|September 10, 2009|
Trevali Discovers New Silver-rich Zones at Santander
28.1 metres at 205 g/t (6 oz/t) silver, 3.9% lead, 7.9% zinc and 0.2% copper
incl. 6.95 metres at 498 g/t (14.5 oz/t) silver, 6.1% lead and 9.1% zinc
5.9 metres at 163.4 g/t (4.8 oz/t) silver, 3.7% lead and 8.3% zinc
4.25 metres at 327 g/t (9.5 oz/t) silver, 3.7% lead and 5.3% zinc
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce that detailed underground channel saw-sampling of a historic, 600-metre exploration tunnel on the Santander silver-lead-zinc development project in Peru has identified several new zones of structurally controlled high-grade mineralization. These new mineralized zones returned significantly higher grades when compared to the nearest adjacent blocks in the independent resource model.
Key highlights of the channel sample results include:
CHANNEL SAMPLING BACKGROUND
The 4580-level historic exploration adit intersects the entire Magistral Central deposit approximately 40 to 50 metres below surface and extends approximately 600 metres in a northerly direction into the footwall of the Magistral North deposit.
Underground structural and geotechnical mapping of the adit has defined numerous predominantly East--West trending silver-rich mineralized zones. In detail they are comprised of a system of mineralized veins and associated replacement halos ranging from sub-centimeter scale to true widths approaching 17 metres. Veins strike approximately east-west and dip steeply north and south. These mineralized vein systems appear to be systematically controlled by NE and SE oriented wrench faults traceable on surface over considerable distances of in excess of one to two kilometres in places. They are presently interpreted to represent feeder systems to the currently defined Magistral deposits and represent highly attractive exploration targets.
Continuous channel saw-sampling of the adit provides excellent horizontal grade continuity data through the core of the Magistral Central deposit in addition to delineating several higher-grade mineralized zones. The results also identify three new mineralized vein zones in the footwall of the Magistral North deposit and more significantly two newly identified vein zones between the Magistral North and Magistral Central bodies.
RESULTS IN DETAIL
Within the footwall of the Magistral North zone, results confirm the potential for significant footwall mineralization as demonstrated towards the end of the 2008 definition drill program: Borehole SAN-098 intersected multiple zones of predominantly east-west trending vein and replacement footwall mineralization from approximately 11 metres below surface including two very substantial zones at 38.7 and 94.8 metres down-hole that intersected 13.8 metres and 14.8 metres of 12.6 oz/t (433.4 g/t) and 10.1 oz/t (346.7 g/t) silver equivalent mineralization respectively (see February 19, 2009 News Release for details).
The results highlight three zones of polymetallic veining, in addition to the sub-parallel Tortolitas vein that extend beyond and remain open to the east of the footwall of the currently defined Magistral North deposit (Figure 1 & Table 1).
Sampling of the sub-parallel Tortolitas footwall zone also confirms the presence of additional higher-grade mineralization not presently accounted for in the current resource model. The Tortolitas zone is hosted within a thrust fault and exposed for just over 80 metres in the back of an auxiliary exploration drift to the east (footwall) of the main Magistral North deposit. Due to the vein orientation (dipping east away from previous 2008 drill holes), few holes have intersected this structure within the favorable host formation. A rare intersection includes hole San-0045, 10.7 metres at 151.9 g/t silver (4.4 oz/t), 8.04% lead, 8.25% zinc and 0.2% copper (see June 26, 2008 New Release).
NORTH MAGISTRAL CENTRAL
Two additional East--West feeder vein zones were identified approximately 105 metres and 45 metres north-northwest of Magistral Central deposit (Figure 1 and Table 1). These two feeder veins returned broad zones of silver-rich polymetallic mineralization within which elevated silver values of up to 203.3g/t (5.9 oz/t) silver occur within an area of structural complexity and represent exciting new exploration targets.
Within the Magistral Central zone channel sampling parallel to and within the deposit demonstrates good to excellent horizontal internal grade continuity. More importantly when compared to the current resource block model and nearest drill-hole intersections they demonstrate significantly higher silver and lead values. It is considered highly likely that those East-West mineralized structural zones are currently under-represented in the block model due to unfavorable drill-hole orientations. A portion of the forthcoming 2009 drill program will test this model which has the potential to rapidly and dramatically increase resource grades.
