Valterra Amends Toughnut Property Agreement
March 28, 2012
Valterra Resource Corporation (“Valterra”) reports that it has amended the option agreement for purchase of a 100% interest in its Toughnut property located in southeast BC. Pursuant to an amendment agreement dated March 10, 2012, the optionors of the Toughnut property have agreed to defer the cash option payment of $40,000 due on March 10, 2012 until July 31, 2012, or earlier if Valterra completes a non-flow-through private placement. The exploration expenditure requirement of $750,000 originally due on March 10, 2012, of which Valterra has expended more than $650,000, has been deferred until September 30, 2012. Valterra will issue an additional 100,000 common shares to the optionors in consideration for this extension. The amendment agreement is subject to TSX Venture Exchange acceptance.
About the Toughnut Property
Located in the heart of the Silver King Shear zone the Toughnut property encompasses approximately 1,010 ha and forms a key part of Valterra’s Au-Ag-Cu “Star-Toughnut Project”. The Toughnut property contains numerous near surface drill intercepts, and Valterra has made two new Au-Ag discoveries at the Gold Eagle zone (see NR-03-11).
In 2010, the first gold-silver drill discovery represented near surface intercepts marked by shallow, pyrite-enriched mineralization hosted in a strongly bleached, k-feldspar-sericite-silica altered crackle breccia/andesite of the Upper Elise Formation. During 2011, Valterra expanded the zone further and possesses valid permits on the project area allowing drilling of 10,500 metres.
Select drill highlights at the Gold Eagle zone returned from BTW-sized holes include:
- VTN10-008 (Gold Eagle): 4.02 g/t Au & 9.51 g/t Ag over 24.33m
Including 7.76 g/t Au & 20.29 g/t Ag over 9.11m
Including 14.47 g/t Au & 34.60 g/t Ag over 4.0m
- VTN11-010 (Gold Eagle): 1.22 g/t Au & 2.71 g/t Ag over 29.72m
The gold-silver mineralization appears to project vertically beneath an anomalous surface outcrop which yielded 4.73 g/t Au and 8.2 g/t Ag in a 2010 grab sample. Valterra’s permit also allows for a small-scale trenching program over the discovery outcrop. The focus of the proposed trenching will be to increase the surface exposure of the zone and facilitate expanded mapping, sampling and drilling along the mineralized trends.
The second zone (hole VTN10-006 - 1.80 g/t Au over 6.44m) returned anomalous mineralization from a basal contact between a feldspar porphyry (Silver King suite) and andesitic rocks. This newly discovered zone may be analogous to precious metal zones identified at the adjacent Kena Project where a NI 43-101 resource of approximately 1.0M ounces of measured and indicated gold has been outlined(1).
To date, five holes have been drilled at the Gold Eagle zone where the highest grade intercept is only 60 metres below surface, and the mineralization is open at depth and along strike. The signature of the rocks is generally consistent with a zoned porphyry model subjected to shortening, shear-fault/hydrothermal activity, and extensions that generated focused zones of higher-grade.
Targeting at the Star-Toughnut has been aided by several prior technical programs implemented by Valterra including a comprehensive technical (compilation) report, a 30 square kilometre airborne EM-MAG survey, flown by Aeroquest Ltd., and the resulting airborne data was subjected to detailed processing analyses by a geophysical consultant.
About Valterra Resource Corporation
Valterra is a Manex Resource Group Company. The group provides expertise in exploration, administration, and corporate development services for Valterra’s mineral properties located in the Kootenay Region of BC.
Valterra is focussed on early stage properties with the potential to host large porphyry Cu-Au-Ag deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and been exploring two key projects – “Star-Toughnut” and “Swift Katie”which are located near roads, rail, power, and resource communities in SE BC.
The target goal for the porphyry-type economic deposits is tonnages >200MT with grades from 0.20% to 0.40% CuEq, including credits for gold, silver, and/or molybdenum. Successful deposit analogues include the past-producing Brenda Mine near Peachland BC. Government reports document active mining from the early 1970s to 1990 with life-of-mine production totalling 181.7MT milled at 0.22% Cu and 0.064% Mo. Recent drill results from Star-Toughnut and Swift Katie have narrower high-grade intercepts ranging to broader low-grade zones that suggest larger mineralized systems.
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Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical information presented in this release.
On behalf of the Board of Directors,
“Lawrence Page, Q.C.”
Lawrence Page, Q.C., President and Director, Valterra Resource Corporation
For further information, please visit Valterra’s website at valterraresource.com or contact Liana Shahinian at 1.888.456.1112 or 604.641.2773 or by email at firstname.lastname@example.org.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Valterra Resource Corporation’s projects, and the availability of financing for Valterra Resource Corporation’s development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Valterra Resource Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
(1) Resource information was gathered from the Kena Property Technical Report dated June 3, 2004, and there is no certainty that similar mineralization will be discovered on Valterra Resource Corporation’s adjacent property holdings.
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Valterra Resource Corporation relies upon litigation protection for forward looking statements.