) Mineral Resources as at December 31,
2017(1, 2)
|
|
|
Grade |
|
|
Metal |
|
|
Quantity |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Category |
Mt |
% |
% |
g/t |
M lbs |
M
lbs |
K
oz |
Santander Magistral (3) |
|
|
|
|
|
|
|
Measured |
1.06 |
4.16 |
0.77 |
27.26 |
97.0 |
18.0 |
927 |
Indicated |
1.93 |
5.10 |
0.85 |
38.19 |
217.0 |
36.2 |
2,370 |
Measured &
Indicated |
2.99 |
4.77 |
0.82 |
34.32 |
314.2 |
54.0 |
3,297 |
Inferred |
3.08 |
5.08 |
0.51 |
31.67 |
344.8 |
34.6 |
3,135 |
Santander
Pipe (4) |
|
|
|
|
|
|
|
Inferred |
10.10 |
4.09 |
0.18 |
15.00 |
910.7 |
40.1 |
4,871 |
Puajanca
Prospect (5) |
|
|
|
|
|
|
|
Indicated |
0.25 |
2.23 |
1.65 |
39.00 |
12.3 |
9.1 |
313 |
Inferred |
0.21 |
1.99 |
1.31 |
30.00 |
9.3 |
6.1 |
204 |
(1) All mineral reserves have been estimated in accordance with
the CIM Definition Standards. Numbers may not add due to
rounding.(2) The technical report entitled “Mineral Reserve
Estimation Technical Report for the Santander Zinc Mine, Province
de Huaral, Perú” dated March 31, 2017, is the current technical
report for the Santander property.(3) The Santander Magistral
Underground Mine mineral resource estimate is reported based on net
smelter return cut-off-value of US$40/tonne with metal prices of:
US$1.16/lb zinc, US$0.91/lb lead, US$18.50/oz silver. The Santander
Magistral Underground Mine mineral resource estimate has been
prepared by the mine geology department and non-independent
resource geology consultants to the Company with an effective date
of December 31, 2017, under the supervision of and approved by
Professional Geologist Aline Cote (OGQ), a Qualified Person as
defined in NI 43-101. Ms. Cote is an employee of a related party to
the Company and accordingly, is not independent.(4) The Santander
Pipe Underground Deposit mineral resource estimate is reported
based on Gross Metal Value cut-off-value of US$40/tonne with metal
prices of: US$1.13/lb zinc, US$1.00/lb lead, US$18.00/oz silver.
The Santander Pipe Underground Deposit mineral resource estimate
was prepared and approved by Gilles Arseneau (P.Geo.), a consultant
with Arseneau Consulting Services Inc, who is an independent
Qualified Person as defined in NI 43-101, with an effective date of
November 6, 2016.(5) The Santander Puajanca Underground Deposit
mineral resource estimate is reported based on Gross Metal Value
cut-off-value of US$40/tonne with metal prices of: US$1.15/lb zinc,
US$0.95/lb lead, US$16.50/oz silver. The Santander Puajanca
Underground Deposit mineral resource estimate was prepared and
approved by Gilles Arseneau (P.Geo), a consultant with Arseneau
Consulting Services Inc., who is an independent Qualified Person as
defined in NI 43-101, with an effective date of November 6,
2016.
Bathurst Mining Camp Operations –
Caribou MineThe Company’s inaugural mineral reserve
statement at the Caribou mine documents material increases across
all mineral resource and mineral reserve categories. The 2017
program more than replaced mined inventory from 2015 onwards,
particularly in the Measured, Indicated and Inferred
categories.
