Trevali Mining's Recent Assessment for Halfmile and Stratmat Deposits

Trevali Mining (TSX:TV) started the week by releasing a preliminary economic assessment for its Halfmile and Stratmat zinc-lead–silver deposits in New Brunswick’s Bathurst Mining Camp.

The report was led by SRK Consulting and looks at two different scenarios, both of which indicate positive economics, the company said in a statement on November 6.

“This PEA study on Halfmile-Stratmat provides a strong, initial foundation for Trevali’s future plans in the Bathurst Mining Camp,” said Mark Cruise, Trevali’s president and CEO.

Trevali is already a top zinc producer.

The base case looks at a scenario in which material from Halfmile and Stratmat is fed into a new 3,000-ton-per-day concentrator plant located at the Stratmat site.

This study includes annual payable peak production of approximately 117 million pounds of zinc, 35 million pounds of lead, 2 million pounds of copper and 766,000 ounces of silver over a mine life of 13 years.

It also points to pre-production capital expenditures of C$231 million, a post-tax internal rate of return (IRR) of 19 percent and a post-tax net present value of C$99 million at a discount rate of 8 percent.

The other scenario looks at the feasibility of transporting pre-concentrated dense media feed to the concentrator plant at the company’s Caribou mine, also located in the Bathurst Mining Camp.

Under that plan, pre-production capital expenditures are estimated at C$156 million, with the post-tax IRR coming in at 25 percent and the post-tax NPV sitting at C$116 million at an 8 percent discount rate.

“The study contributes significantly to the Company’s continued interest in the region and … demonstrates the optionality for future planned production on either a stand-alone basis or by leveraging our current Caribou operational team and infrastructure,” Cruise added.

The Halfmile deposit includes four sulfide zones and consists of 73 claims covering an area of 1,104 hectares.

Stratmat is composed of 95 contiguous claims spread across an area of 1,827 hectares.

The mineral resource estimate for Halfmile was updated as part of the PEA.

Aside from the Halfmile and Stratmat deposits, Trevali owns two commercially producing operations.

Its zinc-lead-silver Santander mine in Peru produces 2,000 tons per day, while its zinc-lead-copper-gold Caribou mine in New Brunswick produces 3,000 tons per day.

Earlier this year, Trevali acquired a portfolio of zinc assets from Glencore (LSE:GLEN) and now also owns an 80-percent stake in the Namibia-based Rosh Pinah mine and a 90-percent interest in the Perkoa mine in Burkina Faso.

The company has moved up nicely since the beginning of 2017, jumping over 31 percent.