Dr. Mark Cruise reports
TREVALI REPORTS Q1-2016 SANTANDER MINE PRODUCTION AND RECORD QUARTERLY MILL THROUGHPUT - PROVIDES CARIBOU MINE COMMISSIONING UPDATE
Trevali Mining Corp. has released preliminary Santander mine production results for its first quarter ended March 31, 2016. The mine produced approximately 13.7 million payable pounds of zinc, 6.4 million payable pounds of lead and 221,324 payable ounces of silver (see attached table).
First quarter 2016 recoveries at Santander averaged 89 per cent for zinc, 88 per cent for lead and 76 per cent for silver. Mill throughput for the quarter was a new record of 209,188 tonnes.
SANTANDER MINE Q1 2016 PRELIMINARY PRODUCTION STATISTICS
Q1 2016
Tonnes mined 175,579
Tonnes milled 209,188
Average head grades
Zinc (%) 3.93%
Lead (%) 1.66%
Silver (ounces per ton) 1.32 oz/ton
Average recoveries (%)
Zinc 89%
Lead 88%
Silver 76%
Concentrate produced (dry metric tonnes)
Zinc 14,840
Lead 5,469
Concentrate grades
Zinc (%) 49%
Lead (%) 56%
Ag (ounces per ton) 38.70 oz/ton
Payable production
Zinc (pounds) 13,662,766
Lead (pounds) 6,436,047
Silver (ounces) 221,324
The company remains on track for its 2016 Santander mine production guidance of 52 million to 55 million pounds of payable zinc in concentrate grading approximately 50 per cent zinc; 22 million to 25 million pounds of payable lead in concentrate grading approximately 56 to 58 per cent lead; and 800,000 to one million ounces of payable silver. Cash costs for 2016 remain at an estimated $40 (U.S.) to $43 (U.S.) per tonne milled, and site-based business initiatives are continuing.
Caribou mine commissioning update
Trevali also provides a first quarter 2016 mine and mill commissioning update for its Caribou zinc mine in the Bathurst mining camp of northern New Brunswick. A detailed description and discussion are provided, and progress is shown in the attached table.
CARIBOU MILL -- KEY COMMISSIONING AND
PRELIMINARY PRODUCTION STATISTICS (FIGURES ROUNDED)
2015 Q1 2016
Tonnes mined 280,183 (i) 191,005
Tonnes milled 369,006 200,670
Average tonnes per day milled 2,005 2,675 (ii)
Average head grades
Zinc (%) 5.3% 5.9%
Lead (%) 2.0% 2.6%
Silver (ounces per ton) 1.7 oz/ton 2.0 oz/ton
Average recoveries
Zinc (%) 66% 71%
Lead (%) 48% 58%
Silver (in lead concentrate) (%) 25% 38%
Concentrate produced dry metric tonnes
Zinc 27,080 17,732
Lead 9,470 7,586
Concentrate grades
Zinc (%) 48.3% 47.8%
Silver (ounces per ton) 4.1 oz/ton 4.0 oz/ton
Lead (%) 37.6% 39.3%
Silver (ounces per ton) 16.8 oz/ton 20.3 oz/ton
(i) Does not include material mined and stockpiled prior to mill
start-up in mid-2015.
(ii) Exclusive of downtime for scheduled mill servicing and
maintenance cycle days.
Caribou zinc circuit summary
During the first quarter of 2016, the Caribou metallurgical team and partner Glencore continued with the implementation of the metallurgical performance plan that mainly focuses on increasing zinc recoveries to entitlement ranges as outlined in the Caribou preliminary economic assessment report (see technical report "Preliminary Economic Assessment for the Caribou Massive Sulphide Zinc-Lead-Silver Project, Bathurst, New Brunswick, Canada," prepared by SRK Consulting (Canada) Inc., on the company's website or on SEDAR).
The company continues to focus on highlighted areas for metallurgical improvement, including decreasing the primary grind size, improved zinc-cell mixing and retention times, with modifications to be implemented during continuing scheduled maintenance periods (please see news releases dated Jan. 21, 2016, and Feb. 24, 2016, for details).
Modifications completed during March (and which are continuing) continue to focus on the primary grind and zinc circuits. They include:
-
Improved vortex finders on two of the five cyclones, which is
successfully pushing more material to the mills for grinding;
-
Zinc bank splitter box improvements to achieve a more balanced feed into
the zinc-cell banks -- improved from original approximately 70/30 split
to 45/55 and aimed to fully balance going forward;
-
Increasing residence time in the zinc banks from nine and five minutes to 16 and 13 minutes, respectively, with the aim of balancing residence time
going forward;
-
Zinc cleaner baffle modification is substantially complete, with two
cells remaining and scheduled to occur during the April maintenance
shutdown;
-
Site pumping infrastructure review and recommendations by Glencore
Australia specialist and continuing improved pump piping (sump pumps rerouted).
Scheduled optimization initiatives during the second quarter include:
-
Delivery of smaller three-quarter-inch charge media for the primary grind circuit
in April;
-
SAG (semi-autogenous grinding) mill modifications, primarily the newly designed lifters and shell
liners (fabrication in progress), and charge from late May onward;
-
Mineralogical and size-by-size analysis results to track progress in
April;
-
Water chemistry trials in April;
-
Zinc cleaner density trials in April/May;
-
Test work and implementation of pumping recommendations and pumping
station upgrades in April and May, respectively, in order to maintain
consistent cyclone feed pressures that have been impacted by fine grind
frothing;
-
New instrumentation (flow meters and pressure sensors) to enable
enhanced thickener performance in April/May;
-
Increase the number of sample stations for the on-stream sample analyzer
in April/May.
Caribou mining
Underground production during the quarter averaged 2,230 tonnes per day at average grade of 5.9 per cent zinc, 2.6 per cent lead and two ounces per ton silver.
Continuing mine optimization initiatives include commencement of a 10,000-metre definition drilling and resource conversion program (with the contractor exceeding daily metreage targets) that will allow two additional mining zones to enter production in the second quarter of 2016, modification of drill-blast designs, targeted fleet efficiency programs and roadway upgrades.
First quarter 2016 financial results and conference call
Trevali will release financial results for its first quarter period ending March 31, 2016, on May 12, 2016, after the close of the trading day in Toronto. The company will host a conference call and audio webcast at 10:30 a.m. Eastern Time on Friday, May 13, 2016, to review the financial results. Conference call dial-in details and an audio webcast link will be provided in the financial results news release.
Qualified person and quality control/quality assurance
Dr. Mark D. Cruise, EurGeol, Trevali's president and chief executive officer, and Paul Keller, PEng, Trevali's chief operating officer, qualified persons as defined by National Instrument 43-101, have 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, director and shareholder. Mr. Keller is not independent of the company as he is an officer and shareholder.
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