TORONTO, March 27, 2013 /CNW/ - Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR) announces that it has initiated a strategic review process to consider alternatives in relation to its Gaoua copper-gold porphyry project. Strategic alternatives include, but are not limited to, the sale of all or a portion of the Company's interest in the Gaoua project. This process is part of the Company's ongoing rationalization of its property portfolio in order to focus on continued development of the Company's Kiaka Gold Project, the largest undeveloped gold project in Burkina Faso.
There are no assurances that the process will result in a transaction or, if a transaction is undertaken, as to the terms or timing of such a transaction. The Company has retained BMO Capital Markets to assist in the strategic review process.
The Gaoua project is located in southern Burkina Faso on the Boromo Greenstone Belt. The project is located on three permits with a total area of 558.2 km2, which includes over 30 km of strike of a "porphyry corridor" with multiple porphyry targets. As announced on January 23, 2013, the Company recently completed a mineral resource estimate on just two of these targets, Gongondy and Dienemera, which currently stands at:
- Inferred resources of 282.41 million tonnes at 0.53% CuEQ(1) (0.32% Cu and 0.35g/t Au) for 2,008 million pounds of copper and 3,169,600 ounces of gold (0.30% CuEQ cut-off); and
- Additional indicated resources of 22.02 million tonnes at 0.49% CuEQ(1) (0.29% Cu and 0.33g/t Au) for 138.6 million pounds of copper and 236,300 ounces of gold (0.30% CuEQ cut-off).
- Copper equivalent grade calculated using US$3.00/lb Cu and US$1,400/oz Au and is not adjusted for mining and metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 0.6).
For further details of the mineral resources, please see the report entitled "N1 43-101 Technical Report on a Mineral Resource Estimate for the Gaoua Project, Burkina Faso, January 2013" dated effective January 22, 2013 available on www.sedar.com. Mr. Guy Franceschi, Volta Resources' V.P., Exploration, a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the contents of this news release.
About Volta Resources:
Volta Resources has a portfolio of quality gold exploration projects in Burkina Faso and Ghana, both mining-friendly West African jurisdictions with proven world-class gold deposits. VTR will focus on fast-tracking its flagship Kiaka Gold Project (NI 43-101 compliant resources include 153.26 Mt @ 0.99 g/t Au for 4,862,000 ounces in the Measured and Indicated categories and 33.74 Mt @ 0.93g/t for 1,006,000 ounces in the Inferred category (please see press release dated January 10, 2013), including 34.38 million tonnes @ 1.04 g/t Au for 1,145,969 ounces of gold in the Proven category and 91.70 million tonnes @ 0.93 g/t Au for 2,742,353 ounces of gold in the Probable category (please see press release dated May 3, 2012) towards a development decision, aiming to complete a Feasibility Study in Q3, 2013. Acquisition of properties around the Kiaka Gold Project has provided the Company with an extensive ground position along the highly prospective Markoye Fault Corridor in an important emerging gold province.
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 Resources 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 Resources 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.
SOURCE: Volta Resources Inc.
For further information:
on the strategic review process, please contact:
President & CEO, Volta Resources
Managing Director, BMO Capital Markets