Shares in Canadian zinc producer Trevali Mining (TSX:TV) jumped more than 4% Monday after the company announced the discovery of a new high-grade zinc-lead-silver mineralization at its Santander mine, located in Peru.
The stock was trading at Cdn$1.03 at 11:48 am ET, ore 4.04% more than its closing price on Friday and year to date it has more than double in value.
The new mineralization, discovered after analyzing samples from three diamond drill holes that are part of the ongoing 2016 underground exploration drill program at its 100%-owned Santander mine, is close to existing mine workings (just 95 metres from the main 4370 level) and readily accessible, Trevali said.
It’s been a busy, but positive year for the company. In July, it raised its 2016 zinc output guidance at the Peruvian mine, in production since early 2014, following record output in the second quarter.
The company expects zinc production of 57 million to 60 million pounds of payable zinc in concentrate grading approximately 50% Zn, up from 52 million to 55 million pounds before. Santander, located around 200km north east of Lima, produced a record 15.2 million pounds zinc, 5.6 million pounds lead and 222,100 ounces of silver in the second quarter of the year.
Trevali’s 100%-owned Caribou zinc-lead-copper-silver-gold mine in New Brunswick, Canada achieved commercial production also in July and is forecast to produce roughly 37 million to 41 million pounds of zinc, 14 million to 15 million pounds lead and 380,000-420,000 ounces of silver through the end of this year.
Zinc is the best performing metal in 2016 with a 35% rise in price so far this year from the six-year lows struck in January. The metal has benefited from major mine closures like Lisheen in Ireland and Century in Australia and suspension of some production at Glencore and Nyrstar.
The new high-grade zinc-lead-silver mineralization is close to existing mine workings (just 95 metres from the main 4370 level) and readily accessible.