VVC Exploration Corporation

VVC Exploration Corporation

February 25, 2010 08:02 ET

VVC Exploration Options Cumeral Gold Property

Highlights: - Due diligence grab sample values up to 6.03 g/t Au - Excellent access and infrastructure in area

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2010) - VVC EXPLORATION CORPORATION (TSX VENTURE:VVC) (FRANKFURT:V7S) ("VVC" or the "Company") is pleased to announce that its has signed a Letter of Assignment ("LOA") to acquire from Invesmin San Miguel S de RL de CV (the "Assignee") all the rights pursuant to an option agreement entered into by ISM with 2 Mexican individuals (the "Optionee") relating to a 665-hectare gold mining project known as Cumeral (the "Property") consisting of 3 mining concessions, in the State of Sonora, Mexico.

The Property is located in the municipality of Imuris in northwestern Mexico, approximately 200 kilometers to the north of Hermosillo in northern Sonora State. Road access by a network of well maintained gravel roads from the main paved highway, is excellent with travel time from the nearest small town, where all necessary services and infrastructure are available, about 30 minutes. This indicates low cost exploration and development.

Pursuant to the LOA, VVC's Mexican subsidiary has the option to enter into a formal agreement with the Assignee (the "Formal Agreement") to acquire a 100% interest in the Property in consideration for i) US$800,000 plus applicable taxes ("VAT") payable for the benefit of the Optionee; ii) the reservation in favour of the Assignee of a 2% Net Smelter Return; and iii) the issuance of 200,000 common shares of VVC to the Assignee. The US$800,000 will be paid according to the following schedule:

Due Date Amount (US$)
On signing of LOA $ 30,000 plus VAT
April 15, 2010 $ 200,000 plus VAT
September 15, 2010 $ 200,000 plus VAT
March 15, 2011 $ 300,000 plus VAT
June 15, 2011 $ 70,000 plus VAT
TOTAL $ 800,000 plus VAT

A finder's fee of US$15,000 and 100,000 shares of the Company is payable to a 3rd party who was instrumental in arranging the transaction. The Agreement is subject to the approval of the TSX Venture Exchange and an on-going due diligence review by the Company's QP.

The Property is located in the vicinity of the well mineralized Sierra La Jojoba trend which is host to numerous other prospects and small mines, including the Mina Lluvia de Oro and Mina La Jojoba deposits. The Property is situated 20km Northeast of Mina Lluvia de Oro. The Mina lluva de Oro and Mina La Jojoba deposits contain reported, NR 43-101 compliant, measured and indicated resources of approximately 300,000 ounces plus inferred resources of approximately 200,000 ounces of gold with excellent exploration potential to increase the resources.

The Property is underlain by interbedded metavolcanic muscovite-biotite schists, formerly rhyodacitic units, of Jurassic age with quartz diorite dikes also noted. The structural fabric is dominated by northwest striking, dextral, wrench fault systems with associated shears and normal faults, a structural regime favourable for dilational structural zones required for the emplacement of large, epithermal gold mineralized systems. The Cumeral zone can be traced along strike for 3 kilometres over widths up to 1 kilometre with the zone open along strike to both the northwest and southeast. Sericite-illite alteration, quartz vein stockwork and abundant iron oxides are noted, with the alteration related to both low and high angle structures. Gold is associated with hematite (after pyrite) and quartz veinlets and has reportedly been panned from the Tularcito altered zone by previous workers.

Due diligence work including compilation of data and sampling is ongoing. Four grab samples taken during the first part of the due diligence gave gold values from 0.03 to 6.03 g/t, with three significant values of 3.4, 3.52 and 6.03. Another 89 rock samples have been taken recently and have been submitted to the laboratory for analysis. Results will be reported when received. Exploration planned consists of further regional prospecting / sampling and mechanical trenching followed by a drilling program.

The technical aspects of this news release were reviewed by Peter Dimmell, P.Geo., a director of VVC, who is a Qualified Person (QP) as defined in National Instrument 43-101.

With over $2 million in cash and highly liquid marketable securities, VVC has the financial resources to meet its working capital requirements for the foreseeable future, maintain its property options in good standing and carry-out the necessary exploration on those properties.

About VVC:

VVC Exploration Corporation is a Canadian exploration company with projects in Mexico and Canada. This includes a silver, lead and zinc prospect in Chihuahua State, MX, a gold-silver property in northern Durango State, MX, a gold prospect in Sonora State, MX, and a grass-roots gold prospect in the Timmins area of northern Ontario. VVC is also aggressively searching for other projects - mainly precious minerals and base metals at various stages of development in North America, with an emphasis on gold and silver in Mexico.

On Behalf of the board of Directors


Michel J. Lafrance, Secretary-Treasurer

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives that subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Statements regarding financings are subject to all of the risks and uncertainties normally incident to fund raising by public companies. These risks include, but are not limited to, market conditions and regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Neither the TSXV nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.

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