Table 5. Caribou (New Brunswick) Mineral Reserves as at December
31, 2017(1)
|
|
|
Grade |
|
|
|
Metal |
|
|
Quantity |
Zn |
Pb |
Cu |
Ag |
Zn |
Pb |
Ag |
Category |
Mt |
% |
% |
% |
g/t |
M lbs |
M
lbs |
K
oz |
Caribou Mine |
|
|
|
|
|
|
|
|
Proven |
2.88 |
6.24 |
2.32 |
0.37 |
70.50 |
395.6 |
147.0 |
6,516 |
Probable |
2.34 |
6.46 |
2.43 |
0.39 |
72.10 |
333.6 |
125.6 |
5,429 |
Proven & Probable |
5.22 |
6.34 |
2.37 |
0.38 |
71.20 |
729.3 |
272.5 |
11,945 |
(1) All mineral reserves have been estimated in accordance with
the CIM Definition Standards. Numbers may not add due to
rounding.(2) The Caribou Underground Mine mineral reserve estimate
is reported based on optimized stopes designed on an incremental
net smelter return cut-off-value of US$75/tonne with metal prices
of: US$1.21/lb zinc, US$1.00/lb lead, US$18.50/oz silver, FX:
US$/CAD$0.80. The Caribou Underground Mine mineral reserve has been
prepared by the mine engineering department of the Company with an
effective date of December 31, 2017. The Caribou Underground Mine
mineral reserve has been reviewed and approved by Professional
Engineer Torben Jensen (P.Eng.), a consultant with Roscoe Postle
Associates Inc., who is an independent Qualified Person as defined
in NI 43-101 and will be detailed in the technical report entitled
“Technical Report on the Caribou Mine, New Brunswick Canada” to be
dated April 12, 2018, which will be available under the Company’s
profile on SEDAR at www.sedar.com within 45 days following the date
of this news release.
Table 6. Bathurst Mining Camp (New Brunswick) Mineral Resources
as at December 31, 2017(1)
|
|
|
|
Grade |
|
|
|
|
Metal |
|
|
|
Quantity |
Zn |
Pb |
Cu |
Ag |
Au |
Zn |
Pb |
Cu |
Ag |
Au |
Category |
Mt |
% |
% |
% |
g/t |
g/t |
M lbs |
M
lbs |
M
lbs |
K
oz |
K
oz |
Caribou Mine (2) |
|
|
|
|
|
|
|
|
|
|
|
Measured |
5.87 |
6.11 |
2.27 |
0.37 |
67.00 |
- |
790.7 |
293.8 |
47.9 |
12,634 |
- |
Indicated |
3.03 |
6.11 |
2.32 |
0.39 |
70.00 |
- |
408.1 |
155.0 |
26.1 |
6,815 |
- |
Measured &
Indicated |
8.89 |
6.11 |
2.28 |
0.38 |
68.00 |
- |
1,197.5 |
446.9 |
74.5 |
19,449 |
- |
Inferred |
7.00 |
5.70 |
2.10 |
0.30 |
65.00 |
- |
879.6 |
324.1 |
46.3 |
14,597 |
- |
Halfmile
Mine (3) |
|
|
|
|
|
|
|
|
|
|
|
Measured |
0.40 |
5.92 |
1.99 |
0.46 |
40 |
0.60 |
54.0 |
18.0 |
4.0 |
520 |
10 |
Indicated |
7.40 |
7.00 |
2.37 |
0.16 |
35 |
0.29 |
1,146 |
389.0 |
26.0 |
8,450 |
70 |
Measured &
Indicated |
7.80 |
6.94 |
2.35 |
0.18 |
36 |
0.30 |
1,199 |
407.0 |
31.0 |
8,980 |
80 |
Inferred |
6.50 |
5.62 |
1.51 |
0.15 |
23 |
0.10 |
806.0 |
216.0 |
21.0 |
4,720 |
20 |
Stratmat (4) |
|
|
|
|
|
|
|
|
|
|
|
Indicated |
4.70 |
5.30 |
2.10 |
0.40 |
49 |
0.60 |
550.0 |
214.0 |
43.0 |
7,300 |
90 |
Inferred |
2.40 |
4.80 |
2.10 |
0.70 |
39 |
0.40 |
252.0 |
110.0 |
37.0 |
3,000 |
30 |
(1) All mineral resources have been estimated in accordance with
the CIM Definition Standards. Mineral resources are inclusive
of mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Numbers may
not add up due to rounding.(2) The Caribou Underground Mine mineral
resource estimate is reported based on 5% zinc equivalent cut-off
grade with metal prices of: US$1.21/lb zinc, US$1.00/lb lead,
US$18.50/oz silver, FX: US$/CAD$0.80. The Caribou Underground Mine
mineral resource estimate has been prepared by the mine geology
department and non-independent technical consultants to the Company
with an effective date of December 31, 2017. The Caribou
Underground Mine mineral resource estimate has been reviewed and
approved by Professional Geologist Ian Blakley (P.Geo), a
consultant with Roscoe Postle Associates Inc., who is an
independent Qualified Person as defined in NI 43-101, and will be
detailed in the technical report entitled “Technical Report on the
Caribou Mine, New Brunswick Canada” to be dated April 12, 2018,
which will be available under the Company’s profile on SEDAR at
www.sedar.com within 45 days following the date of this news
release.(3) The Halfmile Underground Project mineral resource
estimate is reported based on 5% zinc equivalent cut-off grade with
