Vena Resources Inc.
TSX : VEM
OTC Bulletin Board : VNARF
FRANKFURT : V1R

Vena Resources Inc.

October 11, 2011 02:00 ET

Vena Registers 60% Ownership and Files NI 43-101 Report on Esquilache Polymetallic Project, Peru

TORONTO, ONTARIO--(Marketwire - Oct. 11, 2011) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE US.

Vena Resources Inc. ("Vena" or the "Company") (TSX:VEM)(LIMA:VEM)(FRANKFURT:V1R)(OTCBB:VNARF)(XETRA®:V1R.DE), a Company with strong partnerships with some of the world's largest mining companies, is pleased to announce that it has completed the registration of its majority ownership of the Esquilache project in Peru. Vena has made cash payments totaling US$300,000 and completed US$1.5 million of work on the concession to earn a 60% interest. Vena plans to continue to advance the Esquilache project together with its joint venture partner Minera Silex Peru S.R.L., a subsidiary of Golden Minerals Company.

Vena is also pleased to announce that a National Instrument 43-101 ("NI 43-101") report has been completed on the Esquilache project by Coffey Mining Pty Ltd. and will be filed on SEDAR today. The report is based on the results of work performed on the Esquilache property by Vena since 2007 that included extensive geological mapping, 2,378 surface samples, 431 underground samples, 93 line kilometres of geophysics and 31 surface diamond drill holes totaling 5,710 metres.

Coffey's report recommends an aggressive $2.2 million exploration program of diamond drilling and underground development on three of the most prospective Ag-Au structures at Cerro Mamacocha, deeper drill testing of the bulk tonnage on the Mercedes Breccia/Porphyry target and continued development of drill targets on other prospective parts of the property including the historic mine at Cerro Creston.

The 1,000 hectare Esquilache property is located 850 kilometres southeast of Lima and is centred on a 30 square kilometre volcanic caldera that hosts the historical San Antonio de Esquilache silver mine. Following are excerpts from the Coffey report prepared by Qualified Person, Mr. Ian Dreyer:

  • "The mining concession is highly prospective for silver, for underground mining, and gold for both underground mining and surface mining.
  • There are sufficiently large tracts of unsampled and widely sampled areas that warrant further surface geological work.
  • The surface drilling and underground mapping and sampling completed to date is sufficient in terms of quantity and quality to reliably and confidently proceed with underground development, in the expectation that some form of mineable silver and gold entity will be determined.
  • The underground sampling has shown that economic silver veins are ready for mining close to portal entrances. Infill drilling is required to ensure that a reliable resource estimate can be constructed.
  • There are encouraging base metal results at the Mercedes Breccia location and that conceptual testing of this target is warranted.
  • The depth extension of the Mercedes Breccia into a Porphyry Copper target should be tested.
  • It should be noted that there has been little surface drilling and no underground work completed in the historical northern area of the mining concession (historical high grade silver mine) and this large area is a very worthy long term exploration target.
  • Coffey Mining is of the opinion that the overall approach is balanced with multiple sub-projects allowing for parallel progress towards more formal resource evaluation studies."

David Bent, Vice President of Exploration for Vena Resources Inc. stated, "This report benchmarks the Esquilache project and provides a framework to focus the next critical stage of exploration and development. We are very fortunate to have a head start on direct access to the mineralization on two of the principal vein structures at Cerro Mamacocha that we can exploit to measure lateral and vertical continuity of the high grade silver zones. Achieving Mr. Dreyer's stated goal for the short term program on the southern zone of an indicated 500,000 to 1,000,000 tons grading 3 to 6 ounces per tonne silver with significant additional gold and base metal credits will be a great step forward for the project. At the same time we have not lost sight of the larger potential targets on the property and will maintain the momentum of the multifaceted exploration approach that has been so successful to date."

Planning is underway for the next major exploration campaign at Esquilache. Although the main focus will be on following up the high grade gold/silver intercepts in the Ivet/Elvira and Veta Mamacocha structures there are other untested targets such as the copper-molybdenum porphyry showing northwest of Cerro Creston that will also be drilled. In addition to sectional drilling of the two breccia vein structures, underground work will be undertaken to gain access to high grade material for metallurgical testing and to determine continuity of mineralization.

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 NI 43-101. Vena's exploration and development programs are being supervised by Mr. Bent.

For further information on Vena Resources, please visit the Company website at www.venaresources.com, or its Facebook page.

Statements in this press release regarding the Company's business, plans, intentions, proposed Offering and use of proceeds thereof, 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. These forward-looking statements are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. Information identifying risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's current Annual Information Form and its other filings with the various Canadian Securities Regulators, which are available online at www.sedar.

Shares Outstanding: 124,601,658
Fully-Diluted: 159,971,664

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

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