Valterra Closes First Tranche of Private Placements and Commences Phase II Exploration Program
November 19, 2010
Valterra Resource Corporation (“Valterra”) reported today that it has closed the first tranche of its private placements for gross proceeds of $1,002,416 and will commence the second phase of its exploration program on the Star Project.Private Placements
Valterra issued 5,000,000 units in a flow-through private placement at a price of $0.05 per unit (“Flow-Through Unit”) for proceeds of $250,000, and issued 15,048,319 units in a non-flow-through private placement at a price of $0.05 per unit (“NFT Unit”) for proceeds of $752,416. Each Flow-Through Unit consists of one flow-through common share and one-half share purchase warrant, with each whole warrant (a “Warrant”) exercisable to purchase one additional non-flow-through common share at an exercise price of $0.10 per share for a period of two years. Each NFT Unit consists of one non-flow-through common share and one Warrant.
All securities issued pursuant to the first tranche closing of these private placements, including common shares, share purchase warrants, finders’ warrants and finders’ options issued as finders’ fees, carry a legend restricting trading of the securities until March 18, 2011. The private placements and any finders’ fees may be subject to regulatory approval. Proceeds from the private placements will be used to fund planned drill programs on Valterra’s mineral exploration projects in southeastern British Columbia and for working capital.Phase II Exploration Program
Valterra has received permit approval for the Phase II exploratory drill program on the Au-Ag-Cu porphyry/shear-hosted “Star Project”
(Star and Toughnut claims) located in southeast British Columbia, and has commenced the logistics and mobilization of personnel and equipment to the site.
The allocated budget for Phase II is approximately $250,000 and the focal point involves drill testing several key targets, including:
2010 Star Project Summary
- Gold Eagle zone - select drilling is proposed within this on-strike favourable region approximately 900m northwest of the Toughnut zone and roughly 1.2km southeast of the Alma N zone. Historical (unverified) high-grade assays for drilling conducted in 1988 at the Gold Eagle included 90.0 g/t Au and 80.9 g/t Ag over 1.52m in hole S88-43. Additionally in 2010, Valterra field geologists collected a grab sample from a strongly brecciated, veined and altered outcrop located nearby that returned 4.73 g/t Au and 8.2 g/t Ag.
- Alma N zone – drilling is planned to test the continuity of favourable gold and silver mineralization intercepted by Valterra in 2009. Highlighted from that drill program was 2.12 g/t Au and 1.63 g/t Ag over 44.5m in hole VST09-007, which included a higher grade zone of 11.29 g/t Au and 5.6 g/t Ag over 2.0m. Valterra has currently outlined approximately 250 metres of mineralized strike length to the zone which remains under-explored and open for further expansion.
In 2010, Valterra completed a total of 1,438 metres in seven NQ2/BTW-sized drill holes during the Phase I summer season. The drilling centred on the “the Toughnut”, “the Star”, and “the Eureka” zones; being three of the five-known gold-silver +/- copper zones that are contained within a prospective 3.5 kilometre-long polymetallic mineral trend transecting the claim blocks.
The drilling highlights for the Toughnut and Eureka zones during Phase I included intercepts of 4.05 g/t Au and 0.88 g/t Ag over 8.0m in hole VTN10-005
at the Toughnut, and 0.28 g/t Au, 4.45 g/t Ag and 0.27% Cu over 66.67m in hole VST10-011
at the Eureka (see NR-07-10). The signature of the rocks intercepted in the drilling are generally consistent with a zoned porphyry model subjected to shear-fault/hydrothermal activity that generated focused zones of higher-grade.
Zone targeting was aided by several recent technical programs implemented by Valterra in Q2 2010. Firstly, a geological consultant was retained to prepare a technical (compilation) report on the Star-Toughnut dataset which outlines several geophysical, geological and reverse circulation/diamond drilling programs spanning a 25-year period. Secondly, a 30km2 airborne EM-MAG survey was flown by Aeroquest Ltd. over the entire +1,900 hectare claim block (see NR-03-10). Finally, detailed processing of the airborne data by a geophysical consultant refined and sharpened numerous airborne anomalies that warrant follow-up.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.
This region of the province has produced several million ounces of gold and precious metals from numerous past producers. The BC MINFILE records lists such operations as the Rossland Camp (past production estimate of 3.5M ounces of gold), and the Silver King mine - BC’s first lode mine ca. 1888 (reportedly produced 4.4M ounces of silver(1)). Valterra’s claims are centrally located on the Silver King Shear Zone, to the east is the Kena Gold project (1.0M ounce NI43-101 compliant gold resource(2) - Sultan Minerals Inc.), and to the northwest is the Kenville Mine (386,000 ounce NI43-101 compliant gold resource(3) - Anglo Swiss Resources Inc.).
Valterra has interests in approximately 11,100 hectares in southeast BC that currently focuses on four primary projects: The Star gold-silver-copper claims, located southwest of Nelson BC and the Toughnut gold-silver-copper-lead-zinc claim block adjoins Valterra’s Star claims (“Star Project”). In January 2010, Valterra acquired the Rozan gold-silver-lead-zinc property situated just south of the Toughnut. Collectively, Valterra has a strong foothold in this part of the belt with over 3,800 hectares under tenure.
Furthermore, Valterra has optioned the Swift Katie copper-gold porphyry/shear-hosted project located near Salmo BC, to Tosca Mining Corp. The project was drill targeted in August 2010 with Valterra acting as operator. A total of 786 metres was completed in two NQ2-sized holes collared on geophysical anomalies identified at the 17 and Roaring zones.
Since 2007, Valterra has aggressively explored and expanded its claim blocks within the gold-enriched “Rossland Volcanic Belt” by completing over 8,450 metres of diamond drilling, conducting 810 line-kilometres of heli-borne geophysics, undertaking a variety of mapping-sampling and staking programs, as well as acquiring new properties and joint venturing.
Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical results reported 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 / 604-641-2773 or by email at email@example.com.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’s projects, and the availability of financing for Valterra’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 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) Historical production/inventory statistics for mines at Rossland and Silver King were obtained from public documents available from the BC Government Mineral Inventory File (MINFILE) database. The reporting standards used in this specific file were obtained prior to the establishment of NI43-101 regulations. Valterra Resource Corporation has not independently verified this historical data. Valterra Resource Corporation has no reason to believe that these results are not representative of mineralization associated with the mining activity.
(2) Resource information gathered from the Kena Property Technical Report dated June 3, 2004.
(3) Resource information gathered from the Kenville Gold Mine - 257 Level Technical Report dated July 22, 2009.The Canadian National Stock Exchange (CNSX) has not reviewed and does not accept responsibility for the adequacy oraccuracy of the contents of this news release, which has been prepared by management.
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.