VANCOUVER, BRITISH COLUMBIA–(Marketwired – June 14, 2017) – Trevali Mining Corporation (“Trevali” or the “Company”) (TSX:TV)(LMA:TV)(OTCQX:TREVF)(FRANKFURT:4TI) announces results from its 2016-2017 resource definition drill program on its Halfmile deposit in the Bathurst Mining Camp of northeastern New Brunswick. The program was designed to validate historic data as well as to expand and improve upon the existing geological model. Trevali completed 28 holes (15,175 metres) testing a variety of targets within and around the Upper and Lower Zones of the Halfmile deposit that remains open for expansion.
The Halfmile deposit has a currently defined Indicated Resource of 6.26 million tonnes grading 8.13% Zn, 2.58% Pb, 0.22% Cu, and 30.8 g/t Ag, and an additional Inferred Resource of 6.08 million tonnes at 6.69% Zn, 1.83% Pb, 0.14% Cu and 20.5 g/t Ag. The 2016-17 Halfmile drill program was initiated with a variety of goals:
- Validate the historic drilling and geological model in the Lower Zone of the deposit
- Define limits of mineralization
- Test geologic and geophysical exploration targets in the general vicinity of the currently defined mineralization
- Collect geotechnical data for future engineering and mine planning studies
- Test working geologic interpretations / models
In general, results from the 2016-2017 drilling campaign corroborates the historic drilling completed on the project. This latest drilling dramatically increases Trevali’s confidence in the resource model and provides further information about precious metal values in the Upper and Lower Zones as previous drill programs did not consistently analyze for silver or gold. The recent drilling has also facilitated an improved understanding of the local geology and thus allowed for a more realistic model of mineralization that will ultimately facilitate future engineering studies.
Figure 1: Drill hole location map is available at the following address: http://media3.marketwire.com/docs/170614_TV_Figure1.pdf
|Drill Hole||From – To
|Zone / Core
|Zn (%)||Pb (%)||Cu (%)||Ag (g/t)||Au (g/t)||Approximate
|HK16-040||365.90 – 382.20||(LZ) 16.30||5.77||2.43||0.09||35.38||0.14||70-90%|
|HK16-040||(incl.) 365.90 – 375.00||(LZ) 9.10||6.62||3.02||0.11||45.93||0.19||70-90%|
|HK16-040||(incl.) 378.35 – 382.20||(LZ) 3.85||7.49||2.69||0.12||34.61||0.13||70-90%|
|HK16-041||347.00 – 357.00||(LZ) 10.00||3.90||0.67||0.11||7.52||0.18||70-90%|
|HK16-042||679.21 – 701.27||(LZ) 22.06||10.71||4.16||0.12||69.97||0.47||70-90%|
|HK16-042||(incl.) 683.55 – 701.27||(LZ) 17.72||12.60||4.89||0.09||78.32||0.50||70-90%|
|HK16-047||560.08 – 568.20||(LZ) 8.12||4.45||1.50||0.05||12.59||0.12||70-90%|
|HK16-047||(incl.) 560.08 – 564.76||(LZ) 4.68||6.36||2.03||0.08||17.26||0.16||70-90%|
|HK16-048||421.00 – 439.00||(LZ) 18.00||5.28||1.19||0.21||20.11||0.23||70-90%|
|HK16-048||(incl.) 432.00 – 439.00||(LZ) 7.00||7.37||1.75||0.20||18.84||0.20||70-90%|
|HK16-048||470.24 – 476.00||(LZ) 5.76||10.78||4.46||0.13||87.41||0.34||70-90%|
|HK16-050||482.47 – 510.40||(LZ) 27.93||5.29||1.71||0.19||23.35||0.24||70-90%|
|HK16-050||(incl.) 499.50 – 510.40||(LZ) 10.90||7.49||3.31||0.18||42.68||0.26||70-90%|
|HK16-051||519.60 – 523.45||(LZ) 3.85||9.74||1.54||0.15||48.17||0.50||70-90%|
|HK16-56A||717.53 – 828.00||(LZ) 110.47||7.86||2.34||0.11||11.11||0.12||40-60%|
|HK16-56A||(incl.) 756.62 – 793.79||(LZ) 37.17||11.38||4.05||0.14||18.27||0.21||40-60%|
|HK17-061||535.62 – 539.50||(LZ Met) 3.88||10.41||4.90||0.07||105.63||0.32||40-60%|
|HK17-061||721.13 – 769.92||(LZ Met) 48.79||3.99||0.98||0.06||17.36||0.13||40-60%|
|HK17-061||(incl.) 721.13 – 726.58||(LZ Met) 5.45||10.96||4.01||0.04||73.72||0.42||40-60%|
Table1: Summary of latest Halfmile Project drill assay results. Length and Specific Gravity weighted composite intervals.
