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

Trevali Mining Corporation

April 14, 2016 09:15 ET

Trevali Reports Q1-2016 Santander Mine Production and Record Quarterly Mill Throughput - Provides Caribou Mine Commissioning Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 14, 2016) - Trevali Mining Corporation ("Trevali" or the "Company") (TSX:TV)(LMA:TV)(OTCQX:TREVF)(FRANKFURT:4TI) reports preliminary Santander Mine production results for its first quarter ("Q1") ending March 31, 2016 of approximately 13.7 million payable pounds of zinc, 6.4 million payable pounds of lead and 221,324 payable ounces of silver (see Table 1).

Q1-2016 recoveries at Santander averaged 89% for zinc, 88% for lead and 76% for silver. Mill throughput for the quarter was a new record of 209,188 tonnes.

Table 1: Santander Mine Q1-2016 preliminary production statistics

Q1-2016
Tonnes Mined 175,579
Tonnes Milled 209,188
Average Head Grades:
Zinc 3.93 %
Lead 1.66 %
Silver (ounces/ton) 1.32
Average Recoveries (%):
Zinc 89 %
Lead 88 %
Silver 76 %
Concentrate Produced DMT (dry metric tonnes):
Zinc 14,840
Lead 5,469
Concentrate Grades:
Zinc 49 %
Lead 56 %
Ag (ounces/ton) 38.70
Payable Production:
Zinc (pounds) 13,662,766
Lead (pounds) 6,436,047
Silver (ounces) 221,324

The Company remains on-track for its 2016 Santander Mine Production Guidance of 52-55 million pounds of payable zinc in concentrate grading approximately 50 percent Zn, 22-25 million pounds of payable lead in concentrate grading approximately 56-58 percent Pb and 800,000-1,000,000 ounces of payable silver. Cash costs for 2016 remain at an estimated US$40-US$43 per tonne milled and site based business initiatives are ongoing (please see Cautionary Note on Forward Looking Statements at the end of this document).

CARIBOU MINE COMISSIONING UPDATE

Trevali also provides a Q1-2016 mine and mill commissioning update for its Caribou Zinc Mine in the Bathurst Mining Camp of northern New Brunswick. A detailed description and discussion is provided below and progress is as follows (Table 2):

Table 2: Caribou Mill - key commissioning & preliminary production statistics (figures rounded)

2015 Q1-2016
Tonnes Mined 280,183* 191,005
Tonnes Milled 369,006 200,670
Average Mill Tonnes-per-day (TPD) 2,005 2,675**
Average Head Grades %
Zinc 5.3 % 5.9 %
Lead 2.0 % 2.6 %
Silver - Oz (ounces)/ton 1.7 oz/t 2.0 oz/t
Average Recoveries %
Zinc 66 % 71 %
Lead 48 % 58 %
Silver (in Lead concentrate) 25 % 38 %
Concentrate Produced DMT (dry metric tonnes):
Zinc 27,080 17,732
Lead 9,470 7,586
Concentrate Grades %
Zinc 48.3 % 47.8 %
Silver - Oz (ounces)/ton 4.1 oz/t 4.0 oz/t
Lead 37.6 % 39.3 %
Silver - Oz (ounces)/ton 16.8 oz/t 20.3 oz/t

*does not include material mined and stockpiled prior to mill start-up in mid-2015

**exclusive of downtime for scheduled mill servicing and maintenance cycle days

Caribou Zinc Circuit Summary

During Q1-2016 the Caribou metallurgical team and partner Glencore continued with the implementation of the metallurgical performance plan that mainly focuses on increasing zinc recoveries to entitlement ranges as outlined in the Caribou PEA report (see Technical Report on Preliminary Economic Assessment for the Caribou Massive Sulphide Zinc-Lead-Silver Project, Bathurst, New Brunswick, Canada prepared by SRK Consulting (Canada) Inc., on the Company's website or on SEDAR).

The Company continues to focus on highlighted areas for metallurgical improvement including decreasing the primary grind size, improved zinc-cell mixing and retention times with modifications to be implemented during ongoing scheduled maintenance periods (please see News Releases TV-16-01 January 21, 2016 and TV-16-02 February 24, 2016 for details).

Modifications completed during March, and which are ongoing, continue to focus on the primary grind and zinc circuits, and includes:

  • Improved vortex finders on two of the five cyclones, which is successfully pushing more material to the mills for grinding.
  • Zinc bank splitter box improvements to achieve a more balanced feed into the zinc cell banks - improved from original approximately 70:30 split to 45:55 and aimed to fully balance going forward.
  • Increasing residence time in the zinc banks from 9-and-5 minutes to 16-and-13 minutes respectively, with the aim of balancing residence time going forward.
  • Zinc Cleaner baffle modification is substantially complete with two cells remaining and scheduled to occur during the April maintenance shut-down.
  • Site pumping infrastructure review and recommendations by Glencore Australia specialist and ongoing improved pump-piping (sump-pumps re-routed).

Scheduled optimization initiatives during Q2 include:

  • Delivery of smaller 3/4-inch charge media for the primary grind circuit in April.
  • SAG Mill modifications, primarily the newly designed lifters and shell liners (fabrication in progress) and charge from late-May onwards.
  • Mineralogical and size-by-size analysis results to track progress in April.
  • Water chemistry trials - April.
  • Zinc Cleaner density trials in April-May.
  • Test-work and implementation of pumping recommendations and pumping station upgrades in April and May respectively in order to maintain consistent cyclone feed pressures that have been impacted by fine grind frothing.
  • New instrumentation (flow meters and pressure sensors) to enable enhanced thickener performance in April - May.
  • Increase the number of sample stations for the on-stream sample analyzer - April-May.

Caribou Mining

Underground production during the quarter averaged 2,230 tonnes-per-day at average grade of 5.9% Zn, 2.6% Pb and 2 oz/ton Ag.

Ongoing mine optimization initiatives include commencement of a 10,000-metre definition drilling and resource conversion program (with the contractor exceeding daily meterage targets) that will allow two additional mining zones to enter production in Q2-2016, modification of drill-blast designs, targeted fleet efficiency programs and roadway upgrades.

Q1-2016 financial results and conference call

Trevali will release financial results for its first quarter period ending March 31, 2016, on May 12, 2016 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 13, 2016, to review the financial results. Conference call dial-in details and audio webcast link will be provided in the financial results news release.

Qualified Person and Quality Control/Quality Assurance

EurGeol Dr. Mark D. Cruise, Trevali's President and CEO, Paul Keller, P.Eng, Trevali's Chief Operating Officer 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. Mr. Keller is not independent of the Company as he is an officer and shareholder.

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.

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 Communicati
    (604) 488-1661 / Direct: (604) 638-5623
    sstakiw@trevali.com
    www.trevali.com