Verena Minerals Corporation

Verena Minerals Corporation

December 03, 2007 16:09 ET

Verena Minerals Acquires an Option on the Lavrinha Gold Project Goias State, Brazil

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) - Verena Minerals Corporation (TSX VENTURE:VML) ("Verena" or the "Company") is pleased to announce that it has signed a Letter of Intent ("LOI") dated December 1, 2007 with Mineracao Santo Expedito Ltda (the "Vendor") of Brazil, pursuant to which Verena can earn a 70% direct interest into the Lavrinha Gold Project (the "Project") in Goias State, Brazil.

"We are very excited about adding this new Project to our portfolio," said Ron Stewart, President and CEO of Verena. "The extensive historic mining activity combined with the nature of the geology support our view that the Project has excellent potential to host a major new gold deposit. While much work needs to be done, it is drill ready for our exploration team to begin working immediately."

The Lavrinha exploration concession covers 2,578 hectares and is located 240 kilometres northwest of Brasilia. The surface of the prospect has been intensely mined over a 3,000 metre by 1,500 metre area by Portuguese bandeirantes in the late eighteen century. Garimpeiro mining was conducted over a 12-year period, from 1982 through 1993 in an area extending 1,500 metres by 500 metres. Open pit mining was concentrated in an area measuring 500 metres north-south by approximately 200 metres east-west, and by over 400 mapped shafts scattered over the entire property.

There are at least three main host rocks containing the gold mineralization, the central and most intensively mined unit is a quartz sericite schist which is up to 700 metres wide. This zone is flanked on the west by a carbonaceous sericite schist that is up to 400 metres wide and on the east by a chlorite schist that is also up to 400 metres wide. Gold mineralization occurs within two principle vein systems crosscutting these rocks, the dominant vein array strikes N600E and dips 600 to the northwest, a second set strikes N500W and dips 500 to the northeast. Two large northwest striking Portuguese excavations of 500 metres and 300 metres in length occur within the carbonaceous schist.

No records of modern exploration appear to exist by either a Brazilian or international company on the Lavrinha gold property. Only recently the Vendor began work and concurrently consulted Verena on a potential transaction. A RAB (air-core) drilling program totaling 62 holes averaging 20 metres in depth was conducted by the Vendor to obtain geochemical analysis of the disturbed surface profile. Results of this work are pending. Verena has designed a 3,500 metre combined RC and diamond drill program to assess the grade and tonnage potential of the Project during a 90 day due diligence period. This work is scheduled to begin immediately.

Subject to a positive due diligence review, Verena and the Vendor agree as follows: to enter into a formal option Agreement (the "Agreement") to advance the exploration and development of the Project. Within 30 days of signing the Agreement, Verena shall issue 100,000 common shares to the Vendor. Verena will have the option to invest US $2 million within the first two years, and will issue 200,000 shares to the Vendor on the first anniversary and 300,000 shares on the second anniversary of the Agreement to earn a 51% interest in the Project. Verena will have the option to invest an additional US $3.5 million over the following two years, and will issue 400,000 common shares to the Vendor on the third anniversary of the Agreement to increase its equity share in the Project to 70%. The share issuances are subject to regulatory approval.

Upon completing this work, Verena shall deliver to the Vendor a NI 43-101 compliant report and if a resource is identified that is greater than or equal to 1 million measured and indicated ounces of gold, Verena will fund the next US $4.5 million in investment to advance the Project with 50% of this amount recovered as a loan to the joint venture company. If a resource is identified that is greater than or equal to 1.5 million measured and indicated ounces of gold, Verena agrees to fund the next US $5.5 million in investment with 50% of this total recovered as a loan to the joint venture company.

Qualified Person

This Project has been inspected on two occasions by Mr. George Flach, P.Geo, qualified person within the meaning of National Instrument 43-101. Mr. Flach has reviewed the contents of this release.

About Verena

Verena Minerals Corporation is a Canadian based mineral exploration company with an outstanding portfolio of properties including gold, diamonds and gemstones in Brazil. Verena's prime focus is on advancing and expanding its 100% owned, 1.7 million ounce Volta Grande Project, located in Para State. Verena has a strategic alliance with Kinross Gold Corporation, which holds 7.1% of Verena and is earning an interest into the Monte do Carmo and Patrocinio gold projects. Verena also hold the past producing Bonfim gold mine along with a portfolio of diamond and gem properties, Verena trades on the TSX Venture Exchange and has approximately 93.5 million common shares issued and outstanding.

Cautionary Statement on Forward Looking Information

This press release may include forward looking statements within the meaning of securities laws. Forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from what is currently expected. Accordingly, readers should not place undue reliance on forward looking statements. For a more detailed discussion of such risks and other factors, refer to Verena's filings with the Canadian securities regulators available on or the Company's website at

To view the Lavrinha Project Geological Map please visit the following link:

To view photos showing historic surface mining please visit the following link:

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Verena Minerals Corporation
    Ron W. Stewart
    President and CEO
    (416) 368-2998