Trevali Resources vor Produktionsaufnahme
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die Mühlen bei juniors laufen oft etwas langsam aber jetzt dürfte es endgültig ernst werden.
Neue Resourcenschätzung steht an, Börsenlisting an der TSX und Produktionsaufnahme noch in 2010.
Alleine das eigene Kraftwerk soll nach konservativer Schätzung einen cashflow von 5 Mio. USD generieren.
Zum Thema Zink / Blei möchte ich den hoch geschätzten Kollegen uprock zitieren:
* Thema Zink: habe ich kein Problem mit Zink, wirklich nicht. Zink und Blei besitzen dieses totale Graue Maus-Image, stattdessen sonnen sich die meisten "Marktteilnehmer" lieber bei teureren BM's wie Nickel oder Kupfer. Ich möchte hier gar keine grossen Kaffeesatzlesereien zur Zukunft einzelner Basismetalle abgeben, stelle aber mal zwei Punkte fest: erstens explizit im Zinkbereich für die nächsten Jahre bei der Konkurrenz einiges an Förderkapazität aufgrund von Minenerschöpfung wegfallen wird. Bei Kupfer zB sieht's ganz anders aus. Zweitens, betrachte ich mir die 3-Jahres-Forward-Preiskurve an der LME, dann sieht die bei Zink von allen BM's am besten überhaupt aus, und das sagt über die echte Marktmeinung oft eine Menge aus. Natürlich besteht aktuell keine Knappheit und auch Zink wird keine Chance haben, falls die Weltwirtschaft noch mal in die Knie geht. Aber ich sehe wenig Grund, mich mit Zink als Hauptprodukt unwohler zu fühlen, als mit irgendeinem anderen BM.
Trevali Resources Corp. plant, mit der Wiederinbetriebnahme seiner Santander-Mine im Westen Perus noch im laufenden Jahr der nächste Silber-, Blei- und Zinkproduzent Lateinamerikas zu werden. Die Santander-Liegenschaft verfügt über drei neue Vorkommen, in denen zahlreiche Metalle vorhanden sind und die über erhebliche Ressourcen und großes Potenzial zur Erweiterung der Vorkommen verfügen.
Um das Projekt schnellst möglich voranzubringen, hat Trevali eine Entwicklungsvereinbarung mit Glencore International, einem der großen Bergbaukonzerne und Metallhändler der Welt, abgeschlossen. Gemäß dieser Vereinbarung wird Glencore eine Konzentratanlage mit einer Kapazität von 2.000 Tonnen pro Tag bereitstellen und betreiben, den Abbau durchführen und eine langfristige Abnahmevereinbarung über die gesamte
Produktion des Projekts abschließen.
Unabhängige Experten haben für die Liegenschaft eine dem kanadischen Standard
NI43-101 entsprechende Ressourcenkalkulation von 5,3 Millionen Tonnen Erz mit einem
Gehalt von 3,3% Zink, 1,3% Blei und 38 Gramm Silber pro Tonne in der Kategorie
„angezeigt“ abgegeben. Erst Anfang des Monats erhielt Trevali die Ergebnisse der
jüngsten Bohrungen, die unter anderem auf der Magistral Central-Zone die höchsten
jemals auf dem Projekt, das zwischen 1958 und 1992 rund 8 Millionen Tonnen Erz
produzierte, nachgewiesen Zinkgehalte aufwiesen (9 Meter bei 18,52% Zink). Auch auf der Magistral South-Zone konnte Trevali die höchsten Gehalte überhaupt für diese Zone nachweisen (10,85 Meter bei 10% Zink).
