Verena Minerals Corporation

Verena Minerals Corporation

September 07, 2005 09:01 ET

Verena Minerals Corporation: Final Volta Grande Property Agreement Signed New Gold Resource Estimate Underway

TORONTO, ONTARIO--(CCNMatthews - Sept. 7, 2005) - Verena Minerals Corporation (TSX VENTRUE:VML) (the "Company" or "Verena") , is pleased to announce the signing of an agreement modifying the terms of the acquisition of a 100% interest in the Volta Grande gold deposit located on the Xingu River, north of the Carajas Mineral Province in the Tres Palmeiras Greenstone Belt approximately 50kms southwest of the city of Altamira in Brazil.

Under the original terms of the contract signed last year, Verena was to pay US$3,000,000 over four years. Now, under the modified agreement Verena will pay to the Vendor a total of US$600,000 of which $62,500 has been paid to date. The balance outstanding will be paid in six months from the signing of the modified acquisition agreement. In addition, Verena will pay to the Bank of Para approximately 3,512,500 Reals or US$1,500,000 on favourable terms. The loan will be paid beginning in two years, only if the company has produced a bankable feasibility study. Principal and interest can be paid over 10 years on a quarterly basis.

Verena is currently preparing an updated resource estimate based on further modelling of the gold resources discussed in the NI 43-101 report and will provide it's report to Roscoe Postle Associates to be reviewed and verified within 30 days.

In a National Instrument 43-101 report written for the Company last year (May 12, 2004), Roscoe Postle Associates ("RPA") confirmed an indicated resource of 172,245 ounces of gold and an inferred resource of 1,109,371 ounces of gold. "The Volta Grande Project is an intermediate exploration property that contains significant gold mineralization". (RPA).

Area Category Tonnes Gold (g/t) Gold (ounces)
(primary) Indicated 3,500,000 1.41 158,664
Inferred 24,900,000 1.21 968,670
Saprolite Indicated 320,000 1.32 13,581
Inferred 4,090,000 1.07 140,701

RPA's evaluation focused on mineralization delineated by TVX Gold ("TVX") in the North Block, in which the bulk of past exploration was completed. TVX drilled only seven holes totalling approximately 800 metres in the South Block, located approximately 8,000 metres to the southeast in a similar geological environment. "RPA is of the opinion that the South Block may host gold mineralization similar to the North Block, and further exploration is warranted".

Gold mineralization has been identified over a wide area through work completed between 1995 and 1998. Exploration work, which includes 2,993 soil samples, 989 channel samples, 5,995 metres of auger drilling in 874 holes, 19,602 metres of diamond drilling in 113 holes and 12 reverse circulation holes totalling 1,536 metres, has identified several parallel targets with open pit and underground potential. (See Press Release of February 4th, 2004).

Toronto-based Verena Minerals Corporation is focused on the exploration and development of gold projects in Brazil. Through its wholly-owned Brazilian subsidiaries, the Company controls over 100,000 hectares of prospective exploration concessions covering major mineralized belts in Goias, Minas Gerais, Rio Grande do Norte, Para and Tocantins states.

This Press Release has not been reviewed by a Qualified Person ("QP"), however the technical disclosure contained within has been reviewed by a QP (see Press Release of May 26th, 2004).

Verena currently has approximately 57.5 million shares outstanding, and is listed on the TSX Venture Exchange under the symbol VML.

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

Contact Information

  • Verena Minerals Corporation
    Stephen Shefsky
    President and CEO
    (416) 924-4337