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(Wallace Refiners) – Trevali Mining (TSX: TV) today announced the planned restart of operations at its Caribou mine near Bathurst, New Brunswick, which has been on a care and maintenance program since March 2020.
Trevali said that with the implementation of several operational and commercial enhancements, as well as improved zinc market conditions, the company expects to return to mining in early February 2021, with first payable zinc production expected by the end of March 2021.
The company stated that Trevali’s production plan at Caribou is “…anchored on operational and commercial enhancements that improve the mine’s fundamental economics and support enhanced value for Trevali shareholders.”
Trevali noted that following ramp-up in 2021, the All-in Sustaining Cost (AISC) for Caribou is forecast to be between $0.84 – $0.90 per pound of zinc in 2022, well under the overall $0.90 per pound of zinc target in Trevali’s T90 business improvement program.
President and CEO Ricus Grimbeek commented, “Our team has worked diligently to reduce the overall cost structure of the Caribou mine, and I am pleased that we are in a position to restart mine operations in a manner that we expect will generate positive cash flow.”
Production guidance for 2021 is estimated at between 60 – 65 million pounds of payable zinc, 21 – 23 million pounds of payable lead and 585 – 650 thousand ounces of payable silver. First payable zinc production is expected by the end of March 2021.
Cost guidance for 2021 for C1 Cash Cost is estimated between $0.79 – $0.84 per pound of zinc and AISC is expected to range between $0.91 – $0.97 per pound of zinc.
Capital expenditures are forecast at $9 million for 2021 and $2 million for 2022.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
