ValOre Expands Fully Financed Exploration Program at Pedra Branca with Additional Drill Rig and New Geological Team Members
September 21, 2020
Vancouver, B.C. ValOre Metals Corp. (“ValOre”; the “Company”; TSX‐V: VO; OTC: KVLQF; Frankfurt: KEQ0) today announced the addition of a second drill rig to accelerate Phase 1 and Phase 2 of the 2020 core drill program on the Company’s 100%-owned Pedra Branca Platinum Group Element (PGE) Project in northeastern Brazil. ValOre has also augmented the on-site technical team to help execute its newly expanded exploration program. With a CAD $500,000 increase to the existing unsecured revolving credit facility, ValOre is completely funded to finish both Phase 1 and Phase 2 drill programs at Pedra Branca.
Pedra Branca Exploration Highlights:
- Phase 1 drill program has tested six targets with 21 diamond drill holes (“DDH”) to date, totaling 2,210 metres (“m”) of 2,875 m planned. See Table 1 below for details;
- Significant potential for expansion of current NI 43-101 resources has been corroborated by Phase 1 drilling at the Trapia 1 target;
- Five new drill holes are planned to follow-up on DD20TU13 that yielded a 61.85 m PGE intercept, including 9.49 g/t 2PGE+Au (Palladium, Platinum and Gold; Pd, Pt+Au) over 2.45 m, adding another 985 m of drilling in September at Trapia 1. The additional drill holes at Trapia 1 will step out along strike of the 1 kilometre (“km”) long magnetic inversion feature located immediately south of the existing NI 43-101 resource;
- Prospective ultramafic (“UM”) rocks were intercepted in all three holes at C-04, both holes at Golden Goat, four of five holes at Cana Brava, three of four holes at Cedro and one of three holes at Esbarro East (see Tables 1 and 2 below);
- 1,062 samples have been sent to SGS Vespasiano, with results from five holes (444 samples) at Trapia released (see releases dated August 25 and 31, 2020). Assays are pending from Cedro, Golden Goat, Esbarro East, Cana Brava, and C-04 targets;
- Phase 2 drill program (3,035 m) is fully-funded with the second drill rig arriving in early October to facilitate follow-up drilling of high-priority targets;
- Phase 2 completion will be accelerated by at least two months with a reduction in costs due to efficiencies and economies of scale;
- Additions to geological team to boost property wide exploration and discovery program include:
- Three new experienced Brazilian geologists and one Brazilian mining technician;
- Focused on property wide discovery pipeline, the bolstered team will execute soil sampling, prospecting, and mapping campaigns at Trapia, Mendes North, and Santo Amaro and trenching select areas near existing resource zones;
- Metallurgical test work continues at SGS Lakefield and timing of results will be staged throughout Q4, 2020.
“Phase 1 drilling at Pedra Branca has successfully demonstrated the potential to expand the currently defined Trapia 1 resource area and assays are still pending from drilling at five additional target zones,” stated ValOre’s Chairman and CEO, Jim Paterson. “With Phase 2 fully-funded and now benefiting from the addition of new team members and a second drill rig, our productivity should increase dramatically and the receipt of assay results and related news flow will be greatly accelerated. We look forward to sharing further exploration successes from the project with our shareholders and we are proud to note the continued high levels of vigilance maintained by our employees and contractors to keep everyone safe in Capitão Mor and the communities surrounding the Pedra Branca project.”
Table 1: Summary of Phase 1 Drill Program (To Date)
Trapia and Cedro represent two of the five currently known PGE deposit areas which host NI 43-101 resources at Pedra Branca. ValOre reported a NI 43-101 inferred resource estimate for Pedra Branca in August, 2019, which totaled 1,067,000 ounces 2PGE+Au contained in 27.2 million tonnes grading 1.22 g/t 2PGE+Au. PGE mineralization for all five of the resource deposit areas outcrops at surface, making these inferred resources prospective for open pit mining. Figure 1, shows the location of the five NI 43-101 deposit areas, ValOre’s proposed 2020 drill holes, and the Phase 1 drill totals (to date).
Figure 1: Summary Map of Phase 1 Drill Program (To Date)
Pedra Branca 2020 Drill Program
Please see ValOre’s news release from August 25, 2020 for detailed information regarding:
- Pedra Branca 2020 Drill Program (Phase 1 and Phase 2)
- Quality Control/Quality Assurance (“QA/QC”) and Grade Interval Reporting
- Analytical Procedures, SGS Geosol
- About Servitec Foraco Sondagem SA
- ValOre and Servitec Foraco COVID-19 Protocols
Increase and Extension to Financing
As announced April 27, 2020, ValOre entered into an unsecured revolving credit facility, allowing the Company to borrow up to CAD $1.2 million from Jim Paterson, ValOre’s Chairman and CEO. Mr. Paterson has now agreed to advance an additional CAD $500,000 to ValOre on similar terms, and ValOre has agreed to use commercially reasonable efforts to complete an equity financing prior to March 31, 2021 (vs December 31, 2020 as previously agreed) in an amount sufficient to repay amounts borrowed under the loan facility.
About ValOre Metals Corp.
ValOre Metals Corp. (TSX‐V: VO) is a Canadian company with a portfolio of high‐quality exploration projects. ValOre’s team aims to deploy capital and knowledge on projects which benefit from substantial prior investment by previous owners, existence of high-value mineralization on a large scale, and the possibility of adding tangible value through exploration, process improvement, and innovation.
In May 2019, ValOre announced the acquisition of the Pedra Branca Platinum Group Elements (PGE) property, in Brazil, to bolster its existing Angilak uranium, Genesis/Hatchet uranium and Baffin gold projects in Canada.
The Pedra Branca PGE Project comprises 38 exploration licenses covering a total area of 38,940 hectares (96,223 acres) in northeastern Brazil. At Pedra Branca, five distinct 2PGE+Au deposit areas host, in aggregate, a NI 43-101 Inferred Resource of 1,067,000 ounces 2PGE+ Au contained in 27.2 million tonnes grading 1.22 g 2PGE+Au/t (see ValOre’s July 23, 2019 news release). PGE mineralization outcrops at surface and all of the currently known inferred resources are potentially open pittable.
Comprehensive exploration programs have demonstrated the “District Scale” potential of ValOre’s Angilak Property in Nunavut Territory, Canada that hosts the Lac 50 Trend NI 43‐101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposits, please refer to ValOre’s news release of March 1, 2013.
ValOre’s team has forged strong relationships with sophisticated resource sector investors and partner Nunavut Tunngavik Inc. (NTI) on both the Angilak and Baffin Gold Properties. ValOre was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in NI 43-101 and reviewed and approved by Colin Smith, P.Geo., who oversees New Project Review for ValOre.
On behalf of the Board of Directors,
James R. Paterson, Chairman and CEO
ValOre Metals Corp.
For further information about, ValOre Metals Corp. or this news release, please visit our website at valoremetals.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected].
ValOre Metals Corp. is a proud member of Discovery Group. For more information please visit: discoverygroup.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains “forward-looking statements” within the meaning of applicable securities laws. Although ValOre believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based on factors and assumptions concerning future events that may prove to be inaccurate. These factors and assumptions are based upon currently available information to ValOre. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the future operations of the Company and economic factors. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release and, except as required by applicable law, ValOre does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. ValOre undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of ValOre, or its financial or operating results or (as applicable), their securities.