Metallurgische Tests deuten auf hohe Metallgewinnungsraten hin und auf Material, das leicht gemahlen und zu verkaufsfähigen Silber-, Blei- und Zinkkonzentraten verarbeitet werden kann. Ein weiterer Vorteil für Trevali ist, dass auf dem Santander-Gelände bereits eine umfassende Infrastruktur besteht. Darunter auch das Wasserkraftelektrizitätswerk Tingo, das seit 1958 kontinuierlich
mit einer Leistung von bis zu 1,5 MW gearbeitet hat. Das Unternehmen plant nun, Tingo – mit Unterstützung der Behörden – bis auf eine Kapazität von 10 MW auszubauen und an das peruanische Stromnetz anzuschließen. Da der Strombedarf zum Betrieb der Santander-Mine auf lediglich 5 MW geschätzt wird, könnte Trevali die restliche Kapazität in das Netz einspeisen und sich auf diese Weise weitere stetige Umsätze erschließen.
Versantpartners Ersteinschätzung Kursziel 2,10 Can$
Alle Zahlen und Fakten:
http://www.versantpartners.com/pdfFiles/20100317TV.pdf
Präsentation März 2010 in Zürich
http://www.goldinvest.de/wp-content/uploads/...ion_Mar2010_Zurich.pdf
Resources in 3 Magistral deposits – all open
Approximate discovery cost of <0.5-cent per lb Zn-Pb
Current 2009-2010 exploration has intersected some of the highest-grade
and thickest mineralization to date – anticipate increased tonnes and headgrade:
NORTH – 31.75 metres at 118 g/t (3.4 oz/t) silver, 4.86% lead, 7.46% zinc
CENTRAL– 41.25 metres at 71.1 g/t (2 oz/t) silver, 0.8% lead, 8.2% zinc
SOUTH - 10.85 metres at 10% zinc
Resource update planned for early-Q2 2010
Excellent exploration potential for discovery of additional resources:
Eastern and depth extensions to Magistral deposits
Puajanca Zone
El Toro Zone
Geophysical targets
METALLURGY
Coarse grained mineralogy provides good recoveries to produce clean
concentrates
90% Lead recovery at 40% concentrate grade with 40-50 oz/t silver
85-90% Zinc recovery at 50% concentrate grade
80-85% Silver recovery (to lead concentrates)
Good potential for production expansion
TINGO HYDROELECTRIC GENERATING STATION
Conservative independent model suggests an NPV12 of US$10 million and after-tax IRR
of 20% with cashflow of US$5 million per annum. Life-of-project minimum 50 years
(indefinite).
Trevali Renewable Energy Inc. offers significant additional upside.
Short Term Value Drivers:
Production and cash flow targeted for 2010
Major strategic partner – Glencore (world’s largest metal trader)
Highly leveraged for predicted Zn and Pb deficits in late 2010 - 2011
Listings applications on major exchanges – Toronto & Lima
Proven team - resource expansion programs currently underway
Exposure to silver market opportunities
Medium Term Value Drivers:
Potential for increased capacity (4,000 tpd) and improved efficiencies
District Consolidation - disciplined approach to acquisitions
Examine further hydroelectric growth opportunities
Apr 28/10 Apr 26/10 Cruise, Mark Daniel Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $1.300
May 07/10 May 06/10 Cruise, Mark Daniel Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $1.100
May 07/10 May 06/10 Cruise, Mark Daniel Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $1.120
May 11/10 May 10/10 Cardero Resource Corp. Direct Ownership Common Shares 10 - Acquisition in the public market 40,700 $1.050
http://www.cnq.ca/Page.asp?PageID=2013&AA_RecordID=228
Konkrete Pläne für ein Listing in Lima im venture capital segment.
http://geobase80.bligoo.com/content/view/801252/...-dar-el-salto.html
Small mining are strengthened to make the leap
Sent by the 23/05/2010 GEOBASE80 at 11:51 am
For junior mining companies, this may be the year of the spurt. According to Metals Economics Consulting Group (MEG), by 2010 these companies will have a better financial position than last year to develop its mining projects worldwide.
In Peru, junior mining companies have been strengthened to raise capital on the Bolsa de Valores de Lima (BVL). Of the 31 mining companies listed on the BVL, eight are junior. To this end, the Exchange has a venture capital segment, called the Venture Exchange, a body specially created for junior mining companies have the opportunity to obtain financing through the capital market.
