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Trevali restarts Caribou mine with improved economics

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(Kitco News) - 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.

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