Vancouver, British Columbia--(Newsfile Corp. - March 30, 2021) - Valterra Resource Corporation (TSXV: VQA) (OTCQB: VRSCF) ("Valterra" or the "Company") reports on the status of bulk sampling currently underway at the Livramento predevelopment-stage gold project, located in the Pocon Mining District, Mato Grasso, Brazil. The planned 5,000-tonne bulk-sampling program follows recommissioning of the Livramento mill and stripping of overburden from two sample sites (see figure below and news release NR-02-21 dated February 17, 2021).
Approximately 1,560 tonnes of bulk sample from two vein zones have been processed through the mill as of March 30th, and an additional 1,940 tonnes of bulk sample have been stockpiled for on-going processing. Approximately 50 ounces of gold-rich dore have been recovered through the mill, and initial analyses of the dore indicate a gold concentration of approximately 95.6%, representing an average grade of 0.99 g/t of gold recovered from the bulk sample, including 11.39 ounces from 115 tonnes (3.08 g/t) from the Page vein.
Although the plant has been fully commissioned for a capacity of 30 tonnes per hour, the mill is shut down between sample runs of bulk sample, which consist of approximately 100-tonnes each, to allow complete cleaning to insure accurate mill-recovery data.
Some quick math. At a gram per tonne sample on open pit. We could see 12 shift x 30 tonne per hour. 360 tonne per day. 360 x 300 days per year - given rain season, break downs etc. That would give us roughly 3800 ounces per year, or just over 300 per month. That would generate about $3 million per year free cash flow. Not too bad for a company that has a market cap of 4.48 million currently. The costs are a rough estimate from previous presentations and other open pit mines in the area. Costs could range between 500-800 per tonne.
Those numbers are fairly conservative as well. In the past management has target 500 ounces per month with a goal of 1000 ounces per month in the near future.