Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

January 14, 2008 09:49 ET

Valencia Ventures Inc.: Phase III Drill Results Confirm Silver Grades Obtained in Previous Drill Campaigns at Cachinal Project

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2008) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report the final drill results from the Phase III resource definition drill program on the Cachinal Silver Project confirm the silver grades and mineralization continuity obtained in the previous two drill campaigns.

Thick intersections of high grade silver mineralization are reported within the Arturo Prat Vein on the southeastern side of the southern portion of the prospective resource expansion area. The Phase III drill program was completed as planned in early December 2007 and the compilation and interpretation of drill data is proceeding with the receipt of assay results. The company expects to provide an updated and independent NI43-101 compliant resource estimate in early February 2008.

Significant drill results from the Phase III drill program include:

- 15m @119.53g/t silver, 0.406g/t gold, 0.20% zinc (CLRC-147)

- 14m @160.64g/t silver, 0.157g/t gold, 0.14% zinc (CLRC-148)

- 24m @278.58g/t silver, 0.310g/t gold, 0.23% zinc (CLRC-156)


The Phase III drill program consisted of 9,080 metres of reverse circulation (RC) drilling in 65 holes (CLRC-108 to CLRC-172) and was completed in early December 2007. Phase III was designed to provide infill drilling along the existing 50m spaced section lines.

In addition, 25 metre infill drill fences within the existing Cachinal resource area were added to confirm the continuity of the mineralization transition zones. Particularly, along the eastern side of the Arturo Prat vein structure and in the Northern Extension target area where significant drill intersections obtained in the Phase I and Phase II drill programs indicated potential for adding 1,200 metres of mineralized strike length to the north (See press releases dated May 1, 2007 and September 11, 2007, respectively for complete results of the Phase I & II programs).

Doug Currie, Valencia's Executive Vice President, Exploration & Development, commented, "These results are consistent with our expectations and further confirm our belief that we will be able to significantly expand the silver resource at Cachinal." He added, "I am very encouraged by the thick intersections reported in drilling along the southeastern edge of the Arturo Prat Vein which will potentially result in upgrading resources previously classified as "inferred resources" to the "indicated resource" category."

The more significant drill results are summarized in Table 1 below (see Table 2 and Figure 2 for additional detail):

Table 1. Summary of Drill Results from Phase III Drill Program, Cachinal Project



--------------------------------------------------------------------
CLRC-135 9m @ 97.89g/t Silver, 0.258g/t Gold, 0.11% Zinc
Including 11m @ 92.55g/t Silver, 0.231g/t Gold, 0.51% Zinc
--------------------------------------------------------------------
CLRC-147 15m @119.53g/t Silver, 0.406g/t Gold, 0.20% Zinc
Including 3m @398.33g/t Silver, 1.939g/t Gold, 0.27% Zinc
--------------------------------------------------------------------
CLRC-148 14m @160.64g/t Silver, 0.157g/t Gold, 0.14% Zinc
Including 2m @605.00g/t Silver, 0.668g/t Gold, 0.15% Zinc
--------------------------------------------------------------------
CLRC-156 24m @278.58g/t Silver, 0.310g/t Gold, 0.23% Zinc
Including 1m @433.00g/t Silver, 0.795g/t Gold, 0.48g/t Zinc
Including 4m @1,236.25g/t Silver, 1.445g/t Gold, 0.09% Zinc
--------------------------------------------------------------------
CLRC-159 19m @ 99.53g/t Silver, 0.112g/t Gold, 0.05% Zinc
Including 6m @215.33g/t Silver, 0.316g/t Gold, 0.06% Zinc
--------------------------------------------------------------------
CLRC-160 13m @ 94.08g/t Silver, 0.062g/t Gold, 0.09% Zinc
Including 1m @251.00g/t Silver, 0.313g/t Gold, 0.08% Zinc
Including 1m @323.00g/t Silver, 0.111g/t Gold, 0.09% Zinc
--------------------------------------------------------------------


These encouraging high grade silver intersections are similar to initial results for the Phase III program drillholes CLRC-108 to CLRC-130, released earlier (See press release dated November 29, 2007).

