Ms. Jessica McDonald reports
TREVALI PROVIDES MINERAL RESERVES AND MINERAL RESOURCES UPDATE; INCREASES CONSOLIDATED M+I ZINC RESOURCES 13 PER CENT YEAR OVER YEAR
Trevali Mining Corp. has provided its mineral reserves and mineral resources statements as of Dec. 31, 2018.
Highlights
-
Exploration successfully replaced and increased consolidated zinc measured and indicated resources at all mine sites, with higher grades at Santander and Caribou:
-
Consolidated measured and indicated mineral resources increased to 7.4 billion pounds (3.4 million tonnes) of contained zinc, an increase of 13 per cent over the prior year;
-
Consolidated inferred mineral resources comprise an additional 3.2 billion lb (1.5 million tonnes) of contained zinc.
-
Consolidated lead and silver resources also increased:
-
Consolidated measured and indicated mineral resources increased to 1.7 billion pounds (800,000 tonnes) of contained lead and 55 million ounces of contained silver;
-
Consolidated inferred mineral resources include an additional 800,000 lb (400,000 tonnes) of contained lead and 28 million ounces of contained silver.
- Consolidated proven and probable mineral reserves are:
-
2.83 billion pounds (1.28 million tonnes) of contained zinc;
-
494 million pounds (220,000 tonnes) of contained lead;
-
16.1 million ounces of contained silver.
-
Reserve tonnage increased at Santander and Rosh Pinah, while essentially remaining unchanged at Perkoa and decreasing at Caribou, where mine optimization studies are continuing.
- Exploration drilling at the Santander Pipe target in Peru successfully delineated an indicated resource averaging 6.81 per cent zinc, with mineralization contiguous and extending below the historic mine workings.
Consolidated mineral reserves and mineral resources statements are summarized in the "Total proven and probable mineral reserves as of Dec. 31, 2018," "Total measured and indicated mineral resources as of Dec. 31, 2018" and the "Total inferred mineral resources as of Dec. 31, 2018" table while the "Total proven and probable mineral reserves (contained metals) as of Dec. 31, 2018" and the "Total measured and indicated mineral resources and inferred mineral resource (contained metals) as of Dec. 31, 2018" table provide a comparison with 2017 mineral reserves and mineral resources on a contained metal basis. Detailed breakdowns for each of the active mines (Perkoa, Rosh Pinah, Caribou and Santander) and projects (Restigouche, Halfmile, Stratmat and Santander Pipe) are provided by category on a grade-tonnage-contained metal basis by mine regions in the detailed section. Mineral resources in this document are reported inclusive of mineral reserves.
TOTAL PROVEN AND PROBABLE MINERAL RESERVES AS OF DEC. 31, 2018 (1)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Mine Category Mt % % g/t M lb M lb K oz
Perkoa mine proven + probable 3.09 12.69 - - 864 - -
Rosh Pinah mine proven + probable 8.49 6.73 1.52 21.90 1,260 285 5,978
Caribou mine proven + probable 3.29 6.37 2.43 73.20 463 176 7,753
Santander mine proven + probable 2.34 4.67 0.64 31.86 240 33 2,393
Total proven + probable 17.2 7.45 1.59 35.52 2,827 494 16,124
(1) The M lb (million pounds) and K oz (thousand ounces) contained metals are the
total proven plus probable mineral reserve estimation of all the mines on a
100-per-cent basis. Trevali's proportionate ownership interest pursuant to the
applicable joint venture/option agreements is: Perkoa (90 per cent); Rosh Pinah
(90 per cent); Santander (100 per cent); Caribou (100 per cent).
