Trevali Mining Corporation
TSX : TV
OTCQX : TREVF
LMA : TV
FRANKFURT : 4TI

Trevali Mining Corporation

July 07, 2015 08:53 ET

Trevali Provides Caribou Zinc Mine Commissioning Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 7, 2015) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV) (LMA:TV) (OTCQX:TREVF) (FRANKFURT:4TI) provides a mine and mill commissioning update for its Caribou Zinc Mine in the Bathurst Mining Camp of northern New Brunswick. The Company reports that significant progress has been achieved since announcing the commencement of mill commissioning in late-May. A detailed description is provided below and summary highlights are as follows:

  • Underground ("UG") mining continues to progress well resulting in a significant coarse mill-feed stockpile of approximately 110,000 tonnes of mineralized material readily available for ongoing mill commissioning.
  • UG dewatering and refurbishment are on schedule to be complete in August and October respectively.
  • An approximately 10,000-metre UG resource conversion and exploration drill program will commence in July.
  • Mill commissioning has progressed as per the commissioning strategy outlined in the Company's News Release dated May 19, 2015 (see TV-NR-15-10 for details).
  • All mill circuits - Crushing - Grinding - Reagents - Flotation - Filtering and Tailings are now integrated and functional with a June end-of-month availability factor of approximately 94% at an approximate daily throughput of 1,500-tonnes-per-day. Mill throughput will continue to ramp up throughout the summer months.
  • Commissioning initially focused on the zinc circuit where saleable-quality zinc concentrates have been successfully produced grading approximately 53-56% Zn. The commissioning team is now concentrating on the lead circuit, where lead has been successfully floated to produce an initial Pb concentrate, and ongoing copper circuit installation.

"Commissioning at our Caribou Zinc Mine continues to progress well as we've been systematically bringing the various milling, grinding and flotation recovery circuits online," stated Dr. Mark Cruise, Trevali's President and CEO. "While it is still early in the commissioning process and lots of work remains, we have made an excellent start. The Caribou team continues to do an exceptional job having achieved within a one-year period both mining and milling operations and commencing initial concentrate production."

CARIBOU MILL COMMISSIONING

As expected a multitude of minor troubleshooting challenges have been identified and corrected during the initial June commissioning period by the experienced mill team. These positive changes have resulted in an approximately 94% mill availability factor by month end at a 1,500-tonne-per-day capacity, or 50% of nameplate design. Based on progress to date it is expected that mill throughput will continue to ramp-up throughout the summer months as the plant team increases its familiarity with the mineralized mill feed and reagent characteristics.

The commissioning status of the various major mill components is as follows:

Instrumentation - Various software patches have been installed and all circuits are now communicating as designed. The On-Stream Analyzer is functioning and Outotec is completing final training in July.

Crushing - The radial surface crushing circuit is fully operational and feeding into the dual Mill Feed Bins. From here feed is conveyed into the SAG Mill, which is the first stage of the grinding circuit (Figure 1). Ongoing optimization during the remainder of the year will seek to upgrade the conveyor feed system in order to optimize winter operations.

Grinding - The newly installed SAG Mill, the two Ball Mills and the three IsaMills are integrated, charged and operational (Figure 1). The SAG Mill has successfully achieved a primary grind of approximately 30 microns at current feed rates. Future optimization, once sufficient data is collected, will seek to optimize charge rates, grind characteristics and media composition.

To view Figure 1: Crushed UG feed being conveyed into the SAG Mill for finer grinding (left). Ball Mills in foreground with flotation circuits in background at Caribou Mill (right), please visit the following link: http://media3.marketwire.com/docs/trev1.jpg

Reagents - The full complement of reagents are all on site and available. The commissioning team initially focused on zinc reagents, with lead reagents gradually being introduced towards the end of June.

Flotation - Both Zn and Pb flotation including the rougher and cleaner cells are fully functional (Figure 2). Piping and pumping optimization and replacement occurred during June (modification of the sprays & blowers), which is expected to result in improved circuit stability.

To view Figure 2: Caribou mill zinc flotation circuit. Concentrate is being stockpiled in the onsite warehouse, please visit the following link: http://media3.marketwire.com/docs/trev2.jpg

Filtration & Tailings - The Zn and Pb filters are functional. Initial concentrate production is being warehoused on site for shipping once sufficient stockpile is present, currently scheduled for July. Initial zinc concentrate production has assayed up to 56% Zn and is in line with nameplate design. Ongoing work in July will now focus on lead concentrate optimization.

Copper circuit - Initial copper circuit construction is underway and remains on track for commissioning later this year.

CARIBOU MINING

Underground refurbishment, development and mining continue to advance according to plan. There are presently 9 kilometres, within a total of 13.3 kilometres of UG development, refurbished and available for production distributed over 8 mining zones (Figure 3).

To view Figure 3: Three-dimensional image of the Caribou Mine illustrating areas of current and planned future mining and rehabilitation activities, please visit the following link: http://media3.marketwire.com/docs/trev3.jpg

UG is currently mining at approximately 1,500-tonnes-per-day and continues to build a significant surface stockpile of mineralized material for mill commissioning. Production will continue to ramp-up over the summer with additional mining fleet scheduled to arrive during this period. The surface stockpile is essentially at capacity with an approximate 110,000-tonne stockpile of mineralized material on the Coarse Mill-Feed Stockpile.

Dewatering is ongoing and making significant progress following the Spring melt. Approximately 78 vertical metres of the mine remains to be dewatered, which at current rates will occur in August. On this basis it is estimated that the mine will be fully refurbished by October.

UG enhancements are ongoing and continue to focus on drill and blast optimization, road maintenance, haul optimization - have initiated a one-way "high-speed" system and improved UG communication system, installation of which will commence in July and is anticipated will result in increased mine fleet efficiencies.

The Company has also tendered and awarded a 10,000-metre UG drill program that is scheduled to commence in July. The program is predominantly designed to provide additional detail for mine planning purposes.

AGM RESULTS

At the Company's recent Annual General Meeting of Shareholders held on June 17, 2015, shareholders re-elected the nominated slate of directors: Mark Cruise, David Huberman, Anton Drescher, Michael Hoffman, Christopher Eskdale, Catherine Gignac, Peter Meredith and Valentin Paniaqua. Shareholders also approved the appointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditors of the Company for the current fiscal year and authorized the directors to fix the auditors' remuneration.

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO and Mr. Paul Keller, P.Eng, Trevali's Chief Operating Officer, are qualified persons as defined by NI 43-101 and 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. Mr. Keller 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 Minerals Laboratories (BVML) preparation facility in Val D'Or, Quebec for crushing and splitting and coarse rejects were assayed at BVML in Vancouver, BC. BVML quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. 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. Finally, representative blind duplicate samples are routinely forwarded to an ISO compliant third party laboratory for additional quality control.

ABOUT TREVALI MINING CORPORATION

Trevali is a zinc-focused, base metals mining company with one producing operation in Peru and another currently undergoing commissioning in Canada.

In Peru, the Company is actively producing zinc and lead-silver concentrates from its 2,000-tonne-per-day Santander mine.

In Canada, Trevali owns the Caribou mine and mill, Halfmile mine and Stratmat deposit all located in the Bathurst Mining Camp of northern New Brunswick. The Company is currently commissioning its 3,000-tonne-per-day Caribou mine.

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), 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 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 resources, and not mineral reserves, and does not have demonstrated economic viability. Trevali's production plan at the Santander Mine is based only on 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.

Contact Information

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