Valencia released the initial mineral resource estimate for the Cachinal Silver-Gold project in February 2007 (Press Release February 19, 2007). The estimated mineral resources, at a 20g/t silver block cut-off grade, are as follows:

Indicated Mineral Resource: 4.11Mt @ 103.92g/t Silver, 0.11g/t Gold, 0.17% Zinc

Inferred Mineral Resource: 5.09Mt @ 78.22g/t Silver, 0.11g/t Gold, 0.16% Zinc

The initial resource estimate was based on a 650 metre portion of the total mineralized structure, which is traceable on surface for up to 3,000 metres, and is open both along strike and at depth. Valencia is targeting an increased mineral resource estimate containing 75 million ounces of silver at the Cachinal property. However, at this time the target resource estimate is conceptual in nature as the required analysis has not been completed to define a mineral resource of this size. Valencia can not be certain that further results and analysis will substantiate this estimate. SRK Consulting (Canada) Inc. ("SRK") has been engaged to prepare an updated mineral resource model based on work that has been completed under the 2007 exploration program and this report is likely to be available in early February.

In anticipation of an increase in the size of the estimated silver resource, Valencia has commenced geological and engineering studies required to complete a preliminary economic assessment and subsequent feasibility analysis by the end of 2008. Additional diamond drilling has been completed to verify RC drill results, to provide geotechnical information and, samples for metallurgical testwork, which has now commenced. An environmental baseline study and preliminary hydrological study have also commenced. Preparations are also being made for a program of reserve drilling, commencing mid February.

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia's development strategy is focused on the exploration and development of silver and gold properties, including the Cachinal and Juncal Silver Projects in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. With a focus on silver and gold exploration in the Americas, the Company also has a number of property acquisitions under consideration.

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Valencia's Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has reviewed the technical disclosure in this press release. Field work in Chile has been performed under Mr Currie's supervision by SBX Consultores Ltda, Santiago, Chile.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is an international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.

Samples are transported from the field project to the ALS Chemex sample preparation facility in Coquimbo, Chile by the Contractor's personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 - 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 - specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 - Gold using a 50g Fire Assay-AAS finish.

All Reverse Circulation drill samples were geologically logged and sampled by the Contractor's geologists in one meter sample intervals; the archive portion of the sample is securely stored at the Contractor's facility in La Serena, Chile. The Company has initiated a QA/QC program consisting of utilizing field and prepared standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital required for exploration projects, exploration expenditures and timing of future exploration and the costs and timing of additional exploration activities on the property. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information 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 information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.