TOTAL MEASURED AND INDICATED MINERAL RESOURCES AS OF DEC. 31, 2018 (1) (2)
Quantity Zn Pb Ag Zn Pb Ag
Project Category Mt % % g/t M lb M lb K oz
Perkoa mine measured + indicated 4.88 13.26 - - 1,427 - -
Rosh Pinah mine measured + indicated 11.32 7.82 1.76 26.13 1,950 439 9,509
Caribou mine measured + indicated 9.58 6.68 2.55 75.60 1,411 539 23,285
Santander mine measured + indicated 3.08 5.34 0.74 32.79 362 50 3,244
Santander Pipe project indicated 2.77 6.81 0.09 13.39 416 5 1,193
Restigouche project measured + indicated 1.08 5.00 3.30 46.30 119 79 1,613
Halfmile project measured + indicated 7.80 6.94 2.35 36.00 1,199 407 8,980
Stratmat project indicated 4.70 5.30 2.10 49.00 550 214 7,300
Total measured + indicated 45.21 7.45 1.74 38.03 7,435 1,733 55,124
(1) All mineral resources referred to in this news release are inclusive of stated mineral
reserves. Mineral resources that are not mineral reserves do not have demonstrated economic
viability.
(2) The M lb (million pounds) and K oz (thousand ounces) contained metals are the total
measured and indicated mineral resource estimation of all mines and projects on a
100-per-cent basis. Trevali's proportionate ownership interest pursuant to the applicable
joint venture/option agreements is: Perkoa (90 per cent); Rosh Pinah (90 per cent); Santander
(100 per cent); Caribou (100 per cent).
TOTAL INFERRED MINERAL RESOURCES AS OF DEC. 31, 2018 (1) (2)
Quantity Zn Pb Ag Zn Pb Ag
Project Category Mt % % g/t M lb M lb K oz
Perkoa mine inferred 1.21 10.21 - - 271 - -
Rosh Pinah mine inferred 5.56 7.11 1.13 24.93 872 139 4,457
Caribou mine inferred 5.12 6.42 2.65 78.52 725 299 12,925
Santander mine inferred 1.43 4.60 0.21 22.19 145 7 1,022
Santander Pipe project inferred 0.82 5.59 0.02 10.00 101 1 263
Restigouche project inferred 0.58 6.10 4.30 67.83 77 55 1,256
Halfmile project inferred 6.50 5.62 1.51 23.00 806 216 4,720
Stratmat project inferred 2.40 4.80 2.10 39.00 252 110 3,000
Total inferred 23.61 6.24 1.59 36.54 3,249 825 27,643
(1) All mineral resources referred to in this news release are inclusive of stated mineral
reserves. Mineral resources that are not mineral reserves do not have demonstrated economic
viability.
(2) The M lb (million pounds) and K oz (thousand ounces) contained metals are the total
measured and indicated mineral resource estimation of all mines and projects on a
100-per-cent basis. Trevali's proportionate ownership interest pursuant to the applicable
joint venture/option agreements is: Perkoa (90 per cent); Rosh Pinah (90 per cent); Santander
(100 per cent); Caribou (100 per cent).
TOTAL PROVEN AND PROBABLE MINERAL RESERVES
(CONTAINED METALS) AS OF DEC. 31, 2018 (1)
2018 2018 2018 2017 2017 2017
Project Category Zn Pb Ag Zn Pb Ag
M lb M lb K oz M lb M lb K oz
Perkoa mine proven + probable 864 - - 958 - -
Rosh Pinah mine proven + probable 1,260 285 5,978 1,299 237 4,876
Caribou mine proven + probable 463 176 7,753 729 272 11,945
Santander mine proven + probable 240 33 2,393 186 32 1,911
Total proven + probable 2,827 494 16,124 3,172 541 18,732
(1) The M lb (million pounds) and K oz (thousand ounces) contained
metals are the total measured and indicated mineral resource
estimation of all mines and projects on a 100-per-cent basis.
Trevali's proportionate ownership interest pursuant to the
applicable joint venture/option agreements is: Perkoa (90 per cent);
Rosh Pinah (90 per cent); Santander (100 per cent); Caribou (100
per cent).