metal prices of: US$1.05/lb zinc, US$0.95/lb lead, US$20.00/oz
silver, FX: US$/CAD$0.80. The Halfmile Underground Project mineral
resource estimate was prepared and approved by Professional
Geologist Gilles Arseneau (P.Geo.), a consultant with SRK
Consulting (Canada) Inc., who is an independent Qualified Person as
defined in NI 43-101, with an effective date of October 26,
2017.(4) The Stratmat Underground Project mineral resource estimate
is reported based on 5% zinc equivalent cut-off grade with metal
prices of: US$1.00/lb zinc, US$1.00/lb lead, US$21.15/oz silver,
FX: US$/CAD$0.85. The Stratmat Underground Project mineral resource
estimate was prepared and approved by Professional Geologist Gilles
Arseneau (P.Geo.), a consultant with SRK Consulting (Canada) Inc.,
who is an independent Qualified Person as defined in NI 43-101,
with an effective date of October 26, 2017.
Perkoa MineResource definition and exploration
drilling successfully replaced 2017 mined inventory and halted the
downward mineral reserve depletion trend. Significant gains were
realized to mineral reserves and to measured and indicated mineral
resource categories following the inferred mineral resource
conversion program.
Table 7. Perkoa (Burkina Faso) Mineral Reserves as at December
31, 2017(1, 2)
|
|
Grade |
Metal |
|
Quantity |
Zn |
Zn |
Category |
Mt |
% |
M lbs |
Perkoa Mine |
|
|
|
Proven |
2.29 |
13.93 |
702.6 |
Probable |
1.04 |
11.14 |
255.7 |
Proven and Probable |
3.33 |
13.06 |
958.3 |
(1) All mineral reserves have been estimated in accordance with
the CIM Definition Standards. Numbers may not add due to rounding.
The mineral reserve is shown at 100% ownership; Trevali holds a 90%
joint venture interest in the Perkoa mine.(2) The Perkoa
Underground Mine mineral reserve estimate is reported based on
planned stopes with an net smelter return cut-off-value of
US$100/tonne with incremental stopes greater than US$80/tonne
included based on individual financial analysis, metal prices of:
US$1.20/lb zinc, FX: €/US$1.08. The Perkoa Underground Mine mineral
reserve has been prepared by the mine engineering department of the
Company with an effective date of December 31, 2017 and has been
reviewed and approved by Professional Engineer Torben Jensen
(P.Eng.), a consultant with Roscoe Postle Associates Inc., who is
an independent Qualified Person as defined in NI 43-101 and will be
detailed in the technical report entitled “Technical Report on the
Perkoa Mine, Burkina Faso” to be dated April 12, 2018, which will
be available under the Company’s profile on SEDAR at www.sedar.com
within 45 days following the date of this news release.
Table 8. Perkoa (Burkina Faso) Mineral Resources as at December
31, 2017(1, 2)
|
|
Grade |
Metal |
|
Quantity |
Zn |
Zn |
|
Mt |
% |
M lbs |
Perkoa Mine |
|
|
|
Measured |
2.63 |
15.65 |
909.0 |
Indicated |
2.22 |
11.44 |
558.7 |
Measured &
Indicated |
4.85 |
13.73 |
1,467.6 |
Inferred |
0.68 |
8.9 |
134.3 |
(1) All mineral resources have been estimated in accordance with
the CIM Definition Standards. Mineral resources are inclusive
of mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Numbers may
not add up due to rounding. The mineral resource is shown at 100%
ownership, Trevali holds an 90% joint venture interest in the
Perkoa mine.(2) The Perkoa Underground Mine mineral resource
estimate is reported based on 5% zinc cut-off grade with metal
prices of: US$1.20/lb zinc, FX: €/US$1.08. The Perkoa Underground
Mine mineral resource estimate has been prepared by the mine
geology department and non-independent technical consultants to the
Company with an effective date of December 31, 2017 and has been
reviewed and approved by Consulting Professional Geologist Ian
Blakley (P.Geo.), a consultant with Roscoe Postle Associates Inc.,
who is an independent Qualified Person as defined in NI 43-101 and
will be detailed in the technical report entitled “Technical Report
on the Perkoa Mine, Burkina Faso” to be dated April 12, 2018, which
will be available under the Company’s profile on SEDAR at
www.sedar.com within 45 days following the date of this news
release.
