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Trevali Mining increases M+I resources to 7.4B lb Zn

2019-03-28 09:26 ET - News Release

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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