VENCAN GOLD CORPORATION
TSX VENTURE : VCG
TSX : VCG

VENCAN GOLD CORPORATION

November 05, 2008 07:45 ET

VenCan Gold Provides Exploration Update on Recently Acquired Properties in Timmins Area

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2008) - VenCan Gold ("Vencan" or the "Company") (TSX VENTURE:VCG) is pleased to provide an exploration update on its Mt. Logano gold property and the Costello Property, both in the Timmins area.

Mt. Logano Update

The Company has recently completed trenching and excavating in a new area of the Mt. Logano Property. This part of the Property has been, up until now, inaccessible due to the dense forest and swampy terrain and has been extensively stripped in order to conduct ground work. An area along the contact between a porphyry intrusion and Tisdale age mafic/ultramafic rocks has been exposed for 100 meters, and several mineralized quartz veins have been discovered at the intrusive contact. On the eastern part of the stripped area, the contact zone displays evidence of considerable reworking of the vein system, and hosts pyrite, galena, sphalerite and tourmaline mineralization. A pyritic carbonate shear zone approximately 20 meters wide, occurs within the mafic/ultramafic rocks adjacent to the contact and is coincident with an I.P. chargeability anomaly that has a minimum strike length of 200 meters. Channel sampling is presently underway in order to quantify drill targets.

The geological characteristics of the recently stripped area are consistent with typical gold-bearing horizons found in the Porcupine Gold Camp Mining Division. A defined diamond drilling program will immediately follow positive sampling results. The Company is currently awaiting drill results from its 5-hole drill program that concluded prior to Labour Day.

About the Mt. Logano Property

The Mt. Logano Property, located east of Timmins, Ontario was recently acquired from famed prospector Don McKinnon, known for his significant contribution to the discovery of the Hemlo gold deposit and major land holder in the Timmins area.

The property is located in the northern part of Shaw Township, extending well into the southern part Whitney Township and east into Carmen and Cody Townships. The Nighthawk Lake gold deposit (Goldcorp Inc.) lies to the east while the Pamour, Hallnor and Hoyle Pond Mines (Goldcorp Inc.) lie to the north. The prolific Dome Mine as well as a host of other significant past producing gold deposits are situated to the west of the Mt. Logano Property.

It is made up of 212 claim units covering an area of approximately 33.9km(2). A map of the property can be viewed on the Company's web site.

Costello Property

As part of ongoing due diligence, ground trenching has been completed over an historic gold showing on the Costello Property. A 50 meter area in diameter was stripped and it uncovered abundant quartz veining with associated ankerite alteration and pyrite mineralization. Channel sampling is presently being carried out over the showing area.

The Costello property is located in swampy terrain with very little bedrock exposed at surface. A line-cutting grid will be established starting this week followed by a detailed magnetic survey, which, will aid in discriminating prospective geological contacts and lithologies on the Property.

About the Costello Property

The Costello Property consists of approximately 9 claim units totaling approximately 160 hectares in the Bristol Township of the Porcupine Mining Division of Northern Ontario, located approximately 18 kilometres due west of Timmins Ontario.

The Property occurs immediately to the east of Lake Shore Gold's new Timmins West (Holmer) gold deposit that is currently under active development (shaft sinking).

Please visit our website at www.vencan.com to see recent pictures of both Properties.

Administration

Acquisition of the Costello Property is subject to regulatory approval. A summary of the terms of the Letter of Agreement (LOA) to acquire the Costello Property was outlined in the October 7, 2008 press release. In addition to the terms of the acquisition disclosed in the October 7, 2008 press release, the LOA also provides for the issuance of one million bonus shares of Vencan to the land vendors within a period of two (2) years from the closing date if the following "trigger" events occur; a) an interest to acquire more than 50% of the Property is sold or optioned to an arm's length third party which, for greater certainty, shall not be any one of MacDonald Mines Exploration Ltd., Uranium Star Corporation or Honey Badger Exploration Inc.; and b), the market price of the common shares of Vencan is greater than $0.25 per share for any 20 consecutive trading day period.

Randall Salo, P.Geo. is the Exploration Manager and the designated qualified person for the technical information contained in this press release. He is overseeing the overall exploration program on behalf of VenCan Gold.

WARNING: The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.

SEDAR: 00004007E

Contact Information

  • VenCan Gold
    Brent Nykoliation
    Director of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)
    bnykoliation@vencan.com

    VenCan Gold
    J. A. Kirk McKinnon
    President and Chief Executive Officer
    (416) 364-7024
    (416) 364-2753 (FAX)

    VenCan Gold
    Richard Schler
    Vice President & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)
    www.vencan.com