TOTAL MEASURED AND INDICATED MINERAL RESOURCES AND INFERRED MINERAL RESOURCE
(CONTAINED METALS) AS OF DEC. 31, 2018 (1) (2)
2018 2018 2018 2017 2017 2017
Project Category Zn Pb Ag Zn Pb Ag
M lb M lb K oz M lb M lb K oz
Perkoa mine measured + indicated 1,427 - - 1,468 - -
inferred 271 - - 134 - -
Rosh Pinah mine measured + indicated 1,950 439 9,509 1,844 395 8,702
inferred 872 139 4,457 430 75 2,951
Caribou mine measured + indicated 1,411 539 23,285 1,198 448 19,449
inferred 725 299 12,925 856 327 14,597
Restigouche project measured + indicated 119 79 1,613 - - -
inferred 77 55 1,256 - - -
Halfmile project measured + indicated 1,199 407 8,980 1,199 407 8,980
inferred 806 216 4,720 806 216 4,720
Stratmat project indicated 550 214 7,300 550 214 7,300
inferred 252 110 3,000 252 110 3,000
Santander mine measured + indicated 362 50 3,244 314 54 3,297
inferred 145 7 1,022 345 35 3,135
Santander Pipe project indicated 416 5 1,193 - - -
inferred 101 1 263 911 40 4,871
Total measured + indicated 7,435 1,733 55,124 6,573 1,518 47,728
inferred 3,249 826 27,643 3,734 802 33,274
(1) All mineral resources referred to in this news release are inclusive of stated
mineral reserves. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(2) The M lb (million pounds) and K oz (thousand ounces) contained metals are the
total measured and indicated mineral resource estimation of all mines and
projects on a 100-per-cent basis. Trevali's proportionate ownership interest
pursuant to the applicable joint venture/option agreements is: Perkoa (90 per
cent); Rosh Pinah (90 per cent); Santander (100 per cent); Caribou (100 per
cent).
Detailed mineral reserve and mineral resource disclosure
Perkoa mine
The annual mineral reserve statement for the Perkoa mine utilized a net smelter return cut-off value of $100 (U.S.) per tonne while the mineral resources are disclosed using a 5-per-cent ZnEq cut-off value. The 2018 resource definition and exploration drilling programs replaced the 2018 mining depletion and maintained the rolling reserve replacement strategy, which it has successfully done since the acquisition of the asset. Measured and indicated mineral resources tonnages remain fundamentally flat with grades decreasing modestly from 13.73 per cent Zn to 13.26 per cent Zn.
Regional exploration is continuing and has successfully intersected two additional sulphide-bearing (stringer -- disseminated to narrow massive sulphide zones -- non-economic to date) VMS (volcanogenic massive sulphide) systems confirming that Perkoa is not an isolated occurrence. As a key focus in 2019, Trevali's proven exploration group is using a multidisciplinary approach in this frontier VMS belt. There are currently four drill rigs active on the Perkoa property consisting of two diamond drill rigs, two air core drill rigs with real-time geochemical analysis and two ground geophysical teams screening the prospective Perkoa mine horizon.
PERKOA MINERAL RESERVES AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Category Quantity Zn Pb Ag Zn Pb Ag
Mt % % g/t M lb M lb K oz
Perkoa mine (3)
Proven 1.22 14.44 - - 388 - -
Probable 1.87 11.55 - - 477 - -
Proven + probable 3.09 12.69 - - 865 - -
(1) All mineral reserves have been estimated in accordance
with the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) -- Definition Standards adopted by CIM
Council on May 10, 2014. Numbers may not add due to
rounding. The mineral reserve is shown at 100-per-cent
ownership, Trevali holds a 90-per-cent joint venture
interest in the Perkoa mine.
(2) The technical report entitled "Technical Report on the
Perkoa mine, Burkina Faso" dated April 12, 2018, is the
current technical report for the Perkoa property.