Among the junior mining exploration investment plans include: Minera IRL (project Veca and Bethania), Solitaire Minierals (Pinaya) Acero-Martin (copper-gold Pinaya) Trevali Resouces (Santander polymetallic, Lima), Panoro Minerals (Kusiorco , Apurimac), Duran Ventures (panther, Huancavelica) Strait Gold Corp (Alicia, Apurimac) and Sumitomo (two rights in Tacna, just 50 km from the border with Chile).
Some have made the leap, as Fortuna Silver, who last year graduated from the junior and now listed on the main board. With just five years, this production of silver is getting ready to operate its second mine, no less than in Mexico. His successful experience heading Caylloma in Arequipa, has allowed the next rung up.
The company was founded in Canada by a Peruvian, Jorge Ganoza, and two businessmen in Vancouver, 2005. "There were times when there was much appetite in the market for the benefits it can offer an increase in the price of silver as the ETF (Exchange Traded Funds) that can provide the benefit of the price of silver without having to buy the metal same ", explains Luis Ganoza, the current CFO.
Fortuna Silver's story lives up to its name. It started in the Caylloma mine, which bought the group Hochschild. Although the site had been stalled in two and a half years has doubled its capacity. Of the 550 tons a day that was in October 2006 and rose to 1,200 tonnes per day in April 2009.
"The 2009 was a year of better prices on average, gave us good results. This year, we are entering a period of consolidation in terms of production capacity, looking for efficiencies rather than growth, this will give us time to better explore the deposit and assess whether there are opportunities for expansion, "he says.
The San Jose mine in Guajaca, Mexico, will be the second phase of creamiento of Fortuna. With this investment, they expect to go from 1.8 million ounces of silver per year to 7 million ounces, adding deposits of San Jose and Caylloma. "This way, we will refund as a producer," he smiles Luis Ganoza.
Caretas Source Magazine Edition 2129
Tags: small junior mining peru
They hope to be a producing mine by end of 2010. Starting with the tailings of previous mining and then onto new production. This would mean a profitable mining operation in 2011.
They are hoping for a TSX listing very soon. applications are submitted. This is for a TSX listing not a Venture listing. Will also be listed in Lima.
Drilling is ongoing with a crew onsite of abound 40-50 currently. Drills will be turning all season. Most discoveries are open at depth and to one side. Expect grades to improve.
Overall an encouraging meeting.
Hier eine sehr lesenswerte Studie zum Zinkmarkt
http://www.ironbark.gl/documents/credit_suisse-think_zinc.pdf
Summary: As demand growth moves from China to ex China, zinc is one of
the commodities most cyclically levered to the ex China steel market
rebound that we forecast. Structurally, the zinc story remains very bullish, in
our view, as the developing world including China sees a likely exponential
increase in later cycle galvanised steel capacity and output. China is also
likely to increase its quantity of zinc use in galva – as its required quality of
steel increases. Our analysis suggests there is a potential requirement for a
60% increase in new mine capacity by 2016 at a point in time when zinc still
appears an unfashionable investment for companies.
Differentiation: Unlike many houses, we link zinc demand analysis very
tightly into our cyclical and structural view of global steel markets (galva is
55-60% of the demand for zinc). This gives us a strong sense of the cyclical
possibilities for zinc over the next 12-18 months as well as the structural
positives the market has to offer on demand as well as supply. With a very
bullish structural demand story set against depleting supply, the structural
story for zinc could be as strong as any metal in our view, with the added
benefit that the market seems relatively unaware about the drivers which
could give us this scenario (versus for e.g. copper).
Stock to highlight: Within our coverage universe, Xstrata has greater
exposure to zinc with brownfield and greenfield projects to augment future
volumes. Lundin Mining (covered in our Toronto office) is a play on zinc and
copper while HudBay Minerals Inc (covered in our Toronto office) is one of
our preferred plays on zinc.
