Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

May 25, 2010 09:00 ET

Valencia Announces Right to Acquire Global Rare Earth Project Portfolio

TORONTO, ONTARIO--(Marketwire - May 25, 2010) - Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia" or the "Company") is pleased to announce that it has entered into three assumption agreements with a private Ontario company to acquire three sets of property claim blocks: the Diana Project in Northern Quebec; the Carb Lake, Schryburt Lake and Lawashi River properties in Ontario; and the Sao Gotardo project in Brazil (the "Assumption Agreements").

Diana Project, Northern Quebec

The Diana Project comprises six separate claim blocks totalling 524 claims over a surface area of 237 square kilometres west of the town of Kuujjuaq in the Ungava Bay region, Northern Quebec. The project covers an area with strong lake-bottom sediment anomalies in copper, cobalt and rare earth elements, including Copper higher than 200ppm and up to 559ppm, Cobalt up to 191ppm, Yttrium up to 129ppm, Lanthanum up to 260ppm, Cerium up to 612ppm, Samarium up to 68ppm, Europium up to 11ppm, and Uranium up to 57ppm. Geophysics shows a sub-circular magnetic pattern which may suggest an intrusion. Magnetic and gravity data also indicate deep-seated structures and late major faults. (See Azimut Exploration Inc. news release dated, February 18, 2010).

Valencia has assumed the right to acquire up to a 65% interest in the project by assuming all of the rights and obligations currently held by a private Ontario company and by issuing to this company a total of five million common shares over a period of two years. The Diana property has been optioned from Azimut Exploration Inc. ("Azimut") (TSX VENTURE:AZM), as previously announced by Azimut on February 23, 2010.

Mr. Jean-Marc Lulin, Ph.D., P. Geo. is the Qualified Person as defined under National Instrument 43-101 who reviewed and approved the technical and scientific disclosure in this press release in relation to the Diana Project.

Carb Lake, Schryburt Lake and Lawashi River, Ontario

The Carb Lake and Shryburt Lake Carbonatite properties, as well as suspected carbonatite at the Lawashi River property comprise 14 unpatented mining claims over a surface area of 5.5 square kilometers in Northern Ontario (the "Ontario Properties").

The Company believes that the Ontario Properties, namely Carb Lake, Schryburt Lake and Lawashi River, may be prospective for rare earth elements (REE), niobium and phosphate mineralization. Valencia has acquired the right to obtain a 100% interest in the unpatented mining claims subject to a 1.5% NSR from William Brereton. Pursuant to the Assumption Agreements, Valencia shall have the option to buyout 1% of the NSR for CAD$1,000,000.

Exploration activities in the 1960's and 70's at the Carb Lake and Schryburt Lake properties was limited and did not test the REE mineralization potential of the carbonatites. At Carb Lake, the assays from four drill holes (564 m) targeting niobium are not available, however later re-sampling of the drill core yielded some samples with >0.1% Nb, Niobium and two samples with >5% Ce, Cerium and >2% La, Lanthanum. At Schryburt Lake, test pitting in the early 1960's targeted Nb, Niobium mineralization with values up to 1.82% Nb, Niobium. Later work in the 1970's included six RC holes testing the phosphate potential of the carbonatite. One area of residual apatite accumulation of unknown lateral dimensions was intersected, returning a composite value of 17.5% P2O5, Phosphate over 9.1 m. Again REE were not the focus of the exploration programs and as such these are limited results, however, a pyrochlore concentrate from a drill hole yielded 4% Ce, Cerium. The Lawashi River property has had no known previous exploration, but is identified as a buried carbonatite on Government geology maps. An airborne magnetic survey flown over the complex was acquired and interpreted and the heterogeneity and structural complexity of the magnetic anomaly pattern is suggestive of a differentiated multi-phase carbonatite complex. This data was compiled by MPH consulting Limited in November 2009. This data is historical in nature and is not National Instrument 43-101 ("NI 43-101") compliant. Valencia has not done the work necessary to verify the data and hence cautions that it should not be relied upon. 