TABLE 2
SIGNIFICANT RC DRILL RESULTS
PHASE III OF 2007 DRILL PROGRAM
-----------------------------------------------------------------
Depth From To Width Silver Gold Zinc
Section Hole ID m m m m g/t Ag g/t Au % Zn
-----------------------------------------------------------------
950 NNW CLRC-128 190 129 133 4 107.75 0.047 0.23
-----------------------------------------------
137 158 21 193.90 0.107 0.12
-----------------------------------------------
147 149 2 526.00 0.185 0.12
-----------------------------------------------
including 154 155 1 585.00 0.193 0.09
-----------------------------------------------
158 163 Old Mine workings
-----------------------------------------------
including 163 164 1 20.00 0.007 0.32
-----------------------------------------------
169 170 1 22.00 0.011 0.18
-----------------------------------------------------------------
1050 NNW CLRC-129 100 22 53 31 46.48 0.041 0.18
-----------------------------------------------
including 28 29 1 183.00 0.076 0.24
-----------------------------------------------
61 84 23 32.17 0.049 0.16
-----------------------------------------------------------------
1000 NNW CLRC-131 120 no significant values
-----------------------------------------------------------------
1000 NNW CLRC-132 112 104 112 8 44.50 0.068 0.16
-----------------------------------------------------------------
including 110 111 1 157.00 0.265 0.21
-----------------------------------------------------------------
800 NNW CLRC-133 42 21 42 21 33.62 0.053 0.22
-----------------------------------------------------------------
800 NNW CLRC-134 164 142 151 9 33.00 0.032 0.13
-----------------------------------------------------------------
550 NNW CLRC-135 102 11 20 9 97.89 0.258 0.11
-----------------------------------------------
including 13 15 2 322.00 0.961 0.09
-----------------------------------------------
31 33 2 33.00 0.163 0.05
-----------------------------------------------
37 38 1 20 0.106 0.07
-----------------------------------------------
63 74 11 92.55 0.231 0.51
-----------------------------------------------
including 63 65 2 125.50 0.193 0.56
-----------------------------------------------
including 69 71 2 146.50 0.410 0.53
-----------------------------------------------
including 73 74 1 167 0.419 0.13
-----------------------------------------------------------------
550 NNW CLRC-136 210 122 124 2 118.00 0.216 0.10
-----------------------------------------------
180 187 7 67.00 0.517 0.06
-----------------------------------------------
including 181 183 2 124.50 1.104 0.08
-----------------------------------------------------------------
500 NNW CLRC-137 110 14 15 1 32.00 0.055 0.06
-----------------------------------------------
19 20 1 20.00 0.006 0.11
-----------------------------------------------
22 43 21 28.90 0.115 0.10
-----------------------------------------------
97 100 3 37.67 0.035 0.05
-----------------------------------------------------------------
500 NNW CLRC-138 213 125 126 1 29.00 0.042 0.05
-----------------------------------------------------------------
450 NNW CLRC-139 80 21 36 15 85.13 0.348 0.17
-----------------------------------------------
including 25 26 1 214.00 0.339 0.14
-----------------------------------------------
including 30 32 2 287.00 2.111 0.18
-----------------------------------------------
65 66 1 34.00 0.116 0.05
-----------------------------------------------------------------
450 NNW CLRC-140 190 155 156 1 26 0.03 0.16
-----------------------------------------------
169 171 2 25.00 0.119 0.32
-----------------------------------------------------------------
250 NNW CLRC-141 60 31 42 11 68.09 0.203 0.15
-----------------------------------------------
including 36 37 1 143 0.6 0.23
-----------------------------------------------
including 38 39 1 152 1.13 0.17
-----------------------------------------------------------------
250 NNW CLRC-142 160 133 134 1 45 0.03 0.05
-----------------------------------------------------------------
143 144 1 20 0.009 0.08
-----------------------------------------------
154 156 2 20.00 0.025 0.21
-----------------------------------------------------------------
200 NNW CLRC-143 60 28 32 4 22.80 0.041 0.12
-----------------------------------------------------------------
200 NNW CLRC-144 160 98 99 1 21.00 0.245 0.04
-----------------------------------------------
143 148 5 24.20 0.048 0.32
-----------------------------------------------------------------
50 SE CLRC-145 210 71 75 4 76.50 0.647 0.09
-----------------------------------------------
including 74 75 1 147 1.49 0.15
-----------------------------------------------
