Valterra Samples 5.9% Cu and Refines Drill Targeting on the Los Reyes Cu-Au Project, Chihuahua, Mexico
December 2, 2019
Valterra Resource Corporation (“Valterra” or the “Company”) reported today that results from its recently completed surface sampling and a DCIP geophysical program on the Los Reyes Cu-Au project, southern Chihuahua, Mexico has identified several new priority drill targets.
The surface program comprised a 4.8 line kilometre 2D/3D DCIP geophysical survey and detailed surface mapping and sampling along an 800 metre strike length of a Cu-Au skarn target forming the eastern contact between a Tertiary-age granodiorite intrusive and Cretaceous-age limestones and shales. The exploration target is locally over 100 meters wide and contains multiple zones of strongly copper-enriched mineralization (see Figure 1). Near surface mineralization exposed in shallow artisanal workings and adjacent dump material is strongly oxidized.
Surface sampling of waste dumps related to the artisanal workings and limited outcrop chip samples returned 22 of 28 samples with Cu values >1% Cu at an average grade of 3.1% Cu and up to 5.9% Cu. The anomalous samples contain elevated precious and base metal values up to 0.57g/t Au, 25.3g/t Ag, 0.47% Mo and 1.7% Zn (see Table 1). Anomalous samples were collected along the full 800m strike-length of the exploration target on the property with most of the samples collected in 5 clusters adjacent to open cuts and pits related to the historically mined portions of the trend.
The DCIP data was acquired on five survey lines with variable line spacing between 125m and 250m. The data was collected in a 2D configuration (50 m dipoles, 50 m injections) along each survey line. Two lines were acquired simultaneously, with the off-line current injection data providing some 3D information between the survey lines. Both the 2D and the 3D data were inverted using UBC-GIF inversion codes.
The 3D conductivity successfully imaged a strong conductive response along the intrusive contact which projects for 400m through four of the five main areas of historic workings and defines the primary target area, along the contact, for future drill targeting. The conductivity anomaly is strongest near surface and plunges to depth to the southeast. Conductivity and chargeability anomalies in the 2D inversions are identified on each of the five survey lines and are spatially associated or immediately adjacent to areas of known historical surface mineralization which helps further refine drill targeting.
The Company is initially targeting a five to ten million tonne, shallow high grade Cu-Au resource localized along the strike length of the exposed skarn zone. Further work will examine the deeper potential of the mineralizing system including a potential Porphyry Cu-Au source for the shallow high-grade mineralization.
Figure 1: Surface map and sample location on the Los Reyes Project.
Table 1: Summary assays from surface sampling on the Los Reyes Project
About Los Reyes
The Los Reyes Property is well located only 12 kilometres south of the city of Jimenez and adjacent to highway, power and rail. It is strategically located along a northwest-trending structure formed along the western margin of the Sierra Madre Oriental that hosts numerous high-grade current and past operating mines including Naica (26 million tonnes @ 213 g/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).
Annual General Meeting
The Company reports that all ordinary resolutions placed before the annual general meeting held on November 26, 2019 were passed. Smythe LLP, Chartered Accountants were re-appointed as auditors of Valterra and the Company’s rolling stock option plan was approved. Shareholders re-elected directors Lawrence Page, Q.C., Edward Odishaw, Barry Schindel, Brian McGrath, Nigel Bunting, Donald Head and Joseph A. Kizis, Jr. The directors subsequently re-appointed Lawrence Page as President, Graham Thatcher as Chief Financial Officer and Arie Page as Corporate Secretary.
The board of directors has approved a capital consolidation of Company’s issued and outstanding common shares on a one new share for ten old shares basis. The consolidation, which is subject to acceptance by the TSX Venture Exchange, is expected to take effect next week. Valterra’s shares will then trade on a consolidated basis under the symbol “VQA” (with new CUSIP number 920366309). There are currently 93,751,627 common shares issued and outstanding and, upon completion of the consolidation, there will be approximately 9,375,162 common shares issued and outstanding. Valterra’s management believes that the share consolidation will result in greater investor interest, improved trading liquidity and allow compliance with the TSX Venture Exchange’s Policies on minimum price financings without requiring Discretionary Waivers of $0.05 Minimum Pricing Requirements and will facilitate future financing of the Company with minimal dilution. Valterra will send shareholders a letter of transmittal when the share consolidation has taken effect instructing shareholders to surrender the certificates evidencing their pre‐consolidation common shares for replacement certificates representing post‐consolidation common shares. The Company’s name will remain the same.
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 the Los Reyes copper- gold property in Mexico.
Robert Macdonald, MSc., P.Geo., is a Qualified Person as defined by National Instrument 43-101 and he is responsible for the supervision of the exploration on the Los Reyes Project and for the preparation and review of the technical results in this disclosure.
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.