VENCAN GOLD CORPORATION
TSX VENTURE : VCG

VENCAN GOLD CORPORATION

January 16, 2007 12:31 ET

VenCan Gold Zeroing in on VMS Targets in the Western Abitibi and Outlines Significant Potential for Shear Zone Hosted Lode Gold Deposits

TORONTO, ONTARIO--(CCNMatthews - Jan. 16, 2007) - Kirk McKinnon, President and CEO of VenCan Gold Corporation (VenCan) (TSX VENTURE:VCG) is pleased to announce the results from VenCan's fall exploration program in the Western Abitibi Greenstone Belt. Exploration was focused on pursuing VMS-style mineralization within the 188 claims in the Cayenne East area, but also included helicopter-supported reconnaissance exploration over all of VenCan's 364 claims.

HIGHLIGHTS OF THE FALL 2006 EXPLORATION PROGRAM

- Identification of two prospective volcanogenic massive sulphides (VMS) targets, named the 'Omicron' and 'Pi' targets, with coincident soil geochemical and lithogeochemical anomalies.

- Identification in core of mineral alteration often associated with VMS deposits.

FALL 2006 EXPLORATION PROGRAM

- Drilling 4 diamond drill holes (641 meters).

- Line cutting/grid placement over the Genoa Grid Extension (27.7 line km).

- Soil sampling over the Genoa Grid Extension in its entirety, as well as infill soil sampling over the Genoa Grid, and regional soil sampling over a structurally complex area with a distinct geological environment that resembles that of the Timmins Camp identified through airborne geophysics.

- Prospecting over the Genoa Grid Extension and Genoa Grid.

- Helicopter-supported prospecting over regional airborne geophysical anomalies.

SUMMARY OF RESULTS

DRILLING

The primary focus of the fall exploration program was VMS-style mineralization in the area of the VenCan Zinc Showing. Grab samples from this area during the summer exploration program yielded assay values ranging from 11.2% to 17.96% zinc (Zn). VenCan drill hole VG-06-16 completed beneath the showing intersected 4.22% Zn over 16.85 meters including 7.27% Zn over 8.50 meters during the summer program. Subsequent to the summer field exploration program, inversion modeling of the 2006 IP data identified a pronounced anomaly 100 meters to the north-west of the VG-06-16 collar that was interpreted to be open to the west. The interpreted strike extension of the VenCan Zinc Showing, as well as the geophysical anomaly identified by inversion modelling of the IP data, was drill tested during the fall exploration program with holes VG-06-18, VG-06-19, and VG-06-20. The tenor of zinc mineralization encountered in hole VG-06-16 could not be replicated in the fall exploration drill holes.



DDH # From (m) To (m) Cu (%) Pb (%) Zn (%) Interval (m)
VG-06-18 17.20 21.10 2.13 3.90
incl. 18.00 19.50 0.16 1.09 5.31 1.50
30.10 40.90 0.33 10.80
incl. 35.40 36.40 0.34 1.19 1.00
incl. 39.40 40.90 0.23 0.14 0.61 1.50
47.90 50.50 1.01 2.60
56.00 57.00 0.32 0.15 0.39 1.00
VG-06-19 No significant mineralization intersected
VG-06-20 25.90 26.20 0.13 1.15 8.88 0.30
35.65 36.70 0.11 1.05
45.10 49.45 0.17 4.35
51.80 53.00 0.13 1.20
67.90 68.90 0.21 0.88 1.00
78.40 80.50 0.41 2.10
VG-06-21 202.10 203.50 0.23 1.40


An additional hole (VG-06-21) was completed on strike, and 200 metres west of the VenCan Zinc Showing to test an anomalous structure identified with the AeroTEM helicopter-borne EM/magnetometer data obtained in the spring. The drill hole encountered only minor zinc mineralization, but was significant in that it exhibited strong chlorite alteration throughout its felsic volcanic sequence. Chlorite is a diagnostic alteration mineral commonly found in the footwall zones of VMS deposits. Due to a paucity of surficial exploration data to the west of this drill hole to aid in drill target selection however, it was decided by management to terminate the drilling program and analyze the prospecting and soil geochemical data collected during the fall exploration program before proceeding.

