Trevali hits new Santander production record, lifts guidance

TORONTO (miningweekly.com) – Canadian zinc producer Trevali Mining has set new quarterly throughput and production records at its Santander mine, in Peru.

For the period ended June 30, Santander produced about 15.2-million payable pounds of zinc (a new quarterly record), 5.6-million pounds of lead and 222 121 oz of silver, compared with prior-quarter output of 13.66-million pounds of zinc, 6.4-million pounds of lead and 221 324 oz of silver.

Trevali advised that Santander recoveries averaged 89% for zinc, 87% for lead and 73% for silver, which was largely on par with the prior quarter, except for silver recoveries, which were down from 76%. Mill throughput for the quarter was 219 086 t, besting the site’s previous record of 209 188 t set in the first quarter.

Given the mine’s record zinc output during the first half of 2016, Trevali had increased its 2016 Santander zinc production guidance to between 57-million and 60-million pounds of payable zinc in concentrate, grading about 50% zinc, up from 52-million to 55-million pounds. 

The lead and silver guidance for 2016 remained unchanged at 22-million to 25-million pounds of lead in concentrate grading about 56% to 58% lead, and 800 000 oz to one-million ounces of payable silver. Cash costs for the year, which were lowered following strong first-quarter operating results, remained at an estimated $35/t to $38/t milled and site-based business initiatives were ongoing, the company said.

Effective July 1, Trevali had declared commercial production at its Caribou mine, in New Brunswick, giving it a second producing zinc mine as an emerging supply gap for the base metal started to widen.

The positive news boosted Trevali’s TSX-listed stock about 8% on Monday to C$0.68 apiece.