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Valterra Resource Discovers Two New Gold-Silver Zones at Star Project in British Columbia

Valterra Resource Corporation (CNSX:VTA)(FRANKFURT:3VA) reported significant near surface gold-silver results, and the discovery of two new zones during a recent Phase II 2010 diamond drill exploration program at the Au-Ag+/-Cu porphyry/shear-hosted "Star Project" located in southeast British Columbia.

Drill highlights at the Gold Eagle and Alma N zones returned from four BTW-sized holes totalling 836 metres include:

  • VTN10-008 (Gold Eagle): 4.02 g/t Au & 9.51 g/t Ag over 24.33 metres
                                                  Including 7.76 g/t Au & 20.29 g/t Ag over 9.11 metres
                                                  Including 14.47 g/t Au & 34.60 g/t Ag over 4.0 metres
  • VST10-012 (Alma N):        1.35 g/t Au & 0.65 g/t Ag over 22.00 metres
                                                  Including 5.78 g/t Au & 1.20 g/t Ag over 2.0 metres

Drilling intersected two new Au-Ag zones spatially associated with the historic Gold Eagle target. Gold-silver mineralization in drill holes VTN10-007a and VTN10-008 projects vertically underneath an anomalous surface outcrop which yielded 4.73 g/t Au and 8.2 g/t Ag in a 2010 grab sample. The holes were drilled northward from the same drill setup at collar dip angles of -50° and -70°, respectively. The deepest and highest grade intercept is only 60 metres below surface, and the mineralization is open at depth and along strike. The mineralization is pyrite-enriched and hosted in a strongly bleached k-feldspar-sericite-silica altered andesite breccia of the Upper Elise Formation.

A second new zone was also drilled from the same setup discussed above, but in a southerly direction. Hole VTN10-006 returned anomalous mineralization (1.80 g/t Au over 6.44m) from a basal contact between a feldspar porphyry (Silver King suite) and andesitic rocks. This new zone may be analogous to precious metal zones identified at the adjacent Kena Project where a NI43-101 resource of approximately 1.0M ounces of measured and indicated gold has been outlined.

In 2010, Valterra drilled over 2,250 metres in 11 NQ2/BTW-sized drill holes targeting the Gold Eagle, Alma N, Toughnut, Eureka and Star zones. These polymetallic mineralized zones are aligned within a prospective 3.5 kilometre-long trend transecting the Company's claims. The Phase I drilling highlights for the Toughnut and Eureka zones included intercepts of 4.05 g/t Au and 0.88 g/t Ag over 8.0m in hole VTN10-005 at the Toughnut, and 0.28 g/t Au, 4.45 g/t Ag and 0.27% Cu over 66.67m in hole VST10-011 at the Eureka (see NR-07-10 and NR-08-10).

The signature of the rocks intercepted in the drilling are generally consistent with a zoned porphyry model subjected to shortening and shear-fault/hydrothermal activity that generated focused zones of higher-grade. Targeting was aided by several technical programs implemented by Valterra in Q2 2010 that included a comprehensive technical (compilation) report on the Star-Toughnut dataset; a 30 square kilometre airborne EM-MAG survey was flown by Aeroquest Ltd. over the entire +1,900 hectare claim block (see NR-03-10); and the airborne data was subjected to detailed processing analyses by a geophysical consultant whose work refined and sharpened numerous airborne anomalies warranting follow-up.

Furthermore, Valterra has started reprocessing the historical IP ground geophysical data covering the Star and Toughnut grids. The surveys were conducted in the late 1980s, and the Company expects to produce 3D geophysical and geological models to assist with interpretation, zone definition, and target generation; future plans are ongoing.

This region of the province has produced several million ounces of gold and precious metals from numerous past producers. The BC MINFILE lists such operations as the Rossland Camp (past production estimate of 3.5M ounces of gold), and the Silver King mine - BC's first lode mine ca. 1888 (reportedly produced 4.4M ounces of silver). Valterra's claims are centrally located on the Silver King Shear Zone, to the east is the Kena Gold project (Sultan Minerals Inc.), and to the northwest is the Kenville Mine (386,000 ounce NI43-101 compliant gold resource - Anglo Swiss Resources Inc.).

2010 QA/QC Protocols

Core samples were analyzed at Acme Analytical Laboratories Ltd. located in Vancouver BC, for Au + 41 elements by Fire Assay (FA)/Inductively Coupled Plasma (ICP)/Emission Spectroscopy (ES) and Four-Acid Digestion/ Inductively Coupled Plasma (ICP)/Mass Spectroscopy (MS) using appropriate calibration standards. Additionally, any samples assaying >10.0 g/t Au are re-analyzed using a Gravimetric finish.

Valterra implemented established QA/QC quality protocols throughout the core sampling process comprising "blind" insertions of a variety of standard pulps, blanks, and field duplicates. Certified analytical standards were utilized from suppliers CDN Resource Laboratories Ltd. and WCM Minerals Limited and overall approximately 10% of the total assays were QA/QC-related; the results of which were carefully monitored in order to verify the assaying quality.

Also, a series of 31 samples from the 2010 drilling has recently been compiled and sent from Acme Analytical Laboratories to ALS Chemex in order to conduct further QA/QC lab-to-lab check assays; results are pending.


Valterra Resource Corporation


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