Juan Vegarra, Chairman and CEO of Vena Resources commented: “This is a tremendously important milestone for the Company. Vena has invested close to US$20 million in the development of the Azulcocha mine and has delineated a NI 43-101 compliant underground resource of close to 200 million pounds of Zinc thus far. The orebody is open in multiple directions and the infrastructure buildup, completed over the last 18 months, includes a modern three MvA electrical substation, onsite lab, mining infrastructure capable of supporting over 350 employees and a scalable floatation mill capable of processing up to 1,400 tpd.
A prefeasibility study was completed in June 2005 on the tailings with robust economics resulting in an NPV of US$37.2 million and an IRR of 157% using US$0.50 per pound Zn and US$0.60 per pound Mn and this NPV does not include possible gold credits. A scoping study completed by MineFill Services from Vancouver in January 2007 provided positive economics for the entire project and we’re pleased that Glencore continues to invest in the exploration of Azulcocha West where 32 holes (7,056 metres) have been drilled thus far with expenditures of US$2.4 million to date.”
With the approval of the EIA, Vena can now continue to explore from underground and surface locations for additional tonnage. The EIA is a requirement for proceeding to mill construction and mining operations. Perhaps the most important aspect of this milestone is the local community commitment the Company has received to develop this project as soon as possible.
Azulcocha Highlights – Current Mine Resources NI 43-101 Compliant
Underground Mine Resource Confirmed so far
(NI 43-101, R. Henckle and Assoc., 2008)
Indicated Resource Tonnes Zinc %
865,132 5% cut-off 10.0
Tailings Reserves Pre-feasibility Study
(NI 43-101, M. Lytle and R. May 2005)
Probable Reserves Tonnes Zinc % Mn % Au gpt
Calculated 908,400 3.27 10.04 1.13
General Overview of the Azulcocha Property
The Azulcocha Project is a polymetallic zinc deposit located on the Central Andes Peru where the major silver-lead-zinc-copper producer mines reside including: Raura, Uchucchacua, Izcaycruz, Atacocha, Milpo, Cerro de Pasco, Colquijirca-San Gregorio, Huaron, Casapalca, Morococha-Toromocho, San Cristobal-Carahuacra, Azulcocha and Yauricocha.
The Azulcocha deposit is set in Pucara Group (Condorsinga Formation limestone) of the upper Triassic to lower Jurassic age, marine and continental sediments of Mesozoic and Cenozoic age. The zinc ore deposit is controlled by the regional N45W trending Cochas – Gran Bretaa fault which builds an E – W sygmoidal overthrust structure. The Azulcocha deposit is not well defined yet and is still open for more exploration. The 2006 to 2008 exploration programs consisted of both surface and underground core drilling in addition cross cut workings in order to define the remaining resource for the Azulcocha mine.
17,440 tonnes of ore from underground mine was processed in a pilot mill, which obtained concentrate of 54% of zinc with 89% recovery.
– Electricity Supply – The property has a Sub Station of 3 MvA which is connected to the National interconnected System.
– Water supply – Abundant water resources are available from surface ponds and small lakes.
– Transportation facilities – The Azulcocha – Pachacayo 40 kms non asphalt road is connected to the central railroad and the central highway which is 225 kilometers to the port of Callao, and 45 kilometers to the Smelting and Refinery of La Oroya. The Azulcocha Project is also accessible by airplane from Lima to Jauja – 60 kilometers from the mine site.
Vena has a well defined social impact policy that is formalized through written agreements with the local communities of Tomas and Shicuy to undertake exploration and production programs. This collaboration is maintained through programs of social support related to medical services, electricity and agriculture improvements.
The Azulcocha deposit is not well defined yet, it is still open in multiple directions, for additional exploration to increase and define resources along the eastern and western extension of the Azulcocha mine as well as in the projection below the -40 underground level.
Azulcocha West is a Joint Venture with Glencore, which is undergoing an exploration and evaluation program with a total investment of US$2.75 million.
Azulcocha has historically been known as a zinc mine, however several drill holes discovered gold, lead and manganese zones. Vena plans to investigate these new targets as well as obtain final permits for full production at Azulcocha.
The exploration and development program is being supervised by Gervacio Rodriguez P.Geo., Vena’s Qualified Person as defined by NI 43-101.
Vena Resources at the PDAC
Vena Resources is pleased to extend an invitation to all interested parties to visit Vena’s management at booth #3023 at the 2009 PDAC International Investors Exchange. The PDAC is being held at the Metro Toronto Convention Centre, South Building – Level 800, from Sunday, March 1st to Wednesday, March 4th.
About Vena Resources
Vena Resources Inc. is a Canadian mining company focused on the exploration and development of Peru’s mineral potential. Employing a model of diversification across metals and regions in Peru to mitigate investment risk, the Company consists of four divisions: Mining, Clean Energy, Precious Metals and Base Metals. Together with the Company’s strategic partners, Cameco, Consorcio Minero Horizonte and Glencore, Vena will advance its significant portfolio of almost 100,000 hectares this year. Through its board of directors, Vena Resources possesses a unique quality of skills and experience in management, mining and finance relating to Peru and Canada.
Statements in this press release regarding the Company’s business 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.
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