Verena Commences Drill Program at Conceicao
Tuesday, August 12th 2008
Verena Minerals Corporation announce that it has contracted IsoAgua Sondagens Especias, a private Brazilian contractor, to complete a 1,500 metre drill program at its’ Conceicao project, Tocantins State Brazil. The project is designed to test the Japones and Santo Amaro targets, which have both been defined by geologic mapping, geophysics and geochemical surveys. The drill has been delivered to site and the first hole collared. The Board approved a budget for Conceicao, estimated at US$575,000 for the remainder of the year.
Field work commenced on Conceicao immediately following the announcement giving the Company the right to increase its’ interest to 90%. At the Japones prospect, mapping has extended the strike length of artisanal mining to over 2 kilometers in length. Preliminary results from a horizontal loop electromagnetic survey (HLEM) indicate three other, sub parallel conductors with the same strike as the principal sulphide target zone. The current program calls for six core holes to cross the zone, all of which will be extended to test the geophysical targets.
In addition, Verena intends on initiating a bulk sampling program to determine the grade of a diamondiferous conglomerate on its’ 100% controlled Frutal project at a budgeted cost of $450,000. Frutal is located on the southern margin Mina Gerias state and has been actively mined for over 50 years by local, artisanal miners. Production records obtained by the Company indicated that during the period 1985 through 1997, 5,333 diamonds were recovered and sold at an average value of US$401 per carat. These records indicate that the diamonds are gem quality and hence attract a relatively high valuation.
The sampling program will be developed to test the 125 million cubic meter Sertaozinho target area. Here the extent of Baru conglomerate has been defined by previous RC drilling. Artisanal mine workings are scattered around the margin of the target area, where the conglomerate daylights at surface. No systematic sampling has ever been done to determine the average grade of the unit.
Verena currently has approximately $4.0 million in cash, which is sufficient to fund both planned programs at Conceicao and Frutal as well as to continue to drill and advance its flagship Volta Grande project.
Verena Minerals Corporation is a Canadian based mineral exploration company with an outstanding portfolio of properties including gold, diamonds and gemstones in Brazil. Verena’s prime focus is on advancing and expanding its 100% owned Volta Grande Project, located in Para State. Verena has a strategic alliance with Kinross Gold Corporation, which holds 7.0% of the common shares of Verena and is earning an interest in the Monte do Carmo and Patrocinio gold projects. Verena also operates the Lavrinha and Conceicao gold projects and controls a portfolio of diamond and gem properties. Verena trades on the TSX Venture Exchange and has approximately 97.3 million common shares issued and outstanding.