Voltalia Ord Shs VLTAF

News release

[shadowcatcher]

 

https://www.newswire.ca/en/story/1137201/volta-resources-initiates-strategic-review-process-in-relation-to-its-gaoua-copper-gold-porphyry-project

 

 

 

Volta Resources Initiates Strategic Review Process in Relation to its Gaoua Copper-Gold Porphyry Project

TSX: VTR

TORONTO, March 27, 2013 /CNW/ - Volta Resources Inc. ("Volta Resources" or the "Company") (TSX: VTR)announces that it has initiated a strategic review process to consider alternatives in relation to its Gaoua copper-gold porphyry project.  Strategic alternatives include, but are not limited to, the sale of all or a portion of the Company's interest in the Gaoua project.  This process is part of the Company's ongoing rationalization of its property portfolio in order to focus on continued development of the Company's Kiaka Gold Project, the largest undeveloped gold project inBurkina Faso.

There are no assurances that the process will result in a transaction or, if a transaction is undertaken, as to the terms or timing of such a transaction.  The Company has retained BMO Capital Markets to assist in the strategic review process.

The Gaoua project is located in southern Burkina Faso on the Boromo Greenstone Belt. The project is located on three permits with a total area of 558.2 km², which includes over 30 km of strike of a "porphyry corridor" with multiple porphyry targets. As announced on January 23, 2013, the Company recently completed a mineral resource estimate on just two of these targets, Gongondy and Dienemera, which currently stands at:

• Inferred resources of 282.41 million tonnes at 0.53% CuEQ⁽¹⁾ (0.32% Cu and 0.35g/t Au) for 2,008 million pounds of copper and 3,169,600 ounces of gold (0.30% CuEQ cut-off); and
• Additional indicated resources of 22.02 million tonnes at 0.49% CuEQ⁽¹⁾ (0.29% Cu and 0.33g/t Au) for 138.6 million pounds of copper and 236,300 ounces of gold (0.30% CuEQ cut-off).

1. Copper equivalent grade calculated using US$3.00/lb Cu and US$1,400/oz Au and is not adjusted for mining and metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ = Cu% + (Au g/t x 0.6).

For further details of the mineral resources, please see the report entitled "N1 43-101 Technical Report on a Mineral Resource Estimate for the Gaoua Project, Burkina Faso, January 2013" dated effective January 22, 2013 available onwww.sedar.com. Mr. Guy Franceschi, Volta Resources' V.P., Exploration, a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the contents of this news release.

About Volta Resources:

Volta Resources has a portfolio of quality gold exploration projects in Burkina Faso and Ghana, both mining-friendly West African jurisdictions with proven world-class gold deposits. VTR will focus on fast-tracking its flagship Kiaka Gold Project (NI 43-101 compliant resources include 153.26 Mt @ 0.99 g/t Au for 4,862,000 ounces in the Measured and Indicated categories and 33.74 Mt @ 0.93g/t for 1,006,000 ounces in the Inferred category (please see press release dated January 10, 2013), including 34.38 million tonnes @ 1.04 g/t Au for 1,145,969 ounces of gold in the Proven category and 91.70 million tonnes @ 0.93 g/t Au for 2,742,353 ounces of gold in the Probable category (please see press release dated May 3, 2012) towards a development decision, aiming to complete a Feasibility Study in Q3, 2013. Acquisition of properties around the Kiaka Gold Project has provided the Company with an extensive ground position along the highly prospective Markoye Fault Corridor in an important emerging gold province.

Forward Looking Information Caution:

This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties.  Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.  Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Volta Resources to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, risks related to the integration of acquisitions; risks related to joint venture operations; actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities.  Although the management and officers of Volta Resources believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.  Volta Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

SOURCE: Volta Resources Inc.

For further information:

on the strategic review process, please contact:

Kevin Bullock
President & CEO, Volta Resources
Tel: [phone]
Email: [e-mail]

Sarfraz Visram
Managing Director, BMO Capital Markets
Tel: [phone]
Email: [e-mail]

[JaidenInvester]

Really not sure how to react to this news, Volta has been so beat up !!!!

[Mick16]

This is exactly what we've been waiting for, some direction with respect to turning some of the company's efforts into cash to reduce the CAPEX necessary to build a mine at Kiaka.  The NR will not result in a pop of the SP tomorrow, but it once again demonstrates that management are focused on the task at hand.  I think they're doing a great job personally....

[4x4]

As I and others have said...Volta will sell/rationalize their properties to fund their development of Kiaka....this is the first step...

[gold_diggers1]

Personally, I think this is a positive development if management can get a reasonable price for it...... which helps: - to raise funds in current market malaise instead of PP diluting current shareholders before funds runs out... good planning. - to eliminate any further operating/exploration expenses related to Gaoua - to concentrate efforts in developing Kiaka - to show the market that

[EasyMoney1976]

I couldnt agree more mick16......you hit the nail on the head with your comment>

[ashcake]

Is there really going to be any bidder for this property in Africa...in this market? That's my concern....it'll sit for a long time. Perhaps I am wromg and a deal is already in the works and perhaps leaking thus the halt (that would be great). Otherwise, why the halt...could just release after or pre-market.

[ALLEN4]

Good point ashcake.  I think this release basically means they are going to aggressively sell Gaoua.  One buyer that I think would be a good match is Nevsun, which is transitioning from being primarily gold producer to copper producer, and they certainly have a base in West Africa and experience with both gold and copper production, and they have significant cash in the bank - I

[banx]

ashcake, a halt certainly seems like overkill. Perhaps the halt mechanism was used to draw greater attention to the asset for sale. When a stock is halted, a lot more eyeballs view the news. Or someone in management got excited at the prospect of putting out any kind of news. Lol. Who knows?

[Bpultra]

yap this is no surprise . IMO... surprise will be if someone steps up and takes this out... should be a non-event SP wise.. but we will see .. market can think dif than some of us..

[MRBigbet]

I like the plan that they are developing growth within. This is what all the large caps are doing. Growing and cutting costs to increase productivity. This is one small step in many that they have planned out. Look at the private placement that the big boys bought at. ($1.90)  That is why we are still in the green with cash! (16M) These guys are on the ball and I would not put it past them to

[gold_diggers1]

MIck16 - "....The NR will not result in a pop of the SP tomorrow, but it once again demonstrates that management are focused on the task at hand...." . Exactly...... no movement in sp..... and there's this one sell order 180K by NB at $.395......  It will remain like this until sale of Gaoua, BFS, financings news..... But at least in the mean time VTR management is doing