Valencia Ventures Inc.

Valencia Ventures Inc.

April 24, 2007 08:00 ET

Valencia Completes Drilling to Extend Mineral Resource at the Cachinal Silver-Gold-Zinc Project, Chile

TORONTO, ONTARIO--(CCNMatthews - April 24, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) completed the first phase of the company's 2007 exploration program to expand the existing mineral resource at the Cachinal Silver-Gold Project in northern Chile.

A total of 2,493m (16 holes) of Reverse Circulation (RC) drilling was successfully completed and the company expects to release drill results early next week. Valencia recently completed a $7.0 million private placement financing and it is expected that a portion of the proceeds will be used to expand the Cachinal drill program.

Valencia released the results of its 2006 exploration program and the first mineral resource estimate for the Cachinal Silver-Gold project in February (See Press Release dated February 19, 2007). The estimated mineral resources, at a 20g/t silver 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

Potential gross metal content, excluding consideration of mining and
metallurgical dilution and recoveries, is estimated at:

Gross metal content (Indicated): 13.73Moz Silver, 13,980oz Gold,
15.30M lbs Zinc
Gross metal content (Inferred): 12.80Moz Silver, 18,050oz Gold,
17.98M lbs Zinc

The initial resource estimate relates to a 650 metre portion of the total mineralized structure, which is traceable on surface for up to 3,000 metres, and is open both along strike and at depth. This phase of drilling was focussed on areas adjacent to the existing mineral resource, along strike from the Sara Vein, in the "Northern Extension" to the north of the northernmost drillhole, CLRC-01, and to the south to locate the offsets to the Carmen and Arturo Pratt Veins In the Northern Extension, drillholes were spaced at 50-100m over a strike length of 750m. All holes except one reached their target depth and were successful in penetrating both the hangingwall and footwall targets. Fences of holes were also drilled at 50m and 100m step-outs from existing drilling on the Sara, Carmen and Arturo Prat Veins to the south of the existing resource.

Other work completed has included a ground magnetic survey in the Carmen-Arturo Prat area and preliminary geological investigations on the recently acquired Islote property to the north of Cachinal.

Valencia's Executive Vice-President Exploration & Development, Doug Currie, is currently in Chile, working with the Company's consultants to compile and review the results of the drilling and expects to be able to release results of this recent drill program within the next 10-14 days. The Company plans to aggressively follow-up any positive results immediately, with the objective of updating the mineral resource and completing a Preliminary Assessment at the earliest opportunity.

The next phase of work will also include further evaluation of the many other potential target areas on the Cachinal and Islote properties. Additional geological mapping, geochemical sampling, deep Rotary Air Blast (RAB) or auger geochemical drilling and ground geophysics, if required, will be completed.

Cachinal Silver Project

Historically a significant silver district, 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 Inc's El Penon Silver-Gold Mine, a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers, 60km to the northeast, and Diamond Rose NL's 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, 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 in the preceding sentences are historical in nature, have 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, entering into farm-in agreements with Compania Contractual Minera Ojos del Salado, an indirect Chilean subsidiary of Phelps Dodge Corporation (NYSE:PD), Silver Standard Resources Inc (NASDAQ:SSRI)(TSX:SSO) and Atna Resources Ltd (TSX:ATN) to acquire interests in their properties which cover the historic mining center. (See Press Releases dated October 12, 2004 and February 3, 2005 for terms of each farm-in arrangement, Figure 1).

Valencia has also acquired 100% direct interest in additional areas adjoining the JV areas to the north (Islote concessions) and south (Vino concessions) and now controls a total land position of 14,300ha. All mineral resources referred to above are located within concessions owned by Silver Standard Resources Inc.

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, particularly the Cachinal Silver-Gold Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. The Company recently completed a mineral resource estimate on its Cachinal Silver-Gold Project and plans to aggressively expand the resource in 2007. With a focus on silver exploration in the Americas, the Company has a number of property acquisitions under consideration.

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

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 is responsible for reviewing 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 (1) 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 standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis. Trench samples are chip-channel samples taken over a 5-10cm wide channel cut in the bottom of an excavated trench. Sample intervals are normally 2m composites in zones of alteration or mineralization and less than 2m composites through well defined vein or veinlets zones.

Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and actual results may vary materially from those in these "forward-looking statements".

To view the Gold Deposits of Northern Chile map, please visit the following link:

To view the Resource Expansion Targets, please visit the following link:


Contact Information

  • Valencia Ventures Inc.
    Doug Bache
    President and CEO
    (416) 861-5884
    Valencia Ventures Inc.
    Doug Currie
    Executive Vice-President, Exploration and Development
    (416) 861-5898
    Valencia Ventures Inc.
    David Meyer
    Vice-President, Business Development
    (416) 861-5891