Rosh Pinah MineExploration and mineral resource
conversion continued the deposits roughly 50-year track record of
replacing mined inventory. The 2017 conversion drilling program
increased mineral reserves by approximately 2.6 million tonnes, or
an additional 3 years of mine life at current operating rates.
Measured, indicated and inferred mineral resource categories also
increased modestly.
Table 9. Rosh Pinah (Namibia) Mineral Reserves as at December
31, 2017(1, 2)
|
|
|
Grade |
|
|
Metal |
|
|
Quantity |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Category |
Mt |
% |
% |
g/t |
M lbs |
M
lbs |
K
oz |
Rosh Pinah Mine |
|
|
|
|
|
|
|
Proven |
2.66 |
9.07 |
1.32 |
18.20 |
531.5 |
77.4 |
1,553 |
Probable |
5.08 |
6.84 |
1.43 |
20.30 |
767.2 |
160.1 |
3,323 |
Proven & Probable |
7.74 |
7.61 |
1.39 |
19.60 |
1,298.7 |
237.4 |
4,876 |
(1) All mineral reserves have been estimated in accordance with
the CIM Definition Standards. Numbers may not add due to rounding.
The mineral reserve is shown at 100% ownership, Trevali holds an
80% joint venture interest in the Rosh Pinah mine.(2) The Rosh
Pinah Underground Mine mineral reserve estimate is reported based
on planned stopes with an net smelter return cut-off-value of
US$66/tonne and incremental stopes greater than US$34/tonne, metal
prices of: US$1.16/lb zinc, US$1.00/lb lead, US$18.18/oz silver,
FX: NAD/US$ 13.30. The Rosh Pinah Underground Mine mineral reserve
has been prepared by the mine engineering department of the Company
with an effective date of December 31, 2017 and has been reviewed
and approved by Professional Engineer Torben Jensen (P.Eng.), a
consultant with Roscoe Postle Associates Inc., who is an
independent Qualified Person as defined in NI 43-101 and will be
detailed in the technical report entitled “Technical Report on the
Rosh Pinah Mine, Namibia” to be dated April 10, 2018, which will be
available under the Company’s profile on SEDAR at www.sedar.com
within 45 days following the date of this news release.
Table 10. Rosh Pinah (Namibia) Mineral Resource as at December
31, 2017
|
|
|
Grade |
|
|
Metal |
|
|
Quantity |
Zn |
Pb |
Ag |
Zn |
Pb |
Ag |
Category |
Mt |
% |
% |
g/t |
M lbs |
M
lbs |
K
oz |
Rosh Pinah Mine (1) |
|
|
|
|
|
|
|
Measured |
4.37 |
8.49 |
1.85 |
26.60 |
817.3 |
177.9 |
3,738 |
Indicated |
6.40 |
7.28 |
1.54 |
24.10 |
1,026.7 |
217.2 |
4,964 |
Measured &
Indicated |
10.76 |
7.78 |
1.67 |
25.20 |
1,843.9 |
395.1 |
8,702 |
Inferred |
3.00 |
6.50 |
1.10 |
30.60 |
429.9 |
75.0 |
2,951 |
(1) All mineral resources have been estimated in accordance with
the CIM Definition Standards. Mineral resources are inclusive of
mineral reserves. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Numbers may not add up
due to rounding. The mineral resource is shown at 100% ownership,
Trevali holds an 80% joint venture interest in the Rosh Pinah
mine.(2) The Rosh Pinah Underground Mine mineral resource estimate
is reported based on 5% zinc equivalent cut-off grade with metal
prices of: US$1.16/lb zinc, US$1.00/lb lead, US$18.18/oz silver,
FX: NAD/US$ 13.30. The Rosh Pinah Underground Mine mineral resource
estimate has been prepared by the mine geology department and
non-independent technical consultants to the Company with an
effective date of December 31, 2017 and has been reviewed and
approved by Professional Geologist Ian Blakley (P.Geo.), a
consultant with Roscoe Postle Associates Inc., who is an
independent Qualified Person as defined in NI 43-101 and will be
detailed in the technical report entitled “Technical Report on the
Rosh Pinah Mine, Namibia” to be dated April 10, 2018, which will be
available under the Company’s profile on SEDAR at www.sedar.com
within 45 days following the date of this news release.