(3) The Perkoa underground mine mineral reserve estimate is
reported based on planned stopes with a net smelter
return cut-off grade of $100 (U.S.)/tonne, with metal
prices of $1.13 (U.S.)/lb zinc. The Perkoa underground
mine mineral reserve estimate has been prepared by non-
independent mine engineering consultants to the company
with an effective date of Dec. 31, 2018, under the
supervision of and approved by professional engineer
Barbara Rose (PEng), a qualified person as defined in
National Instrument 43-101 -- Standards of Disclosure
for mineral projects. Ms. Rose is principal mine engineer
of the company and accordingly, is not independent.
PERKOA MINERAL RESOURCES AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Perkoa mine (3)
Measured 1.94 15.36 - - 656 - -
Indicated 2.94 11.87 - - 770 - -
Measured + indicated 4.88 13.26 - - 1,427 - -
Inferred 1.21 10.21 - - 271 - -
(1) All mineral resources have been estimated in accordance
with the CIM Definition Standards. Mineral resources are
inclusive of mineral reserves. Mineral resources that are
not mineral reserves do not have demonstrated economic
viability. Numbers may not add up due to rounding. The
mineral resource is shown at 100-per-cent ownership,
Trevali holds a 90-per-cent joint venture interest in the
Perkoa mine.
(2) The technical report entitled "Technical Report on the
Perkoa mine, Burkina Faso" dated April 12, 2018, is the
current technical report for the Perkoa property.
(3) The Perkoa underground mine mineral resource estimate is
reported based on zinc equivalent cut-off grade of 5 per
cent ZnEq with metal prices of: $1.13 (U.S.)/lb zinc. The
Perkoa underground mine mineral resource estimate has been
prepared by the mine geology department and non-independent
resource geology consultants to the company with an effective
date of Dec. 31, 2018, under the supervision of and approved
by Yan Bourassa (PGeo), a qualified person as defined in NI
43-101. Mr. Bourassa is vice-president of mineral resources
management of the company and accordingly, is not independent.
Rosh Pinah mine
The conversion drilling program successfully replaced the 2018 mining depletion with tonnages for both proven and probable mineral reserves and measured and indicated mineral resources increasing in addition to mining depletion replacement. The mineral reserve zinc grade is modestly lower than 2017. The decline occurred primarily due to a combination of mining extracting higher than average mineral reserves grade tonnes in 2018, as well as a reduction of the NSR cut-off to $60/t from $66/t in 2017 allowing additional lower grade tonnes to be converted to mineral reserves. Rosh Pinah is a Tier 1 deposit on a grade-tonnage basis with the majority of zones, and in particular the Western ore field, the largest zone discovered to date remaining open for expansion. Exploration in 2018 successfully targeted higher grade, metallurgically superior mineralization in the Western ore field, which resulted in a significant increase in inferred tonnage and grades.
Rosh Pinah remains one of Trevali's lowest cost operations. The Rosh Pinah 2.0 optimization and expansion study, which continues to advance with completion anticipated in the second half of 2019, is evaluating opportunities to reduce the unit cost structure of the mine, further positioning Rosh Pinah as a low-cost, long-life and core asset for Trevali.
ROSH PINAH MINERAL RESERVES AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Rosh Pinah mine (3)
Proven 3.90 7.12 1.59 20.49 612 137 2,568
Probable 4.59 6.40 1.46 23.11 648 148 3,409
Proven + probable 8.49 6.73 1.52 21.90 1,260 285 5,978
(1) All mineral reserves have been estimated in accordance with
the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) -- Definition Standards adopted by CIM Council on May
10, 2014. Numbers may not add due to rounding. The mineral
reserve is shown at 100-per-cent ownership, Trevali holds a
90-per-cent joint venture interest in the Rosh Pinah mine.
