Vena Resources Inc. announce the expansion of the underground and surface development program at the Pucara gold, copper and silver property located 80 kilometres north of Juliaca in the Puno District of southeastern Peru.
Pucara is 100% owned by Vena where extensive core drilling has indicated a very favourable poly-metallic resource. The current development license allows for 1,800 metres of drifting on the known structures.
The gold at Pucara is coarse (significant visible gold) and requires special analytical methods. A differential screening analysis was not performed and a standard gold assay analysis resulted in lower than expected grades during the 4,400 metre drill program that was recently completed. Based on such inconsistencies with bulk samples previously reported, a differential screening analysis on 80 samples (metallics, coarseness/assays and weight percentages) was systematically taken at the Katy Vein and the Gladys Stockwork, and on average much higher gold grades were found – in some cases up to five to seven times more than previously reported by drill program. This new analysis is more consistent with observed expectations for gold values and has resulted in a new plan for developing the copper and gold property. The attached table shows the most recent results of the re-assaying program.
Both CIMM and SGS Labs (ISO 9000 labs in Lima Peru) were utilized to ensure similar grades. High grade coarse gold values are often difficult to reproduce, however the values obtained from both CIMM and SGS show grades similar in value. Results also confirmed that the former assay method was not adequate and significantly underestimated the amount of gold present at Pucara.
“The Company’s ongoing plan is to drift underground on the Katy Vein, systematically sampling every two meters to the lateral extents of the vein. After the Katy Vein is completed, Vena geologists will proceed to the Lucero Vein and perform the same systematic sampling with the goal of completing an NI 43-101 compliant report in early 2009″, stated Juan Vegarra, Chairman and CEO of Vena.
Concurrently, Vena will also be undertaking extensive underground sampling at the Gladys Stockwork where gold values up to 132 grams per metric tonne (gpt) have been assayed and where an open pit design has been finalized. Gladys is a stockwork that has been previously bulk sampled at 3.64 gpt gold, 19.34 gpt silver and 4.23% copper. Near term plans are to develop an open pit mine at the gold rich Gladys Stockwork and send run-of-mine material together with the underground development material to an existing mill at Crucero, 100 kilometers away.
To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Vena-Pucara.pdf
Vena currently has two expandable mills at the Azulcocha Zinc mine (100 tpd and 500 tpd). Given the new scenario at Pucara, the expandable 100 tpd mill will be moved to the Pucara site for onsite processing when production permits are ready. Pucara has outstanding infrastructure as it is located 1 kilometre from a major highway and has onsite electricity capable of supporting an initial operation in the near term.
The following table shows underground samples taken from the Gladys Stockwork without using the differential screening method for gold. Based on the latest findings, Vena believes these gold assays are under-representing the real value of the Gladys Stockwork.
The exploration and development program are being supervised by Rod Ogilvie P.Geo., Vena’s Vice President of Engineering and Qualified Person as defined by NI 43-101. Core samples were cut longitudinally with a diamond saw and one half of the core was placed in sealed bags and initially shipped to preparation laboratories in Juliaca, 800 kilometers southeast of Lima. Following the preparation stage, the sample pulps were sent to analytical laboratories in Lima. CIMM Peru and SGS are ISO certified assay laboratories. The program is designed to include a comprehensive assay quality control routine comprising the systematic use of standards, blanks and field duplicate samples. Secondary laboratories are used for check assaying.
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 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.
For further information on Vena Resources, please visit the Company website at www.venaresources.com.