Trevali acquires Mining Lease for former Restigouche zinc-lead-silver mine in New Brunswick
Monday, Jul 31, 2017
Fast-track production plan to provide supplemental feed to Caribou Mill with potential to bolster mill throughput above nameplate design and increase run-of-mine head grades

Trevali Mining Corporation ("Trevali" or the "Company")  announces that it has received the Mining Lease for the former Restigouche zinc-lead-silver mine located approximately 20-km west-southwest of the Company's Caribou mine in the Bathurst Mining Camp of New Brunswick. Furthermore, it has entered into a Limited Environmental Liability Agreement ("Agreement") with the Province of New Brunswick ("Province") regarding historic environmental liabilities ("Historic Liabilities"). Under the Agreement, Trevali will be responsible for all environmental liability and reclamation costs associated with the Restigouche mine on closure, other than in respect to any historic liabilities.

In keeping with the Company's corporate philosophy to minimize environmental impact, Trevali has agreed to allow the Province the option to store and dispose of Restigouche mine waste rock at the Caribou site, thereby providing the Province with a lower-cost and fast-track reclamation solution for the Restigouche site. The Agreement is based upon a report entitled "Program for the Protection, Reclamation, and Rehabilitation of the Environment" ("Reclamation Plan") prepared by Stantec Consulting Ltd. and submitted to, and approved by, the New Brunswick Department of Energy and Resource Development.

HIGHLIGHTS OF THE ACQUISITION

  • Provides Trevali with additional feed source of approximately 500-800 tonnes-per-day to support Caribou production with average head grades anticipated to be approximately 5.5-6% Zn, 4-4.5 % Pb and 70-75 g/t Ag (based on a preliminary internal resource estimation).
  • Provides an additional source of waste backfill for the Caribou mine underground workings and reduces the Province's liability at the Restigouche site.
  • From a social and sustainability perspective – near-term creation of up to an additional 50-60 full-time employment positions over an approximate 3-4-year potential mine life1, further strengthening Trevali's position as one of the larger employers in northern New Brunswick, and utilization of a working brown-field industrial site versus a green-field site.
  • Further strengthens and confirms Trevali's position as a premier, mid-sized zinc producer, with the goal of being a long-term employer in the Province of New Brunswick.

"We are very pleased to further strengthen our relationship with the Province of New Brunswick in developing a production pathway for the Restigouche mine and delivering a solution to assist the Province's remediation of historic environmental liabilities at the site," stated Dr. Mark Cruise, Trevali's President and CEO. "The acquisition of Restigouche fits in well with our longer-term vision for the Bathurst Mining Camp and our ability to leverage our infrastructure as the only operating producer in the region. As we continue to implement the optimization initiatives at our Caribou mill we will have the versatility to take advantage of its upside potential and both bolster and extend its operational capability."

"Job creation, economic development and responsible development of our resources are what matter most to New Brunswickers," said Education and Early Childhood Development Minister Brian Kenny, who attended the announcement on behalf of Energy and Resource Development Minister Rick Doucet. "Mining is a high value industry and New Brunswick is a proven producer of world class mines so this is great news for both Restigouche and Chaleur regions."

RESTIGOUCHE PROJECT

The Restigouche project is located approximately 27 kilometers west of Trevali's Caribou Mine site, along Highway 180. High-grade sulphide mineralization outcrops at surface and dips gently to the north-northwest. The Restigouche sulphide body has a strike length of approximately 120 metres and continues down dip for 460 metres. Thickness varies between 1-to-plus-30 metres, with an average thickness of approximately 20 metres. Restigouche was intermittently mined using an open pit mining method by two different operators, Breakwater Resources and Blue Note Mining, with the material being trucked to and processed at the Caribou mill, in total approximately 756,000 tonnes were mined historically. Trevali plans to undertake an updated National Instrument 43-101 (NI 43-101) compliant resource estimate for the Restigouche project in late 2017.

DEVELOPMENT PLANS

A mining method trade-off study and conceptual mine design is in progress by Mining Plus, based in Vancouver. In parallel to mine design, additional diamond drilling is planned for the H2-2017 to obtain additional geotechnical data, samples for metallurgical test work and to produce a NI43-101 compliant resource estimate. Following receipt of Approval to Operate, development of the mine portal will commence along with refurbishment and installation of site infrastructure: generators, maintenance shop, offices and site security, partly utilizing mobile infrastructure from Trevali's Halfmile mine site. It is anticipated that initial production from Restigouche to supplement feed to the Caribou mill will be in Q3-2018.

For more information, please visit: https://www.trevali.com

Member Profiles

Featured Profile

Featured Profile

Featured Videos

Featured Case Studies