Dundee Capital Research: Trevali Mining – 2015 Drill Program Was a Success

A recent report by Dundee Capital Research highlighted Trevali Mining Corporation (TSX:TV) the remaining drill holes from its 2015 Santander exploration program.
As quoted in the report:

The holes were designed to test the deeper levels of the region, below the currently defined resources of the Magistral deposits.  The results were very positive, with the bulk of the drill holes returning intercepts showing zinc grades materially higher than those modelled in current mining operations.  The three Magistral deposits all remain open for expansion and TV believes there is significant resource potential remaining in all three zones.  Management believes the 2015 exploration program has added tangible, near-term value to the Santander mine, and looks to expand on these drill results through a modest 2016 exploration program.
Impressive high-grade intercepts from both surface and underground drilling. Some of the best results from TV’s drill results include:

• SAN-0219 (MS): 31.25m at 6.52% Zn, 0.02% Pb & 0.16 oz/ton Ag.
• SAN-0220 (MS): 17.65m at 7.22% Zn, 0.18% Pb & 0.17 oz/ton Ag.
• SAN-0221 (MS): 20.50m at 4.74% Zn, 0.11% Pb & 0.31 oz/ton Ag.
• MS-122 (MS-MC): 35.08m at 5.13% Zn, 0.09% Pb & 0.76 oz/ton Ag.
• MN-127 (MN): 33.00m at 2.52% Zn, 1.81% Pb & 2.93 oz/ton Ag and 19.30m at 4.35% Zn, 1.99% Pb and 3.57 oz/ton Ag.

Bottom Line: We are maintaining BUY, Top Pick rating and $1.00/sh target based on an 8.0x 2016E EV/EBITDA multiple.

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