(2) The technical report entitled "Technical Report on the Rosh
Pinah mine, Namibia" dated May 1, 2018, is the current
technical report for the Rosh Pinah property.
(3) The Rosh Pinah underground mine mineral reserve estimate is
reported based on planned stopes with a net smelter return
cut-off grade of $60 (U.S.)/tonne, with metal prices of:
$1.13 (U.S.)/lb zinc. The Rosh Pinah underground mine mineral
reserve estimate has been prepared by non-independent mine
engineering consultants to the company with an effective date
of Dec. 31, 2018, under the supervision of and approved by
Ms. Rose.
ROSH PINAH MINERAL RESOURCE AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Rosh Pinah mine (3)
Measured 5.49 8.33 1.93 27.14 1,009 234 4,792
Indicated 5.83 7.30 1.59 25.18 938 204 4,716
Measured & indicated 11.32 7.82 1.76 26.13 1,950 439 9,509
Inferred 5.56 7.11 1.13 24.93 872 139 4,457
(1) All mineral resources have been estimated in accordance with
the CIM definition standards. Mineral resources are inclusive
of mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. Numbers
may not add up due to rounding. The mineral resource is shown
at 100-per-cent ownership, Trevali holds a 90-per-cent joint
venture interest in the Rosh Pinah mine.
(2) The technical report entitled "Technical Report on the Rosh
Pinah mine, Namibia" dated May 1, 2018, is the current
technical report for the Rosh Pinah property.
(3) The Rosh Pinah underground mine mineral resource estimate is
reported based on zinc equivalent cut-off grade of 5 per cent
ZnEq with metal prices of: $1.13 (U.S.)/lb zinc, 95 U.S.
cents/lb lead, $14.50 (U.S.)/oz silver. The Rosh Pinah
underground mine mineral resource estimate has been prepared
by the mine geology department and non-independent resource
geology consultants to the company with an effective date of
Dec. 31, 2018, under the supervision of and approved by Mr.
Bourassa (PGeo), a qualified person as defined in NI 43-101.
Mr. Bourassa is vice-president mineral resources management
of the company and accordingly, is not independent.
Caribou mine -- Bathurst mining camp operations
The annual mineral reserve statement for the Caribou mine utilized a net smelter return cut-off-value of $75 (U.S.) per tonne, an increase from the $70-(U.S.)-per-tonne value used for the 2017 year-end disclosure. The cut-off increase reflects a year-to-year mining cost increase partly resulting from the implementation of cemented backfill and increased rehabilitation requirements. Proven and probable mineral reserves tonnage decreased from 2017, as the sill pillar recovery was decreased due to recent changes observed in ground conditions and remnant areas have been excluded from reporting in 2018 while continuing work is conducted to determine a safe, cost-effective mining methodology. Continuing mine optimization studies will seek to redress this. The overall grade increased due to improved geological constraint and more selective mining. The measured and indicated mineral resources saw an increase in tonnage, grade and contained metal over the 2017 year-end mineral disclosure and the deposit remains open for expansion. Additional studies remain continuing evaluating cost reduction opportunities at the mine with the aim of further converting mineral resource to reserves.
After completing a detailed multidisciplinary technical review of Murray Brook project, the company decided to not pursue its option to acquire a 75-per-cent interest, electing to focus on continuing to unlock value from the operating Caribou mine and further evaluate other projects in the region.
CARIBOU MINERAL RESERVES AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Caribou mine (3)
Proven 1.57 6.54 2.55 78.31 226.0 87.9 3,945
Probable 1.73 6.21 2.32 68.56 236.5 88.4 3,808
Proven + probable 3.29 6.37 2.43 73.20 462.5 176.3 7,753
(1) All mineral reserves have been estimated in accordance
with the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) -- Definition Standards adopted by CIM
council on May 10, 2014. Numbers may not add due to
rounding.
(2) The technical report entitled "Technical Report on the
Caribou mine, Bathurst, New Brunswick, Canada" dated May
31, 2018, is the current technical report for the Caribou
property.
