VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 15, 2011) - Trevali Resources Corp. (News - Market indicators)(OTCQX:TREVF)(FRANKFURT:4TI) ("Trevali" or the "Company") announces that drilling has intersected a new zone of high-grade, silver-rich massive sulphide mineralization over mineable widths at the past-producing Santander Pipe on the Santander mine project in Peru. Drill hole SAN-166 - the first hole in the 2011 Resource Expansion and Exploration program - intersected a very broad zone of disseminated silver and zinc mineralization that returned 132 metres of 0.6 oz/t (20.4 g/t) silver, 1.68% zinc within which higher grade intervals occur as highlighted above and in Table 1.
The area was identified as part of an ongoing property-wide multi-disciplinary exploration program as a very high priority target with potential to host significant mineralization. These results clearly provide positive proof of concept and the Company is confident that additional mineralized intercepts will be forthcoming from the new zone.
"These results are an excellent start to the 2011 drill program and provide strong support of the Company's aims of adding significant additional tonnage at Santander in order to potentially expand production from 2,000 to 4,000 tonnes per day following commissioning of the operation later this year," stated Dr. Mark Cruise, Trevali's President and CEO. "Given the team's 100% track-record to date – five targets drilled and five mineralized bodies delivered – I am very confident that ongoing drilling will continue to create shareholder value by rapidly adding more base and precious metal to Santander's open ended resource inventory."
TARGET SUMMARY
The Santander Pipe is roughly cylindrical in shape with a diameter of approximately 120 metres and a mined vertical depth of 480 metres. Mining ceased in mineralization and the Pipe remains open for expansion at depth (Figure 1).
Mineral system analysis of the Santander Pipe including detailed reconciliation work using historic drilling, channel sampling and production data suggests that very significant potential remains adjacent to and below the old mine – potentially in excess of what was historically mined (Figure 1).
Drill hole SAN-0166 targeted one such zone and intersected mineralization immediately adjacent to the historic orebody where it is transitioning from an annular ring to tabular replacement mantos from approximately 210 to 310 metres vertically below ground surface (Figure 1 & 2 and Table 1). Continuous skarn alteration with massive to semi-massive sulphide mineralization was intersected over a broad interval of 132.3 metres:
In detail, the skarn related mineralization is controlled by the intersection of the Santander Anticline with a cross cutting ENE striking, sub-vertical wrench fault. Mineralization in the upper half of the Pipe, from 0 to 230 metres below ground surface (bgs) is hosted within the Jumasha and Pariatambo limestones while the lower half occurs within limestones of the Chulec Formation. Massive to semi-massive sphalerite with accompanying argentifreous galena, pyrrhotite and minor chalcopyrite occurred as an annular ring 6-20 metres thick surrounding a central stock of garnetiferous skarn and disseminated sulphides. Sulphide mineralization in the lower half of the Pipe (230 to 440 metres bgs) occurs as manto replacement bodies between 5 to 25 metres thick and represents very attractive targets capable of rapidly adding significant tonnages.
Additional follow-up drilling from surface is in progress in order to further test the potential and continuity of mineralization. Once completed and contingent on results the Company will examine the feasibility of rehabilitating the uppermost historic mine workings in order to facilitate access for a larger resource expansion program.
To view Figures 1 and 2 accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/tv315.pdf
ABOUT TREVALI RESOURCES CORP.
The Company in conjunction with its partner, Glencore International A.G., has entered into a definitive development agreement for the Santander zinc-lead-silver project in west-central Peru that will see Glencore provide and operate on the property, 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 with the Company for 100% of the Santander project's production at International 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, in addition to supplying power to the mining operation on the property, the potential sale of surplus power into the Peruvian National Energy Grid.
Trevali has also recently entered into a definitive Arrangement Agreement with Kria Resources Ltd. (Kria) to complete a business combination whereby Trevali will acquire all of the issued and outstanding common shares of Kria and Kria will become a wholly-owned subsidiary of Trevali (see News Release NR11-02 for details).
The common shares of the Company are currently listed on the TSX (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.
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, Mark D. Cruise, President & CEO, Trevali, Tim Kingsley (Senior Geologist) and Tansy O'Connor-Parsons (Chief Geochemist), who together are responsible for all aspects of the work, including the quality control/quality assurance programs. 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.
On Behalf of the Board of Directors of TREVALI RESOURCES CORP.
Mark D. Cruise, President
This news release contains "forward-looking statements" within the meaning of the United States private securities litigation reform act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and the company does not intend, and does not assume any obligation to, update such statements containing the forward-looking information. Such forward-looking statements and information include, but are not limited to statements as to: the accuracy of estimated mineral reserves and resources, anticipated results of future exploration, and forecast future metal prices, anticipated results of future electrical sales and expectations that environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect estimates of mineral reserves. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.
These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release and the company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in spot and forward markets for silver, zinc, base metals and certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in currency markets (such as the Peruvian sol versus the U.S. dollar); risks related to the technological and operational nature of the Company's business; changes in national and local government, legislation, taxation, controls or regulations and political or economic developments in Canada, the United States, Peru or other countries where the Company may carry on business in the future; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; business opportunities that may be presented to, or pursued by, the Company; the Company's ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company's title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
