VANCOUVER (miningweekly.com)  – A preliminary economic assessment (PEA) on Canadian pure-play zinc producer Trevali Mining's fully owned Halfmile-Stratmat zinc/lead/silver deposits, located in the Bathurst Mining Camp of New Brunswick, has produced strong results for developing either a standalone operation, or leveraging existing infrastructure at the nearby Caribou mine.

The Vancouver-based miner reported on Monday that the base case study, outlining a new 3 000 t/d concentrator at the Stratmat site, which will treat underground ore from both the Stratmat and Halfmile deposits, generates an after-tax net present value (NPV), using an 8% discount rate, of C$99-million and an internal rate of return (IRR) of 19%.

The base case scenario will cost C$231-million, with a projected mine life of 13 years. This scenario would have a peak yearly output of 117-million pounds of zinc, 35-million pounds of lead, two-million pounds of copper and 766 000 oz of silver.

Under the alternative scenario, ore would be pre-concentrated using a dense media separator, with final processing taking place at Trevali’s Caribou mill. This option will require capital expenditures of C$156-million, with an after-tax NPV, also at an 8% discount, of C$116-million and an IRR of 25%.

“This PEA study on Halfmile-Stratmat provides a strong, initial foundation for Trevali’s future plans in the Bathurst Mining Camp. The study contributes significantly to the company’s continued interest in the region and, along with the resource expansion potential at Caribou, additional material at the past-producing Restigouche mine and the exploration potential at the past producing Heath Steele mine, demonstrates the optionality for future planned production on either a standalone basis or by leveraging our current Caribou operational team and infrastructure," stated president and CEO Dr Mark Cruise.

The Halfmile deposit has measured and indicated resources of 7.8-million tonnes grading 2.35% lead, 6.94% zinc and 36 g/t silver. There is also an inferred resource of 6.5-million tonnes grading 1.51% lead, 5.62% zinc and 23 g/t silver.

The Stratmat deposit has an indicated resource of 4.7-million tonnes grading 2.1% lead, 5.3% zinc and 49 g/t silver plus an inferred resource of 2.4-million tonnes at 2.1% lead, 4.8% zinc and 39 g/t silver.

Trevali's TSX-listed stock on Monday closed up 2.76% at C$1.49 a share, following the news release.