Redcorp Ventures Ltd.
TSX : RDV

Redcorp Ventures Ltd.

May 15, 2006 11:02 ET

Redcorp Ventures Ltd.: Acquisition of Vila de Rei Gold Project, Portugal

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 15, 2006) - REDCORP VENTURES LTD. (TSX:RDV) and its wholly-owned subsidiary Redcorp Empreendimentos Mineiros Unipessoal Lda ("REM") (together, the "Company") are pleased to announce that, at a contract signing ceremony on May 12, the government of Portugal granted the Company a 727 square kilometer exploration concession covering prospective gold and silver targets in central Portugal. The concession is centered near the municipality of Vila de Rei.

The concession agreement between REM and the Portuguese Government gives Redcorp the exclusive right to undertake exploration in the area for gold and silver for a two year period. Redcorp must complete work expenditures in the amount of EUR 110,000, including 600 meters of drilling, and cash payments totaling EUR 20,000 over the initial two year period. Following the initial two year period, Redcorp has the option of extending the exploration concession three times. Each extension allows for an additional year of exploration work, but must be accompanied by a reduction in the size of the concession by 50%.

Redcorp applied to the Portuguese Government in February 2005 for the exploration contract and conducted a preliminary exploration program in May-June 2005. The property was selected on the basis of its potential to host vein gold deposits, combined with the known existence of historical placer gold workings.

Redcorp's preliminary reconnaissance work confirmed the presence of large gold bearing quartz veins which are proximal to known Hercynian-age granitic intrusions. The property geology is permissive for location of intrusion-related gold deposits similar to the Fort Knox mine in Alaska. Deposits of this class include Rio Narcea's Salave deposit in adjacent Spain where exploration work has identified an indicated resource of 15 million tonnes averaging 3.0 g/tonne gold.

Reconnaissance stream silt and pan concentrate sampling covered selected areas, approximating 15% of the concession area. Anomalous results were followed by geological prospecting and rock and chip samples. Approximately 10% of the 199 rock samples returned values in excess of 1 g/tonne gold with the highest value of 11.6 g/tonne obtained from an iron-stained quartz vein. Individual quartz veins encountered were up to 15m width and exposed intermittently over strike lengths of 300 to 800 meters. Geochemistry of the mineralization shows a strong correlation of gold with arsenic and lesser antimony, similar to other intrusive-hosted gold mineralization systems.

Redcorp is very encouraged with the positive results of the preliminary reconnaissance geochemical and prospecting program. The Company is planning a work program for 2006 with the goal of identifying new zones of mineralization and bringing targets to drill stage.

Redcorp Ventures Ltd. is a Vancouver based mineral exploration and development Company with active projects in British Columbia and Portugal. Further information on Redcorp and the Vila de Rei property can be obtained on the Company's website at www.redcorp-ventures.com

ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP VENTURES LTD.

Terence Chandler, President

Terence Chandler, P.Geo. and Michael Allen, P.Geo are the qualified persons, as defined by National Policy 43-101, supervising the exploration program at Vila de Rei. Geochemical analysis and assaying were conducted by Acme Analytical Labs of Vancouver, BC.

Certain of the statements made and information contained herein is "forward- looking information" within the meaning of the Ontario Securities Act. This includes statements concerning the Company's plans at its Tulsequah Project and other mineral properties, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the availability of financing for activities, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, environmental and regulatory requirements, availability of permits, escalating costs of remediation and mitigation, risk of title loss, the effects of accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions in exploration or development , the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. In addition, forward-looking information is based on various assumptions including, without limitation, contractor's costs, remote site transportation costs and materials costs for future remediation. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

News Release 06-08

Contact Information

  • Redcorp Ventures Ltd.
    Terence Chandler
    President
    (604) 669-4775 or Toll Free: 1-888-669-4775
    (604) 669-5330 (FAX)
    www.redcorp-ventures.com