Vena Provides Update on Azulcocha West Polymetallic Project
26 Maio 2014 - 9:00AM
Marketwired Canada
Vena Resources Inc. (the "Company" or "Vena")
(TSX:VEM)(LMA:VEM)(FRANKFURT:V1RA)(OTCBB:VNARF) announces that after four years
of an arbitration process in Peru the Company will be able to restart
exploration activities of the promising Azulcocha West polymetallic property
located only 6 kilometres west of the existing Azulcocha mine and milling
operation. The Azulcocha West claims are strategically important to the long
term economics of Vena given its close proximity to the Azulcocha Mine
processing facilities owned by Azulcochamining S.A. (now owned by Trafigura
Beheer B.V.)
Azulcocha West Property - The 2,583.2 hectare Azulcocha West project is located
immediately west of the Azulcocha mine/mill concessions. The property was staked
by Vena in 2006 to cover 30 known polymetallic showings including skarn, manto
and vein deposits in the area. In 2006, Vena signed a letter agreement ("LA")
with Empresa Minera Los Quenuales S.A. ("LQ"), a company owned by Glencore of
Switzerland, to explore the property. The program consisted of detailed mapping,
geophysics, trenching, rock sampling and diamond drilling.
Both the Jurassic limestones of the hanging wall and the Cretaceous sandstones
of the footwall of the Conchas - Gran Bretana Fault have been intruded by
Neogene Granodioritic calc-alkaline laccoliths. The largest of these is the
granodioritic Chuquipite intrusive that is approximately 4 kilometres in
diameter and is in contact with the Condorsinga limestone. The smaller San Pablo
Intrusive, classified as dacite porphyry, is approximately 700 metres x 200
metres in size and intrudes the northern limb of the limestone. The two
intrusive bodies are approximately 1.5 kilometres from each other.
The juxtaposition of the two metal rich intrusions with reactive limestone wall
rocks in the presence of the western extension of the Conchas - Gran Bretana
Fault (a major regional ore host) has been responsible for the proliferation of
mineralization. Drilling indicates that the two most important structures are
the 2.5 kilometre long northern contact of the Chuquipite intrusive (Maria Fe
and Valeria skarn/replacement showings) and the approximately 500 metre long
Recuperada vein. There is a marked contrast between the mineralogy of the two
structures: the Maria Fe is zinc rich metasomatic with abundant skarn minerals
in the gangue whereas the Recuperada is silver rich with a silica gangue that
appears to be epithermal. There is also a contrast in depth of oxidation with
the Recuperada sulfides having been much less affected by supergene processes.
Due to the differences in strike and dip of the two structures there is a
convergence of the two mineralized systems near the eastern end of the Maria Fe
showing.
The best drill intersection at Maria Fe is 23.9 metres of 11.46% zinc in the
transition zone (mixed oxide/ sulphide) at a vertical depth of about 140 metres.
The trenching/ drilling at the Recuperada structure indicates that there are two
approximately 140 metre long zones of mineralized vein: the northeast zone -
width 0.48 metres at 279.8 g/t Ag, 1.2% Pb, 0.79% Zn; and the southwest zone -
width 1.40 metres at 73 g/t Ag, o.51% Pb, 0.76% Zn. A total of 3,800 metres of
drilling were completed, over 100 trenches were excavated and 1,100 channel
samples were taken. Given the magnitude and grades along the contact zone and
based on all the previous geological work performed, a multimillion ton resource
can be visualized.
Vena will work on delivering a National Instrument 43-101 report as soon as
possible.
