Valterra Resource Corporation

TSX VENTURE : VQA
FRANKFURT : 3VA


Valterra Resource Corporation

November 29, 2012 15:20 ET

Valterra Returns 65.6% of Carbon Content Into Jumbo & Large Flake Graphite Fractions in Metallurgical Grab Sample at Bobcaygeon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2012) - Valterra Resource Corporation (TSX VENTURE:VQA)(FRANKFURT:3VA) ("Valterra") reports that a second stage of metallurgical analyses of a +20kg grab sample from the discovery trench at the +140 sq. km Bobcaygeon Graphite Property, located near Peterborough in Southern Ontario, returned the following highlights:

  • 65.6% graphite reported to jumbo and large flake size fraction classifications
    Including 45.6% jumbo flake (+48 mesh or > 0.297mm)
  • 99% carbon recovery into the flash and rougher concentrate which
  • graded 65-70% C(g) prior to any upgrading via cleaning circuit

Valterra is proceeding with the next stage of metallurgical test work at SGS Lakefield. This will include a cleaner flotation circuit aimed at increasing the concentrate grade to +95% C(g). Also, enhanced optical mineralogy work is proposed on sub-samples of the different concentrate size fractions to better assess individual flakes and needles of graphite.

President Fred Sveinson, P.Eng., stated: "Management is pleased with the mineralogical and metallurgical testing from the discovery trench. The results indicate a high grade, large flake graphite system. The next step is to determine the extent of mineralization at the discovery zone and continue exploring this large property package looking for more deposits."

Table 1: Highlighted Jumbo and Large Flake Metallurgical Determination

Flake Combined Concentrate Assays % % Distribution
Size mm mesh C(t) C(g) C(t) C(g)
Jumbo 0.500 +32 69.7 69.2 22.8 22.9
0.297 +48 75.5 75.4 22.5 22.7
Large 0.210 +65 68.4 68.0 14.3 14.4
0.178 +80 64.4 63.5 5.7 5.6
Total 65.2 65.6

The kinetics test used a two-stage grinding strategy with the products of each incremental flotation stage evaluated qualitatively under an optical microscope to characterize the quality of the flotation products. The incremental rougher concentrates were combined into two flotation concentrates and submitted for size fraction analysis. The two concentrates were screened at various mesh sizes and the size fractions and the rougher tails were subjected to LOI and C(g) analyses to generate a mass balance. Further the rougher concentrates and the rougher tails were subjected to a whole rock analysis by ICP. Cautionary Note: The grab sample was selective by nature and is unlikely to represent average grades of the deposit.

The sample, which was processed by SGS Lakefield, was comprised of float pieces from a shallow backhoe trench and returned a previously released high-grade assay of 34% C(g) (see NR-11-12). Microscopic analyses of the sample provided by SGS Lakefield in an earlier report identified the graphite as primarily flaky and platy particles with size ranges from 0.05mm to 3mm (coarse flake graphite is defined as >80 mesh or 0.178mm) and visually much of the sample appears to be coarse in nature. Photomicrographs provided as part of this report show polycrystalline aggregates and lesser acicular (needle-like) grains making up much of the visible graphite. The complete report with photomicrographs of the sample is available on Valterra's website at www.valterraresource.com.

Exploration work is continuing on the property which is approximately 1.5 hours' drive northeast of Toronto and is close to transport, power, and numerous services. An 11 line-kilometre gridding program is ongoing, and a trenching-sampling-mapping program and an EM/MAG/IP ground geophysical survey are scheduled to commence. In November, Valterra also staked an additional +4,500ha following a regional contact which hosts numerous graphite past producers and occurrences.

Valterra also announces that Jean-Pierre Colin has resigned as a director effective November 14, 2012. Valterra's board of directors has accepted Mr. Colin's resignation and wishes him well in his future endeavors.

About Graphite

Graphite is a naturally occurring form of carbon with wide-ranging and unique physical properties. Graphite is used in the development of graphene, which, when developed industrially, will be a replacement for several expensive electronic components such as silicon semi-conductors. There are three primary graphite occurrences naturally - vein, flake, and amorphous where the highest quality product can sell for over $2,000 per tonne. In pricing graphite, the flake size is a key factor with the large flake (>.178mm) ores commanding the highest prices in markets dominated by multi-national eco-automobile manufacturers, high-tech industries and nuclear energy companies. Recent pricing and demand increases have spurred numerous exploration and investment opportunities in the graphite market. The Province of Ontario is an excellent locale to explore owing to superior geology, geoscience knowledge, infrastructure, political stability and tax incentives. Several projects are advancing in the graphite field including Northern Graphite Corporation, Zenyatta Ventures Inc. and Ontario Graphite Ltd.

About Valterra Resource Corporation

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 and Ontario. Valterra is focussed on early stage properties with the potential to host large deposits, in regions with excellent infrastructure. Over the last several years, Valterra has acquired and is exploring several key projects including "Star-Toughnut", "Swift Katie" and "Bobcaygeon" which are located near roads, rail, power, and resource communities in Canada.

Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical information presented in this release.

On behalf of the Board of Directors,

Frederick Sveinson, President, Valterra Resource Corporation

For further information, please visit Valterra's website at www.valterraresource.com.

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.

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.

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