(3) The Caribou underground mine mineral reserve estimate is
reported based on optimized stopes designed on an
incremental net smelter return cut-off grade of $75
(U.S.)/tonne with metal prices of: $1.13 (U.S.)/lb zinc,
95 (U.S.)/lb lead, $14.50 (U.S.)/oz silver. The Caribou
underground mine mineral reserve estimate has been
prepared by non-independent mine engineering consultants
to the company with an effective date of Dec. 31, 2018,
under the supervision of and approved by Ms. Rose (PEng),
a qualified person as defined in National Instrument
43-101 -- Standards of Disclosure for mineral projects.
Ms. Rose is principal mine engineer of the company and
accordingly, is not independent.
BATHURST MINING CAMP (NEW BRUNSWICK) MINERAL RESOURCES AS AT DEC. 31, 2018 (1) (2) (3)
Grade Metal
Quantity Zn Pb Cu Ag Au Zn Pb Cu Ag Au
Category Mt % % % g/t g/t M lb M lb M lb K oz K oz
Caribou mine (4)
Measured 6.00 6.69 2.53 - 75.36 - 885 335 - 14,537 -
Indicated 3.58 6.67 2.58 - 76.00 - 526 204 - 8,748 -
Measured & indicated 9.58 6.68 2.55 - 75.60 - 1,411 539 - 23,285 -
Inferred 5.12 6.42 2.65 - 78.52 - 725 299 - 12,925 -
Restigouche project (5)
Measured 0.29 4.63 3.08 0.21 38.80 0.45 30 20 1.4 364 4
Indicated 0.79 5.19 3.36 0.22 49.07 0.55 91 59 3.8 1,249 14
Measured & indicated 1.08 5.00 3.30 0.22 46.30 0.52 119 79 5.3 1,613 18
Inferred 0.58 6.10 4.30 0.28 67.83 0.81 77 55 3.6 1,256 15
Halfmile project (6)
Measured 0.40 5.92 1.99 0.46 40.00 0.60 54 18 4.0 520 10
Indicated 7.40 7.00 2.37 0.16 35.00 0.29 1,146 389 26.0 8,450 70
Measured & indicated 7.80 6.94 2.35 0.18 36.00 0.30 1,199 407 31.0 8,980 80
Inferred 6.50 5.62 1.51 0.15 23.00 0.10 806 216 21.0 4,720 20
Stratmat project (7)
Indicated 4.70 5.30 2.10 0.40 49.00 0.60 550 214 43.0 7,300 90
Inferred 2.40 4.80 2.10 0.70 39.00 0.40 252 110 37.0 3,000 30
(1) All mineral resources have been estimated in accordance with the CIM definition
standards. Mineral resources are inclusive of mineral reserves. Mineral resources
that are not mineral reserves do not have demonstrated economic viability. Numbers
may not add up due to rounding.
(2) The technical report entitled "Technical Report on the Caribou mine, Bathurst, New
Brunswick, Canada" dated May 31, 2018, is the current technical report for the
Caribou property.
(3) The technical report entitled "Technical Report on Preliminary Economic Assessment
for the Halfmile-Stratmat Massive Sulphide Zinc-Lead-Silver Integrated Project
Bathurst, New Brunswick, Canada" dated Oct. 26, 2017, is the current technical
report for the Halfmile-Stratmat property.
(4) The Caribou underground mine mineral resource estimate is reported based on a zinc
equivalent cut-off grade of 5 per cent ZnEq with metal prices of: $1.13 (U.S.)/lb
zinc, 95 U.S. cents/lb lead, $14.50 (U.S.)/oz silver. The Caribou underground mine
mineral resource estimate has been prepared by the mine geology department and
non-independent technical consultants to the company with an effective date of
Dec. 31, 2018, under the supervision of and approved by Mr. Bourassa, a qualified
person as defined in NI 43-101. Mr. Bourassa is vice-president of mineral resources
management of the company and accordingly, is not independent.
