April 19, 2005-- Toronto, Ontario --In a further advancement towards its mission, Vena Resources Inc. (TSX.V : VEM) announces that it has signed a purchase option agreement with Inca Gold, a private Peruvian exploration company. The eight properties are all located in the highly prospective Alto Chicama - Yanacocha structural corridor and comprise 22,486 hectares – see attached map. The valuation of the non-arm’s length transaction was undertaken by Micon International Limited, an internationally recognized mining consulting firm.
Peru is well known for the variety and high grades of its mineral wealth and much of the country has scarcely been explored. The acquisition of these concessions is in keeping with Vena’s mission to become a pre-eminent developer of the mineral and social wealth of Peru.
“Vena is demonstrating once again the strength and depth of its exploration teams. The Inca Gold projects are strategically located in this highly regarded area of Peru”, said Juan Vegarra, Chairman of Vena Resources and a native-born Peruvian.
For reference, at Barrick’s Alto Chicama mine, about two-thirds of the gold mineralization occurs in silicified Chimu sandstone, and about one-third in the overlying Calipuy volcanics. Mineralization is believed to be structurally controlled and the gold most likely occurs as the mineral electrum.
(1) Masma Prospect (8,200 hectares) - The Masma Prospect is between 3400 and 4150 meters above sea level and consists of sedimentary rocks of the Carhuaz, Farrat, Inca Chulec, and Pariatambo formations in a series of anticlines and synclines. The regional orogenesis consists of epithermal systems with alternating zones of high and low sulphidation mineralization. For example, the Shahuindo project, 5 km to NE, is a gold-bearing, high sulphidation deposit while the Algamarca silver mine, 2 km to the NE, is a low sulphidation vein deposit.
(2) Huamachuco Prospect (2,051 hectares) - This prospect is very similar to the reported 500,000 ounce El Toro deposit immediately adjacent. Mineralization concentrates in the crests of the anticlines and surface samples indicate anomalous values of gold and copper. The zone displays evidence of hydrothermal fluid mineralization.
(3) Compín Prospect (2,400 hectares) - The Compin prospect, at an elevation of 1200 to 2800 meters above sea level corresponds mainly to sedimentary rocks of the Chimú, Santa and Carhuaz formations with outcrops of the volcanic Calipuy Formation. It is located near the epithermal Cu-Au porphyry that is being explored by Anaconda Mining.
(4) Huaranchal Prospect (3,037 hectares) - The Huaranchal project consists of sediments from the Chimú, Santa, Carhuaz, and Farrat Formations as well as the volcanic Calipuy Formation. Rock and soil samples indicate anomalous values as high as 0.24 grams per tonne of gold and 5.1 grams per tonne of silver.
(5) Pallasca Prospect (898 hectares) - This area is in the immediate environs of the Alto Chicama, Las Arenas and La Virgen projects which are all known to be gold bearing with some proven reserves (Barrick’s Alto Chicama has a reported +8 million ounces of gold reserves).
(6) Carhuaz Prospect (3,400 hectares) - The Carhuaz project is mainly sandstones and quartzites of the Chimú Formation, limestone packages of the Santa Formation and volcanics of the Calipuy Formation. Three anomalies within the property have been identified. One is found at the sediment-volcanic contact, another of a volcanic breccia and the third is a vein swarm. Anomalous gold grades up to 1 gram per tonne have been found in surface sampling.
(7) Santiago de Chuco Prospect (1,600 hectares) - The Santiago de Chuco property is within 10 kilometers of the Cayacuyan Mine recently constructed by Barrick (Alto Chicama). It is surrounded by other important sediment hosted gold deposits and the Santa Rosa Mine operated by Comarsa is also in the immediate environs. There is evidence of a Yanacocha-style high-sulfidation system and a Cu/Au porphyry system. (8) Huaraz (700 hectares) - The geology (Calipuy volcanics, brecciation and alteration) and the proximity to Barrick’s +7 million oz Pierina mine make the prospect an interesting exploration target. It is located about 6 km southeast of the city of Huaraz at an elevation of 3,200 to 3,500 meters above sea level and is readily accessible from a main road. Deal Terms
The basis for the purchase consists of a one time payment of US$60,000 plus 800,000 shares of Vena stock, the issuance of which is subject to regulatory approval. In the event, Vena sells or otherwise transfers its interests in the concessions in whole or in part, Inca Gold will receive a cash payment equal to 10% of the purchase or transfer price. If Vena decides to drop the concessions they will be transferred back to Inca Gold in the Peruvian Public Registry. Vena Program
Vena is preparing an aggressive program of surface exploration and geophysical surveys to identify sites for drilling on the concessions.
About Vena Resources Inc.
Vena Resources (TSX.V : VEM) is dedicated to building capital appreciation and creating long term shareholder value by developing the mineral and social capital of Peru. This will be done by deploying its financial resources so that its uniquely “Peru savvy” management team can aggressively acquire and advance high quality projects and people throughout the country.
Vena Resources is structured into four strategic business units:
· The Uranium Division controls 14,000 hectares of Uranium projects and manages the technical joint venture with IPEN for the exploration and confirmation of all 78 targets found by IPEN during three decades of exploration throughout Peru;
· The Mining Division is responsible for bringing the Azulcocha poly-metallic project to fruition, generating strong cash flow to fund the exploration activities of the other units;
· The Precious Metals division is about to start second phase drilling of the Aucapampa project. It is performing extensive geochem and geophysics on the Tantar H.S. project. It also controls the strategically located “Las Princesas” gold property that is completely encircled by Barrick Gold and Pan American Silver claims and is immediately adjacent to Barrick’s Alto Chicama property;
· The Base Metals Division is responsible for developing all copper/moly systems including the recently acquired Aurora project - a large copper-molybdenum system that is going through a confirmation study.
A key risk mitigation strategy is to maintain the corporate development portfolio open to all types and classes of mineral wealth and keep the new project “pipeline” full.
For further information please visit the Company website at http://www.venaresources.com/.
John Cullen, Director (416) 364-7739 -- e-mail jcullen@venaresources.com
Denis Clement, Director (416) 364-1909 -- e-mail dclement@venaresources.com
Bryce Bradley, Corporate Development (416) 666-0519 -- e-mail bbradley@venaresources.com
IR Canada: Renmark Financial Communications Inc.
T: (514) 939-3989 F: (514) 939-3717
Tina Cameron - tcameron@renmarkfinancial.com
Henri Perron - hperron@renmarkfinancial.com
IR Europe: Vicarage Capital
T: +44-20-8715-3271 or +44-(0)-7880-787-080
Martin Wood - martin@vicaragecapital.com
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
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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