Pursuant to the Assumption Agreements, Valencia has assumed all of the rights and obligations currently held by a private Ontario company to acquire 100% of the Ontario Properties in consideration for the issuance of nine million common shares over a twelve month period.

Mr. Paul Sobie, P. Geologist., who is independent to Valencia, is the Qualified Person as defined under National Instrument 43-101 has reviewed and approved the technical and scientific disclosure in this press release in relation to the Carb Lake, Schryburt Lake and Lawashi River projects.

Sao Gotardo Project, Brazil

The Sao Gotardo Project comprises 4 claims over a surface area of approximately 7,725 hectares in Brazil.

The project is located some 280 km eastwards from the capital of Minas Gerais State, which is also is the hub of the Brazilian mining industry. Valencia has assumed the right to control four exploration permits totaling 7,500 hectares, within a Carbonatite district with several operating mines and deposits including: Salitre containing +850 Mt @ 10.7% P2O5, Phosphate ~700 Mt @ 17.5% TiO2, Titanium Dioxide and ~200 Mt @ 0.48% Nb2O5, Niobium; Araxa ~460 Mt @ 2.5% Nb2O5, Niobium; and Tapira 1.38 billion tons @ 8.2% P2O5, Phosphate ~400 Mt @ 17.8% TiO2, Titanium Dioxide and ~160 Mt @ 0.7% Nb2O5, Niobium. This data has been complied from a regional geology, airborne mag and the location of carbonatite pipes and P-(Ti-Nb-REE) mines has been compiled by the Brazilian Geological Survey (CPRM) – Geological Map of Brazil, 1:1,000,000 scale, geographic information system 2004 edition.

Rare earth mineralization is often associated to most of the carbonatite pipes of the district. A very good example is the Catalao mine that hosts up to 1.55% REO in saprolite, 3.4% REO in soil, 3.7% laterite and extremely high grade silcretes with up to 12.7% REO. The data on the REE occurrences on the Catalao Carbontite has been compiled by G. Morteani and C. Preinfalk. The data in relation to the REE distribution and REE carriers in laterites formed on the alkaline complexes of Araxa and Catalao (Brazil) is from the book Rare Earth Minerals, Chemistry, Origin and Ore Deposits, edited by Adrian P.Jones, Frances Wall and C. Terry Williams, Chapman and Hall.

The Sao Gotardo REE-Project covers an unexplored bull's-eyes magnetic anomaly associated with a very pronounced ring-structure, and features that are diagnostic of carbonatite pipes and are observed in all the other pipes of the district. Valencia believes that the Sao Gotardo project bears potential for a greenfield REE discovery in one of the most mature mining districts of Brazil.

Valencia has agreed to assume all of the rights and obligations currently held by a private Ontario company to acquire 100% of the project in consideration for the issuance of two million common shares.

Dr. Fernando Tallarico P. Geo, who is independent to Valencia, is the Qualified Person as defined under National Instrument 43-101 has reviewed and approved the technical and scientific disclosure in this press release in relation to the Sao Gotardo project.

Fred Leigh, President & C.E.O., commented: "We are enthusiastic to be entering the rare earths space with three significant exploration projects. We aim to focus on the discovery of heavy rare earths and we see these assets as the first important step in acquiring a significant portfolio of high quality projects in the space." 

Completion of the proposed Assumption Agreements are subject to the completion of due diligence, completion of definitive claim transfer agreements and the receipt of all regulatory approvals, including without limitation, approval of the TSX Venture Exchange.

About Valencia Ventures

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. 

For additional information, e-mail info@valenciaventures.com.

Forward Looking Statements

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 the impact of the potential assumptions and acquisitions on the Company, the potential mineralization and the receipt of regulatory approvalsForward-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.

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