Volta signs letter of intent to purchase the advanced Kiaka Gold Project in Burkina Faso from Randgold Resources



    
    - Volta will accelerate exploration towards a development decision -

    TSX: VTR
    

    TORONTO, Sept. 8 /CNW/ - Volta Resources Inc. ("Volta" or the "Company")
(TSX: VTR) announced today that it has signed a Letter of Intent with Randgold
Resources ("Randgold") to purchase a 100% interest in the Kiaka Gold Project
in Burkina Faso, subject to a free participating right of 10%, up to a
bankable feasibility study (held by a local Burkinabe company), for a
combination of cash and shares of Volta.
    Kevin Bullock, Volta's President and CEO, said, "Acquiring Kiaka from
Randgold fulfills Volta's key publicly stated goal to add an advanced gold
project in our region to our portfolio that we believe we can fast track
towards a development decision. We have evaluated many projects during the
past year and believe that Kiaka is the superior project. We are especially
pleased that Randgold believes that Volta has the right team to move this
project forward and we are delighted to have Randgold as a major shareholder
in our company."
    Vic King, Volta's COO, stated, "We are excited that Kiaka represents an
opportunity to provide a multi-million ounce, high tonnage, low strip ratio,
deposit within a condensed timeframe. We think this acquisition reflects
Volta's recognized knowledge and expertise in West African projects. We are
confident that the aggressive work program we have planned for Kiaka over the
next 9 months will deliver significant NI43-101 compliant resources."
    Diamond and RC drilling has been undertaken on the Kiaka Main Zone (KMZ)
and the Kiaka Hangingwall South Zone (KHZ). Holes have been drilled at -45
degrees to the southeast and east on sections spaced from 80m to 400m apart.
    The KMZ is a 2,800 metre long, steeply dipping, NE striking mineralized
dilation structure with numerous intersections exceeding 100m at (greater
than)1g/t (see Figures 3 and 4). Significantly, there are discrete higher
grade zones within this well mineralized envelope that are associated with
more intense deformation and alteration, which suggests good continuity. The
KHZ is a 650 meter long N to NE striking mineralized structure, which is
generally narrower but higher grade than the KMZ. These two zones are shown in
Figure 2 and highlights of the most significant intersection are presented in
Table 1. Some of the better intersections are:

    
           172.0 metres @ 1.32 g/t gold from 46.0 metres depth
           122.0 metres @ 2.00 g/t gold from 147.0 metres depth
                 82.0 metres @ 1.55 g/t gold from surface
           208.0 metres @ 1.46 g/t gold from 30.0 metres depth
           45.0 metres @ 2.62 g/t gold from 114.0 metres depth
           70.0 metres @ 1.12 g/t gold from 191.0 metres depth
    

    All analyses undertaken for Randgold were by fire assay on a 50g charge
at SGS Laboratories in Ouagadougou or SGS Laboratories at the Morila mine in
Mali. Randgold employed a QA/QC procedure that included the insertion of
certified standards. Volta has reviewed the QA/QC procedures on site and
assessed the resultant data and found the results do conform to industry best
practice. Intervals are based on drill hole length and true width is unknown
at this time.Intersections are based on a 0.5 g/t Au cut-off with no top cut
applied. Internal dilution (less than 0.5 g/t Au) has been carried to a
maximum of 5m, except for mineralized intervals of 50m or more where dilution
has been carried to 6m (KDH05, KDH11, KDH14, KRC03, KRC06 and KRC07) and to 8m
in KDH15. All drilling has been undertaken by Randgold and Volta has not yet
undertaken independent check analyses and will do so during the upcoming due
diligence phase.
    The Kiaka exploration permit covers an area of 244km2 and is located
approximately 120 kilometres southeast of the capital, Ouagadougou (see Figure
1.) The permit lies at the intersection of the northeast striking Tenkedougou
greenstone belt and the regionally significant north striking Markoye Fault,
in whose proximity some of the larger gold resources discovered in Burkina
Faso so far, have been discovered. These include Iamgold's Essakane deposit
(5.1 Moz), High River Gold's Taparko deposit (1.7 Moz), Orezone's Bombore
deposit (2.1 Moz) and Etruscan's Youga deposit (1.5 Moz).
    Randgold have spent in excess of US$6 million undertaking extensive
exploration on the permit since 2004, including mapping, ground geophysics,
soil sampling, pitting, trenching, RAB drilling, RC drilling and diamond
drilling. Table 2 details the pitting, trenching and drilling statistics to
date.

