|November 17, 2010|
Trevali commits to 10,000-metre exploration and definition drill program on Santander zinc-lead-silver mine project in Peru
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (TSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce an aggressive follow-up exploration program after the highly successful 2010 resource expansion program that saw the indicated tonnage increase by 53% and the inferred tonnage increase by an impressive 452% using a 3% ZnEQ* cut-off grade (see NR-10-13 for details). Mineralization remains open for expansion in all five deposits identified to date and numerous high-priority targets remain completely untested, reinforcing the potential for multiple additional deposits on the large, 44km2, wholly-owned property.
The Company has successfully secured two drill-rigs and has committed to a 10,000-metre diamond drill program. It is anticipated that drilling will commence early in the first quarter of 2011 with additional meterage contingent on results.
"The discovery hit rate to date has been an enviable 100% - four conceptual targets delivered four resource category mineralized bodies." stated Dr. Mark Cruise, president and chief executive officer of Trevali. "With a solid understanding of the controls on mineralization and the proven exploration techniques utilized to date, the upcoming program has the potential to yield very positive results".
The aim of the 2011 exploration and definition program is as follows:
Mineralization is controlled by a complex, but now well-understood, interplay between the NW-trending regional Santander Fault Zone, ENE to E-W-trending secondary structures (interpreted feeders) and folded permeable limestone units. Mineralization responds well to both passive and active geophysical techniques (in particular, magnetic, induced polarization, and electromagnetic surveys have led to delineation of four deposits so far) and numerous structural -- geophysical targets are present on the property (Figure 3).
Geological ground-truthing and surface geochemical screening of these targets has commenced and is ongoing, however work to date has successfully identified three new, high priority targets at Puajanca North, El Toro and Yanacocha that are currently undergoing final pre-drilling detailed targeting. Results of recent surface geochemical screening programs over these targets will be released upon receipt and final quality control (Figure 2).
LARGE PRODUCTIVE STRUCTURAL TRENDS
Since commencing exploration in mid-December 2007, Trevali has completed approximately 410-line-km of ground magnetics, 10-line-km of induced polarization and 33,000 m of diamond drilling in 171 holes. This proven multi-disciplinary exploration approach has successfully delineated two productive mineral fairways with strike lengths of 14 and 3 km, respectively (Figure 3).
Drill testing of a fractional portion of the productive trend, approximately 700 metres, has resulted in the successful delineation of four carbonate-hosted, polymetallic sulphide bodies from surface to approximately 200 to 350 metres vertical depth and the Company believes significant depth potential may remain.
SIGNFICANT DEPTH POTENTIAL
Mineral system and empirical analysis from both the property and comparatives in the Central Peruvian Mineral Belt suggests that all the mineralized bodies have significant additional depth potential, conservatively modelled as 200 to 400 additional vertical metres (Figure 1 & 2).
Figure 2: Schematic regional N-S transect through the central portion of the Central Mineral Belt illustrating vertical depth extent of known polymetallic systems (from present day erosion level to drilled depth extent -- note majority of the deposits remain open).
The deepest intercepts on all five mineralized bodies at Trevali's Santander Project are as follows -- suggesting significant depth potential may remain:
The Santander zinc-lead-silver mine project is located approximately 215 km by road from Lima, in the western extent of Peru's Central Polymetallic Belt globally a major producer of silver, zinc and lead. Site infrastructure includes a fully refurbished 200-man camp and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Company commenced exploration at Santander in December 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date. Mineralization remains open in all three Magistral deposits, the Puajanca zone and the past-producing Santander Pipe, and numerous high-priority targets remain to be tested.
Figure 3. Geological maps of Santander property showing location of known deposits, high priority targets at Puajanca North, El Toro and Yanacocha and structural - lithological targets. Dashed lines highlight the 14 and 3 km long Magistral and Santander -- Puajanca mineral fairways.
A recently completed independent resource estimate by Golder Associates reviews a total Indicated Mineral Resource of 5.858 million tonnes with an average grade of 3.86% zinc, 1.35% lead, 44 g/t silver and 0.08% copper (using a 3% ZnEQ* cut-off grade) for an estimated in-situ metal inventory of 498 million lbs. zinc, 174 million lbs. lead, 8.25 million oz. silver and 9.7 million lbs. copper. An additional Inferred Mineral Resource of 4.806 million tonnes grading 5.08% zinc, 0.44% lead, 21 g/t silver and 0.07% copper for an estimated in-situ metal inventory of 538 million lbs. zinc, 46 million lbs. lead, 3.19 million oz. silver and 7.8 million lbs. copper using the same cut-off grade.
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 ($14.90/oz) and that for Pb ($2,174), Zn ($2,079) and Cu ($6,504) is per tonne. A recovery of 85% was applied to Ag, 90% for Pb, 85% for Zn and 60% for Cu for calculating the ZnEQ formula. The pounds metal are in-situ and have not had any mining factors applied to them
QUALIFIED PERSON AND QUALITY CONTROL/QUALITY ASSURANCE
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, dfirector and shareholder.
The work programs at Santander were designed by, and are supervised by, Dr. Mark D. Cruise and Tim Kingsley (Senior Geologist), 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, BC 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 the Company's 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.
ABOUT TREVALI RESOURCES CORP.
The Company in conjunction with its partner, Glencore International A.G., has entered into a definitive development agreement for the Santander silver-lead-zinc project in west-central Peru that will see Glencore provide and operate on the property, 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 with the Company for 100% of the Santander project's 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, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of the Company are currently listed on the TSX (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
Steve Stakiw, Manager -- Corporate Communications
Phone: (604) 488-1661 / Fax: (604) 408-7499
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.
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