SOIL GEOCHEMISTRY IDENTIFIES "Pi" and "OMICRON" VMS TARGETS

An extensive soil sampling survey was completed during the fall exploration program. This included infill sampling over the Genoa Grid established during the summer exploration program, sampling over the entire Genoa Grid Extension which was established during the fall exploration program, and regional sampling over a structurally disrupted region identified through analysis of airborne geophysical data. The soil sampling identified anomalous areas proximal to the Jefferson Deposit and the VenCan Zinc Showing. This was not unexpected and served to support the efficacy of soil sampling in the area. The most highly anomalous soil geochemical values were not obtained over these areas, however. The largest anomalies were located proximal to airborne targets 'Pi' and 'Omicron'.

The 'Pi' target is located 2.5 kilometres west of the VenCan Zinc Showing and 4.5 kilometres west of the Jefferson Deposit. There is very little outcrop exposure associated with this anomaly, but the limited exposure has yielded rock grab samples that have assayed as high as 8500 ppm zinc. The 'Omicron' target is located 1.5 kilometres south-west of the 'Pi' target, and was not thoroughly prospected. Previous work by Falconbridge Limited, however, identified a highly anomalous lithogeochemical VMS target in this area that corresponds to the most highly anomalous soil geochemical VMS target identified by VenCan during the fall exploration program.

REGIONAL EXPLORATION IDENTIFIES KAPPA GOLD TARGET

Helicopter-supported prospecting over regional airborne geophysical anomalies was conducted during the fall exploration program. The most significant results obtained were over the 'Kappa' target with three samples returning values of 35 g/t gold, 24.4g/t gold, and 10.6 g/t gold.

Previous work by VenCan in 2005 identified an historic trench with well developed ankerite-sericite-silica altered felsic volcanic tuffs and flows of the Strata Lake Formation. The most significant result obtained was 0.4% copper from a grab sample containing fine-grained, disseminated pyrite (2-5%), chalcopyrite (1-2%) and molybdenite (0.1%).

2007 EXPLORATION PROGRAM OUTLINES SIGNIFICANT POTENTIAL FOR SHEAR ZONE HOSTED LODE GOLD DEPOSITS

During the planned 2007 exploration program, the Genoa Grid Extension will be extended further west for 2.5 kilometres to encompass the 'Omicron' target. This newly established grid will undergo ground geophysics and will be drill tested.

Additionally, there is significant potential for shear zone hosted lode gold deposits in the mafic volcanic rocks and felsic intrusions of the Trailbreaker Group that lie to the north of the Woman River Iron Formation, in the area that is bounded by the Woman and Rush Rivers. There is known gold mineralization associated with a 400 metre by 500 metre felsic porphyry intrusion, which is referred to as the Gagne Zone. This mineralization occurs in quartz veins and pyrite mineralized portions of the felsic porphyry intrusion along east-west and northwest-southeast trending shear zones. The best assays to date are from historic (2002) trenches and consist of 2.10 g/t Au over 6m and 4.99 g/t Au over 6m. A re-interpretation of the regional aeromagnetic and geological mapping surveys outlined several interpreted second and third order shear zones within the mafic volcanic rocks along the untested northern contact of the Gagne Zone. The Trailbreaker Group, has been correlated with the Tisdale Group rocks of the Timmins gold camp. The Tisdale Group is host to several past gold producers with gold mineralization hosted in quartz veins within mafic volcanic rocks and felsic porphyry intrusions. In particular, the Timmins area hosts the McIntyre-Hollinger-Coniarum Mines which had a combined past production of 30 million ounces. The follow-up work program in this area will consist of prospecting and reconnaissance soil sampling.

The Gagne target consists of gold in quartz veins that are hosted within the mafic volcanic rocks of the Trailbreaker Group.

Craig Scherba (P.Geol.) of Taiga Consultants Ltd. is the qualified person for the recent technical information contained in this press release.

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.

Contact Information

  • VenCan Gold Corporation
    J. A. Kirk McKinnon
    President and Chief Executive Officer
    (416) 364-7024
    (416) 364-2753 (FAX)
    or
    VenCan Gold Corporation
    Richard Schler
    Vice President & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)
    Email: VenCan@VenCan.com
    Website: www.VenCan.com