Perilya hält Ausschau nach Wachstumsmöglichkeiten
28. Mai 2010
Unternehmenschef Arndt erwartet für die kommenden 18 Monate, dass der Zinkmarkt in Bewegung bleiben werde. Die wirtschaftliche Lage könnte zu einem leichten Überangebot am Markt führen, glaubt der Konzernlenker. Allerdings kann sich dies in der Zeit danach ändern. Der Hintergrund: Laut Arndt werden einige größere Zink-Minen aufgrund sich erschöpfender Rohstoff-Vorräte vom Markt verschwinden. Es seien keine Minen vorhanden, die diese wegfallenden Angebote ersetzen können.
Soll kurz vor einer Übernahme stehen.
Glencore wäre denkbar. Haben ja schon ein Mou mit Trevali.
Könnte aber auch ein Chinese oder Peruaner sein.
Zink ist gesucht und diese Mine ist die nächste kommende Produktionsanlage auf der Welt.
Eine Übernahme ist nur die logische Konsequenz.
Der Markt glaubt es auch.
Steigende Volumina mit einhergehenden signifikanten Kurssteigerungen sprechen dafür.
Eine runde Sache das ist.
Trevali mit eigenem Kraftwerk vorerst noch lieber.
..eine Übernahme zu einem späteren Zeitpunkt mit höherem Preis wäre sicher für uns keine schlechte Variante.
versantpartners geht in der Studie von einem eps 2011 von über 50 Cent aus.
Da ist also noch gut Luft nach oben.
Trevali Returns Deepest Intercepts to Date From Magistral Central and South Deposits-Expands Magistral North Footwall Zones and Puajanca Zone
6.75 metres at 100 g/t (2.9 oz/t) silver, 7.22% lead, 6.83% zinc & 0.18% copper
20.45 metres at 7.73% zinc & 0.12% copper
Press Release Source: Trevali Resources Corp. On Monday May 31, 2010, 2:58 pm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 05/31/10) - Trevali Resources Corp. ("Trevali" or the "Company") (CNSX: TV)(PINK SHEETS:TREVF - News)(Frankfurt:4TI - News) is pleased to announce receipt of final geochemical assay results from its 2009-2010 resource expansion, definition and geotechnical drilling program on its Santander silver-lead-zinc mine development project in west-central Peru. The 2009-2010 program was highly successful and exceeded the Company's technical expectations with all three Magistral deposits, the Puajanca South zone and the Santander Pipe remaining open for future expansion. The Company's proven exploration team has commenced screening and advancing several high priority geological - structural - geophysical - geochemical anomalies (of similar tenor to known mineralization) to the drill testing stage.
"By any metric the current drill program has been incredibly successful. Our technical team has unequivocally demonstrated with the drill-rig a fundamental understanding of the controls on mineralization at Santander, which sits within the world's pre-eminent polymetallic mineral belt," stated Dr. Mark Cruise, Trevali's President and CEO. "I am confident that we will continue to expand our resource base through new discoveries on our large land-package going forward. Finally, our engineering and permitting teams continue to advance the project on all fronts towards anticipated production."
