Ventana Announces Filing of NI 43-101
Technical Report for La Bodega Project
Vancouver, BC, January
14, 2011 – Ventana Gold Corp. (TSX: VEN) ("Ventana"
or the "Company") today announced that it has filed its National
Instrument 43-101 technical report in respect of its initial resource estimate
and scoping study for the La Bodega project announced on November 8, 2010. Each
of the initial resource estimate and scoping study, including the preliminary
assessment, was independently reviewed and verified and is supported by the
technical report.
As previously disclosed,
the initial mineral resource estimate for the La Bodega project is 27 million tonnes grading 3.9 grams per tonne
gold, 21.5 grams per tonne silver, and 0.14% copper
for a total of 3.5 million ounces of gold, 19.2 million ounces of silver and
84.6 million pounds of copper, each in an inferred resource category, at a
cut-off grade of 2.0 grams of gold per tonne. Mineral
resources that are not classified as mineral reserves do not have demonstrated
economic viability.
The initial resource
estimate was as of September 18, 2010 and was based only on drilling and assay
results up to such date. As stated in Ventana's directors circular dated December 22, 2010, Ventana has drilled additional holes since September 18,
2010 and announced drill hole intercepts containing
significant mineralized intervals. As also stated in Ventana's
directors circular, Ventana
is optimistic that it can reach its corporate objectives of doubling its
current resource base within the next 18 to 24 months and upgrading its current
inferred mineral resource estimate to an indicated or measured mineral resource
estimate within the next 12 to 18 months through its comprehensive drilling
program. However, no assurances can be given that Ventana
will achieve these corporate objectives. If additional drilling is successful
in generating a sufficient quantity of measured and indicated mineral
resources, Ventana currently intends to initiate a
feasibility study to further assess the economic viability of the La Bodega
project. The current technical report was prepared in respect of the initial estimate
of inferred resources announced on November 8, 2010 and does not reflect the
potential to increase that resource estimate or upgrade Ventana's
inferred mineral resource estimate to a measured or indicated mineral resource
estimate.
In order to complete the
preliminary assessment contained in the technical report, a conceptual mine
plan was developed to estimate the tonnage and grade of a potentially economic
or mineable resource. Based on the conceptual mine plan, 29.7 million tonnes of material containing 3.7 million ounces of gold,
21.2 million ounces of silver and 90.7 million pounds of copper is potentially mineable using a variable cut-off grade
between 1.8 and 2.0 grams per tonne of gold only.
The scoping study and the
preliminary assessment in the technical report calculated a pre-tax net present
value for the La Bodega project of US$807 million at a discount rate of 5% and
a pre-tax internal rate of return of 34% assuming long-term prices of US$1,000
per ounce of gold, US$17 per ounce of silver and US$3 per pound of copper. The
scoping study and the preliminary assessment in the technical report also
estimated an initial capital cost for the La Bodega project of US$297 million.
This capital cost estimate does not include certain costs for accelerated mine
development, shaft sinking, permanent shaft production equipment, acquisitions
of land and rights of way, and portions of the camp complex, which Ventana anticipates will be incurred prior to any
determination of the economic feasibility of the La Bodega project through the
completion of the feasibility study referred to above and which are currently
estimated at approximately US$45 million.
The scoping study and the
preliminary assessment in the technical report are based on a mill with a capacity
of 7,500 tonnes per day. As stated in Ventana's directors circular,
over the course of the next 18 months, Ventana will
be reviewing options to determine if it will be possible to materially increase
that production rate, with a target of 10,000 tonnes
per day. No assurances can be given that Ventana can
achieve such objective. The current technical report is not based on such
increased production scenario and Ventana has not
completed sufficient technical work or economic analysis to support the targeted
production rate.
The scoping study and the
preliminary assessment in the technical report are assessments that are
preliminary in nature and include inferred mineral resources that are
considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves,
and there is no certainty that such preliminary assessments will be realized.
