Canadian miner Trevali starts concentrates sales from Peruvian zinc mine

Vancouver-based Trevali Mining (TSX: TV) has begun selling concentrates from its Santander zinc-lead-silver mine, Peru's first new zinc operation in eight years.

Trevali delivered 4,400t zinc concentrates and 210t of lead-silver concentrates from the Santander mine to partner Glencore Xstrata (LSE: GLEN), the company said in a statement Monday.

The mine, in the central Andean region of Pasco, is operating at its 2,000t/d capacity, processing 60,000t in October with average ore grades of 4.4% zinc, 1.8% lead and 1.6oz/t silver, the company said. Metallurgical recovery "significantly increased" during the month, Trevali said.

Trevali, which began sales three months ahead of schedule, plans to start mining the Rosa zone of the mine in the first half of next year, boosting concentrate grades, CEO Mark Cruise told BNamericas last month.

Trevali, which also operates the Caribou and Halfmile mines in Canada, has 156,945t of stockpiled mineral at Santander, Peru's first new zinc mine since Votorantim Metais unit Milpo (BVL: MILPOC1) started up the Cerro Lindo operation in 2005.

Trevali expects Santander cash costs to be US$0.50-0.55/lb of zinc equivalent. Total production is estimated at 8Mt during a 35 year mine life. Indicated and inferred resources total 534Mlb zinc, 174Mlb lead and 7.8Moz silver.

Peru, the world's third largest zinc miner, boosted first half zinc output by 8% to 696,388t after the Antamina mine completed an expansion last year, according to the energy and mines ministry (MEM).