Maintains consolidated 2018 zinc production
guidance
Trevali Mining Corporation
(“
Trevali” or the “
Company”)
(TSX: TV; BVL: TV; OTCQX: TREVF; Frankfurt: 4TI)
reports a downgrade of the 2018 production guidance for the Caribou
mine due to challenging rock mass conditions. Increased zinc
production from Perkoa operations is expected to partially offset
metal losses. The Company reiterates it remains on track to achieve
its 2018 consolidated zinc production guidance.
DETAILThe
Caribou Mine was well positioned after the second quarter 2018 to
achieve is target production in 2018. As part of an ongoing
technical review, several key operational changes were required to
ensure the safety of employees, equipment and to maintain
production targets in the long term (2019+) due to challenging
hanging wall rock mass conditions. Specifically, changes to the
geotechnical control management were required, primarily the move
to Cemented Rock Fill from unconsolidated fill. These were
implemented during Q3 and impacted production, however site
retained the ability to achieve the lower end of 2018 production
guidance through increased Q4 production.
However, during early to mid-October adverse
conditions were experienced in two mining zones resulting in the
cessation of retreat mining and the subsequent loss of some
production from the remaining 2018 mine plan. Further external
engineering studies are ongoing and in order to increase mining
flexibility, Caribou management have strategically slowed the
mining rate in order to accelerate mine development in Q4-2018
through Q1-2019 to build more optionality and stability in the mine
to deliver safe, strong and reliable results in 2019. Consequently,
2018 zinc and lead production will be adversely affected, and
guidance has been revised downwards. 2018 silver production
guidance remains unchanged.
Table
1: Revised production guidance for Caribou
mine.
|
2018 Zn
Production(payable) |
2018 Pb
Production(payable) |
2018 Ag
Production(payable) |
Operating Cost(per
tonne) |
Caribou - revised |
70-75 million lbs.(31,750-34,000 tonnes) |
23.0-25.0 million lbs.(10,450-11,350
tonnes) |
627,000-658,000 ozs. |
US$63-69 |
Caribou - original |
86-90 million lbs.(39,000-40,850 tonnes) |
27.1-28.4 million lbs.(12,300-12,900
tonnes) |
627,000-658,000 ozs. |
US$55-61 |
|
|
|
|
|
“It is incredibly disappointing that the Caribou mine has been
forced to slow down, however this was a necessary step in order to
ensure the safety of our workforce and enhance the long-term
economics of the mine,” stated Dr. Mark Cruise, Trevali’s President
and CEO. “This strategic direction was made with a view of
establishing a stronger foundation for the operation to deliver on
expectations in 2019 and beyond.”
The Santander and Rosh Pinah mines remain on
track to deliver production guidance with the Perkoa mine presently
expected to exceed its guidance due to continued positive
performance, helping offset the shortfall from the Caribou mine.
Trevali remains on track to deliver 2018 zinc payable metal
production of more than 400 million pounds. Zinc sales during the
third quarter, however, lagged production with concentrate
inventory levels above target at both Perkoa and Rosh Pinah.
Additional concentrate shipments are planned for the fourth quarter
to reduce inventories and increase sales.
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, have supervised the preparation of and have 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, the 90% owned Rosh Pinah mine in Namibia and the 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 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. Such forward-looking statements and
information include, but are not limited to statements as to: the
timing and amounts of estimated future production; the estimation
of mineral resources and mineral reserves, costs and timing of
development; operating efficiencies, costs and expenditures;
expectations regarding mining and 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: 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 other risks as more fully described in the Company’s annual
information form for the year ended December 31, 2017, which is
available on the Company’s website (www.trevali.com) and filed
under our profile on SEDAR (www.sedar.com). 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.
Source: Trevali Mining Corporation
Trevali Mining (TSX:TV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trevali Mining (TSX:TV)
Historical Stock Chart
From Jul 2023 to Jul 2024