VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2012) - Valterra Resource Corporation (TSX VENTURE:VQA)(FRANKFURT:3VA) ("Valterra") is pleased to announce that it has now earned a 100% interest in the Cu-Au Swift Katie porphyry property in southeast BC.
Pursuant to an option agreement with private vendors, Valterra was required to pay an aggregate $205,000 cash, incur exploration expenditures totaling $1,300,000, and issue an aggregate 1,090,000 common shares over a five year period in order to acquire a 100% interest in the Swift Katie property. The vendors retain a 3% net smelter return royalty on the property, however Valterra may purchase one half of such royalty at any time prior to the commencement of commercial production by paying the vendors $1,000,000 per each 1% of the royalty. Valterra must pay the vendors annual minimum advance royalty payments of $50,000 (adjusted annually according to the consumer price index). Valterra will issue the vendors 250,000 common shares upon completion of a positive feasibility study and an additional 500,000 common shares upon achievement of commercial production.
The Swift Katie property comprises more than 80 square kilometres and is located near Salmo BC in an infrastructure-rich region of the province that includes numerous historic mines. The project includes a significant historic drill database with more than 57 drill holes, and Valterra has completed an additional 15 drill holes (4,866m), returning several encouraging intercepts for bulk-tonnage Cu-Au from the Katie zone. The property is underlain by prospective volcano-sedimentary rocks assigned to the Rossland Group which hosts numerous precious-metal and polymetallic past-producers in this prolific belt.
Valterra has retained Micon International Limited of Vancouver to conduct a Phase I in-house review of the database for the main mineralized zones (Katie, West, and 17) where drilling outlines a Cu-Au inventory over a two square kilometre area that is up to 300 metres in depth; being open in several directions. The Phase I work includes surveying of historic drill collars, an assessment of the historic QA/QC protocols, and drill spacing. Contingent on Phase I results, the Phase II proposal includes provisions for developing a NI 43-101 compliant bulk-tonnage Cu-Au resource.
Update on the Rozan Property
Valterra elected to terminate the option agreement with Emgold Mining Corporation regarding the 1,950 hectare Rozan Property in order to focus on core holdings at the more advanced Swift Katie and Star-Toughnut projects located in the Salmo-Nelson corridor.
About Valterra Resource Corporation
Valterra is a Manex Resource Group Company. The Group provides expertise in exploration, administration, and corporate development services for Valterra's mineral properties located in the Kootenay Region of BC.
Valterra has interests in over 104 square kilometres in southeast BC that currently focus on three primary properties: the Star gold-silver-copper claims located southwest of Nelson BC, the Toughnut gold-silver-copper-lead-zinc claim block which adjoins the Star claims, and the advanced Swift Katie copper-gold porphyry/shear-hosted project located near Salmo BC.
Since 2007, Valterra has aggressively explored and expanded its claim blocks within the gold-enriched "Rossland Volcanic Belt" by completing over 10,600 metres of diamond drilling, conducting 810 line-kilometres of heli-borne geophysics, undertaking mapping-sampling and staking programs, and acquiring/joint venturing properties.
Brian McGrath, P.Geo., is the Qualified Person responsible for reviewing the technical information presented in this release.
On behalf of the Board of Directors,
Lawrence Page, Q.C., President and Director, Valterra Resource Corporation
For further information, please visit Valterra's website at valterraresource.com.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for Valterra Resource Corporation's projects, and the availability of financing for Valterra Resource Corporation's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Valterra Resource Corporation does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
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