TORONTO, ONTARIO -- (Marketwire) -- 03/06/13 -- VVC EXPLORATION CORPORATION (TSX VENTURE: VVC)(FRANKFURT: V7S) ("VVC" or the "Company") is pleased to announce the optioning by VVC Exploracion de Mexico S. de R.L ("VVC Mexico") of the La Tuna Property to Exploracion Rio Placer S. A. de C. V. (the "Optionee") in consideration for payments aggregating US$3,520,000 payable over a 12 year period ending on December 31, 2025, and the retention by VVC Mexico of a 1% Net Smelter Return Royalty with a buy-back option for US$1,000,000. During the term of the option the Optionee will have exclusive mining rights to the La Tuna Property. The US$3,520,000 aggregate payment includes (1) the US$500,000 required to acquire 100% interest in the Concessions, and (ii) the 1% installment payment payable on a monthly basis on every dry metric tonne of ore processed. The Optionee can at his discretion terminate the option at any time by provide the proper notices provided in the Option Agreement.
La Tuna Property is a 3,533 hectare gold property located in the State of Sinaloa Mexico (Alamos Municipality). It has gold potential in paleo placers, present day placers derived from the paleo placers and vein type deposits such as the La Perdida deposit. The river placer deposit and the paleo-placer zone are located mainly along the Rio Baboyahui near the river junction extending to the Rio Fuerte, in an area of approximately 500 by 500 meters. The paleo-placer zone carries gold associated with magnetite (from black sand) which allows some definition of the paleo-channels by magnetic surveys.
Limited historical sampling in the period from 1987-91 by an Australian company, in a "drift" in a paleoplacer channel gave grades ranging from 1 to 3 g/m3 Au. Historical data (non 43-101 compliant), from 1994 from a Mexican engineer, Alberto J. Terrones Langone, indicated that the area contains 3.7 million m3 at 2 g/m3, equivalent to approximately 200,000 ounces of gold. It should be noted that the "paleo placer" was sampled as a placer deposit however since it is a hard rock deposit it should be sampled using channel, chip or drill core samples, not bulk samples in cubic metres, which has little relevance in a hard rock deposit.
The Perdida vein deposit which averages 2.75 m in width, is located in the north-west part of the property with the structure hosting the deposit, trending north-west and dipping 25 degrees to the south-east. The deposit has not operated since the 1940's however historical results from 4 grab samples taken in 1991 by an Australian company, are: the portal area - 12.49 g/t; the ore zone - 3.29 and 16.23 g/t; and development muck - 11.24 g/t.
No work has been carried out by VVC since acquiring the property in 2010 and the results described above are not 43-101 compliant, have not been subject to due diligence sampling and should be treated with caution.
"Exploracion Rio Placer is well positioned to operate the La Tuna Property and we believe this could be a profitable endeavour for both parties," said Dr. James Culver, President and CEO of VVC. "After VVC's recent successful private placement, the La Tuna sale provides additional momentum for the Company as we continue to restructure and focus on the development of Cumeral, our flagship gold property."
The technical aspects of this news release were reviewed by Peter Dimmell, P.Geo. (NL, ON), a director of VVC, who is a Qualified Person (QP) as defined in National Instrument 43-101.
VVC Exploration Corporation is a Canadian exploration company with projects in Mexico and Canada, including gold/silver prospects in Sonora and Sinaloa states, Mexico and in the Timmins area of northern Ontario. VVC is also aggressively searching for other projects - mainly precious minerals and base metals at various stages of development in North America, with an emphasis on near-surface gold and silver projects in Mexico.
On Behalf of the board of Directors
Michel J. Lafrance, Secretary-Treasurer
This news release contains "forward-looking information" (within the meaning of applicable Canadian securities laws) and "forward-looking statements" (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as "anticipate", "believe", "expect", "plan", "intend", "potential", "estimate", "propose", "project", "outlook", "foresee" or similar words suggesting future outcomes or statements regarding an outlook. Such statements include, among others, those concerning the Company's anticipated option payments and the future operations by Exploracion Rio Placer. Specifically, they include Company's statement that "Payments aggregating US$3,520,000 will be received" and that "Exploracion Rio Placer is well positioned to operate the La Tuna property and we believe this could be a profitable endeavour for both parties".
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, management's expectations regarding future growth, plans for and completion of projects by Company's third party relationships, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in the completion of Company's anticipated projects, delays or changes in plans with respect to the development of Company's anticipated projects by Company's third party relationships, risks affecting the ability to develop projects, risks inherent in operating in foreign jurisdictions, the ability to attract key personnel, and the inability to raise additional capital. No assurances can be given that the efforts by Exploracion Rio Placer will result in a profitable operation. Additional assumptions and risks are set out in detail in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company's securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.
Neither the TSXV nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.
VVC Exploration Corporation
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