Verena Minerals intersects gold in Brazil

Toronto-based Verena Minerals (VMCO-C) has drilled several gold intersections on its Porto Nacional property in central Brazil’s Tocantins state.

This first phase of drilling concentrated on areas previously worked by bandeirantes and garimpeiros (artisanal miners) over the past 200 years.

The junior drilled 22 holes on six targets within the 428,000-ha property, highlights from which include: 5 metres (from 27 to 32 metres) grading 3.8 grams gold per tonne; 3 metres (from 66 to 69 metres) of 5.7 grams gold; 48 metres (from 34 to 82 metres) of 1 gram gold; 1 metre (from 52 to 53 metres) of 3.4 grams gold; 2 metres (from 41 to 43 metres) of 7.2 grams gold; and 2 metres (from 127 to 129 metres) of 1.3 grams gold. A 7-Tonne bulk sample from garimpeiro-dug pits graded 5.8 grams gold.

In November 1996, Verena completed a 21,500-line-km airborne magnetic and radiometric survey over the property. The survey identified 68 new gold targets, of which 17 are now being explored.

Verena owns 100% of the gold rights at Porto Nacional, though RTZ-CRA (RTZ-N) can earn a 60% interest in the property’s diamond rights by spending US$1 million over four years.

Meanwhile, Verena recently closed a $2.5-Million private placement with Teck (TEK-T).

The major acquired 1 million units of Verena at $2.50 each. A unit consists of one share and one share purchase warrant. Until April 30, 1998, one warrant can be exchanged for one Verena share at the price of $3.25.

Verena will use at least 85% of the proceeds in base and precious metal exploration on the its properties in east-Central Brazil.

Teck is considering carrying out a feasibility study and arranging 100% project financing for up to three deposits. The company will earn a 50% interest in each deposit that is financed to production.

Through its wholly owned Brazilian subsidiary, Verena controls more than 1.2 million ha of prospective gold concessions covering major mineralized belts in Tocantins and Goias states, near the capital city of Brasilia.

Verena has just over 19 million shares issued and outstanding.