Mr. Jim Culver reports
VVC - STRATEGIC EXIT OF GLORIA COPPER PROJECT IN MEXICO
After a project review, VVC Exploration Corp. has strategically restructured its mining projects in Mexico.
This project review encompassed multiple considerations, including continuing maintenance costs, permitting authorizations, political climate, safety, upside potential and financeability of each project, and probability of achieving the project's potential.
After this review, the company has decided to:
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Exit the Gloria copper project located near Samalayuca, state of Chihuahua, Mexico: This long-standing project of the company is expensive to maintain and is in an area that has become more politically volatile with uncertain safety. The geological potential of the project is not in question, but the ability to achieve that potential is unclear.
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Focus all mining exploration activity on the Cumeral gold project: Cumeral is the company's highly prospective gold project in north-central Sonora, Mexico. This project, while not as advanced as the Gloria copper project, has a huge upside potential. It is in an area where there is strong local support for the project and a higher likelihood of permitting and implementation success. The Cumeral gold project is a 1,665-hectare property in northern Sonora near Imuris that exhibits quartz-vein-hosted gold in a detachment-fault/orogenic setting with a documented north-northwest-south-southeast mineralized trend of approximately four kilometres. Historical work reported that approximately 36 per cent of 407 grab/chip samples assayed 0.1 to 10 grams per tonne gold, soil surveys outlined additional anomalies (47 samples greater than 0.020 part per million gold), and air-track drilling intersected broad, near-surface intervals of 0.21 to 0.44 gram per tonne gold over six to 26 metres in key target areas. The company will continue activities on the Cumeral gold project.
Rationale and next steps
The company's decision reflects consideration of cost discipline, safety and risk management. The exit from the Gloria copper project will reduce future cash outlays for care, maintenance and permitting at amid uncertainty over permit viability and broader political conditions in Chihuahua state. Capital and management resources will be reallocated to the Cumeral gold project exploration and to development of the company's helium/natural gas project in the Central Kansas Uplift (CKU) project, where existing infrastructure and near-term activities offer a clearer path to execution.
"There are opportunity costs in every project," said Jim Culver, chief executive officer. "Exiting the Gloria copper project will allow the company to concentrate resources on projects with an obvious direct and timely route to advancing development while maintaining discipline on risk and spending. "
About VVC Resources
Corp.
VVC engages in the exploration, development and management of natural resources -- specializing in scarce and increasingly valuable materials needed to meet the growing, high-tech demands of industries such as manufacturing, technology, medicine, space travel and the expanding green economy. VVC's portfolio includes a diverse set of multiasset high-growth projects, comprising: helium and industrial gas production in the Western United States, gold and associated metals operations in northern Mexico, and strategic investments in carbon sequestration and other green energy technologies. VVC is a Canada-based, publicly traded company on the TSX Venture Exchange (symbol:VVC).
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