Exploration 2018 – Discovery to
Delivery
In 2017, the Company commenced an expanded and
accelerated growth initiative at its four operating mines. The 2018
program forms part of a medium to long-range exploration strategy
initially focused on brownfield and near-mine exploration targets.
The primary aim is to expand and discover new mineral resources
adjacent to existing mine infrastructure, to replace mined
inventory, grow sustainable production, extend expected mine life
and ultimately, contingent on success, provide production growth
optionality to the operations.
The committed 2018 exploration budget has been
increased from US$10 million to US$13 million, with additional
success funding contingent on results, and programs will focus
on:
- Value Add: Approximately 60,000 metres of
diamond drilling from surface and underground targeting in-to-near
mine resource growth. Initial committed meterage breakdown as
follows - 15,000 metres at Santander, 16,000 metres at Bathurst
Mining Camp, 17,000 metres at Perkoa and 12,000 metres at Rosh
Pinah.
- Value Recognition and Creation: Progressing
the organic project pipeline and identifying business development
opportunities. Targets will be followed up by diamond drilling
or/and geophysical/geochemical surveys. Integrated exploration will
advance additional target areas for future drilling, filling the
exploration pipeline.
Perkoa Exploration - First mover in an
unexplored VMS zinc belt
- Value Add: Re-interpretation of the Perkoa
deposit identified a strong north-east plunge to the mineralization
which remains open at depth. Proof of concept drilling in 2017
resulted in significant semi-massive to massive sulphide intercepts
below the modelled resources. Follow up exploration commenced
during the first quarter of 2018 and 5,500 metres of diamond
drilling has been completed to date.
- Value Recognition and Value Creation: VMS
camp-scale regional targeting from first principles and follow up
reconnaissance mapping indicates that the fertile Perkoa Mine
Horizon extends over a minimum 25-kilometre strike length. Clusters
of geophysical airborne electromagnetic anomalies have been
identified and initial prospecting supplemented by geochemistry has
discovered spatially associated gossans (weathered sulphide
mineralization) associated with the geophysical centres. Such
spatial relationships are typically only seen in productive VMS
camp settings. Target definition is ongoing and diamond drilling is
planned to test the main ranked targets in the second half of
2018.
Rosh Pinah - An established yet
under-explored major zinc belt
- Value Add: Geologically, Rosh Pinah forms a
Tier 1 zinc deposit from a grade-tonnage basis that has never been
fully delineated. The Western Orefield remains open along strike
and at depth; for example, a 400-metre extension exploration
step-out drillhole (DDH MGD152) to the northwest of the deposit
intersected 12.9 metres of 16.6% Zn, 3.8% Pb and 98 g/t Ag starting
at 435 metres depth. In 2018 ongoing underground exploration will
continue to define this emerging NW extension.
- Value Recognition and Value Creation: District
scale targeting has commenced following the successful renewal of
the regional exploration license, EPL 2616, with high priority
targets to be tested during the year.
Santander - An established yet
under-explored polymetallic mining district
- Value Add: The 2018 Magistral mineral resource
exploration/conversion drilling will test to the 4,000-metre mine
level, or approximately 300 vertical metres below current
development, in order to continue to facilitate long-range mine
planning.At the high-grade Santander Pipe target, conventional and
directional drilling will continue to follow-up on 2017 exploration
success. Highlights from 2017 Santander Pipe drilling
includes:
Zone / Borehole (dip/azimuth) |
From - To (m) |
Zone / Interval (m) |
% Zn |
% Pb |
% Cu |
Ag oz/ton (g/t) |
SAN-0225-17 (-63°/78°) |
606.45 - 621.55 |
Pipe / 15.10 |
11.85 |
0.01 |
0.20 |
0.31 (9.52) |
SAN-0225B-17 (-58.3°/89.0°) |
783.00 - 789.90 |
Pipe / 6.90 |
17.47 |
0.01 |
0.18 |
0.23 (7.21) |
SAN-0225C-17 (-52.6°/87.3°) |
559.90 - 590.55 |
Pipe / 30.65 |
7.05 |
0.01 |
0.14 |
0.25 (7.94) |
SAN-0226-17 (-53.0°/161.0°) |
358.20 - 364.60 |
Pipe / 6.40 |
7.05 |
7.34 |
0.21 |
1.20 (37.26) |
SAN-0228B-17 (-76°/18°) |
650.80 - 660.35 |
Pipe / 9.55 |
13.86 |
0.01 |
1.19 |
1.38 (42.98) |
772.50 - 783.55 |
Pipe / 11.05 |
10.35 |
0.01 |
0.23 |
0.24 (7.50) |
- Value Recognition and Value Creation: The
approximately 45-square-kilometre Santander exploration block
remains under-explored. The 2018 exploration program will drill
test a number of high-priority exploration targets initially
identified.
