Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

October 18, 2006 16:25 ET

Valencia Completes 2006 Exploration Program at Rancheria Silver Project

Drilling at Blue Heaven & Touchdown Prospects Targets Trench Mineralization

TORONTO, ONTARIO--(CCNMatthews - Oct. 18, 2006) - Valencia Ventures Inc. (TSX VENTURE:VVI) advises that the 2006 summer exploration program of prospecting, trenching, geophysics and diamond drilling has been completed on the Rancheria Silver Project in the Yukon Territory and British Columbia.



Highlights of the program include:

- Blue Heaven Prospect:
- Fracturing & strong alteration with massive galena discovered
in excavator trenches
- Quartz veining & breccia with trace sphalerite(zinc)-galena(lead)
mineralization intersected in diamond drilling at H Zone
- Several zones of semi-massive to massive galena & disseminated
galena and sphalerite intersected in diamond drilling at Blue Zone
- Touchdown Prospect:
- Excavator trenching identified two 25-30m wide zones of significant
alteration over 300m strike length
- Disseminated sphalerite & galena identified over 6m wide zones
in two of four diamond drill holes completed
- Ranch Prospect:
- VLF-EM-16 geophysical survey identified three conductors
which coincide with topographic linears previously mapped
- Hand trenching exposed narrow quartz veins with variable
alteration
- QB Prospect:
- Several mineralized float samples were located by prospecting
& hand trenching


Assay results for all work are pending.

Valencia's 2006 exploration program was designed to target and further evaluate the high-grade silver occurrences located on the project's properties to determine the potential for hosting sizeable silver deposits (See Valencia Press Releases dated May 16 and July 17, 2006). Trenching and diamond drilling focused on two of the seven properties comprising the Rancheria Silver project, the Blue Heaven and Touchdown properties (Table 1; Figure 1). Prospecting, geological mapping, and soil and rock geochemistry and geophysical surveying were conducted on the other properties.



TABLE 1
Valencia 2006 Exploration Program

Prospect Trenching Geophysics Diamond Drilling
--------------------- ------------ ----------------
Excavator Hand Pits Type Line Km Metres Holes
--------- ---- ---- --- ------- ------ -----
Blue 125 (7) 517 4
Heaven
--------------------------------------------------------------------

--------------------------------------------------------------------
Touchdown 573 (7) 406 4
--------------------------------------------------------------------

--------------------------------------------------------------------
Ranch 74 VLF-EM-16 9
--------------------------------------------------------------------

--------------------------------------------------------------------
QB 32.9 6
--------------------------------------------------------------------

--------------------------------------------------------------------
Total 986 (14) 106.9 6 9 923 9
--------------------------------------------------------------------


Valencia's summer exploration program was managed by Archer, Cathro & Associates (1981) Limited, a geological consulting group having extensive exploration management experience in the Yukon and northern B.C. and which has previously worked on the Rancheria projects.

Blue Heaven Prospect

The Blue Heaven property hosts 16 zones of anomalous and significantly mineralized, high grade silver veins, zones of silver-lead-zinc Carbonate Replacement Mineralization (CRM) and tungsten +/- copper skarn mineralization. The veins are strongest where they cut granitic rocks; a 1999 hand sorted bulk sample of vein material from shallow excavations on the Blue and H Zones contained 51.47 dry tonnes grading 8,563 g/t silver, 56.2% lead, 9.5% zinc and 1.2g/t gold (See Valencia Press Release dated April 11, 2006 for a summary of all historical work).

Excavator trenching was completed across the Hall Zone where close spaced hand trenching in 2002 had traced a 2m wide east-northeast trending vein zone for 10 m along strike. Galena from the hanging wall portion of the vein returned up to 38.2 opt Ag, 23.3% lead and 0.72% Zn across 15 cm.

Seven trenches were excavated along an 85 m strike length of the vein zone. All trenches encountered zones of highly fractured and strongly clay altered granitic rocks with localized zones of manganese staining and silicification. Several of the zones contain massive galena up to 4 cm wide.

