News Feed Item

Vena Provides Update on Azulcocha West Polymetallic Project

TORONTO, ONTARIO -- (Marketwired) -- 05/26/14 -- Vena Resources Inc. (the "Company" or "Vena") (TSX: VEM)(LMA: VEM)(FRANKFURT: V1RA)(OTCBB: VNARF) announces that after four years of an arbitration process in Peru the Company will be able to restart exploration activities of the promising Azulcocha West polymetallic property located only 6 kilometres west of the existing Azulcocha mine and milling operation. The Azulcocha West claims are strategically important to the long term economics of Vena given its close proximity to the Azulcocha Mine processing facilities owned by Azulcochamining S.A. (now owned by Trafigura Beheer B.V.)

Azulcocha West Property - The 2,583.2 hectare Azulcocha West project is located immediately west of the Azulcocha mine/mill concessions. The property was staked by Vena in 2006 to cover 30 known polymetallic showings including skarn, manto and vein deposits in the area. In 2006, Vena signed a letter agreement ("LA") with Empresa Minera Los Quenuales S.A. ("LQ"), a company owned by Glencore of Switzerland, to explore the property. The program consisted of detailed mapping, geophysics, trenching, rock sampling and diamond drilling.

Both the Jurassic limestones of the hanging wall and the Cretaceous sandstones of the footwall of the Conchas - Gran Bretana Fault have been intruded by Neogene Granodioritic calc-alkaline laccoliths. The largest of these is the granodioritic Chuquipite intrusive that is approximately 4 kilometres in diameter and is in contact with the Condorsinga limestone. The smaller San Pablo Intrusive, classified as dacite porphyry, is approximately 700 metres x 200 metres in size and intrudes the northern limb of the limestone. The two intrusive bodies are approximately 1.5 kilometres from each other.

The juxtaposition of the two metal rich intrusions with reactive limestone wall rocks in the presence of the western extension of the Conchas - Gran Bretana Fault (a major regional ore host) has been responsible for the proliferation of mineralization. Drilling indicates that the two most important structures are the 2.5 kilometre long northern contact of the Chuquipite intrusive (Maria Fe and Valeria skarn/replacement showings) and the approximately 500 metre long Recuperada vein. There is a marked contrast between the mineralogy of the two structures: the Maria Fe is zinc rich metasomatic with abundant skarn minerals in the gangue whereas the Recuperada is silver rich with a silica gangue that appears to be epithermal. There is also a contrast in depth of oxidation with the Recuperada sulfides having been much less affected by supergene processes. Due to the differences in strike and dip of the two structures there is a convergence of the two mineralized systems near the eastern end of the Maria Fe showing.

The best drill intersection at Maria Fe is 23.9 metres of 11.46% zinc in the transition zone (mixed oxide/ sulphide) at a vertical depth of about 140 metres. The trenching/ drilling at the Recuperada structure indicates that there are two approximately 140 metre long zones of mineralized vein: the northeast zone - width 0.48 metres at 279.8 g/t Ag, 1.2% Pb, 0.79% Zn; and the southwest zone - width 1.40 metres at 73 g/t Ag, o.51% Pb, 0.76% Zn. A total of 3,800 metres of drilling were completed, over 100 trenches were excavated and 1,100 channel samples were taken. Given the magnitude and grades along the contact zone and based on all the previous geological work performed, a multimillion ton resource can be visualized.

Vena will work on delivering a National Instrument 43-101 report as soon as possible.

                Significant Drill Intersect at Azulcocha West
                          WIDTH       Au       Ag       Cu       Pb       Zn
TARGET        DRILL ID     (mt)      g/t      g/t        %        %        %
Valeria        V-04-08     2.05    10.33   477.97     0.25    36.76     0.44
Maria Fe      MF-10-01    23.90     0.09    20.66     0.12     0.24    11.46
Maria Fe      MF-10-02     7.79     0.07    23.52     0.22     0.23     4.56
Maria Fe      MF-10-05     5.15     0.03    13.95     0.31     0.01     8.85
Maria Fe Bx    R-01-08     5.60            188.99     0.39     0.25     0.43
Recuperada     R-01-08     4.05     0.14   139.00     0.27     0.37     0.79
Recuperada     R-02-08     2.40     0.03    86.12     0.05     0.37     0.18
Recuperada    MF-01-08    12.20     0.07    59.18     0.03     0.52     0.05

Azulcocha West Arbitration - Under the original agreement in 2006 with LQ and extended three times thereafter, LQ agreed to invest US$2,750,000 in exploration expenditures, provide a satisfactory feasibility study for Vena and pay Vena US$1,000,000 to acquire a 51% interest in the Azulcocha West Project. None of those requirements were met. In April 2010, Vena and LQ signed a Letter of Intent ("LOI") to be followed by a binding agreement including all new terms.

As previously disclosed in Vena's financial disclosure documents, the main issues of the arbitration were the following: (i) LQ argued that the LOI effectively extended the term of LA therefore it was not necessary to sign a further binding contract and LQ sued Vena for US$13,000,000 in damages for loss of profits; and (ii) Vena countersued LQ for US$9,130,000 in damages based on the fact that the LOI did not extend the LA's term and further that LQ acted in bad faith preventing the signing of the future contract (LQ 's lawyer had sent a draft of the future contract which contained the new terms).

During the arbitration proceedings it was discovered that LQ drilled six additional holes but did not disclose the technical results to Vena. And further, LQ performed this drilling without all the required authorizations and permits. Recently, Vena re-assayed those drill holes and found significant intersects that at the time could have substantially improved the understanding of the Azulcocha regional geology. Vena made several decisions over the last few years regarding Azulcocha that might have been significantly different if all of the technical data had been available to the Company. Possibly this would have involved an alternative decision with respect to the sale of the mine/mill as part of the regional investment strategy.

The arbitration panel, in a controversial decision, with two votes in favor and one against has determined that Vena Peru and Azulcochamining S.A. jointly and severally pay LQ an audited sum of US$2,342,092.51 for damages despite the fact that LQ did not comply with a single term in the original option agreement even after Vena granted three extensions. In its opposing statement, the dissenting arbitration panel member dismissed in every respect LQ's claims and in contrast to the decision determined that LQ should pay Vena US$4,970,000 for loss of profits.

Juan Vegarra, Vena's Chairman and CEO stated: "We are pleased Azulcocha West can be advanced shortly. The property's significant mining potential and proximity to an existing milling operation adds tremendous value to our current holdings. As the Company just received notification of the arbitration decision, Vena's legal team is analyzing the arguments and scope of the extensive arbitration documents and will respond accordingly in due course."

This press release has been reviewed and approved by David Bent, P. Geo., Vena's Qualified Person as defined by NI 43-101.

Forward-Looking Statements:

This press release contains forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking statements are based on certain key expectations and assumptions made by Vena. Although Vena believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Vena can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release are those set out in Vena's management discussion and analysis of the financial condition and results of operations for the year ended December 31, 2013 and the first quarter ended March 31, 2014 and its annual information form for the year ended December 31, 2013, which are available at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Vena undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Vena Resources
Juan Vegarra
Chairman & CEO
(416) 364-7739, ext. 120
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...