81 86 5 196.80 0.432 1.09
-----------------------------------------------
including 83 85 2 446.00 0.906 1.96
-----------------------------------------------
95 96 1 23.00 0.030 0.07
-----------------------------------------------
112 113 1 48 0.022 0.16
-----------------------------------------------
129 130 1 22 0.016 0.13
-----------------------------------------------
133 136 3 59.67 0.008 0.11
-----------------------------------------------
143 150 7 34.86 0.023 0.16
-----------------------------------------------
157 160 3 25.25 0.010 0.81
-----------------------------------------------
165 171 6 89.67 0.129 0.45
-----------------------------------------------
174 177 3 61.67 0.105 0.36
-----------------------------------------------
including 175 176 1 127 0.251 0.17
-----------------------------------------------------------------
100 SE CLRC-146 140 9 24 15 69.33 0.137 0.21
-----------------------------------------------------------------
including 12 14 2 264.50 0.883 0.31
-----------------------------------------------
53 60 7 98.14 0.056 0.36
-----------------------------------------------
including 57 58 1 451.00 0.208 0.13
-----------------------------------------------
93 95 2 22.00 0.023 0.10
-----------------------------------------------------------------
150 SE CLRC-147 240 51 52 1 26.00 0.031 0.04
-----------------------------------------------
71 73 2 36.00 0.011 0.04
-----------------------------------------------
75 78 3 27.67 0.008 0.03
-----------------------------------------------
82 97 15 119.53 0.406 0.20
-----------------------------------------------
including 84 87 3 398.33 1.939 0.27
-----------------------------------------------
101 102 1 20.00 0.011 0.16
-----------------------------------------------
107 108 1 20.00 0.021 0.07
-----------------------------------------------
130 131 1 23.00 0.187 0.02
-----------------------------------------------
145 146 1 22.00 0.029 0.05
-----------------------------------------------
204 211 7 43.00 0.214 0.76
-----------------------------------------------
including 205 206 1 100.00 0.497 0.89
-----------------------------------------------
232 233 1 22.00 0.008 0.13
-----------------------------------------------------------------
200 SE CLRC-148 48 18 29 11 44.55 0.019 0.15
-----------------------------------------------
including 28 29 1 110 0.146 0.26
-----------------------------------------------
30 31 1 54.00 0.049 0.30
-----------------------------------------------
34 48 14 160.64 0.157 0.14
-----------------------------------------------
including 42 44 2 605.00 0.668 0.15
-----------------------------------------------------------------
200 SE CLRC-149 168 82 83 1 23 0.016 0.12
-----------------------------------------------
87 88 1 62 0.087 0.14
-----------------------------------------------
92 118 26 42.08 0.025 0.12
-----------------------------------------------
including 99 100 1 171 0.072 0.09
-----------------------------------------------
including 104 105 1 101 0.113 0.08
-----------------------------------------------
125 126 1 20 0.034 0.2
-----------------------------------------------
133 136 3 49.67 0.043 0.28
-----------------------------------------------------------------
200 SE CLRC-150 230 8 48 40 37.80 0.059 0.05
-----------------------------------------------
including 14 16 2 176.00 0.615 0.03
-----------------------------------------------
51 52 1 20 0.021 0.1
-----------------------------------------------
145 148 3 31.00 0.043 0.22
-----------------------------------------------
151 154 3 28.67 0.021 0.16
-----------------------------------------------
157 162 5 42.40 0.042 0.18
-----------------------------------------------
181 182 1 21 less than 0.22
0.005
-----------------------------------------------------------------
150 SE CLRC-151 81 17 24 7 41.14 0.025 0.26
-----------------------------------------------
including 20 21 1 123.00 0.141 0.31
-----------------------------------------------
45 49 4 69.25 0.022 0.13
-----------------------------------------------
including 46 47 1 121.00 0.046 0.12
-----------------------------------------------
61 67 6 33.67 0.005 0.11
-----------------------------------------------
68 70 2 51.00 0.004 0.11
-----------------------------------------------
73 81 8 62.25 0.042 0.17
-----------------------------------------------
including 73 74 1 229.00 0.157 0.17
-----------------------------------------------
including 80 81 1 105.00 0.146 0.15
-----------------------------------------------------------------
250 SE CLRC-152 205 105 108 3 38.33 0.010 0.18
-----------------------------------------------