A total of 517 m of diamond drilling was completed on the Blue Heaven property, at the H Zone (3 holes) and Blue Zone (1 hole)

The first three holes tested a 50 m strike length along the trace of the H Zone which is hosted by a northeast trending structural zone comprised dominantly of quartz and carbonate cutting non calcareous metasedimentary rocks. Sulphide mineralogy observed in surface exposures consists of pyrite, sphalerite and galena.

Narrow intervals of quartz veining and quartz breccia containing irregular carbonate zones and sericite altered selvages are mineralized dominantly with pyrite and minor amounts of sphalerite, galena and arsenopyrite. A vein zone intersected in hole BH-06-02 from 54.30 to 56.11 m contains higher quartz vein density and sphalerite mineralization with individual veins of massive sphalerite up to 25 cm.

A fourth hole was drilled across the Blue Zone which is located approximately 600 m north of the H Zone. Mineralization at the Blue Zone is hosted within granodiorite and consists of a 40 m wide vein zone within which are lenses of massive and semi massive galena developed near the junction of the main northeasterly trending structural zone and crosscutting southeasterly trending ladder veins. The vein zone has been exposed for approximately 290 m; the best mineralization documented on surface occurs at the northeastern end of the exposure where approximately 39 dry tonnes of galena bearing vein material was extracted historically. The structural zone projects beneath glacial till along strike to the northeast.

Hole BH-06-04 was designed to test the structural zone beneath the surface exposure from which the bulk sample was extracted. It intersected several narrow intervals of semi massive galena and sphalerite, intermittent quartz carbonate veinlets (1-2 cm in width) containing disseminated pyrite, galena and chalcopyrite.

Assay results are pending.

Touchdown Prospect

At the Touchdown property silver mineralization has historically been defined within a structural zone approximately 450m long and up to 50m wide covering part of a moderate and strongly anomalous multi-element geochemical anomaly. Seven historical samples of CRM with high grade silver and zinc and varying amounts of lead and copper averaged 275g/t silver, 14.0% zinc and 0.43% lead. Historically, no mechanical trenching or drilling has been performed.

Excavator trenching (573m) was completed along a 300 m portion of the steeply eastward dipping northeastly trending structural zone hosting manganiferous jasperoid alteration developed within local granitic intrusive rocks and metasedimentary rocks to evaluate the main CRM targets and establish drill targets.

Two alteration zones identified within the trenches are contained within a 25 to 30 m interval with the strongest and best developed zone in the hanging wall up to 8 m wide. Pyrite is the most common sulphide observed and localized massive and semi massive sphalerite zones (up to 23 cm wide) were also noted. Ninety-seven chip and sawn channel samples were collected from five of the seven trenches.

Four diamond drill four holes (406m) on three section lines were completed across a 200 m portion of the manganiferous jasperoid alteration zone.

Chlorite, sericite, carbonate and silica alteration was observed in all holes. Quartz breccia and quart-carbonate flooding and brecciation were noted in holes TC-06-01 & -02. Pyrite, sphalerite, galena and trace chalcopyrite occur in zones up to approximately 6.0m in width. Once again, all assay results are pending.

Ranch Prospect

The Ranch property is the highest priority target within the Rancheria Project, but also the most remote and logistically challenging. The property has never been tested by mechanical trenching or drilling; however, historical exploration comprising hand trenching, rock chip and float sampling identified potential for low sulphidation epithermal-style silver mineralization which is hosted in vein and fracture fillings associated with a system of strong recessive lineaments that cut the Cassiar Batholith.

Float samples typically have assayed between 100 and 500g/t silver, with grades to 3,130g/t silver. Historical sampling of over 30 sites on the alpine plateau hosting the linears has returned over 340g/t Ag in vein material.

Due to the short field season caused by late snow in the Spring and changes to the planned use of a heli-portable RC drill because of equipment problems early in the season on other clients' properties, the planned program was modified to include geophysics and additional hand trenching to better confirm drill targets for a diamond drill campaign in 2007.