* True widths of the mineralized intervals are estimated in the column “Approximate True Thickness”
Figure 2: Cross sections of the Halfmile deposit showing 2016-2017 drill hole data is available at the following address: http://media3.marketwire.com/docs/170614_TV_Figure2.pdf
Figure 3: 3-D view to the south of the Halfmile deposit showing 2016-2017 drill hole data is available at the following address: http://media3.marketwire.com/docs/170614_TV_Figure3.pdf
Audio Magnetotelluric (“AMT’) Survey:
An orientation AMT survey was also completed over Halfmile with the goal of testing the efficacy of this geophysical method as an exploration tool. Initial results are promising with the survey clearly identifying known mineralization over 800-metres below ground surface (“BGS”). The program also identified a possible new deep target approximately 800-metres below the North Zone, however, additional geophysical infill is required to better define this area (Figure 4).
Figure 4: Halfmile Deposit AMT survey showing outline of mineralization and resistivity lows at different depths is available at the following address: http://media3.marketwire.com/docs/170614_TV_Figure4.pdf
Halfmile is a fully permitted mine with infrastructure in place including underground production development, water treatment facilities and a camp. In 2012 Trevali mined approximately 120,000 tonnes of mineralized material from Halfmile and processed it on a toll mill-basis at Xstrata’s nearby Brunswick 12 mill complex prior to its ultimate closure in 2013. During this period the Halfmile trial operation produced saleable zinc, lead-silver and copper-gold concentrates.
In 2016, a new independent Preliminary Economic Assessment (“PEA”) engineering study by SRK Consulting Engineers commenced on the Company’s Halfmile and Stratmat deposits in New Brunswick. The study is examining development strategies for the deposits including the potential for a stand-alone milling solution. The PEA is anticipated to be completed imminently and will direct the Companies medium term strategy for the region where it owns the largest repository of undeveloped massive sulphide deposits in the prolific Bathurst Mining Camp.
Qualified Person and Quality Control/Quality Assurance
EurGeol 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. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to Bureau Veritas Laboratories (Bureau Veritas) preparation facility in Timmins, ON for crushing and splitting then the pulp samples are shipped to Vancouver, B.C. for assay. Zinc, lead, copper gold and silver, assays were obtained by four acid Aqua-Regia dissolution followed by Inductively coupled plasma optical emission spectrometry (ICP-OES) measurements. Values of Zinc, lead and copper over 10% are assayed by volumetric method. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by the use of international and in-house standards. Blind certified reference material is inserted at regular intervals into the sample sequence by Trevali personnel in order to independently assess analytical accuracy. Bureau Veritas’ quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Finally, representative blind duplicate samples are routinely forwarded to an ISO compliant third party laboratory for external quality control.
ABOUT TREVALI MINING CORPORATION
Trevali is a zinc-focused, base metals mining company with two commercially producing operations.
The Company is actively producing zinc and lead-silver concentrates from its 2,000-tonne-per-day Santander mine in Peru and its 3,000-tonne-per-day Caribou mine in the Bathurst Mining Camp of northern New Brunswick. Trevali also owns the Halfmile and Stratmat base metal deposits, located in New Brunswick, that are currently undergoing a Preliminary Economic Assessment reviewing their potential development. Additionally, the Company has entered into a definitive agreement with Glencore PLC to acquire a portfolio of zinc assets from Glencore, including an 80.08% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39.24% interest in the Gergarub project in Namibia, an option to acquire 100% interest in the Heath Steele property in Canada and certain related exploration properties and assets.
The common 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 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 expected benefits of the proposed Transaction, the closing the Transaction,, including the anticipated timing thereof, the satisfaction of all conditions to closing the Transaction and the Offering including, without limitation, obtaining all necessary consents and approvals, the completion of the debt financing, the Company’s plan to prepare a new PEA for its Halfmile and Stratmat properties, 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. 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 Canadian dollar and 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 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.
Trevali’s production plan at the Caribou Mine is based only on measured, indicated and inferred mineral resources, and not mineral reserves, and does not have demonstrated economic viability. Trevali’s production plan at the Santander Mine is based only on measured, indicated and inferred mineral resources, and not mineral reserves, and does 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.
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.
The TSX has not approved or disapproved of the contents of this news release.