Government of New Brunswick
November 2017

In a November 6, 2017 press release, Trevali Mining Corp. released the results of a Preliminary Economic Assessment (PEA) conducted on their Halfmile-Stratmat massive sulphide zinc-lead-silver deposits within the Bathurst Mining Camp in northern New Brunswick. As part of the PEA, two scenarios were considered. The base case consisted of ore from both deposits being fed to a new 3,000 tonne-per-day concentrator plant on the Stratmat site. Results were positive for this scenario based on a pre-production capital expenditure of $231 million, a post-tax Internal Rate of Return of 19%, a post-tax Net Present Value of $99 million, and a mine life of 13 years. The second scenario included transporting pre-concentrated dense media feed to Trevali’s Caribou concentrator plant. Results were also positive for this case with an estimated pre-production capital expenditure of $156 million, a post-tax Internal Rate of Return of 25%, and post-tax Net Present Value of $116 million over a 13 year mine life. The average peak annual payable production for both scenarios (years 4-10) would be 117 million lbs Zn, 35 million lbs Pb, 2 million lbs Cu and 766,000 oz Ag.  As a part of the PEA, the Mineral Resource Estimate for the Halfmile deposit was updated. It consists of: 7.8 Mt of 0.30 g/t Au, 36 g/t Ag, 2.35 % Pb, 6.94% Zn, and 0.18 % Cu in the Measured and Indicated categories, and 6.5 Mt grading 0.10 g/t Au, 23 g/t Ag, 1.51% Pb, 5.62% Zn, and 0.15% Cu in the Inferred category.