Nine line km of VLF-EM surveys was completed across the plateau hosting the east trending lineaments and silver bearing quartz vein material documented in 2005. Three VLF-EM conductors were outlined during the survey; two of which are classified as strong intensity and one weak to moderate. All three conductors are east to east northeast trending, range from 300 to 500 m long and appear to approximately coincide with three of the main linear gullies outlined in 2005. Trenching in these areas was attempted but no bedrock was encountered due to thick cover.

The majority of the exploration at the Ranch property in 2006 focused on extending hand trenches across vein zones exposed within the Shoulder Zone in the southeastern part of the plateau and collecting sawn channel samples across the veins and more extensively into the selvages.

Four target locations identified during the 2005 program were hand trenched to bedrock, detail mapped and channel sampled with a gas powered channel saw along a 300 m strike length. Quartz veining and variable alteration was encountered in trenches at all targets. A total of 74 m of hand trenching was excavated in seven trenches and sixty-three sawn channel samples were collected across the vein zones exposed; results are pending.

QB

The QB East target hosts massive sulphide and fracture style mineralization believed to associated with Carbonate Replacement Mineralization. Ten sulphide rich boulders sampled from glacial till in 1997 averaged 143.9 g/t Ag, 9.10 % Pb and 9.98% Zn. Two additional samples located 600 and 900 m southwest of the massive sulphide sites yielded up to 778 g/t Ag and 22% Pb-Zn combined.

Follow up work at QB East focused on hand pitting across previously identified but unexplored ground magnetic and VLF anomalies, hand trenching in the vicinity of silver-rich float discovered at the southwestern end of the target area, resampling of select massive sulphide material from the 1997 discovery site and prospecting southwest (upice) from the massive sulphide locales.

Six hand trenches were excavated for a total of 32.9 m and six handpits were dug within outlying geochemical anomalies. Several pieces of new mineralization were located in the vicinity of the southwestern hand trenches including limonitic cobbles containing remnant massive pyrite and sphalerite. All mineralization was sampled and results are pending.

The field program terminated October 1(st) when early snow arrived in the Yukon and camps were demobilized.

Historical results referenced above have been extracted from a NI 43-101 Technical Report on the properties dated April 2006 prepared for Valencia Ventures Inc by William A. Wengzynowski, P. Eng., of Archer, Cathro & Associates (1981) Limited, which has been filed with the TSX-V and filed on SEDAR April 25, 2006 (See Valencia Press Release dated April 11, 2006). Mr Wengzynowski, who has supervised the current exploration program and is the Qualified Person responsible for technical disclosures in this report, has provided written consent to inclusion of the references to this report in this disclosure.

Valencia has an option to earn up to 100% in the Rancheria Silver Project from Prye Company AB, subject to an existing agreement with Strategic Metals Ltd (See Valencia Press Release dated April 11, 2006 for full terms of the agreement). Initially, in addition to other cash payments and the issuance of shares, described in full in the above referenced press release, to earn a 75% interest Valencia must spend a total of $3.0million in exploration over three years, with $750,000 to be spent by the first anniversary; the current program will satisfy this requirement.

Shareholders are encouraged to visit Valencia's website (www.valenciaventures.com) to view a recent corporate presentation which provides images and more technical information on these projects.

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 precious metal properties, particularly the Cachinal Silver Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. The company has recently completed a feasibility study for the Mt. Bundy Gold Project in the Northern Territory, Australia, and is considering various development strategies. With a focus on silver, the company has a number of precious metal acquisitions under consideration.

For the map of Valencia Ventures Inc., click on the link below

http://www.ccnmatthews.com/docs/vvimap1018.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
    Executive Vice-President, Exploration and Development
    (416) 861-5898
    or
    Valencia Ventures Inc.
    David Meyer
    Vice-President, Business Development
    (416) 861-5891
    Email: info@valenciaventures.com
    Website: www.valenciaventures.com