114 120 6 102.17 0.107 0.12
-----------------------------------------------
including 116 118 2 189.50 0.212 0.10
-----------------------------------------------
162 163 1 22.00 0.050 0.18
-----------------------------------------------
170 172 2 26.50 0.016 0.14
-----------------------------------------------
181 182 1 32.00 0.051 0.07
-----------------------------------------------------------------
300 SE CLRC-153 135 29 41 12 42.83 0.022 0.12
-----------------------------------------------
including 31 32 1 124.00 0.081 0.14
-----------------------------------------------
56 57 1 45.00 0.028 0.11
-----------------------------------------------
103 105 2 67.00 0.168 0.11
-----------------------------------------------------------------
300 SE CLRC-154 138 2 3 1 28.00 0.119 0.04
-----------------------------------------------
119 120 1 49.00 less than 0.27
0.005
-----------------------------------------------
122 129 7 122.86 0.082 0.15
-----------------------------------------------
including 122 124 2 326.00 0.235 0.12
-----------------------------------------------------------------
350 SE CLRC-155 186 18 19 1 62.00 0.096 0.11
-----------------------------------------------
99 100 1 29.00 0.045 0.05
-----------------------------------------------
103 107 4 79.25 0.044 0.08
-----------------------------------------------
including 105 106 1 156.00 0.030 0.06
-----------------------------------------------------------------
350 SE CLRC-156 70 33 34 1 20.00 0.048 0.08
-----------------------------------------------
38 62 24 278.58 0.310 0.23
-----------------------------------------------
including 43 44 1 433.00 0.795 0.48
-----------------------------------------------
including 46 50 4 1236.25 1.445 0.09
-----------------------------------------------
including 59 60 1 193.00 0.214 0.29
-----------------------------------------------------------------
350 SE CLRC-157 150 24 25 1 31.00 0.076 0.04
-----------------------------------------------
35 37 2 23.00 0.014 0.04
-----------------------------------------------------------------
400 SE CLRC-158 160 96 97 1 22.00 less than 0.07
0.005
-----------------------------------------------
100 101 1 70.00 0.039 0.06
-----------------------------------------------
129 139 10 64.60 0.136 0.13
-----------------------------------------------
including 131 133 2 179.50 0.217 0.11
-----------------------------------------------------------------
400 SE CLRC-159 29 4 23 19 99.53 0.112 0.05
-----------------------------------------------
including 7 9 2 111.50 0.010 0.05
-----------------------------------------------------------------
including 17 23 6 215.33 0.316 0.06
-----------------------------------------------
28 29 1 84.00 0.008 0.14
-----------------------------------------------------------------
450 SE CLRC-160 170 124 137 13 94.08 0.062 0.09
-----------------------------------------------
including 125 126 1 251.00 0.313 0.08
-----------------------------------------------
including 130 131 1 101.00 0.026 0.11
-----------------------------------------------
including 132 133 1 323.00 0.111 0.09
-----------------------------------------------
including 136 137 1 139.00 0.177 0.10
-----------------------------------------------------------------
450 SE CLRC-161 170 17 20 3 73.00 0.003 0.16
-----------------------------------------------
including 19 20 1 119.00 less than 0.19
0.005
-----------------------------------------------
22 23 1 41.00 less than 0.11
0.005
-----------------------------------------------
29 170 141 pending assays
-----------------------------------------------------------------

NB: (1) All drillholes drilled at -60 degrees to the west on azimuth
250 degrees,
(2) Highlighted mineralization is shown as down hole intersection
widths; the current density of drilling precludes estimation
of "true thickness"
(3) Tabulated Significant Drill Results are selected on intersections
with Silver values greater than 20g/t Silver; emboldened
intersections have Silver greater than 60g/t Silver , Gold greater
than 0.20g/t Gold or Zinc greater than 1.0%


To view a map of Gold Deposits of Northern Chile, please visit the following link: http://www.ccnmatthews.com/docs/VVI_Figure_1_Jan_10.pdf

To view a map of Resource Drilling Phase 3 - 2007 Cachinal Project, Chile, please visit the following link: http://www.ccnmatthews.com/docs/VVI_Figure_2_Jan_10.pdf

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Valencia Ventures Inc.
    Doug Bache
    President and CEO
    (416) 861-5884
    or
    Valencia Ventures Inc.
    Doug Currie
    EVP, Exploration and Development
    Email: dcurrie@valenciaventures.com