Base metals miner Trevali, which owns operations in Peru, Canada, Namibia and Burkina Faso, has launched a “transformative improvement programme”, dubbed T90, which aims to move its operations down the cost curve.

Trevali is targeting $50-million in pre-tax yearly sustainable efficiencies over the next two years, culminating in all-in sustaining costs (AISC) falling to $0.90/lb by the beginning of 2022.

“We will accomplish this through operational improvements, standardization, and the deployment of technology. This plan will give us the platform to scale and additional improvements beyond T90 are undoubtedly in front of us as it opens the door to the reduction in cut off grades and extended mine lives at our operations,” said president and CEO Ricus Grimbeek.

T90 largely consists of improvement opportunities unique to each operating site, the deployment of standardisation and best practices to ensure “one company runs four orebodies” and the deployment of technology to improve productivity, the Vancouver, Canada-headquartered mining company explained on Tuesday.

T90 would also require an investment of between $60-million and $80-million in the Rosh Pinah mine, in Namibia.  A feasibility study for the Rosh Pina RP2.0 expansion project (RP 2.0) is under way and should be completed in the second quarter of next year.

Trevali stated RP2.0 would boost production by 60% to 80%, reduce unit costs, and improve recoveries and concentrate grades.

The miner is currently wrapping up the Rosh Pinah filtration and grinding project, which should be completed in the current quarter, with benefits starting to be realised in the first quarter of next year.

On other growth projects, Trevali said that it continued to evaluate an alternative sublevel caving mining method at Caribou, in Canada. A dedicated trial area had been identified and trial mining would start in the current quarter.

“Assuming a positive outcome, the extraction methods will be adopted more widely at Caribou and a new mine plan will be developed and current resources are expected to be converted to reserves.”

Trevali is also studying the possibility of hauling ore from the Restigouche project, 35 km from Caribou, as a supplemental ore source for the under-utilised mill. Restigouche required limited capital to reach production and an internal scoping study should be completed in the first quarter of next year.

At Santander, in Peru, drilling is under way at the Santander Pipe. An internal preliminary economic assessment should be completed by late next year, which would guide plans to potentially incorporate Santander Pipe ore into the existing operation.

RECORD QUARTER
Meanwhile, Trevali reported its second consecutive quarter of record zinc production at 106.8-million pounds and further cash cost and AISC reductions over the prior quarter, positioning the company to meet, or potentially exceed 2019 production targets.

Its C1 cash costs came in at $0.84/lb and AISC at $0.96/lb.

The miner reported adjusted earnings before interest, taxes, depreciation and amortisation of $22.5-million during the third quarter, underpinned by sales volumes of 111.1-million pounds of zinc payable and reduction of 7.6-million pounds of inventory.

Revenues increased by 6% from the second quarter, despite the 15% decrease in quarterly London Metal Exchange average zinc prices owing to a 19% increase in quarterly zinc payable sales.

Trevali’s net loss was $16.1-million, or a loss of $0.02 a share, compared with a net loss of $30.8-million over the same period a year ago.