Trevali Mining Corporation

TSX : TV
OTCQX : TREVF
LMA : TV
FRANKFURT : 4TI


Trevali Mining Corporation

May 06, 2014 10:41 ET

Trevali Drilling Intersects Multi-Lens Sulphides 450 Metres Below Currently Defined Resource at Caribou Deposit in New Brunswick

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 6, 2014) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(OTCQX:TREVF)(LMA:TV)(FRANKFURT:4TI) announces the intersection of multi-lens massive-to-disseminated sulphides in diamond drill hole BR-1005 at the Caribou Zinc-Lead-Copper-Silver Mine Project in the Bathurst Mining Camp of New Brunswick, Canada. This newly discovered mineralization is located approximately 450 metres below the currently defined resource at the Caribou deposit.

Results of this diamond drill hole further confirm the presence of a very significant mineralizing system at the Caribou deposit that remains open for expansion. All historic drill holes below the current resource have intersected significant sulphide mineralization.

Figure 1 shows the location of BR-1005 in relation to the Caribou resource, and intervals are summarized in Table 1. A listing of selected significant drill hole intercepts shown in Figure 1 are listed in Table 2.

Table 1: Downhole mineralized intervals of drill hole BR-1005
From
(metres)
To
(metres)
Interval
(metres)
Mineral Description
1072.71 1076.74 4.03 Massive Sulphides
1081.55 1083.72 2.17 Disseminated Sulphides

Due to technical difficulties, this deep hole failed to test the entire favourable productive host-rock sequence. Geochemical assays are pending, however, the geological results are sufficiently encouraging that Trevali plans to wedge off the parent drill hole to better test the prospective horizon approximately 150 metres up-dip of the intercept. Additionally borehole electromagnetics ("BHEM") will be utilized in order to help image the sulphide horizon and to define follow-up targets.

The Caribou deposit currently hosts a measured and indicated resource of 7,230,000 tonnes grading 6.99% Zn, 2.93% Pb, 0.43% Cu, 84.4 g.t Ag and 0.9 g/t Au, plus an additional inferred resource of 3,660,000 tonnes grading 6.95% Zn, 2.81% Pb, 0.32% Cu, 78.3 g.t Ag and 1.2 g/t Au.

Ongoing Exploration at Caribou

During the fourth quarter of 2013, the Company initiated a property-wide compilation of all previous exploration work. This compilation coupled with a newly acquired Quantec Geoscience Titan 24 geophysical survey is being used to identify high priority targets on the under-explored Caribou property. A follow-up, property-wide diamond drill program supported by BHEM is in progress.

To view Figure 1, visit the following link: http://media3.marketwire.com/docs/943848-F1.pdf.

Table 2: Historic diamond drill hole assay intervals
Drillhole From
(metres)
To
(metres)
Interval
(metres)
Ag
(gm/t)
Au
(gm/t)
% Cu % Pb % Zn
DDH112B 1025.21 1027.15 1.94 53.65 0.16 0.22 2.86 5.45
1036.53 1041.60 5.07 57.71 0.75 0.34 2.56 5.28
1064.49 1065.58 1.09 63.40 3.57 0.41 2.20 5.68
DDH076 957.38 963.17 5.79 146.60 1.19 0.28 3.93 8.46
973.16 974.69 1.53 62.03 2.74 0.45 2.23 6.24
DDH076A 769.62 772.52 2.90 88.46 1.53 0.48 4.25 7.91
796.14 797.97 1.83 46.28 1.71 0.35 1.62 6.05

Caribou Preliminary Economic Assessment

The independent Preliminary Economic Assessment for the Company's Caribou Mine and Mill Complex, being prepared by SRK Consulting (Canada) Inc., is nearing completion and expected within the next one-to-two weeks. The study will form the basis for Trevali's restart of the Caribou operations in 2015.

Q1-2014 Financial Results

Trevali will release financial results for its first quarter period ending March 31, 2014 on May 15, 2014 after the close of the trading day in Toronto.

The Company will host a conference call and audio webcast at 10:30 a.m. Eastern Time on Friday, May 16, 2014, to review the financial results. Participants are advised to dial in 5-to-10 minutes prior to the scheduled start time of the call.

Conference call dial-in details:

Toll-free (North America): 1-800-769-8320

Toronto and international: 1-416-340-8530

Audio Webcast: http://www.gowebcasting.com/5537

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and M. Dayle Rusk, P.Geo, Trevali's Director, Geology, 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. Dr. Cruise is not independent of the Company, as he is an officer, director and shareholder. Ms. Rusk is not independent of the Company as she is an officer and shareholder.

ABOUT TREVALI MINING CORPORATION

Trevali is a zinc-focused base metals mining company with operations in Peru and Canada.

In Peru, the Company is actively operating its wholly-owned Santander underground zinc-lead-silver mine and 2,000-tonne-per-day metallurgical plant, and producing zinc and lead-silver concentrates.

In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat polymetallic deposit all located in the Bathurst Mining Camp of northern New Brunswick. Initial trial production from the Halfmile underground mine was successfully undertaken in 2012 and the Company anticipates commencing operations at its 3,000-tonne-per-day Caribou Mill Complex in 2015.

All of the Company's deposits remain open for expansion.

The common shares of Trevali are listed on the TSX (symbol TV), the OTCQX (symbol TREVF) and on the Lima Stock Exchange (symbol TV). 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 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 Caribou-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.

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.

Contact Information

  • Trevali Mining Corporation
    Steve Stakiw - Vice President,
    Investor Relations and Corporate Communications
    (604) 488-1661 / Direct: (604) 638-5623
    sstakiw@trevali.com
    www.trevali.com