Bathurst Mining Camp - A mature mining
district to be explored with new tools and approaches
- Value Add: Building on the successful 2017
Caribou exploration results, an approximate 9,000 metre drill
campaign targeting the East Limb and Hinge zone will commence in
the second quarter of 2018. At the advanced Restigouche project, a
5,000-metre drill campaign has commenced in order to provide
production and mine planning optionality for future Caribou Mill
feed.
- Value Recognition and Value Creation:
Regionally as part of the Company’s Bathurst Mining Camp strategy
approximately 2,000 metres of drilling will test exploration
targets on the Heath Steele option. Finally, in conjunction with
partner Puma Exploration, it is anticipated that initial
exploration will target the prospective Murray Brook – Caribou
corridor from the second quarter onwards.
Additional Scientific and Technical
InformationIn accordance with NI 43-101, technical reports
for Caribou Mine, New Brunswick Canada, Perkoa Mine, Burkina Faso,
and Rosh Pinah Mine, Namibia will be filed on SEDAR and the
Company's website within 45-days of this news release. See Appendix
I for additional disclosure regarding the mineral resource and
mineral reserve estimates for Caribou Mine, Perkoa Mine and Rosh
Pinah Mine contained in this news release.
For additional information on the Santander
Mine, Peru, refer to the technical report entitled “Mineral Reserve
Estimation Technical Report for the Santander Zinc Mine, Province
de Huaral, Perú” dated March 31, 2017 which is available under the
Company’s profile on SEDAR at www.sedar.com and on the Company’s
website.
Qualified Person and Quality
Control/Quality AssuranceEurGeol Dr. Mark D. Cruise,
Trevali's President and CEO and Daniel Marinov, P.Geo, Trevali’s VP
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. Mr. Marinov
is responsible for all aspects of the work, including the quality
control/quality assurance programs. Dr. Cruise is not
independent of the Company, as he is an officer, director and
shareholder. Mr. Marinov is not independent of the Company as he is
an officer 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, potential operating efficiencies, costs and
expenditures, expectations regarding milling operations and metal
production shortfalls, metal output and throughput rates,
anticipated results of future exploration, expected costs of
exploration, expected exploration programs and value adds, 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 or 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, 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 resources", "indicated resources" and "inferred
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.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities described herein have
not been and will not be registered under the United States
Securities Act of 1933, as amended, or the securities laws of any
state and may not be offered or sold within the United States,
absent such registration or an applicable exemption from such
registration requirements.
Appendix: Disclosures I - Caribou Mine,
New Brunswick, Canada
The Caribou Mine located in New Brunswick Canada
is operated by the 100% Trevali owned Trevali Mining (New
Brunswick) Ltd. The mineral resource and mineral reserve will be
detailed in the report entitled “Technical Report on the Caribou
Mine, New Brunswick Canada” to be dated April 12, 2018, with an
effective date of December 31, 2017 which was prepared for the
Company by Roscoe Postle Associates Inc. (“RPA”). RPA is not
aware of any environmental, permitting, legal, title, taxation,
socio-economic, marketing, political, or other relevant factors
that could materially affect the mineral resource and mineral
reserve estimates.