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Significant Drill Intersect at Azulcocha West
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WIDTH Au Ag Cu Pb Zn
TARGET DRILL ID (mt) g/t g/t % % %
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Valeria V-04-08 2.05 10.33 477.97 0.25 36.76 0.44
----------------------------------------------------------------------------
Maria Fe MF-10-01 23.90 0.09 20.66 0.12 0.24 11.46
----------------------------------------------------------------------------
Maria Fe MF-10-02 7.79 0.07 23.52 0.22 0.23 4.56
----------------------------------------------------------------------------
Maria Fe MF-10-05 5.15 0.03 13.95 0.31 0.01 8.85
----------------------------------------------------------------------------
Maria Fe Bx R-01-08 5.60 188.99 0.39 0.25 0.43
----------------------------------------------------------------------------
Recuperada R-01-08 4.05 0.14 139.00 0.27 0.37 0.79
----------------------------------------------------------------------------
Recuperada R-02-08 2.40 0.03 86.12 0.05 0.37 0.18
----------------------------------------------------------------------------
Recuperada MF-01-08 12.20 0.07 59.18 0.03 0.52 0.05
----------------------------------------------------------------------------
Azulcocha West Arbitration - Under the original agreement in 2006 with LQ and
extended three times thereafter, LQ agreed to invest US$2,750,000 in exploration
expenditures, provide a satisfactory feasibility study for Vena and pay Vena
US$1,000,000 to acquire a 51% interest in the Azulcocha West Project. None of
those requirements were met. In April 2010, Vena and LQ signed a Letter of
Intent ("LOI") to be followed by a binding agreement including all new terms.
As previously disclosed in Vena's financial disclosure documents, the main
issues of the arbitration were the following: (i) LQ argued that the LOI
effectively extended the term of LA therefore it was not necessary to sign a
further binding contract and LQ sued Vena for US$13,000,000 in damages for loss
of profits; and (ii) Vena countersued LQ for US$9,130,000 in damages based on
the fact that the LOI did not extend the LA's term and further that LQ acted in
bad faith preventing the signing of the future contract (LQ 's lawyer had sent a
draft of the future contract which contained the new terms).
During the arbitration proceedings it was discovered that LQ drilled six
additional holes but did not disclose the technical results to Vena. And
further, LQ performed this drilling without all the required authorizations and
permits. Recently, Vena re-assayed those drill holes and found significant
intersects that at the time could have substantially improved the understanding
of the Azulcocha regional geology. Vena made several decisions over the last few
years regarding Azulcocha that might have been significantly different if all of
the technical data had been available to the Company. Possibly this would have
involved an alternative decision with respect to the sale of the mine/mill as
part of the regional investment strategy.
The arbitration panel, in a controversial decision, with two votes in favor and
one against has determined that Vena Peru and Azulcochamining S.A. jointly and
severally pay LQ an audited sum of US$2,342,092.51 for damages despite the fact
that LQ did not comply with a single term in the original option agreement even
after Vena granted three extensions. In its opposing statement, the dissenting
arbitration panel member dismissed in every respect LQ's claims and in contrast
to the decision determined that LQ should pay Vena US$4,970,000 for loss of
profits.
Juan Vegarra, Vena's Chairman and CEO stated: "We are pleased Azulcocha West can
be advanced shortly. The property's significant mining potential and proximity
to an existing milling operation adds tremendous value to our current holdings.
As the Company just received notification of the arbitration decision, Vena's
legal team is analyzing the arguments and scope of the extensive arbitration
documents and will respond accordingly in due course."
This press release has been reviewed and approved by David Bent, P. Geo., Vena's
Qualified Person as defined by NI 43-101.
Forward-Looking Statements:
This press release contains forward-looking statements. Forward-looking
statements are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may", "will",
"would", "potential", "proposed" and other similar words, or statements that
certain events or conditions "may" or "will" occur. The forward-looking
statements are based on certain key expectations and assumptions made by Vena.
Although Vena believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Vena can give no assurance
that they will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. In addition to other risks
that may affect the forward-looking statements in this press release are those
set out in Vena's management discussion and analysis of the financial condition
and results of operations for the year ended December 31, 2013 and the first
quarter ended March 31, 2014 and its annual information form for the year ended
December 31, 2013, which are available at www.sedar.com. The forward-looking
statements contained in this press release are made as of the date hereof and
Vena undertakes no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Vena Resources
Juan Vegarra
Chairman & CEO
(416) 364-7739, ext. 120
jvegarra@venaresources.com
www.venaresources.com
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