The Company anticipates
that its funds on hand of approximately $45 million will be used to pay the
costs and expenses associated with the unsolicited offer by AUX Canada
Acquisition Inc., to continue with the Company's drilling activities on the La
Bodega project, to conduct other activities in furtherance of determining the
economic feasibility of that project, including exploration decline work, pilot
plant acquisition, commissioning and metallurgical testing, and for general
corporate purposes. Any additional funds that may be required in order to
complete Ventana's work plans described above will be
financed by such means as are available at the time (including debt or equity
financing in the public or private markets) depending on market conditions and
other relevant factors.
The technical report is
available on the Company's website at www.ventanagold.com and is also available
on the Internet on the System for Electronic Document Analysis and Retrieval
which can be accessed at www.sedar.com.
About Ventana
Ventana
is a Vancouver-based mineral exploration and development company with mineral rights
to 4,591 hectares of exploration property in northeastern Colombia. The Company
has two project areas, La Bodega and Cal-Vetas, of
which the flagship La Bodega project contains multiple high-grade zones of
gold, silver and copper mineralization. Ventana has
announced the results to the project's scoping study and completed its first
inferred mineral resource which includes 27 million tonnes
grading 3.9 grams per tonne gold, 21.5 grams per tonne silver, and 0.14% copper for a total of 3.5 million
ounces of gold, 19.2 million ounces of silver and 84.6 million pounds of
copper. There is significant potential to expand the resource and the Company
intends to continue aggressive exploration at the project both from surface and
underground.
Ventana's shares trade on the Toronto Stock
Exchange under the symbol VEN.
For additional information
please visit http://www.ventanagold.com/ or contact:
Ventana Gold Corp.
Letitia Cornacchia,
VP Investor Relations
Tel: 1 (416) 644-5084
Email: lcornacchia@ventanagold.com
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Review by Qualified
Person, Quality Control and Reports
The results of Ventana's drilling program have been reviewed, verified and
compiled by Jon Lehmann, L.P.G., a qualified person as defined by National
Instrument 43-101 (NI 43-101). Mr. Lehmann has over 25 years of mineral
exploration experience, is a Licensed Professional Geologist in the State of
Washington and a member in good standing of the Canadian Institute of Mining
and Metallurgy.
To ensure reliable sample
results Ventana has a rigorous QA/QC program in place
that monitors the chain-of-custody of samples and includes the insertion of
blanks, duplicates, and certified reference standards in each batch of samples.
Core is photographed and sawed in half with one half retained in a secured
facility for verification purposes. Sample preparation (crushing and
pulverizing) is performed at an independent local laboratory established by a
joint effort between the regional environmental permitting agency and the
German Geological Survey, and at the Colombian preparation laboratory of ALS Chemex Laboratories. Prepared samples are direct-shipped to
ALS Chemex Laboratories in Lima, Peru, an ISO
9001:2000 certified laboratory, for analysis.
Cautionary Statement
Regarding Forward-looking Information
Certain of
the statements made and information contained in this press release may
constitute forward-looking information within the meaning of applicable
securities legislation. All information and statements which are not historical
fact constitute forward-looking information and, in many cases, can be
identified by words such as "may", "will",
"expect", "plan", "anticipate",
"believe", "estimate", "potential", or other
similar terminology. The forward-looking information contained in this press
release is based on the reasonable expectations and beliefs of management as at
the date of this press release and involves numerous assumptions, known and
unknown risks and uncertainties, both general and specific to Ventana and the industry in which the Company operates.
Such assumptions, risks and uncertainties include, but are not limited to
future prices of gold, the results of current and future exploration,
development and mining activities, changes in project parameters as plans
continue to be evaluated as well as those factors disclosed in Ventana's documents filed from time to time with the
securities regulators in the provinces of British Columbia, Alberta and
Ontario. Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results, performance or
achievements of the Company, or industry results, may vary materially from
those described in this press release. Accordingly, readers are advised not to
place undue reliance on forward-looking information. Except as otherwise
required by law, Ventana does not intend to and
assumes no obligation to update or revise forward-looking information, whether
as a result of new information, plans, events or otherwise.
Cautionary Note
Concerning Scoping Study and Inferred Mineral Resources
The scoping
study and the preliminary assessment in the technical report are assessments
that are preliminary in nature and include inferred mineral resources that are
considered too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral reserves,
and there is no certainty that such preliminary assessments will be realized.
Mineral resources that are not classified as mineral reserves do not have
demonstrated economic viability.