Trevali Mining Corporation ("Trevali" or the "Company")
(TSX:TV)(TSX:TV.WT)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) wishes to
provide an update on its progress to move to stand-alone mineral
processing operations in the Bathurst Mining Camp of New
Brunswick.
CARIBOU TRANSACTION
Since the announcement of the transaction to acquire the former
Caribou Mill and Mine Complex from Maple Minerals in May 2012 (see
NR-12-14 for details) the Company has been working closely with the
Province of New Brunswick in order to facilitate re-start of
milling operations in a timely manner.
In the intervening period the Company has submitted a
'stand-alone' site re-start business plan in addition to a final
site closure plan to the Province, and progress to date has been
excellent. Trevali and Provincial officials are working towards a
definitive agreement whereby the Province will approve Trevali to
operate the Caribou site. The Company cautions that the "New
Environmental Liability Agreement" is currently being drafted and
requires Cabinet-level sign-off, however based on progress to date
it is anticipated that Trevali may be in a position to close the
transaction by the end of Q3-2012.
FOCUS ON STAND-ALONE OPERATIONS
In light of these positive developments the Company has
commenced to shift its efforts from short-term toll milling to
long-term underground development and mine planning in order to
facilitate the anticipated re-start of Caribou Mill in 2013.
Underground development and initial (pre-commercial) production
mining to date has been very instructive and has provided excellent
information on ground-conditions, potential production rates for a
fully-ramped operation and metallurgical recoveries to produce
saleable zinc, lead-silver and copper-gold concentrates. This
information will enable further optimization and streamlining in
order to support stand-alone mineral processing operations at the
Caribou Mill as well as preserving the Upper Zone of the Halfmile
deposit for anticipated lower cost stand-alone operations.
The Company plans to drive the main Halfmile ramp to the thicker
and higher grade zones of the deposit where NI 43-101 Indicated
resource grades are estimated to increase from 6.72% to 8.68% Zn,
2.31% to 2.81% Pb and 16.95 to 37.94 g/t Ag (Table 1 & Figure
1).
Table 1: Halfmile Deposit - Indicated Resource Estimate at 5% ZnEQ
Cut-Off after Wardrop-Tetratech
------------------------------------------------------------------------
Zone Tonnes ZnEQ Zn% Pb% Cu% Ag g/t
------------------------------------------------------------------------
Upper 1,192,700 7.96 6.72 2.31 0.43 16.95
------------------------------------------------------------------------
Lower 4,472,200 9.65 8.68 2.81 0.12 37.94
------------------------------------------------------------------------
North 597,200 7.56 6.78 1.40 0.49 4.84
------------------------------------------------------------------------
Total 6,262,100 9.13 8.13 2.58 0.22 30.38
------------------------------------------------------------------------
To view Figure 1 please click on the following link:
http://media3.marketwire.com/docs/TV0802a.pdf
DEBT FACILITIES
The Company also continues to make major progress on securing a
corporate level debt facility in order to support the Caribou Mill
re-start where the Company plans to add a Cu-circuit and modify the
mill so that it can treat all three of its deposits in the Bathurst
Mining Camp; Halfmile, Stratmat and Caribou (upon closure of the
transaction) (Figure 2).
To view Figure 2 please click on the following link:
http://media3.marketwire.com/docs/TV0802b.pdf
Seven financial institutes and or end-users have signed
Confidentiality Agreements and due diligence is progressing well.
The Company hopes to be in a position to announce implementation of
a facility in late summer.
CAUTIONARY STATEMENTS
The Company cautions that failure to finalize an agreement with
the Province of New Brunswick by December 31st 2012 will result in
delays to the Company's plans to move to stand-alone mining/milling
operations and could jeopardize the announced Caribou
transaction.
The Company also cautions that failure to secure such a debt
facility will result in delays / deferrals to stand-alone
operations until either a workable debt facility is secured and/or
anticipated cash-flow from its Santander operation is sufficient to
enable a re-start.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused base metals producer with operations
in Canada and Peru - the Halfmile and Santander mines respectively.
In Canada, Trevali owns the Halfmile zinc-lead-silver mine and
Stratmat polymetallic deposit, and has entered into a definitive
agreement to acquire the Caribou Mine and Mill, all located in the
Bathurst Mining Camp of northern New Brunswick. The Company also
has the past-producing Ruttan copper-zinc mine in northern
Manitoba. Initial production from the Halfmile mine commenced in
early 2012 and development is ramping up to achieve a planned
production rate of at least 2,000-tonnes-per-day to feed planned
operations at the Company's Caribou Mill Complex (subject to
closure of its acquisition).
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 late-2012
with ramp up to full 2,000-tonnes-per-day production to follow
shortly thereafter. Additionally through its wholly-owned
subsidiary, Trevali Renewable Energy Inc., Trevali is undertaking a
significant upgrade of its wholly-owned Tingo run-of-river
hydroelectric generating facility along with transmission line
upgrades and extensions to allow, in addition to supplying power to
the mining operation on the property, 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.
Qualified Person and Quality Control/Quality Assurance
EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and a
qualified person as defined by National Instrument 43-101, has
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 and
shareholder.
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
anticipated use of proceeds, the incurring of expenses that qualify
as "flow-through mining expenditures," 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-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 Manager -
Corporate Communications (604) 488-1661 or Direct: (604) 638-5623
(604) 408-7499 (FAX)sstakiw@trevali.com www.trevali.com
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