Valterra Acquires the Los Reyes Cu-Au Project, Chihuahua, Mexico
June 18, 2018
Valterra Resource Corporation (“Valterra”) has entered into an agreement to acquire the Los Reyes Property in Chihuahua, Mexico. The property consists of two claims totalling 45ha which cover a highly prospective Cu-Au Skarn target within the Faja de Plata of north-central Mexico, one of the world’s most productive regions for polymetallic Skarn and Carbonate Replacement Deposits (CRD).
Terms of the deal: Valterra, through its wholly-owned Mexican subsidiary Minera Reyterra S.A. de C. V., may acquire a 100% interest in the property, subject to a 2% royalty to a third party, by making the following staged payments totaling US$4 million over a period of 5 years:, US$150,000 is payable is three equal instalments of US$50,000 in August 2018, February 2019 and August 2019, thereafter the balance of the purchase price is payable as to US$100,000 in August 2020, US$200,000 in August 2021, US$300,000 in August 2022 and US$3,250,000 in August 2023.
The Los Reyes Property is located only 12km south of the city of Jimenez, population of approximately 30,000 residents, and just 2km from highway, power and rail. It is strategically located along a prominent northwest-trending regional structure formed along the western margin of the Sierra Madre Oriental that hosts numerous high-grade current and past operating mines including Naica (26Mt @ 213g/t Ag, 5.9% Pb, 5.6% Zn and 0.4% Cu) and the Velardena district (+15Mt @ 175g/t Ag, 0.5g/t Au, 4.0% Pb, 5.0% Zn, and 2.5% Cu).
The initial target is a +800m long Cu-Au-rich skarn zone located at the eastern contact between a coarse grained Tertiary-age granodiorite intrusive and Cretaceous-age limestones and shales. The exploration target is locally over 100m wide and contains multiple zones of strongly copper-enriched mineralization. The near surface mineralization is strongly oxidized with copper-oxide minerals such as malachite occurring at surface and in mineral dumps at the edges of the historic workings.
Several prospect pits and shallow shafts occur along the target skarn zone. Historic reports indicate workings were developed to no more than 60m depth which is likely the approximate base of the oxide zone. Individual ore bodies were irregular with some reported to be 60m wide and up to 125m thick.
Records of historical data on the property are limited but indicate: surface high-grade copper values up to 8.0% Cu; a strong IP chargeability anomaly, only 100m to 200m depth below surface, which correlates to the target skarn zone; and indications of strong gold enrichment in the copper zones from limited drilling on the property. Note that this data is historical in nature and has not been independently verified by Valterra and should not be relied on as such.
Proposed 2018 Exploration/Drill Program
The program plan includes:
- surface mapping + sampling to be followed by a short IP geophysical program over the target area; and
- an initial six core hole program totaling 3,000m which will test along a 600m strike length of the target Cu-Au skarn.
The company is initially targeting a five to ten million tonne, shallow high grade Cu-Au resource localized along the 800m strike length of the exposed skarn zone. Further work will examine the deeper potential of the mineralizing system and a potential porphyry Cu-Au source for the shallow high-grade mineralization.
President Lawrence Page Q.C. stated “this opportunity to acquire an option to purchase this property on favorable terms came about through relations developed over the past several years of doing business in Mexico. The Los Reyes property satisfies all the elements required to develop a property into production such as deal terms, infrastructure, favorable political climate and historic values. These factors may well lead to success through exploration to be commenced upon permit approval expected in approximately three months. Addition of this property to our portfolio of the Swift-Katie copper gold property in B. C. and the Weepah gold property in Nevada, both of which are permitted for drilling, allows us to expand our scope of operations into three miner-friendly jurisdictions”.
A finder’s fee may be paid to a consultant with respect to the Los Reyes property agreement in accordance with the policies of the TSX Venture Exchange and subject to its approval thereof.
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, Nevada and Mexico. Valterra is focused on early stage properties with the potential to host large deposits in regions with excellent infrastructure. Valterra owns a 100% interest in the Swift-Katie copper gold porphyry property in British Columbia. It is earning a 100% interest in the Weepah property in Nevada, with past production totaling approximately 117,000ozs gold and significant exploration potential for a high-grade bulk-mineable gold discovery and a 100% interest in Los Reyes copper-gold property in Mexico.
On behalf of the Board of Directors,
Lawrence Page, Q.C., President, Valterra Resource Corporation
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.
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.