VVC Exploration Corporation (TSXV:VVC) reported that the Governor of Chihuahua, Mexico, Honorable César Duarte Jáquez, made positive comments on zoning changes around the Samalayuca project in northern Mexico. He said, “Amendments to the Plan of Natural Protected Area just published regarding Samalayuca Cobre will allow the startup of operations for mining copper, gold and silver at Samalayuca. Thanks to the efforts and agreements with the Federal Authority, the Protected Natural Area is in the process of being changed, which will benefit the area (Samalayuca).”
As quoted in the press release:
VVC Exploration Corporation (“VVC” or the “Company”) (TSX VENTURE:VVC) is pleased to report on the positive comments by the Honorable César Duarte Jáquez, Governor of Chihuahua during his press conference in Juarez, Chihuahua, Mexico, regarding zoning changes (“Zoning Changes”) for a “near-production” copper project in Northern Mexico owned by Samalayuca Cobre S.A. de C.V. (“Samalayuca Cobre”), a company which is 33.75% owned by VVC Exploration Corporation.
Governor Duarte in his comments to the press stated, “Amendments to the Plan of Natural Protected Area just published regarding Samalayuca Cobre will allow the startup of operations for mining copper, gold and silver at Samalayuca. Thanks to the efforts and agreements with the Federal Authority, the Protected Natural Area is in the process of being changed, which will benefit the area (Samalayuca).” In that news conference where he supported the zoning changes necessary to allow the Samalayuca Cobre mine, he reiterated the Government of Chihuahua’s support for an environmentally responsible mining companies like Samalayuca Cobre. Former President of the Samalayuca Municipality, Javier Melendez added to the Governors comments: “The state government, CONANP, landowners (Ejidos) and the mining company Samalayuca Cobre, are all working together to ensure that the flora and fauna of Protected Natural Area are not disturbed.”
Further, the Company received a letter from the Federal Director of CONANP dated March 5th, 2015. In his letter, Director Jesus Alonso Duarte Moreno provided an update on the process and delineated the steps that have been completed toward the change of zoning for the Samalayuca property as well as the next step toward completion.
These positive comments issued by Governor Duarte have bolstered the Company’s efforts to start production at Samalayuca. The Company has not received formal approval or notice of a zoning change, however, we are eagerly anticipating positive changes over the coming weeks. Should the zoning changes take place as indicated by the Governor, the Company would expect to begin the process of mining in Samalayuca, working with Secretaries of Economies of the State and Federal Government, the Ministry of Environment and Local Authorities to create an environmentally sustainable mining project in Samalayuca.
Jim Culver President of VVC said: “On behalf of VVC and its partners in Samalayuca Cobre, we thank Governor Cesar Duarte Jaquez for his important contribution to this comprehensive process. Once the zoning changes take place, we look forward to starting an environmentally sustainable mining project at Samalayuca which respects the Protected Natural Area and supports jobs and economic development in the Samalayuca area and the State of Chihuahua.”
It should be noted that there has been no feasibility study, prefeasibility study or preliminary economic analysis, relating to production from the property, done on the Samalayuca project and in addition no NI 43-101 compliant reserves have yet been defined and as such the project has not been shown to be economic through these studies. Inferred Mineral Resource of 4,100,281 T grading 0.47 % Cu and 5.8 g/t Ag, were defined in a report dated April 20, 2013 by Dr. Michel Boily (PhD., P.Geo.), an independent qualified person (QP) under NI 43-101 which report was filed on SEDAR on October 7, 2013. One of the partners in the project, Firex S.A. de C.V., has committed to proceed to production without the requirement of the above noted studies, once all permits are in place.