Vena Resources Inc.

Vena Resources Inc.

January 05, 2005 09:10 ET

Vena Resources Announces the Initiation of a Pre-feasibility Study on its Azulcocha Base Metals Project




JANUARY 5, 2005 - 09:10 ET

Vena Resources Announces the Initiation of a
Pre-feasibility Study on its Azulcocha Base Metals

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2005) - Vena Resources Inc.
(TSX VENTURE:VEM) announces that it has commenced drilling and bulk
sampling of its Azulcocha project near Huancayo, Peru, approximately 260
kilometers east from the City of Lima. All required environmental and
land use permits have been received to start this work.

The Azulcocha project comprises the Gran Bretana mine (closed) as well
as additional exploration lands. The mine operated at a design rate of
450 tonnes per day from 1965 until its closure in 1985. Munoz(1)
estimated the remaining mine to be over 3 million tones grading 5% zinc
and 20% manganese. Manganese was not recovered by the mine owner but
Vena is currently testing a differential flotation flowsheet to recover
this mineral.

Additionally, surface samples from the large stockpile of previously
milled ore indicates the presence of high values of zinc (5%), manganese
(10%) and gold (1 gpt). Based on historic plant records this stockpile
contains 1.3 million tonnes of mineralized material.

Manganese occurs primarily as rhodochrosite (MnCO3) and pyrolusite
(MnO2) and can be readily upgraded to electrolytic manganese dioxide
(EMD) which currently sells for US$2,000 per tonne in the North American
market. World consumption of EMD for alkaline batteries in 2002 exceeded
230,000 tonnes with an annual growth rate in excess of 9.6% between 1996
and 2002. End Users or this material include Energizer, Duracell,
Eveready, Sony, Toshiba, Panasonic and Philips. Future growth in the EMD
market is expected to exceed current growth rates as global demand for
batteries increases in areas such as mobile phone communications,
lithium manganese rechargeable batteries and hybrid electric vehicle

All products from the mine and previously milled ore will be available
for purchase and refining at Doe Run's nearby La Oroya smelter and
refinery complex which is connected directly to Azulcocha by a dedicated

With zinc and manganese dioxide prices at historic highs, the Company is
well poised to modernize and re-open the Azulcocha operation under
optimal economic conditions. The pre-feasibility study will evaluate the
relative economics of producing either a manganese concentrate or EMD.
To this end, Vena has contracted the services of Mr. Juan Zegarra, a
well-known and respected Peruvian metallurgist with credentials from the
Royal School of Mines in London, England to supervise the metallurgical
testing and pre-feasibility design of a suitable mineral processing
plant. This work will result in the calculation of an indicated and
measured resource estimate.

All aspects of the program are being completed under the supervision of
Murray Lytle, P.Eng., the Qualified Person for the project. Mr. Richard
May, P.Eng. has also been retained to provide guidance on the
metallurgical testing and design aspects of the project.

About Vena Resources Inc.

Vena Resources (TSX.V : VNA) is dedicated to aggressively acquiring,
exploring and developing high quality projects throughout the country of
Peru. Vena currently has a portfolio of five separate projects currently
encompassing 16,000 hectares of strategically located and highly
prospective ground. The Aucapampa property is currently being drilled;
the Las Princesas property is completely encircled by Barrick Gold and
PanAmerican Silver claims and is immediately adjacent to Barrick's Alto
Chicama property; and has commenced a pre-feasibility study of the
Azulcocha property. For further information please visit the Company
website at

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: 32,039,013

Fully-Diluted: 37,392,513

(1) 1995, Cesar Munoz and Lluis Fontbote ; "El Yacimiento de Zn-As-(Au)
Azulcocha Asociado a a Falla de Desgarre Cochas - Gran Bretana (Peru
Central); Sociedad Geologica del Peru"


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