(5) The Restigouche underground mine mineral resource estimate is reported based on a
zinc equivalent cut-off grade of 3 per cent ZnEq with metal prices of: $1.13
(U.S.)/lb zinc, 95 U.S. cents/lb lead, $14.50 (U.S.)/oz silver. The Restigouche
underground mine mineral resource estimate has been prepared by the exploration
geology department and non-independent technical consultants to the company with an
effective date of July 30, 2018, under the supervision of and approved by Mr.
Bourassa (PGeo), a qualified person as defined in NI 43-101. Mr. Bourassa is
vice-president of mineral resources management of the company and accordingly, is
not independent.
(6) The Halfmile underground project mineral resource estimate is reported based on a
zinc equivalent cut-off grade of 5 per cent ZnEq with metal prices of: $1.05
(U.S.)/lb zinc, 95 U.S. cents/lb lead, $20 (U.S.)/oz silver, and a foreign exchange
rate of 80 U.S. cents to $1 (Canadian). The Halfmile underground project mineral resource
estimate was prepared and approved by professional geologist Gilles Arseneau (PGeo),
a consultant with SRK Consulting (Canada) Inc., who is an independent qualified
person as defined in NI 43-101, with an effective date of Oct. 26, 2017.
(7) The Stratmat underground project mineral resource estimate is reported based on zinc
equivalent cut-off grade of 5 per cent ZnEq with metal prices of: $1 (U.S.)/lb zinc,
$1 (U.S.)/lb lead, $21.15 (U.S.)/oz silver, foreign exchange rate of 85 U.S. cents to
$1 (Canadian). The Stratmat underground project mineral resource estimate was prepared
and approved by Mr. Arseneau (PGeo), a consultant with SRK Consulting (Canada) Inc.,
who is an independent qualified person as defined in NI 43-101, with an effective date
of Oct. 26, 2017.
Santander mine
The annual mineral reserve estimate at the company's Santander mine utilized a net smelter return cut-off value of $45 (U.S.) per tonne. The 2018 drill program successfully replaced mined inventory for the year with proven and probable reserves and measured and indicated mineral resources increasing in tonnages, grade and contained metal. The 2018 drilling program at Santander mainly focused on replacing mining depletion, but a significant amount of drilling also targeted resource conversion at the Santander Pipe project. The Santander Pipe drilling program successfully converted 2.77 million tonnes of inferred mineral resources to indicated resources at a grade of 6.81 per cent Zn for a total of 416 million pounds of contained zinc metal. The Santander Pipe will continue to be evaluated in 2019.
SANTANDER MINERAL RESERVES AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Santander mine (3)
Proven 1.11 4.71 0.77 34.54 115.8 19.0 1,238
Probable 1.22 4.62 0.51 29.42 124.5 13.7 1,155
Proven + probable 2.34 4.67 0.64 31.86 240.3 32.7 2,393
(1) All mineral reserves have been estimated in accordance
with the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) -- Definition Standards adopted by CIM
council on May 10, 2014. Numbers may not add due to
rounding.
(2) The technical report entitled "Mineral Reserve Estimation
Technical Report for the Santander Zinc Mine, Province
de Huaral, Peru" dated March 31, 2017, is the current
technical report for the Santander property.
(3) The Santander Magistral underground mine mineral reserve
estimate is reported based on optimized stopes designed on
an incremental net smelter return cut-off grade of $45
(U.S.)/tonne with metal prices of: $1.13 (U.S.)/lb zinc,
95 U.S. cents/lb lead, $14.50 (U.S.)/oz silver. The
Santander Magistral underground mine mineral reserve
estimate has been prepared by non-independent mine
engineering consultants to the company with an effective
date of Dec. 31, 2018, under the supervision of and approved
by professional engineer Ms. Rose (PEng), a qualified person
as defined in National Instrument 43-101 -- Standards of
Disclosure for Mineral Projects. Ms. Rose is principal mine
engineer of the company and accordingly, is not independent.
