Business
Trevali Announces Temporary Suspension of Caribou Mine Operations
Trevali Announces Temporary Suspension of Caribou Mine Operations.
About this update from Trevali Mining Corp.
[{"type":"text","content":"\n VANCOUVER, British Columbia, March 26, 2020 (GLOBE NEWSWIRE) -- Trevali Mining Corporation (“Trevali” or the “Company”) (TSX: TV, BVL: TV; OTCQX: TREVF, Frankfurt: 4TI) today announced the temporary suspension of operating activities at its Caribou mine near Bathurst, New Brunswick. The global zinc market has deteriorated, and this has been exacerbated by the continued challenges presented by COVID-19. These market conditions, combined with high concentrate treatment charges, make mine operations at Caribou uneconomic at this time. The mine will be put on a care and maintenance program immediately to preserve the value of the mineral resource and mine assets. No timeline for a potential restart of operations has been defined. Trevali’s operations centre in Bathurst, which serves the Company’s global mine portfolio, will continue to operate. Ricus Grimbeek, Trevali’s President and CEO stated, “This is a difficult but necessary decision given the market and operating circumstances. We have a capable and engaged team at Caribou, and in the last 12 months we have made incremental improvements to increase production and reduce the cost structure. During the past year we demonstrated that the Caribou mill can achieve higher throughput than nameplate capacity while at the same time increasing metallurgical recoveries leading to higher production, however the significant recent drop in the zinc price limits our ability to generate positive cash flow.  This decision is no reflection on the quality of our team or the operating conditions in New Brunswick, and while the operation is paused, we will study a multitude of options in the Bathurst region to maximize value and reduce the overall cost structure of Caribou. This includes the potential to supplement the Caribou mine ore feed from ore deposits within trucking distance of the Caribou mill, metallurgical opportunities which may lead to commercial benefits around copper and gold, and potential for joint ventures with third parties.” Added Mr. Grimbeek: “This was not a decision made lightly and we are sensitive to the impact this will have on the community and on our team. We will be providing transition assistance to our workforce in addition to severance. I thank the entire Caribou team for their efforts to ...