Verbina Resources Inc.
TSX VENTURE : VUR

March 15, 2011 08:10 ET

Verbina Resources Inc. Announces Commencement of Work Compilation on Banso and Muoso Mining Licenses (the "Licenses") in Ghana, West Africa

TORONTO, ONTARIO--(Marketwire - March 15, 2011) - Verbina Resources Inc. ("Verbina") (TSX VENTURE:VUR) is pleased to announce that it has commenced a detailed compilation of the geological and geochemical data collected by Xtra-Gold Resources Corp. ("Xtra-Gold") (TSX:XTG)(TSX:XTG.S) over the past six years on the Banso and Muoso mining leases in Ghana, West Africa. Verbina, through an option agreement with Xtra, may earn a 55-per- cent interest in Xtra's 90% interest in all the mineral rights of its Banso and Muoso mining leases in Ghana with the Ghanaian government holding the remaining 10% interest.

Verbina is calling its Annual and Special Meeting of Shareholders to take place in Toronto, Canada on April 11, 2011. Meeting materials will be mailed this week and will be available for review on SEDAR at www.sedar.com shortly after the mailing. At the meeting the shareholders will be asked, among other things, to approve a corporate name change to Buccaneer Gold Corp. to better reflect the new focus of the company on gold exploration. A financing to raise funds for the Ghanaian gold exploration program is anticipated in the near future, possibly preceding the Annual and Special Meeting.

Results of an airborne Versatile Time Domain Electromagnetic (VTEM), Magnetic, and Radiometric survey, recently completed by Xtra-Gold on the concessions, will be incorporated into the geological compilation within the next few months upon reception of the final survey interpretation data from Geotech Airborne Limited. This integrated survey, in combination with previous soil geochemistry and reconnaissance geology surveys will help further define the extent and regional controls of the gold-bearing structures discovered to date by scout trenching on the Ankaase Gold Trend (Muoso) and Banso Area No. 3 gold-in-soil anomalies; with the objective of guiding follow-up trenching designed to outline high priority, cost effective drill targets.

The primary purpose of the VTEM survey was to delineate auriferous graphitic or sulphidic shears but Resistivity-depth data may also help further define and/or identify Belt-type granitoid bodies spatially associated with the gold-bearing structures. In addition to helping map lithological contacts, including the gold prospective granitoid bodies, the aeromagnetic survey will permit the detection of low-magnetic domains possibly reflecting demagnetization resulting from intense gold-related hydrothermal alteration. Similarly the radiometric survey may also help further define and/or identify the granitoid bodies and identify hydrothermal alteration along structures.

Historic work by Xtra-Gold focussed on the Ankaase Gold Trend project consisting of an over 3.5 km long, anomalous gold-in-soil trend (> 50 ppb Au) conforming to the regional NNE structural trend at the eastern extremity of the Muoso Concession. The area of the gold-in- soil anomaly is also characterized by the widespread occurrence of auriferous quartz floats. Reconnaissance trenching to date yielded very encouraging results and confirmed that the extensive Ankaase gold-in-soil trend is spatially associated with a typical "Ashanti" style shear zone setting developed proximal to a Birimian metavolcanic – metasediment contact with associated Belt-type granitoids.

Historic trenching efforts, restricted to the southern 1.4 km strike extent of the over 3.5 km long Ankaase gold-in-soil anomaly, includes 31 hand dug trenches totalling 1,350 linear- metres, including: 19 trenches totalling 805 metres excavated in the initial 2008 scout trenching program (#TMU001 – TMU019); and 12 trenches totalling 546 metres during the 2009-2010 follow-up program (#TMU021 – TMU032). This trenching intermittently traced an approximately 150 metre to 200 metre wide, NE-trending deformation zone over an approximately 1.4 km strike length. This structural corridor is characterized by several sub parallel, shear hosted, gold – bearing quartz vein zones ranging from less than 1 metre to approximately 35 metres in trench-length; with individual quartz veins ranging from less than 1 cm to 5.5 metre in trench-length.

Highlights from Xtra-Gold's 2008 scout trenching include channel sample intercepts of 1.75 grams per tonne ("g/t") gold over 18 metres in trench #TMU004; 1.79 g/t gold over 24 metres in #TMU008-TMU010; 4.73 g/t gold over 6 metres in #TMU016; and 2.08 g/t gold over 14 metres, including 6.52 g/t gold over 4 metres in #TMU019 (see January 13, 2009 Xtra-Gold press release). All reported intercepts are trench – lengths; true width of mineralization is unknown at this time.

Xtra-Gold's 2009 – 2010 follow-up trench program focused primarily on further defining the strike and width extents of the Trench #TMU008-TMU010 and Trench #TMU005-TMU016 gold-bearing structures discovered during the initial scout trenching program. These gold showings lie approximately 1,250 m apart within the central and southern portions of the Ankaase gold-in-soil trend.

Sample highlights for the 2009-2010 trench program include a channel sample intercept of 1.80 g/t gold over 24 metres, including intervals of 2.59 g/t gold over 7 metres and 3.62 g/t gold over 6 metres in trench #TMU023. This trench was designed to extend scout trench #TMU013, which yielded a few sporadic gold values up to 2.79 g/t gold over 1 metre, approximately 30 metres east along strike from the trench #TMU008-TMU010 discovery showing. When combined together as a continuous trench the #TMU013-TMU023 sample section returned 1.28 g/t gold over 38 metres. Of particular exploration interest is the fact that the southern margin of the structure remains open; with the southern extremity of trench #TMU023 characterized by sheared metasedimentary rock returning 3.62 g/t gold over 6 metres. To date the Trench #TMU008-TMU010 auriferous structure has been intermittently traced in an E-W undulating fashion over an approximately 300 metre strike distance and ranging from 20 metres to 35 metres in trench-length.

The Trench #TMU005-TMU016 gold showing consists of a shear structure developed along the contact between a metavolcanic - metasediment rock package and a granitoid body. The initial 2008 sampling of this structure in trench #TMU016 returned 4.73 g/t gold over 6 metres; and the granitoid in #TMU005 on the northwest flank of the structure yielded 0.43 g/t gold over 62 metres. Follow-up trench #TMU030 located approximately 30 metres northeast along strike from the discovery trench yielded a channel sample intercept of 1.55 g/t gold over 17 metres, including 3.55 g/t gold over 6 metres, from sheared granitoid.

Yves P. Clement, P. Geo, Vice President, Exploration for Xtra-Gold is acting as the Qualified Person in compliance with National Instrument 43-101 ("NI 43-101") with respect to this announcement. He has prepared and or supervised the preparation of the scientific or technical information in this announcement and confirms compliance with NI 43-101.

Verbina:

Verbina is a mineral exploration company whose long-term objective is to build a diversified company focused on the acquisition, exploration and development of mineral properties. Additional information about the Company is available for review on SEDAR at www.sedar.com.

This news release contains certain forward looking statements which are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected. Verbina does not undertake any obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking-statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed this news release and neither accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Verbina Resources Inc.
    Paul Zyla
    President
    (416) 366-4227