SANTANDER MINE MINERAL RESOURCE AS AT DEC. 31, 2018 (1) (2)
Grade Metal
Quantity Zn Pb Ag Zn Pb Ag
Category Mt % % g/t M lb M lb K oz
Santander mine (3)
Measured 1.42 5.63 0.92 33.96 176 29 1,552
Indicated 1.66 5.09 0.59 31.78 186 22 1,692
Measured + indicated 3.08 5.34 0.74 32.79 362 50 3,244
Inferred 1.43 4.60 0.21 22.19 145 7 1,022
Santander Pipe project (4)
Indicated 2.77 6.81 0.09 13.39 416 5 1,193
Inferred 0.82 5.59 0.02 10.00 101 0.4 263
(1) All mineral resources have been estimated in accordance with the
CIM definition standards. Mineral resources are inclusive of
mineral reserves. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. Numbers may not
add up due to rounding.
(2) The technical report entitled "Mineral Reserve Estimation
Technical Report for the Santander Zinc Mine, Province de Huaral,
Peru" dated March 31, 2017, is the current technical report for
the Santander property.
(3) The Santander Magistral underground mine mineral resource estimate
is reported based on a net smelter return cut-off grade of $40
(U.S.)/tonne with metal prices of: $1.13 (U.S.)/lb zinc, 95 U.S.
cents/lb lead, $14.50 (U.S.)/oz silver. The Santander Magistral
underground mine mineral resource estimate has been prepared by
the mine geology department and non-independent resource geology
consultants to the company with an effective date of Dec. 31, 2018,
under the supervision of and approved by Mr. Bourassa (PGeo), a
qualified person as defined in NI 43-101. Mr. Bourassa is
vice-president of mineral resources management of the company and
accordingly, is not independent.
(4) The Santander Pipe underground deposit mineral resource estimate
is reported based on a net smelter return cut-off grade of $40
(U.S.)/tonne with metal prices of: $1.13 (U.S.)/lb zinc, 95 U.S.
cents/lb lead, $14.50 (U.S.)/oz silver. The Santander Pipe
underground deposit mineral resource estimate has been prepared
by the exploration geology department and non-independent resource
geology consultants to the company with an effective date of Dec.
31, 2018, under the supervision of and approved by Mr. Bourassa
(PGeo), a qualified person as defined in NI 43-101. Mr. Bourassa
is vice-president of mineral resources management of the company
and accordingly, is not independent.
Qualified persons and technical information
The mineral reserve and mineral resource estimates have been estimated and compiled in accordance with definitions and guidelines set out in the definition standards for mineral resources and mineral reserves adopted by the Canadian Institute of Mining, Metallurgy, and Petroleum and as required by Canada's National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. Mineral reserve estimates reflect the company's reasonable expectation that all necessary permits and approvals will be obtained and maintained, mining dilution and mining recovery have been applied in estimating the mineral reserves.
The mineral reserves were prepared under the supervision of Ms. Rose, a qualified person as defined by NI 43-101. Ms. Rose is principal mine engineer for the company and is therefore not considered independent.
The mineral resource technical contents have been prepared by the company's technical personnel under the supervision of Mr. Bourassa, a qualified person as defined in NI 43-101. Mr. Bourassa is vice-president of mineral resources management of the company and accordingly, is not independent.
About Trevali Mining Corp.
Trevali is a zinc-focused, base metals company with four mines: the 90-per-cent-owned Perkoa mine in Burkina Faso, the 90-per-cent-owned Rosh Pinah mine in Namibia, the wholly owned Caribou mine in the Bathurst mining camp of northern New Brunswick in Canada and the wholly owned Santander mine in Peru.
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