Key highlights of the approximately 12,500-metre, 61-hole diamond drill hole program include:
-- Intersection of thick, high grade mineralization at mid-to-lower depositlevels-- Magistral North - SAN-109A 31.75m at 3.4oz/t Ag, 4.86% Pb & 9.96% Zn-- Magistral Central - SAN-123 41.25m at 2oz/t Ag, 0.8% Pb, 8.2% Zn &0.11% Cu-- Intersection of significant mineralization beyond the current resourcemodel at depth and along strike-- Magistral South - SAN-124 10.85m at 10% Zn-- Discovery new zones of mineralization, in particular high-grade broadlyE-W trending foot-wall zones-- Magistral North SAN-158: 6.75m at 2.9oz/t Ag, 7.22% Pb, 6.83% Zn &0.18% Cu-- Magistral Central SAN-126: 6.75m at 2.9oz/t Ag, 4.12% Pb, 3.76% Zn &0.1% Cu-- Intersection of significant mineralization between the Magistral Northand Central deposits - SAN-142: 1.6m at 6.2oz/t Ag, 9.08% Pb, 12.17% Zn& 0.39% Cu; SAN-143: 1.9m at 7.8oz/t Ag, 11.32% Pb, 12.84% Zn & 0.98% Cu-- Mineralization has been extended to approximately 350-to-400 metresvertically on all three Magistral deposits and remains open. The deepestintersections to date are as follows:-- Magistral North - SAN-096: 6.3m at 1.8oz/t Ag, 4.74% Pb & 4.18% Zn-- Magistral Central - SAN-165: 20.45m at 0.02% Pb, 7.73% Zn, & 0.12%Cu-- Magistral South - SAN-159: 4.4m at 0.9oz/t Ag, 0.55% Pb & 8.42% Zn-- Intersection of significant mineralization on the Puajanca South zonewith the latest hole, SAN-155 returning 4.3m at 1.8oz/t Ag, 2.91% Pb and5.24% Zn. The Puajanca North prospect located some 450 metres to thenorth has returned surface values averaging 6.4oz/t Ag, 15.59% Pb and7.18% Zn and is interpreted to represent high-level 'leakage' from anunderlying polymetallic target.-- Mineral system and empirical analysis suggests that all mineralizedbodies have significant additional depth potential - conservativelymodelled to range from 300-to-500 additional vertical metres.
PROJECT BACKGROUND
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.
Table 1: Summary assay results--------------------------------------------------Down-holeZone/Borehole From - To Inter-(dip/azimuth) (metres) val Ag oz/t (g/t) Pb % Zn % Cu%--------------------------------------------------PuajancaSAN-154(-38.1 degrees/ Test of structural - alteration target NW of Puajanca307.9 degrees) body - failed to intersect significant mineralization--------------------------------------------------PuajancaSAN-155 30.85-31.45m 0.6m 2.3 oz/t (79.6g/t) 8.41% 6.79% -(-29.8 degrees/ 47.75-52.05m 4.3m 1.8 oz/t (62.6g/t) 2.91% 5.24% -84.6 degrees) 76.7-77.05m 0.35m 6.7 oz/t (230g/t) 3.77% 8.83% --------------------------------------------------MagistralSouthSAN-156(-33.5 degrees/ Condemnation hole East of Magistral South - potential199.2 degrees) site of future open-pit waste piles--------------------------------------------------MagistralNorthSAN-157(-64.7 degrees/61.1 degrees) 239.65-241.8m 2.15m 4.8 oz/t (166.3g/t) 10.27% 14.22% 0.41%--------------------------------------------------MagistralNorthFootwallSAN-158 18.7-19.05m 0.35m 4 oz/t (138.9g/t) 13.66% 9.86% 0.12%(-36.2 31.85-38.6m 6.75m 2.9 oz/t (100.9g/t) 7.22% 6.83% 0.18%degrees/ Inc 36.8-37.6m 0.8m 7.3 oz/t (252g/t) 8.52% 9.13% 0.22%0.8 degrees) 44.3-46.1m 1.8m 1.9 oz/t (64.5g/t) 2.67% 4.27% --------------------------------------------------Magistral SurSAN-159(-60 degrees/ 381.6-382.55m 0.95m 8.4 oz/t (289.2g/t) 0.66% 5.83% 0.11%60 degrees) 392.8-397.2m 4.4m 0.9 oz/t (30.6g/t) 0.55% 8.42% --------------------------------------------------MagistralCentralSAN-160(-38 degrees/ Footwall test of portion of Magistral Central deposit -142 degrees) intersected a series of narrow approx. 0.3-0.4m veins.