    
    TABLE 2:

                 -------------------------------------------
                 ACTIVITY                 HOLES      METRES
                 -------------------------------------------
                 Pitting                    247       931.5
                 Trenching                   11     2,450.0
                 RAB Drilling               260     4,401.0
                 RC Drilling                 11     1,125.0
                 Diamond Drilling            24     7,873.5
                 -------------------------------------------
                 TOTAL                      553    16,781.0
                 -------------------------------------------
    

    Randgold have undertaken petrograhic work to study gold deportment. The
gold is located on grain margins and is not occluded within sulphides and is
therefore unlikely to be refractory. There are also no preg-robbing
components. Some preliminary CIL/bottle roll metallurgical test work was also
undertaken. The results indicate encouraging recoveries ranging from 80% to
98%, with the majority of the samples returning (greater than) 90% recovery.
    There are other mineralized upside targets identified by soil sampling,
pitting and RAB drilling within the immediate proximity of KMZ and KHZ,
including the Eastern Target, Western 1 Target, Western 2 Target, Northern
Target and the Southern Target (see Figure 5). These have yet to be tested by
RC or diamond drilling.
    Regionally, there are another 5 prospects including Niaogo-Gozi, Kiaka
Dam, Kiaka East, Sondo and Gueka (see Figure 6). They were identified by
Randgold using regional and infill soil sampling, followed up by mapping, rock
chip sampling, limited trenching and RAB drilling. These prospects lie within
analogous mineralized environments to the Kiaka Main area.
    The purchase price will consist of cash consideration of $4,000,000 and
20,000,000 common shares of Volta. The aggregate consideration shall be paid
and issued, as applicable, over a period of 24 months following the date of
closing of the Acquisition as follows: (a) 13,300,000 common shares on the
Closing Date; (b) $1,000,000 cash on the date that is 6 months following
Closing Date; and (c) $1,000,000 cash and 2,233,333 common shares on the dates
that are 12, 18 and 24 months following the Closing Date.
    Closing of the transaction is subject to completing a Definitive
Agreement within 30 days from the execution of the Letter of Intent during
which period Volta will carry out its due diligence. The transaction will also
be conditional upon approval by Volta shareholders and receipt of third party
consents and regulatory approvals including the approval of the Toronto Stock
Exchange.
    Under the guidelines of National Instrument 43-101, the qualified person
for the Kiaka Gold Project is Mr. Guy Franceschi, Vice President, Exploration
for Volta. Mr. Franceschi is a member of the European Federation of Geologists
and has reviewed and approved the contents of this news release.
    Volta is a mineral exploration company primarily focused on becoming a
leader in the identification, acquisition and exploration of gold properties
in West Africa. The Company is committed to West African exploration and is
Canadian-based with its head office in Toronto, Ontario and operations offices
in Accra, Ghana and Ouagadougou, Burkina Faso.


    Forward Looking Information Caution:

    This press release presents "forward-looking statements" within the
meaning of Canadian securities legislation that involve inherent risks and
uncertainties. Forward-looking statements include, but are not limited to,
statements with respect to the future price of gold and other minerals and
metals, the estimation of mineral reserves and resources, the realization of
mineral reserve estimates, the capital expenditures, costs and timing of the
resources, the realization of mineral reserve estimates, the capital
expenditures, costs and timing of the development of new deposits, success of
exploration activities, permitting time lines, currency exchange rate
fluctuations, requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation expenses,
title disputes or claims and limitations on insurance coverage. Generally,
these forward-looking statements can be identified by the use of forward
looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Volta to be materially different from
those expressed or implied by such forward looking statements, including but
not limited to: risks related to international operations, risks related to
the integration of acquisitions; risks related to joint venture operations;
actual results of current exploration activities; actual results of current or
future reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of gold and
other minerals and metals; possible variations in ore reserves, grade or
recovery rates; failure of equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; and delays
in obtaining governmental approvals or financing or in the completion of
development or construction activities. Although the management and officers
of Volta believe that the expectations reflected in such forward-looking
statements are based upon reasonable assumptions and have attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there may be
other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Volta Resources does not
undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.

    
    To view Table 1 and Figures 1 through 6 of the Kiaka Gold Project please
    visit http://files.newswire.ca/407/Volta_Resrcs_Sept0809.doc
    

    %SEDAR: 00026749E




For further information:

For further information: please refer to our website
www.Voltaresources.com or contact: Kevin Bullock, P.Eng., President & CEO,
Tel: (647) 388-1842, Fax: (416) 867-2298, Email: kbullock@voltaresources.com

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