Table 1: Summary assay results -- Santander Project - Zones ordered north to south.
*Intervals are approximately perpendicular to mineralized zone and represent true thicknesses.
**L = strike length, W = true width
*** Horizontal grade continuity sampling through accessible portions of the Magistral Central Body
Figure 1: Summary geological map of the Magistral North and Central deposits illustrating new mineralized zones identified in recent channel sampling.
The Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima, in the western extent of Peru's prolific Cerro de Pasco mineral district. The mine operated from 1958-1993 targeting a single Carbonate Replacement Deposit--type pipe and manto structure, the Santander Orebody.
Substantial site infrastructure at the formerly producing operation includes a fully refurbished 200-man camp and associated support facilities, an ore processing / concentrator plant (including various crushers, mills, flotation cells and filters able to produce zinc, lead-silver and copper concentrates) undergoing refurbishment, and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Santander project and the considerable existing infrastructure form a highly strategic asset in this mining district. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date.
A recently completed independent resource estimate of the three Magistral deposits reviews a total Indicated Mineral Resource of 5,298,000 tonnes with an average grade of 3.34% zinc, 1.27% lead and 38 g/t silver (using a 2% ZnEQ* cut-off grade) -- for a contained metal inventory of 390 million lbs. zinc, 149 million lbs. lead and 6.5 million oz. silver in the Indicated category. An additional Inferred Mineral Resource of 2,244,000 tonnes grading 2.92% zinc, 0.50% lead and 18 g/t silver was also reviewed in the three deposits using the same cut-off grade -- for contained metals of 144 million lbs. zinc, 25 million lbs. lead and 1.3 million oz. silver. All three Magistral bodies remain open at depth and to the East.
Additionally, a further 100 million contained lbs. of zinc are estimated to be present in the 1,656,000 indicated tonnes grading at 2.74% zinc (using a 2.0% zinc cut-off grade) at the Santander Tailings Impoundment.
*ZnEQ = ((Ag Price(g) x Ag Recovery x Ag Grade) + (Pb Price(t) x Pb Recovery x (Pb Grade(%)/100)+(Zn Price(t) x Zn Recovery x (Zn Grade(%)/100)))/Zn Price(t). Golder utilized the three year rolling average price for all three metals. Price for silver is per gram ($0.43339) and that for Pb ($1,983) and Zn ($2,742) is per tonne. A recovery of 85% was applied to Ag, 94% for Pb and 91% for Zn based upon Trevali's metallurgical testwork. A 2% ZnEQ* cut-off grade is the nominal base case estimated grade of material that can be mined and processed considering all applicable costs.
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.
The work programs at Santander were designed by, and are supervised by, Dr. Mark D. Cruise, President & CEO, Trevali, and Tim Kingsley (independent geological consultant), who together are responsible for all aspects of the work, including the quality control/quality assurance program. On-site personnel at the project rigorously collect and track samples which are then security sealed and shipped to ACME Laboratories, Vancouver, for assay. ACME's 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 ACME and an ISO-compliant third party laboratory for additional quality control.
The resource estimates on the Magistral North, Central and South deposits were conducted by and under the supervision of Kevin Palmer P.Geo., an independent qualified person employed by Golder Associates Ltd. of Vancouver, Canada.
About Trevali Resources Corp.
The Company in conjunction with partner Glencore International A.G. has successfully completed a positive internal mine development study examining initiating mining operations on the newly discovered Magistral silver-lead-zinc deposits at the Santander project.
Trevali and Glencore have entered into a definitive development agreement for the Santander project that will see Glencore provide and operate a 2,000-tonne-per-day concentrate plant, undertake mining operations on a 'contractor/toll basis' and enter into a long-term concentrate offtake agreement for 100% of Santander project production at benchmark terms.
Additionally, through its wholly owned subsidiary Trevali Renewable Energy Inc., the Company is undertaking a significant upgrade of the Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of the Company are currently listed on the CNSX (symbol TV). For further details on the Company, readers are referred to the Company's web site (www.trevali.com) and to Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
TREVALI RESOURCES CORP.
"Mark D. Cruise" (signed)
Mark D. Cruise, President
Contact Information: Steve Stakiw, Manager -- Corporate Communications
Phone: (604) 488-1661 / Fax: (604) 408-7499
The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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