Vena Resources Provides Significant Update on Azulcocha Zinc Project
Monday September 18, 11:22 am ET
ca.us.biz.yahoo.com
TORONTO, ONTARIO--(CCNMatthews - Sept. 18, 2006) - Vena Resources Inc. (TSX VENTURE:VEM - News; LIMA:VEM - News; FRANKFURT:V1R - News; OTCBB:VNARF - News) announces that the Company now controls an undivided 100% interest of the Azulcocha zinc project after obtaining the remaining 20% of the historical Azulcocha Zinc mine and one million ton tailings deposit (43-101 report filed in SEDAR) for a 1.5% NSR with the remaining minority shareholder. Vena has also expanded the regional exploration area by another 6,400 hectares (approximately) including the Waie and El Triunfo prospects with drill-indicated "historical" mineralization to be confirmed as soon as possible. Azulcocha is now an 8,600 hectare project with excellent infrastructure. The permitting process for a milling operation at a starting rate of up to 500 tons per day is progressing at a regional level and ore containing up to 18% Zinc is now being removed as part of the mine rehabilitation program and sold at market prices unhedged to a global commodities broker.
The Waie Prospect is located 7km west of the existing mine and was evaluated by the Gran Bretana Mining Company (GBMC) owner of the Azulcocha mine in the 1980s. GBMC recognized two well defined structures along the contact zone with the Chuquipite intrusive - an oxidized sulfide area with grades up to 33.5% Zinc and width of more than 12 meters and a sulfides area with grades up to 10% Zinc and width of up to 4 meters. Both structures were recognized as part of a 3,000 meter, 30-hole drilling exploration campaign as well as 110 meters in adits and over 300x4 meters in trenches. Historical reports from GBMC estimated a potential for at least 400,000 tons of mineralization in the Waie and "El Triunfo" prospects.
The "El Triunfo" Prospect is situated between the Azulcocha mine and the Waie prospect and it contains mineralized outcrops of 450 meters by 10 meters where 24 trenches, 4 drill holes and a 6 meter adit were completed. Historical records are not detailed enough but trench assays reported up to 22.87% Zn, 2.33% Cu and 2.44 Pb grades. Thus far, drill-core assay reports have not been located.
The "Caja Real" Prospect is located 10 km south of Azulcocha and decades ago, it hosted two small poly-metallic mining operations where Copper, Molybdenum, Zinc and Silver were mined on a small scale.
Vena reminds readers that the Company has not yet done sufficient work to classify the historical estimate as a mineral resource and therefore it is not NI43-101 compliant. The Company is not treating the historical estimate as current mineral resources and the historical estimate should not be relied upon.
A complete report on the historical mining operation and remaining resources was published by Cesar Munoz from Newmont Peru and Lluis Fontbote from the Department de Mineralogie in Geneva Switzerland in October 1995, and from Mina Gran Bretana internal technical records from 1985. Partial highlights of the 30 drill holes are shown in the adjacent table. Please note that detailed historical reports of GBMC's 3,000 metre drill program are incomplete or not available (NA).
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Drill Length Mineralization Zinc Copper
Drill Hole (m) Width (m) (%) (%) Silver (gpt)
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WMW-93 53.6 1.90 10.48 0.1 28.3
WMW-95 NA 3.95 21.20 1.2 87.1
WMW-96 19.3 6.20 10.70 0.14 98.6
WMW-97 37 2.10 3.09 0.2 28
WMW-101 117.6 6.35 3.48 0.8 28
2.80 7.03 NA NA
2.75 33.56 0.8 28
WMW-108 214.2 82.80 3.36 0.3 28
including 42.28 4.64 NA NA
3.65 10.40 NA NA
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Please note: There is a map available on CCNMatthews' website at the following link: ccnmatthews.com
Juan Vegarra, Vena's CEO stated,
"Given the current price of Zinc and industry pricing forecasts, the Company is making substantial changes to its focus and will be embarking on an expanded drilling campaign to confirm the historical resource of the existing Zinc mine and exploring new areas. The mining business in Peru is booming and there is a need for toll-milling facilities throughout Peru. Vena intends to provide toll-milling services to small miners in the area as an additional cash flow stream when permits for a 500 tpd mill and mining permits are granted.
We expect a combination of ore from nearby mining operations plus any ore we may be able to confirm shortly from the existing Azulcocha mine plus "El Triunfo", "Caja Real" and Waie prospects should create very attractive cash flow opportunities for Vena in the near term.
The Azulcocha project is blessed with an outstanding infrastructure -- electricity, water, a rail link to Lima, and a campsite for 700 workers. In addition the Azulcocha tailings structure is close to one million tons of recoverable Zinc ore as described in a 43-101 report filed in SEDAR."
In other news, Vena announces the departure of Gordon Grams as Vice President, Exploration and General Manager of Peruvian operations. The Company wishes to thank Mr. Grams for the important work he achieved during his tenure. Mr. Grams has not decided his next step, but will continue to provide services to Vena as an independent Qualified Person. Vena has hired Silvia Dedios, a Peruvian entrepreneur with a strong management background in logistics and administration who will support all technical efforts directed by Jesus Vilca whose appointment as Engineering Manager for all mining and exploration programs was recently announced.
Statements in this press release regarding the Company's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.
Shares Outstanding: 49,614,411
Fully-Diluted: 59,217,085
The TSX Venture Exchange does not accept the responsibility for the adequacy or accuracy of this release.
Contact:
Juan Vegarra
Vena Resources Inc.
Chairman & CEO
(416) 364-7739, ext. 120
jvegarra@venaresources.com
www.venaresources.com
Tracy Weslosky or Fred Cowans
Pro-Edge Consultants Inc.
Managing Partners
(866) 544-9622 or (416) 581-0177
info@pro-edge.com
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Source: Vena Resources Inc. |
