Trevali Resources Corp. - QwikReport

TREVALI RESOURCES CORP. : http://www.trevaliresources.com/ : QwikReport

Santander Project

Trevali Resource Corp's primary focus is the formerly producing high-grade silver - lead - zinc Santander mine located in Lima Department, Peru. Production from 1958 to 1991 focused solely on the Santander Pipe, where some 8 million tonnes grading +7% zinc, 1 to 4% lead and 60 g/t silver with additional copper credits were mined during the period.

Due to a combination of hyper-inflation and low metal prices, mining ceased in approximately 11% zinc mineralization at 480-500 metres below surface. Several deep exploration boreholes indicate that mineralization extends an additional 200 metres vertical depth.

Initial exploration work by the Company has confirmed the presence of previously untested high-grade mineralization to the North of the former mine site -- highlighting the very significant exploration potential of the large property package. The project enjoys both an excellent location and quality infrastructure.

In the short term, the Company plans to re-commence production and to create shareholder value via successful mine-site exploration. Medium- to long-term, the Company continues to monitor advanced projects in known productive belts where it can leverage its in-house operational expertise.

Location

The Property is located on the western edge of the Altiplano, which forms the Western Cordillera of the Andes, in the Central Peruvian Polymetallic Belt.

It is accessible by road from Lima, either via the town of Huaral and continuing through the villages of Acos and Tingo to Santander (distance of 215 km) or via the town of Canta to Santander, a distance of 200 km (Fig. 1).

Ownership

The Company, through its Peruvian subsidiary, Trevali Peru S.A.C., has acquired from Compania Minerales Santander S.A. ("Santander") of Lima, Peru, owners of the Santander Property the exclusive right for a period of 50 years (with an automatic 50 year extension) to engage in exploration, development, exploitation, processing and commercialization activities at the Santander property as well as the exclusive use of the existing infrastructure including a 1,000 person camp, associated support facilities and an ore processing/concentrate plant as well as the lease of a hydroelectric plant.

In addition the Company, through its Peruvian subsidiary, Trevali Peru S.A.C., has effectively acquired approximately 95% of the current outstanding qualified liabilities of Santander as of April 2010.
(Note: remaining ownership held by combination of Peruvian tax authorities and minor creditors)

Infrastructure

In detail, the infrastructure is comprised of an approximately 1,000-man camp (now fully refurbished to a modern 200-man camp) and associated support facilities; an ore-processing / concentrate plant (including various crushers, mills and cell houses) to produce zinc, lead-silver and copper concentrates. Additionally the Tingo hydroelectric power-station is located approximately 17 kilometres down-valley to the West and is connected to the mine site.

Property Background

The former Santander Mine is classified as a poly-metallic High Temperature Carbonate (HTC) or Carbonate Replacement Deposit (CRD). Modern mining activities commenced on the principal Santander Pipe from 1958 until 1991 to an approximate depth of 480 metres.

Total production is estimated to be about 8 million tonnes averaging +7% Zinc, 1 to 4% Lead and 60 g/t Silver with additional Copper credits. Mineralization remains open at depth with reported zinc grades of 11% in multiple replacement or manto bodies.

An initial due diligence study in late 2007 undertaken by the Company confirmed the high-grade nature of the former producer with values up to 39.8% Zinc, 8.98% Lead, 324 g/t Silver and 1.6% Copper (see NR-07-01 for details) determined through re-sampling of outcropping mineralization and historical drillholes (Table 1).

Table 1: Summary geochemisty results - Santander due diligence study.

Deposit	Downhole Interval	Grade
Magistral Norte - outcropping - continuous chip sample	9m	8.76% Zn, 8.6% Pb, 85 g/t Ag & 0.33% Cu
Magistral Norte DDH-MN-31	23.8m	8% Zn, 4.4% Pb, 137 g/t Ag & 0.11% Cu
Magistral Norte DDH-MN-38	2.2m	9.45% Zn, 4% Pb, 173 g/t Ag, 0.21% Cu
Magistral Norte DDH-MN-41	2.25m	9.58% Zn, 8.98% Pb, 324 g/t Ag & 0.22% Cu
Magistral Norte DDH-MN-43	4.2m	4.5% Zn, 4.28% Pb, & 69 g/t Ag
Magistral Norte	Characterization	10.6% Zn, 8.43% Pb, 89 g/t Ag & 0.28% Cu
Magistral Norte	Characterization	35.6% Zn, 0.16% Pb, 63 g/t Ag & 0.46% Cu
Magistral Sur DDH-MS-4	53.7m	6.39% Zn, 0.24% Pb & 28 g/t Ag
Magistral Sur	Characterization	15.86% Zn, 0.06% Pb, 19 g/t Ag & 0.07% Cu
Magistral Sur	Characterization	39.8% Zn, 0.13% Pb, 69 g/t Ag & 1.6% Cu
Magistral Sur	Characterization	18.38% Zn, 0.29% Pb, 61 g/t Ag & 0.14% Cu

click to view enlarged

Typically, such Carbonate Replacement Deposits (CRDs) are comprised of multiple lens and ore bodies and have the potential to form significant mining camps.

The 4,455-hectare (44km²) property contains numerous outcropping poly-metallic mineralized bodies (Magistral Norte, Central, Sur and Puajanca).

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This page was created on Tue Sep 7, 2010 at 3:34:25 AM Pacific Time.