Valencia Ventures Inc.

Valencia Ventures Inc.

November 06, 2007 17:41 ET

Valencia Ventures Phase III Resource Definition Drilling at Cachinal Silver Project

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report its Phase III resource definition drill program on the Cachinal Silver Project is advancing , with a total of 2,888m (21 holes) completed to the end of October. One RC drill is currently on site and a second RC drill and a diamond drill are expected to arrive shortly.

Assay results have been received for the first drillhole in the resource definition program, CLRC-108: 9m at 223.33g/t silver, 0.25g/t gold and 0.62% zinc (Figure 2, Table 1).

This hole was drilled up dip and to the west of drillhole CLRC-85, which intersected 11m @ 119.55g/t Ag and 20m @ 36.15g/t Ag (See press release dated September 11, 2007), and to the north of the very first hole drilled at Cachinal in 2005, CLRC-01, which included 14m @ 114.57g/t Ag (See press release dated April 28, 2005).

Valencia has recently increased the size of the Cachinal property to approximately 17,500ha, adding an additional 3,000ha on the southwestern corner of the property, to the west of the Vino 9 and Vino Central prospects, where 1,370m of RC drilling was also completed to evaluate structural and geochemical targets (Figure 1).

Doug Currie, Executive Vice President, Exploration & Development, commented, "Although assays have not yet been received from holes completed in this phase of the program, geological logging of the RC drill cuttings indicates that all holes completed to date have intersected mineralized quartz veins and silicified zones where expected. Only two of the 21 holes drilled failed to reach full target depths due to intersecting large historical workings." He added, "While unfortunate, this is an indication that mineralization does exist over significant widths and continues to confirm our expectations that we will be able to increase substantially the silver resource at Cachinal."

The additional concessions that Valencia has added in the southwest corner of the property, west of the Vino 9 high sulphidation target, will allow us to explore that anomaly, which may be related to east west oriented structures, in a similar setting to mineralization on the adjoining Guanaco property to the south. Two holes were drilled at the Vino 9 target and eight holes were drilled at the Vino Central target. These holes were located to test hydrothermal alteration mapped and favourable structural signatures defined by previous VLF-EM and recent ground magnetic surveys. Assay results were not available at this time.

However, initial indications from chip logging are that no significant mineralization is likely to be reported. However, in holes drilled to test the Vino Central target, significant argillic alteration and several low angle faults were intersected. Further interpretation and follow-up will be planned once the assay results are received.

The Company currently has over 2,500 samples at the laboratory awaiting analysis. Assay turnaround from the Company's Chilean laboratory (ALS-Chemex) is a little slower than in previous campaigns; however, 15-21 day turnaround is normally being achieved, much better than explorers utilizing Canadian facilities are reporting.

Valencia released the first 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 current phase of drilling, which commenced late September, is designed to follow-up results of the Phase I and Phase II drill programs announced May 1, 2007 and September 11, 2007, which included significant drill intersections which were not included in the initial resource estimate (See press releases dated May 1 and September 11, 2007).

The Phase III program will consist of additional RC drill holes along the existing 50m spaced section lines and, where necessary, 25m infill drilling within the Cachinal resource area and the Northern Extension target to define potential resource areas in sufficient detail to enable a revised mineral resource estimation. The total program will comprise between approximately 7,000 and 9,000m of resource definition drilling and approximately 1,500m to evaluate other regional targets. Additional diamond drilling is also planned to verify RC drill results, and provide geotechnical information and samples for metallurgical testwork.

Valencia recently announced the appointment of SRK Consulting (Canada) Inc. ("SRK") to prepare an updated mineral resource model by the end of January 2008 and a preliminary assessment of the economic potential of a future mining operation at Cachinal towards the end of Q1 2008 (See press release dated, September 18, 2007). A team from SRK's Toronto and Santiago offices recently visited Cachinal and have initiated studies required to assist with the resource estimation and preliminary economic assessment and subsequent feasibility analysis. Geotechnical core logging, baseline environmental assessment, metallurgical testwork and resource modelling have commenced.

Cachinal Silver Project

The Cachinal de la Sierra area is located within the Paleocene Gold Belt of northern Chile, which hosts several significant gold and silver deposits including Meridian Gold's El Penon Silver-Gold Mine. The El Penon mine, 60km to the northeast, is a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers. The past-producing Guanaco Gold Mine, a high sulphidation-style epithermal deposit which was mined as a heap leach operation during the early 1990's by Amax Gold Inc and later Kinross Gold Corporation and currently owned by Australian explorer Austral Gold NL, is 12km to the southwest.

Silver mining began at Cachinal in 1862 and, including production of approximately 170,000 tons @ 280g/t Ag, 0.58g/t Au reported for a three year period 1985-1987, historical production is estimated at approximately 32 million ounces of silver in historical geological reports in the library and files of Chilean Government agency SERNAGEOMIN. Extensive historic workings at Cachinal reportedly extend to a depth of 320m although most of the workings only went to a depth of 120-150m, generally within the oxidized zone. Historical grades apparently averaged 500-600g/t silver with an unknown quantity of trace gold, with some local values of up to 2500g/t silver and as much as 3g/t gold reported. The production figures (tonnage and grade) referred to above is historical in nature and has not been verified by the issuer's Qualified Person, and should not be relied upon.

Valencia assembled a large land position totalling 9,200 hectares at Cachinal late in 2004, and recently acquired a 100% interest in the main Cachinal property (See press releases dated October 12, 2004, February 3, 2005 and July 12, 2007). Valencia has also recently acquired additional areas adjoining the JV areas to the north (Islote concessions) and south (Vino concessions) and now controls a total land position of 17,500ha.

Valencia has also recently announced an agreement to acquire up to an 80% interest in the Nuevo Juncal Property, approximately 125km southeast of Cachinal (See press release dated November 1, 2007).

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 he 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 a respected 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 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.

PHASE III - 2007

Section Hole ID Depth From To Width Silver Gold Zinc Target
m m m g/t Ag g/t Au % Zn
-50NNW CLRC-108 100.0 52 61 9 223.33 0.259 0.624
including 55 58 3 415 0.417 0.746
NB: (1) All drillholes drilled at -60 degrees to the west on azimuth 250
(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 or Gold greater
than 0.20g/t Gold

Please note: Figure 1 is available at the following link on the Marketwire website:

Please note: Figure 2 is available at the following link on the Marketwire website:


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