- Increases Kiaka Area Holdings by over 800% from 184km2 to 1,661km2 -
TORONTO, Feb. 15, 2012 /CNW/ - Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR) announces that it has signed a Permit Exchange Agreement ("Exchange") with Randgold Resources ("Randgold") whereby Volta Resources is exchanging one permit ("Permit") in Burkina Faso (Kampti) and two in Mali (Massabougou and Diele) for eight of Randgold's Permits in Burkina Faso (Daworo, Tiakane, Bourou, Basgana, Yibogo, Safoula, Nakomgo and Tanema) nearby, and contiguous to, Volta Resources' Kiaka concession in southern Burkina Faso (See Figure #1).
The new Permits are all located in close proximity to Volta Resources' flagship Kiaka Gold Project, where the Company has already outlined NI 43-101 compliant resources of 90.29 million tonnes @ 1.04 g/t Au for 3,018,000 ounces in the Measured and Indicated categories and 38.52 million tonnes @ 1.00 g/t Au for 1,260,000 ounces in the Inferred category (Please see VTR press release dated June 29, 2011). The properties share the same prospective geological characteristics, being located within or close to the Markoye Fault Corridor, which also hosts Iamgold's Essakane Mine (6.1 million ounces), High River Gold's Taparko Mine (1.7 million ounces) and Orezone's Bombore Project (3.5 million ounces). The new properties straddle northeast trending Birimian greenstone belts that have been impacted by extensive shearing along the Markoye Fault.
Volta Resources will group the Permits into two project areas:
- the Greater Kiaka Project Area, including Kiaka, Tanema, Basgana, Safoula, Yibogo and Nakomgo
- the Po Project Area including Daworo, Tiakane and Bourou.
Kevin Bullock, Volta's CEO, said "The acquisition of these new properties consolidates a very significant position for Volta Resources along one of the most prospective gold bearing structures in Burkina Faso. We are confident that insights gained at Kiaka Central, where we have already identified a robust resource, along with the recently announced high grade intersections at Kiaka South, will enhance our chances for further exploration success. Regional exploration undertaken by Randgold has identified several targets on the ground and we have already planned follow up work to bring some of them to drill ready stage by the next field season."
Under the terms of the agreement:
- Volta Resources has agreed to transfer 100% of its interests in Kampti, Massabougou and Diele in return for 100% of Randgold's interest in Daworo, Tiakane, Bourou, Basgana, Yibogo, Safoula, Nakomgo and Tanema.
- The Agreement is conditional on, amongst other things, the approval of the Exchange being obtained from the Direction Générale des Mines, de la Géologie et des Carrières ("DGMGC") in Burkina Faso, and the approval of the exchange being obtained from the Direction Nationale de Géologie et Miniére ("DNGM") in Mali.
- If either party wishes to develop a project within an exchanged Permit, and requires to dispose of an interest in the Permit, it shall give the other party an irrevocable option for a period of 30 days from receiving such notice, to a right of first refusal to participate in the development.
- If Randgold determines that a project associated with one of the former Volta Resources Permits, that it then holds, does not meet Randgold's strategic development filters, it shall offer Volta Resources the right of first refusal to aquire the exchanged Volta Resources Permit.
- If either party wishes to transfer a full or part interest to a Permit to a third party, the offering party shall first offer by notice in writing to the other party the prior right to acquire the interest. This provision does not apply to a corporate merger, amalgamation, reorganization or business combination that a party or its affiliates that is a public company, may complete.
- If either party no longer wishes to continue exploration within any of the Permits, it will first provide a written offer to return the relevant Permit(s) to the other party before returning the relevant Permit(s) to the relevant government(s).
Volta Resources 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 currently fast-tracking its flagship Kiaka Gold Project, located in Burkina Faso, toward a development decision.
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 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.
PDF with caption: "Figure 1: Location of Volta Resources' permits exchanged with Randgold Resources.". PDF available at: http://stream1.newswire.ca/media/2012/02/15/20120215_C4620_DOC_EN_10123.pdf
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: [email protected]
Andreas Curkovic, Investor Relations
Tel: (416) 577-9927