Ian Ian Blakley P.Geo of RPA
reviewed and verified information regarding drill sampling,
data verification of all digitally-collected data, drill surveys
and specific gravity determinations relating to the disclosure
herein. The review encompassed quality assurance programs and
quality control measures including analytical or testing practice,
chain-of-custody procedures, sample storage procedures and included
independent sample collection and analysis. This review found the
information and procedures meet industry standards and are adequate
for Mineral Resource and Mineral Reserve estimation and mine
planning purposes. There were no limitations on the data
verification process. In RPA’s opinion, the quality assurance and
quality control (“QA/QC”) program, as designed and implemented by
Trevali Mining (New Brunswick) Ltd. is adequate, and the assay
results within the database are suitable for use in a mineral
resource estimate. The wireframes were modeled in Leapfrog
Geo/Edge software with the interpretation constrained to represent
the geology where necessary. Capping was performed for each metal
by domain using cumulative distribution function analysis, one
metre length composites were used. The grade was estimated
with ordinary kriging in three passes, by increasing size of the
search ellipse in subsequent passes. Pass 1 and 2 both
require a minimum of three drill holes with a maximum of four
samples per drill holes, pass 3 requires a minimum of two drill
holes and a maximum of four samples per drill holes. The
grades were estimated in the block model in Leapfrog Geo/Edge
software with 5 metre x 5 metre x 5 metre sized blocks with the row
and column blocks sub blocked to 0.5 metre and a minimum height of
0.25 metres. Mineral resource classification is based on the
interpolation pass estimate attribute as well as the Qualified
Person’s level of geological knowledge and information. Stoping
voids were removed from the mineral resource estimate.
Specific gravity was measured on diamond drill core samples using a
standard water displacement method.
Mining shapes for the mineral reserve were
initially designed by slicing the mineralized shells using Mineable
Stope Optimizer in Deswick software, based on a net smelter return
cut-off value of $75/tonne and a minimum mining width of 3.5
metres. External dilution and mining recovery estimates were
applied based on current mine performance by lens. The net
smelter return values based on average consensus forecast long-term
prices of US$1.21/lb zinc, US$1.00/lb lead, US$18.50/oz silver at
an exchange rate of $0.80 C$/US$. Costs related to mining,
processing, and G&A Mining and milling have been extracted from
the forecasted 2018 operating costs, and include administration
costs. The average mining, milling, and maintenance cost over
the Internal life of mine is US$59.00/t. This cost increases to
US$65.42/t with the inclusion of surface sustaining capital and
general and administrative costs for the underground
operation.
Appendix: Disclosures II - Perkoa Mine,
Burkina Faso
The Perkoa Mine located in Burkina Faso is
operated by 90% Trevali owned Nantou Mining Burkina Faso S.A.
(“Nantou Mining”). The mineral resource and mineral reserve
will be detailed in the report entitled “Technical Report on the
Perkoa Mine, Burkina Faso” to be dated April 12, 2018, with an
effective date of December 31, 2017 which was prepared for the
Company by RPA. RPA is not aware of any environmental, permitting,
legal, title, taxation, socio-economic, marketing, political, or
other relevant factors that could materially affect the mineral
resource and mineral reserve estimates.
Ian Blakley P.Geo of RPA reviewed
and verified information regarding drill sampling, data
verification of all digitally-collected data, drill surveys and
specific gravity determinations relating to the disclosure herein.
The review encompassed quality assurance programs and quality
control measures including analytical or testing practice,
chain-of-custody procedures, sample storage procedures and included
independent sample collection and analysis. This review found the
information and procedures meet industry standards and are adequate
for Mineral Resource and Mineral Reserve estimation and mine
planning purposes. There were no limitations on the data
verification process. In RPA’s opinion, the QA/QC
program, as designed and implemented by Nantou Mining is adequate,
and the assay results within the database are suitable for use in a
mineral resource estimate. The geological interpretation
comprised wireframes for mineralization and lithological domains,
which were developed using Surpac software. Drill hole assays are
composited at a 1.5 metre length, a grade cap, which varied per
domain, was applied. A 5 metre x 5 metre x 5 metre block
model was constructed which was then sub-blocked down to a minimum
size of 1.25 metres. Search ellipsoids were used in the Ordinary
Kriging interpolation in three passes. For all passes the
minimum number of assays is seven with a maximum of six from a
single drill hole. Specific gravity was measured on diamond
drill core samples using a standard water displacement
method. Mineral resource classification is based on the
interpolation pass estimate attribute as well as the Qualified
Person’s level of geological knowledge and information.