--------------------------------------------------MagistralSouthSAN-161(-50 degrees/ Footwall test of Magistral South deposit - failed to235 degrees) reach target depth--------------------------------------------------MagistralSouthFootwallSAN-162 18.3-4.1m 5.8m 2 oz/t (68.5g/t) 6.54% 0.44% -(-35 Inc 18.3-21.05m 2.75m 2.9 oz/t (100g/t) 13.53% 0.66% -degrees/ 118.05-124.45m 6.4m 0.7 oz/t (25.8g/t) 2.83% 1.46% -235 151.6-183.3m 31.7m 0.1 oz/t (4.9g/t) 1.93% 0.24% -degrees) Inc 178.25-182.15m 3.9m 0.3 oz/t (9g/t) 3.62% 0.17% --------------------------------------------------MagistralCentralSAN-163(-57 degrees/60 degrees) 310.4-311.8m 1.4m 8.4 oz/t (289.1g/t) 2.49% 9.15% 0.14%--------------------------------------------------MagistralSouthFootwallSAN-164(-45 degrees/29 degrees) 18.25-20.2m 1.95m 1 oz/t (34.3g/t) 1.1% 4.01% --------------------------------------------------MagistralCentralSAN-165(-60 degrees/ 317.95-332.1m 14.15m 1.2 oz/t (40.2g/t) 0.39% 1.37% -57 degrees) 401.1-421.55m 20.45m 0.1oz/t (4.7g/t) 0.02% 7.73% 0.12%--------------------------------------------------
An updated, independent N.I. 43-101 is currently in preparation with the results anticipated in late Q2 2010.
Mineral system and empirical analysis suggests that all mineralized bodies have significant additional depth potential – conservatively modelled to range from 300-to-500 additional vertical metres.
Im Vorfeld der news ist der Kurs gewaltig angezogen.
Allerdings steht kurzfristig das Listing und die neue Resourcenschätzung an und Glencore wird sich auch in den
nächsten Wochen / Monaten äussern müssen wie die weitere Strategie/Zeitplan für die Mine aussieht.
Eine PFS vor Produktionsstart wird es lt. versant wohl nicht geben.
The Northern Miner - Daily News
June 1, 2010
Vancouver - A 12,500-metre drill program at the Santander silver-lead-zinc project designed to boost confidence in the known resource, expand the deposits down plunge and towards each other, and prove up the existence of east-west footwall feeder zones has found success on all fronts for Trevali Resources (TV-C, TREVF-O).
In announcing the final assays results, Trevali called the program "highly successful" and said it "exceeded the company's technical expectations." The 61-hole effort tested all three of the deposits at Santander, known as Magistral North, Central, and South. Drills also tested an exploration target to the north known called Puajanca zone and returned silver-lead-zinc mineralization.
The Magistral deposits are steeply dipping, parallel zones of silver-lead-zinc mineralization, created as the lenses of a carbonate replacement deposit. Each deposit has currently been drill tested to roughly 400 metres depth.
At Magistral North recent drilling designed to test the mid-section of the deposit, where low drill densities resulted in gaps in the 2009 resource estimate, intercepted some of the thickest and highest-grade intercepts from the zone to date. Hole 109A cut 31.8 metres grading 116.6 grams silver per tonne, 4.86% lead, and 9.96% zinc.
Trevali also tested for additional mineralization above the current resource with three holes and all three returned broad mineralized intercepts, including the highest combined-grade intercept from the project to date: 1.2 metres of 268.9 grams silver, 17.3% lead, 20.9% zinc, and 0.64% copper in hole 119, within 16.2 metres carrying 72.4 grams silver, 5.81% lead, and 7.43% zinc.
And in pursuing its third exploration focus, Trevali also drilled in search of a footwall feeder zone and hit a new zone of mineralization: 2.3 metres of 282.2 grams silver, 11.55% lead, 10.07% zinc, and 0.34% copper. The company believes the intercept comes from a feeder zone perpendicular to the main Magistral North deposit and "critically, the intercept opens up a significant east-west trending structural target zone...similar high-grade ‘feeders' should be present in both the Magistral Central and South deposits."
