Trevali Receives Tailings Operation Permit for Santander Silver-Lead-Zinc Project in Peru
June 23, 2009
June 23, 2009 - Vancouver, British Columbia...Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV, Frankfurt: 4TI, Pink Sheets: TREVF) is pleased to announce that it has received a permit from the Peruvian Ministry of Energy and Mines (Ministerio De Energia Y Minas) for the rehabilitation and usage of the tailings dam at its advanced-stage Santander Silver-Lead-Zinc Project in Peru.
The permit forms a critical component of the Company's plans to recommence production at the former Santander mining operation. Trevali submitted its Estudio de Impacto Ambiental (environmental impact statement) on February 10th, 2008 and received the permit on the 12th of June 2009. The permit now allows the Company to commence retreatment of and production from higher-grade tailings material from the past-producing Santander operation. A recent independent N.I. 43-101 Indicated Resource estimate of the tailings by Golder Associates of Vancouver, B.C. reviewed a total resource of 4.168 million tonnes at 1.94% Zn using a 0.75% Zn cut-off - within which 886,000 tonnes averaged 3.18% zinc using a 2.5% zinc cut-off. Trevali is currently studying fast-tracking initial production from the potentially low CAPEX and OPEX tailings resource in late-2009 to early-2010, prior to transitioning into the planned higher-grade, open-pit hard-rock mining operations.
The Company in conjunction with partner Glencore International A.G. is currently examining the feasibility of recommencement of mining operations focused on the newly discovered Magistral deposits. The recently completed independent resource estimate of the three Magistral deposits reviews a total Indicated Mineral Resource of 5,298,000 tonnes with an average grade of 3.34% zinc, 1.27% lead and 38 g/t silver (using a 2% ZnEQ* cut-off grade -- that is the nominal base case estimated grade of material that can be mined and processed considering all applicable costs) -- for a contained metal inventory of 390 million lbs. zinc, 149 million lbs. lead and 6.5 million oz. silver in the Indicated category. An additional Inferred Mineral Resource of 2,244,000 tonnes grading 2.92% zinc, 0.50% lead and 18 g/t silver was also reviewed in the three deposits using the same cut-off grade -- for contained metals of 144 million lbs. zinc, 25 million lbs. lead and 1.3 million oz. silver. All three Magistral bodies remain open at depth and to the East.
*ZnEQ = ((Ag Price(g) x Ag Recovery x Ag Grade) + (Pb Price(t) x Pb Recovery x (Pb Grade(%)/100)+(Zn Price(t) x Zn Recovery x (Zn Grade(%)/100)))/Zn Price(t). Golder utilized the three year rolling average price for all three metals. Price for silver is per gram ($0.43339) and that for Pb ($1,983) and Zn ($2,742) is per tonne. A recovery of 85% was applied to Ag, 94% for Pb and 91% for Zn based upon Trevali's metallurgical testwork.
Joint internal feasibility studies, currently underway with strategic partner Glencore, are progressing well and are anticipated to be completed imminently. Upon positive conclusions from the studies, Trevali and Glencore plan to enter into a definitive development agreement for the Santander project (see May 15, 2009 news release NR-09-09). The proposed joint business venture with Glencore will see them 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.
About Trevali Resources Corp.
The Company is currently exploring and conducting various scoping level studies on the former Santander polymetallic mine in Peru to ascertain as best as possible the feasibility of re-commencing mining and milling operations in a timely manner upon successful exploration and engineering studies.
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