Following estimation and classification, the block model was
depleted using the actual development and stoping voids, any
“unrecoverable” areas are completely sterilized, and extracted from
the mineral resource estimate.
The mineral reserve uses zinc metal price
assumption of US$1.20/lb and a €/US$ exchange rate of 1.08, based
on average long term price for the next five years.
Metallurgical recovery and concentrate grade assumptions are based
on the 2017 actual results. Mining and milling costs used for
the mineral reserve net smelter return calculation have been
extracted directly from the actual 2017 operating costs, and
include all operating costs and administration costs. The
average mining, milling, and maintenance cost over the Internal
life of mine is US$80.00/t. This cost increases to US$102.80/t with
the inclusion of surface sustaining capital and general and
administrative (G&A) costs for the underground operation.
Stope shapes are designed manually using Surpac software respecting
a net profit given the expected material revenue, and the cost per
tonne (long term net smelter return >$100), or each stope must
prove itself to be profitable to mine based on an individual
financial analysis. Any internal waste is added to the
resource tonnage at zero grade plus an additional 15% unplanned
dilution is then added and then a 95% recovery is applied.
Appendix: Disclosures III - Rosh Pinah
Mine, Namibia
The Rosh Pinah Mine located in Namibia is
operated by the 80% Trevali owned Rosh Pinah Zinc Corporation
(Proprietary) Limited (“RPZC”). The mineral resource and
mineral reserve will be detailed in the report entitled “Technical
Report on the Rosh Pinah Mine, Namibia” to be dated April 10, 2018,
with an effective date of December 31, 2017 which was prepared for
the company by Roscoe Postle Associates Inc. (RPA.). RPA is
not aware of any environmental, permitting, legal, title, taxation,
socio-economic, marketing, political, or other relevant factors
that could materially affect the mineral resource and mineral
reserve estimates.
Ian Blakley P.Geo of RPA reviewed
and verified information regarding drill sampling, data
verification of all digitally-collected data, drill surveys and
specific gravity determinations relating to the disclosure herein.
The review encompassed quality assurance programs and quality
control measures including analytical or testing practice,
chain-of-custody procedures, sample storage procedures and included
independent sample collection and analysis. This review found the
information and procedures meet industry standards and are adequate
for Mineral Resource and Mineral Reserve estimation and mine
planning purposes. There were no limitations on the data
verification process. In RPA’s opinion, the QA/QC
program, as designed and implemented by RPZC is adequate and the
assay results within the database are suitable for use in a mineral
resource estimate. The Rosh Pinah mineral resources are
presented as a series of discrete lenses that are interconnected
along the mineralized horizon with four primary lenses, (EOF, SF1,
SF3, and WF3). For the WF3 lens separate high and low grade
domains were identified with leapfrog software and modeled
separated with hard boundaries. Composites were extracted in
MineSight software at 1.5 metre composite lengths, capping was
applied. The block model uses blocks of size of 5 metres x 5
metres x 5 metres, which is then sub-blocked down to a minimum size
of 1.25 metres at domain boundaries. All estimates are
prepared using a three pass approach and estimated using ordinary
kriging, the pass number aids in resource classification. An
overall default bulk density factor of 3.21 t/m3 is applied for WF3
lens to calculate the overall tonnage.
The mineral reserve estimate takes into
consideration metallurgical recoveries, concentrate grades,
transportation costs, smelter treatment charges, and royalty in
determining economic viability. Datamine software’s Mineable
Stope Optimizer was used to determine an array of potentially
mineable stope shapes per level based on a selection of cut-off
grades as determined using a Basic Mining Equation that captures
the full cost of the mining operation including mining, processing,
shipping, and smelting costs. The average operating cost,
excluding capital, is US$48.79 per tonne. This cost increases to
US$65.70 per tonne with the inclusion of sustaining capital costs
for the underground operation. Revenue of any given parcel of
material is calculated using a net smelter return equation. Net
smelter return is the net revenue received by the mine from the
sale of the zinc, lead, and silver metal less transportation and
processing costs. The net smelter return calculation uses
metal prices of US$1.16/lb zinc, US$1.00/lb lead, US$18.18/oz
silver, FX: NAD/US$ 13.30. Past experience has been used to produce
realistic dilution and mining recovery per phase of mining.
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