Vena Resources Inc.
OTC Bulletin Board : VNARF

Vena Resources Inc.

November 09, 2009 13:46 ET

Vena Moves Azulcocha Zn, Mn, Au Project to Development Phase

TORONTO, ONTARIO--(Marketwire - Nov. 9, 2009) - Vena Resources Inc. (TSX:VEM)(LIMA:VEM)(FRANKFURT:V1R)(OTCBB:VNARF) is pleased to announce that planning is in progress with a partner to begin a pilot test program and final economic assessment of the Azulcocha tailings deposit. A NI 43-101 compliant probable reserve estimate for the tailings of 908,400 tons grading 3.27% zinc, 10.04% manganese and 1.13 gpt gold was announced in July 2005 and metallurgical testing showed that a marketable zinc concentrate grading over 55% zinc can be produced at a total recovery of 66% and a manganese dioxide product can be produced at a total recovery of 71.1%. Gold credits were not used as part of the 2005 pre-feasibility study economic assessment.

The pre-feasibility study was based on a plant production rate of 500 tonnes per day generating two saleable products - manganese dioxide and a zinc concentrate. The base case results of the analysis indicated that the project is economic, returning a net present value of US$37,200,000 and an internal rate of return of 157%. The study used a zinc metal price of US$0.50 per pound and manganese dioxide price of US$0.70 per pound, which are well below current and forecasted prices for the next few years. Key components of the capital assets required to achieve these financial results have already been purchased by the Company, including a zinc floatation mill capable of processing up to 1,400 tpd as well as the installation of a 3 MvA electrical substation and additional supporting infrastructure.

Juan Vegarra, Chairman and CEO of Vena commented: "Given current commodity prices, the positive forecasts in pricing among analysts for the Zinc and Manganese markets and the expected global recovery in the near term generating additional demand, the Company has evaluated several options to move the Azulcocha project to production based on the already confirmed Zinc resource in the tailings deposit and the underground mine. We believe that re-processing the tailings now while continuing to confirm the historical Zinc resource underground should enable the Company to fund a much larger mining operation with minimum share dilution in the near future. We plan to test several new metallurgical scenarios to improve zinc recoveries as well as possible ways to recover the 31,000 ounces of gold in the tailings."

The Azulcocha tailings Probable Ore Reserve of 908,400 tonnes contains approximately 30,000 tonnes of zinc metal and 91,000 tonnes of manganese metal. Vena expects that pilot testing using current metallurgical methods should improve the published total recoveries achieved previously.

If pilot testing confirms the economics of the project, the Company plans to move forward with permits to begin the re-processing operation of the tailings deposit. Cash flow from this operation will fund final construction of a much larger tailings deposit capable of containing 3 to 4 million tons of new tailings expected from the eventual underground operation as well as any additional resources found on the mine property and the adjoining Azulcocha West joint venture project with Glencore.

This press release has been reviewed and approved by David Bent, P.Geo., Vena's Vice President of Exploration and Qualified Person as defined by NI43-101. Vena's exploration and development programs are being supervised by Mr. Bent.

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.

The TSX does not accept the responsibility for the adequacy or accuracy of this release.

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