Trevali Intersects Broad Zones of Polymetallic Mineralization in Magistral Central drilling
April 28, 2010
Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce that resource expansion drilling continues to intersect very thick zones of polymetallic mineralization at its Magistral Central deposit on the Santander silver-lead-zinc mine project in west-central Peru. Drill hole SAN-153 intersected approximately 130 metres of semi-massive to massive sulphide mineralization within which several broad intervals returned significant metal values including 23.65 metres at 69.7 g/t (2 oz/t) silver, 0.38% lead, 6.93% zinc and 0.16% copper.
Drill hole SAN-153 was targeted as an infill-test of the lower mid-level portions of the Magistral Central deposit in an area previously modelled as containing thin low-to-very-low grade polymetallic mineralization. Definition drill testing of these previously interpreted low-grade zones in all three Magistral deposits have returned some of the thickest and highest grade intercepts to date from the deposits.
An earlier drill-test of this previously interpreted low-grade zone within the Magistral Central deposit intersected the zone approximately 80-metres higher (nominally two sub-levels higher) and returned the highest-grade zinc intersection to date on the property -- SAN-123 with 42.25 metres at 71.1 g/t (2 oz/t) silver, 0.8% lead, 8.2% zinc and 0.11% copper within which a 9-metre interval returned 18.52% zinc. Inclusion of these thick, higher-grade zones could have significant implications for the forth-coming independent resource update tentatively scheduled for later in this second quarter of the year.
"The most recent assay results continue to increase the Company's leverage to forecast near-term global zinc shortages as several marquee zinc mines approach depletion of their resources," states Mark Cruise, Trevali's President and CEO. "All three Magistral deposits remain open as does the Puajanca zone -- intersection of such thick, broad intercepts greatly increases our goal of ultimately defining sufficient resources to merit increasing our planned processing capacity at the Santander polymetallic operation from 2,000 to 4,000 tonnes per day."
|Zone / Borehole |
(dip / azimuth)
|From – To |
|Ag oz/t (g/t)||Pb %||Zn %||Cu%|
SAN-150 to 152
|Shallow testing of a tertiary structural splay of the Magistral South deposit – no signifiant intercepts|
(-59.3º / 60º)
|280.55 – 373.55|
incl 317.95 – 370.70
incl 322.45 – 331.6m
incl 343.8 – 367.45m
|1.1 oz/t (37.1g/t)|
1.7 oz/t (59.3g/t)
2.2 oz/t (76.2g/t)
2 oz/t (69.7g/t)
An updated, independent 43-101 will be prepared upon receipt of the final holes assays.
Agreement was reached in the fall of 2009 between the Company and Compania Minerales Santander S.A.C. ("Santander") to suspend the Company's minimum monthly payment requirement of US$100,000 ("MMP") until such time as the Company has generated US$51,000,000 of revenue from its property at which time the Company will be obligated to recommence paying the greater of the monthly 3.5% NSR and the MMP. In consideration for the suspension of the MMP the Company agreed to advance to Santander by way of loan all necessary funds to cover the on-going costs of Santander's bankruptcy proceedings estimated to be US$250,000 per annum. Any funds advanced by the Company to Santander will rank as a first charge against the assets of Santander. In addition the Company was granted the exclusive right, up to September 30, 2014, to acquire the mineral concessions which comprise the property for a payment equal to the balance of the liabilities of Santander owing to others than the Company, on the date the Company exercises the right plus US$300,000.
The Board of Directors of the Company have approved the adoption of a Shareholder Rights Plan as a means of protecting the best interests of the Company's shareholders in the event of an unsolicited take-over bid for the Company's shares. This recommendation was made in light of (a) the Company's exploration and development work on its silver, zinc and lead property located in Province of De Huaral Deparmento de Lima, Peru and the recently announced partnership with Glencore International AG; and (b) the results of such work and the partnership may not reflect accurately the fair market value of the Company or its underlying share capital. The implementation of the Plan is subject to ratification by the shareholders of the Company at the Company's forthcoming Annual General Meeting scheduled to be held on May 27, 2010.
The Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima, in the western extent of Peru's world-class Central Polymetallic Belt. 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 November 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 on the Company's large, 100%-owned land package.
QUALIFIED PERSON AND QUALITY CONTROL/QUALITY ASSURANCE
EurGeol 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 and shareholder.
The work programs at Santander were designed by, and are supervised by, Dr. Mark D. Cruise, President & CEO, Trevali, 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, 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 Trevali 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.
Further, the Company, pursuant to its 2007 incentive stock option plan, has granted incentive stock options to certain directors, officers and consultants, allowing them to purchase up to a total of 300,000 common shares in the capital stock of the Company. The options are exercisable at a price of $1.25 for a period of two years ending April 28, 2012.
ABOUT TREVALI RESOURCES CORP.
The Company in conjunction with partner Glencore International A.G. has entered into a definitive development agreement for the Santander silver-lead-zinc project that will see Glencore provide and operate 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 for 100% of Santander project 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 the potential sale of surplus power into the Peruvian National Energy Grid.
The common shares of the Company are currently listed on the CNSX (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