Valterra Assays >65% Graphite from New Ontario Property Option and Increases Land Package
June 1, 2012
Valterra Resource Corporation (“Valterra”) reports that it has entered into an option agreement for purchase of a 100% interest in the Bobcaygeon Graphite Property in Southern Ontario. Recent bulk-sampling from historical trenching on the property has yielded two grab assays of 51.98% and 66.15% Cg (Total Graphite)(1). The sampling was conducted by the property vendor and Valterra personnel have recently visited the property to conduct due-diligence and carry out further sampling; assays are pending.
The property package encompasses over 55 square kilometres of claims, leases and private patents, and includes claims recently staked to cover important mineral trends and features. The property is located approximately 1.5 hours drive north of Toronto and is close to transport, power, and numerous services.
Geologically the property package is favourably situated on the border of the Precambrian Grenville Province and the Paleozoic Lowlands forming a prospective locale for potential graphitic deposits. The first discovery for graphite on the Bobcaygeon property was in 2003 during a trenching program focussing on other commodities. The graphite veins are within calcitic marbles sitting west of a syenitic amphibolite unit and the contact is traceable for up to 10-12 kilometres.
In 2012, Valterra is planning to conduct a ground-based gridding and geophysical survey over the primary trench region in order to detect conductive zones and bodies which may be associated with graphite. Contingent on results, trenching, sampling, and 500-1,000 metres of diamond drilling is proposed.
Pursuant to the option agreement, Valterra has the option to acquire a 100% interest in the Bobcaygeon Graphite Property, subject to the optionor’s right to mine vermiculite and limestone on the property, in consideration of making aggregate cash payments of $55,000, issuing common shares in an aggregate amount of $400,000, and incurring aggregate exploration expenditures of $1,250,000 on the property, all by December 15, 2016. The optionor retains a 1.5% production royalty on the property which Valterra may purchase at any time in increments of 0.5% for $500,000 per 0.5% increment. The option agreement is subject to TSX Venture Exchange acceptance.
Recent Corporate Developments
Valterra is pleased to announce the appointment of Courtney Shearer, B.Sc., MBA as Vice President. Over a career spanning 31 years, Mr. Shearer has been involved in natural resources businesses, primarily in various capacities in the mining sector. He has been President, CFO, Corporate Secretary and director for several public, exploration and mining companies since 2000. He was a director of San Gold Corporation from 2005 to 2011 while that company grew from an exploration company to a producing, junior mining company. Mr. Shearer is the President, CEO and a director of Appleton Exploration Inc. as well as Corporate Secretary and a director of Strikepoint Gold Inc.
Valterra also reports that Robert Liverant has resigned as a director. The board of directors wishes to thank Mr. Liverant for his services as a director and audit committee member of Valterra over the previous 6 years and wishes him well in his future endeavors.
Lawrence Page Q. C., Chairman commented: “Acquisition of an option to purchase the Bobcaygeon Graphite Property on attractive financial terms is an initial step by new officers of the company to continue to acquire and develop properties with mineral inventories which are in great demand. With the addition of Fred Sveinson as President and Courtenay Shearer as Vice President, with their wealth of experience in bringing properties into production and attracting financing to juniors, the company has added an extra dimension allowing the development of exploration properties into a production capability”.
Graphite is a naturally occurring form of carbon with wide-ranging and unique physical properties. Graphite is used in the development of graphene, which when developed industrially, will be a replacement for several expensive electronic components such as silicon semi-conductors. There are three primary graphite occurrences naturally - vein, flake, and amorphous where the highest quality product can sell for over $2,000 per tonne. Recent pricing and demand increases have spurred numerous exploration and investment opportunities in the graphite market.
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 British Columbia and Ontario.
Valterra is focussed on early stage properties with the potential to host large deposits, in regions with excellent infrastructure. Over the past several years, Valterra has acquired and continues to explore several key projects – “Star-Toughnut”, “Swift Katie”, and “Bobcaygeon” which are located near roads, rail, power, and resource communities in Canada.
From June 3-4, 2012, Valterra will be exhibiting at the Cambridge House International, World Resource Investment Conference in Vancouver BC at booth# 710.
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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., Chairman 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) Cautionary Note to Investors: The grab sampling reported in this News Release was conducted by the property vendor (a Professional Geologist licensed to practice in Ontario). Valterra Resource Corporation’s personnel have not verified the quality or accuracy of that particular sampling, and it should not be relied upon. Samples were analyzed by Leco for total graphite (Cg) by Acme Labs, Vancouver BC. Samples were ignited at 600 degrees, then leached with HCl and the residue was analyzed by Leco (analysis code 2A09).
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.