Trevali, Glencore sign MOU

Vancouver – Trevali Resources (TV-C, TREVF-O) has attracted the interest of metals-giant Glencore to its Santander silver-lead-zinc project in Peru.

Trevali announced the two companies have signed a memorandum of understanding (MOU) related to the potential development and operation of the Santander project about 215 km by road from Lima.

According to the MOU Glencore will get 100% of production from the mine and the two companies will form a joint-venture to advance the project. The immediate goal of the joint-venture will be to produce an internal feasibility study of Santander within about four to six weeks.

Trevali says that according to the proposed joint-venture Glencore will provide it a 2,000-tonne-per-day mill along with operational guidance on a “contractor/toll basis,” Trevali says. The mill is apparently already in Peru.

Trevali could opt to gain full ownership of the mill over time, also on a toll basis, the company says. Ownership and control of the Santander project would otherwise remain in Trevali’s hands.

Under the joint-venture Trevali also says Glencore will help finance the development and operation of the mine and additional exploration. Discussions on the degree of financing are ongoing.

Trevali recently calculated its first resource estimate at Santander. The project’s three Magistral deposits so far weigh in at 5.3 million indicated tonnes grading 3.34% zinc, 1.27% lead and 38 grams silver per tonne.