World News: 23:14 GMT Tuesday 28th May 2019. [ValOre Metals Corporation via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, May 28, 2019 (GLOBE NEWSWIRE) -- (TSX‐V: VO) (""today announced it has entered into an arm’s length, binding agreement (the ""), effective as of May 24, 2019, with Jangada Mines PLC ("") to purchase all of Jangada's Pedra Branca project ("" or the "") through the purchase of 100% of Jangada’s shareholdings (the “”) in the Brazilian holding company Pedra Branca Brasil Mineracao Ltda (the "").
The Pedra Branca Project is a Platinum Group Metals (“”) District located in north-eastern Brazil covering a total area of 38,940 hectares (96,223 acres) that comprises 38 exploration licenses. An independent National Instrument 43-101 resource estimate (the “”) comprised of 5 distinct deposit areas hosts an inferred resource of 1,165,500 ounces PGM+Gold (Palladium, Platinum and Gold; Pd, Pt+Au) in 28.8 million tonnes (“Mt”) grading 1.26 grams PGM+Gold per tonne (“”). PGM mineralization outcrops at surface and all of the inferred resources are potentially open pittable.
Jim Paterson, Chairman & CEO of ValOre, stated: “.”
The Pedra Branca Project is accessed by a national paved highway from the port city of Fortaleza (population approximately 3 million). The small town of Capitão Mor is situated within the west-central Project area, and provides all necessary basic infrastructure, including: energy, water, housing, office space, core storage and logging facilities, telephone access and internet. The Pedra Branca tenements are accessible throughout by a network of dirt roads and jeep tracks. Given the arid local climate and minimal annual rainfall, roadways remain in excellent shape year-round.
In return for acquiring the Pedra Branca Shares, ValOre will give the following consideration to Jangada:
(a) issuance and allotment of 25,000,000 ValOre common shares ("") on the date of closing of the Acquisition; and
(b) cash payments to Jangada in the aggregate of C$3,000,000, as follows:
(i) exclusivity payments totalling C$250,000 (paid);
(ii) C$750,000 payable on closing of the Acquisition;
(iii) C$1,000,000 on, or before, three (3) months after the closing of the Acquisition; and
(v) C$1,000,000 on, or before, six (6) months after the closing of the Acquisition.
The closing of the Acquisition is subject to conditions precedent which are normal for transactions of this nature, including necessary shareholder and regulatory approvals. The Acquisition is not subject to any finders fees.
Upon closing of the Acquisition, Jangada will have the right to appoint up to two (2) members to ValOre’s Board of Directors for a two (2) year term. The term may be extended if mutually agreed in writing by ValOre, Jangada and each of the nominee board members.
ValOre plans an equity financing of not less than C$3,000,000 (the "") to fund transaction costs of the Acquisition, exploration expenditures on the Project and for general working capital. The terms of the Financing, and any potential advisory fees payable related to successfully completing the Financing and/or the closing of the Acquisition, will be determined in the context of the market and will be announced at a later date. Completion of the Financing is subject to acceptance by the TSX Venture Exchange.
In conjunction with the acquisition of the Pedra Branca Project, ValOre commissioned Lions Gate Geological Consulting Inc. (“) to prepare an inferred resource estimate and corresponding technical report (the "") in compliance with National Instrument 43-101 – (""). The Technical Report will be made available on SEDAR () along with other filing documents within 45 days of the issuance of this news release.
A photo accompanying this announcement is available at
The cut-off grades of 0.65 g/t combined palladium-platinum-gold (2PGE+Au) which is equivalent to a palladium, platinum and gold price assumptions of approximately US$1,000, US$860 and US$1,250/ounce, respectively, and based on cost estimates from similar projects. Prospects for eventual economic extraction of the mineral resources, as required by CIM definitions, were demonstrated by developing conceptual pit shells using a Lerchs-Grossman algorithm and input parameters derived from preliminary cost estimates associated with pre-feasibility level engineering studies, as outlined in the following table. Only mineral resources above the cut-off and within the mineral resource-limiting pits are reported; mineralization falling below this cut-off grade or outside the resource-limiting pits are not reported, no matter what the grade.
Assumptions used to derive the cut-off grades and define the resource-limiting pits are estimated in order to meet the requirements defined by CIM for mineral resource estimates to demonstrate “reasonable prospects for eventual economic extraction”.
The mineral resource estimates for Pedra Blanca were prepared to industry standards and best practices using commercial mine-modeling and geostatistical software. Susan Lomas, P.Geo. is the Qualified Person responsible for the mineral resource estimates for the purposes of NI 43-101.
Each deposit was segregated into multiple estimation domains based on geologic models with the mineral resources estimated using inverse distance interpolation of capped composites. Search ellipse orientation and anisotropy were based on structural and geological controls.
Mineral resources were estimated using Giovia GEMS software. Grade domains based on 0.100 g/t 2PGE+Au grades were constructed within broad geological domains. Two-meter composites were calculated within the grade domains for each of the Santo Amaro, Curiu, Cedro, Esbarro and Trapia Deposits. Gold, platinum and palladium grades were capped where appropriate and sometimes a Restricted Outlier (RO) strategy was used during grade interpolation to allow high grades to be used locally but not impact distal blocks.
Grades were interpolated using Inverse Distance Squared (ID2) and Nearest Neighbour (NN) methods. For the Curiu, Cedro and Esbarro domains a minimum of 4 and maximum of 15 composites were used while at Trapia and Santo Amaro a minimum of 3 and maximum of 12 composites were used. In all cases a minimum of two drill holes were required for grade to be interpolated into a block.
Model validation included a visual inspection by sections and plans, global bias checks and local bias checks using swath plots.
A full description of the modeling methodologies for each deposit will be included in a technical report scheduled for release within 45 days.
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., New Project Review for ValOre., and a Qualified Person.
Susan Lomas, P.Geo., of LGGC is the Qualified Person, as defined in NI 43-101, responsible for the mineral resource estimates as reported herein. She has read and approved the relevant technical portions of this news release related to the mineral resource estimates for which she is responsible.
Globe Newswire: 23:14 GMT Tuesday 28th May 2019
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