Valterra Reacquires the Swift Katie Project
January 14, 2015
Valterra Resource Corporation (TSX.V - VQA) (“Valterra” or the “Company”) has received notice from Riverside Resources Inc. (“Riverside”) of its intention to discontinue its option to earn an 80% interest in the Swift Katie property in southeastern British Columbia, with Valterra now retaining 100% ownership of the property. The option on the Swift Katie property was part of Riverside’s exploration alliance (the “Alliance”) with a wholly-owned subsidiary of Antofagasta plc.
Exploration by the Alliance from 2013 to 2014 consisted of soil sampling over approximately 60% of the property and drilling of five core holes totalling 1,423 metres in the Swift Target with encouraging results. Expenditures by the Alliance were in excess of $475,000, surpassing the expenditure threshold of $350,000 for the period ending April 23, 2015.
Numerous zones of precious metal mineralization were intersected in the 2014 drilling including a 3.5 metre interval averaging 13.3g/t gold, 201g/t silver and 0.33% copper from pyrite-pyrrhotite-chalcopyrite veins in hole SK14-002 starting at a depth of 177.5 metres. The drill hole tested one of several of northeast-trending mineralized structures within a 2 kilometre diameter conductive zone in the southern part of the property which outlines the area of the main Swift Target. Historical work on the Swift Target suggests the presence of several additional similarly mineralized structures which remain largely untested and will be the focus of future work on the property by Valterra.
President Lawrence Page, Q.C. commented, “We had anticipated that the Alliance had targeted the Swift Katie project as a potential copper-gold porphyry resource and were very pleased when hole 002 returned high-grade gold and silver values together with copper values. There are many contiguous targets in the area of hole 002 which need to be tested with drilling to allow us to model a potential resource as it develops. We own 100% of the property and anticipate attracting another company to share the financial burden of funding the next phases of exploration, working towards resource delineation”.
About the Swift Katie Property
The Swift-Katie property is a large +80 square kilometre Cu-Au-Ag property package located near Salmo, British Columbia and is underlain by the prolific Quesnel Terrane, within a geologically favourable and highly metallogenic area that historically has hosted several important mining camps.
Figure: Select mineral camps and deposits in the southern Quesnel Terrane of British Columbia in relation to the Swift Katie Property
The two main mineral showings, the Katie and the Swift, were for many years explored separately under different ownership. They were amalgamated into a single property and then optioned to Valterra which earned a 100% interest in the claims through cash and share payments and conducting exploration work. In the aggregate, Valterra has paid consideration and advanced minimum royalties of approximately $337,000, issued 1,190,000 shares and completed over $2,100,000 in exploration and development on the project, inclusive of Alliance expenditures.
Historically, there have been numerous drill campaigns, geological, geochemical and geophysical surveys completed on the property with some of the most significant work funded by subsidiaries of Noranda and Falconbridge in the 1980s-90s and most recently by Antofagasta.
These programs identified several exploration targets, with the most advanced prospect being the Katie deposit, an alkalic copper-gold porphyry deposit which has been tested by 72 shallow drill holes to date and remains open in several directions. Historic drilling at the Katie occurrence has identified three separate concentrations of Cu-Au mineralization within an approximately 2.5km x 1.75km area with several untested soil, IP, magnetic and resistivity anomalies in close proximity to the known mineralization.
The most recent work by the Alliance in the Swift Target area highlights the largely unexplored gold-and silver exploration potential of the southern Swift claims drawing a potential analogy to the nearby Rossland Mining camp which produced over 2.7 million ounces of gold from 1894 through 1941.
At a district scale, the Swift-Katie property covers an 11km by 3km trend, as seen in airborne magnetics, that remains largely unexplored outside of the main Katie deposits for copper-porphyry and epithermal gold targets and represents significant exploration potential for new discoveries. The Property is located in an infrastructure-rich area of southern BC (roads, rail, power, and proximity to the Trail smelter), where a milder climate allows for a long field season, extensive road networks allow for low-cost exploration, and is situated in a favourable region of the Province that has an experienced and knowledgeable work community.
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 focused on early stage properties with the potential to host large deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and is exploring several key projects including Swift Katie and the Bobcaygeon graphite property which are located near roads, rail, power, and resource communities in Canada.
Robert Macdonald, MSc., P.Geo., is the non-independent Qualified Person for Valterra Resource Corporation responsible for reviewing and approving the technical content presented in this release.
On behalf of the Board of Directors,
Lawrence Page Q.C., President, Valterra Resource Corporation
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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.