At Magistral Central previous drilling had, like at the North deposit, left the midsection of the deposit as a low-grade, inferred area. And like at the North deposit, drills testing that middle portion to increase confidence in the mineralization returned some of the deposit's best intercepts to date, including 9 metres of 18.52% zinc within 41.3 metres carrying 68.6 grams silver, 0.8% lead, 8.2% zinc, and 0.11% copper in hole 123. Nearby, hole 153 cut 130 metres of semi-massive to massive sulphide mineralization including 23.7 metres carrying 69.7 grams silver, 0.38% lead, 6.93% zinc, and 0.16% copper.
Hole 127 hit the southern edge of the deposit and returned 6 metres of 148.4 grams silver, 1.99% lead, 5.06% zinc, and 0.19% copper, opening the Central deposit up towards Magistral South. And hole 126 tested for footwall ‘feeder zone' mineralization and hit 6.8 metres averaging 98.8 grams silver, 4.6% lead, 3.94% zinc, and 0.1% copper.
And the consistent returns continued at Magistral South, where Trevali reports "drilling returned multiple zones of zinc-rich mineralization in areas outside of the current resource." For example, hole 124 hit the best zinc grade from the South deposit to date - 10.9 metres grading 10% zinc - and the hit came from 40 metres north of the current resource boundary. Subsequent to that, hole 162 hit a footwall zone carrying 25.8 grams silver, 2.83% lead, and 1.46% zinc across 6.4 metres followed by 31.7 metres of 4.9 grams silver, 1.93% lead, and 0.24% zinc.
And at the Puajanca zone, 1 km north of Magistral North, initial drilling confirmed the presence of further mineralization. Hole 104 returned 35.3 metres grading 1.26% lead and 1.71% zinc, including values as high as 320 grams silver, 8.29% lead, and 5.13% zinc. And hole 155 cut 4.3 metres grading 61.7 grams silver, 2.91% lead, and 5.24% zinc. To date Trevali has traced the Puajanca South zone along 40 metres strike, across 15 metres width, and to 100 metres vertical extent. The nearby Puajanca North zone has not yet been drill tested but is apparent on surface as a series of galena veins stretching along 500 metres strike extent.
Trevali acquired the Santander project in late 2007. The property sits 200 km northeast of Lima and is home to the past-producing Santander mine, which tapped into the Santander pipe. The mine operated from 1958 until 1991, producing 8 million tonnes of ore grading 7% zinc, 1 to 4% lead, and 60 grams silver.
By May 2009 Trevali had discovered the three Magistral deposits, proving up a combined resource of 5.3 million indicated tonnes grading 3.34% zinc, 1.27% lead, and 38 grams silver plus 2.2 million inferred tonnes averaging 2.92% zinc, 0.5% lead, and 18 grams silver. In addition, the tailings impoundment from the old mine hosts 1.7 million indicated tonnes grading 2.74% zinc.
On the heels of its first resource estimate the company signed a memorandum of understanding with Glencore International, a large global commodity trader. The deal, which has not yet been finalized, will see Glencore provide and operate a 2,000-tonne-per-day concentrate plant for Santander, providing its operational expertise on a contractor or toll basis. Trevali will be able to acquire the plant and associated infrastructure over time through the tolls paid; the junior will also maintain complete ownership over the project. In addition, Glencore will buy 100% of the Santander project area life-of-mine production at benchmark terms.
The partners plan to start by processing the old tailings and will then transition into hard rock mining.
The historic mine left behind considerable infrastructure. Trevali rehabilitated a 1,000-person camp, creating a modern 200-person camp, and the project also boasts an ore-processing plant including various crushers, mils, and cell houses. And the project is connected to the Tingo hydroelectric power plant, which Trevali also owns. Tingo currently produces 1.6Mw; Trevali plans to increase its output to 10Mw and sell the 5 to 6Mw not needed to power a future mine into the Peruvian power grid.
News of the final results from Santander boosted Trevali's share price 12¢ in a day to reach $1.45. The company has a 52-week trading range of 60¢ to $1.80 and has 53 million shares outstanding, 66 million fully diluted. As of the end of March Trevali had $4.2 million on hand.