Trevali Mining Corp. [TV-TSX, Lima; TREVF-OTCQX, 4T1-FSE] said Friday March 2 that it has signed a preliminary deal with Puma Exploration Inc. [PUMA-TSXV; PUXPF-OTC] for the option to acquire an interest in the Murray Brook deposit and to form a proposed strategic alliance in the northern portion of the Bathurst Mining Camp in New Brunswick.
Under the terms of the letter of intent (LOI), the option is subject to certain standard terms and conditions, including the receipt of all requisite regulatory approvals, including acceptance by the TSX Venture Exchange.
Trevali is already a big player in the Bathurst Mining Camp through its ownership of the operating Caribou zinc mine, which is comprised of an underground mine and a 3,000 tonne-per-day processing mill, flotation recovery plant, metallurgical and geochemical laboratories and a tailings management facility.
The Murray Brook deposit is located approximately 10 km west of the Caribou Mine along Provincial Highway 180 and is comprised of 484 hectares under Mining Lease 252. Geologically it is formed from a large, low-to-moderate grade massive sulphide body within which higher grade zones occur.
The system is divided into two distinct domains, the zinc-lead rich West Zone, which is approximately 200 metres wide, extending from surface to approximately 300 metres depth, and with a true thickness varying from 75-100 metres.
The copper-gold rich East Zone is approximately 100 metres wide, also extending from surface to a depth of 300 metres.
Murray Brook has a currently defined NI 43-101 measured and indicated sulphide mineral resource of 5.28 million tonnes, averaging 5.24% zinc, 1.80% lead, 0.46% copper, 68.9 g/t silver and 0.65 g/t gold, containing approximately 610 million pounds of zinc, 209 million pounds of lead, 54 million pounds of copper, 11.7 million ounces of silver and 111,000 ounces gold.
“The agreement comports well with Trevali’s Bathust Mining Camp strategy, whereby the company will leverage our infrastructure and operational expertise to further expand our footprint within the region,” said Trevali President and CEO Mark Cruise. “The addition of Murray Brook builds on Trevali’s significant resource inventory of potential mill feed in the Camp that also includes the Halfmile Mine, Stratmat, and Restigouche projects.”
Under the terms of the LOI, Trevali, at its option, will provide all or part of the remaining $7.5 million funding needed in order for Puma to finalize the 100% acquisition of the Murray Brook deposit, ultimately leading to a 75/25 ownership interest between Trevali and Puma, respectively and a 51/49 ownership in the Murray Brook East property, respectively.
Further exploration and development of the Murray Brook Deposit are to be funded proportionally with a view to advancing the site towards a production decision.
Trevali shares eased 2.03% or $0.03 to $1.45 in late morning trading Friday. The 52-week range is $1.75 and $1.03. Puma eased 5.26% or $0.005 to 9 cents.