Valencia Ventures Inc.

Valencia Ventures Inc.

June 08, 2005 09:51 ET

Valencia Completes Program at Cachinal Silver-Gold Project & Updates Shareholders on Activities

TORONTO, ONTARIO--(CCNMatthews - June 8, 2005) - VALENCIA VENTURES INC. ("Valencia") (TSX VENTURE:VVI), in advance of its Annual General Meeting later today, is pleased to provide shareholders and potential investors with an update of on-going activities at the Cachinal Silver-Gold project in Chile, its Mt Bundy Gold Project (formerly referred to as Rustler's Roost) in Australia and the Idaho Gold project in Idaho, USA.

Cachinal Silver-Gold Project, Chile

In a press release April 29, 2005, Valencia announced that Reverse Circulation Drilling at its Cachinal Silver-Gold project in Chile had encountered several high grade silver intersections, including 14m @ 114.57g/t Ag (3.68 oz/t silver) in CLRC-01, 21m @ 189.29g/t Ag (6.09 oz/t silver) in CLRC-02 and 18m @ 231.38g/t Ag (7.44 oz/t silver) in CLRC-12 (See Press Release April 29, 2005 for complete details).

The mineralized holes, part of a 16 hole, 2294m drill program designed to evaluate the historical Cachinal de la Sierra silver vein structures and extensions along strike to the north and south, were located over a 600m long zone where two historical veins, the Carmen Vein and the Arturo Prat Vein, intersect. Soil geochemical sampling had also identified four broad gold-silver geochemical anomalies which required infill sampling and follow-up trenching to confirm their potential.

The best results were obtained in hole CLRC-12 which intersected 18m @ 231.38 g/t Ag, including 5m @ 670.00 g/t Ag, 0.689g/t Au, at approximately 95m below surface, in the hangingwall of the Carmen Vein. At the time of the press release some assay results were still pending; assay results for the entire hole, including the pending assays, have now been received.

The additional results indicate that the zone of continuous mineralization in CLRC-12 is broader than first reported, with mineralization over 40m averaging 137.87 g/t Ag and 0.112g/t Au between 122.0-162.0m (Table 1).

Results of infill soil geochemical sampling have also confirmed the anomalies referred to in the Press Release of April 29, 2005. The most interesting anomaly, named "Relincho" because of its proximity to a small hill of that name, located in the southern portion of the Cachinal 21-25 concessions optioned from Atna Resources Ltd. (TSX:ATN), extends over 600m in a north-south direction by 1000m in an east-west direction, with the maximum gold-in-soil value recorded of 0.597 ppm Au and the maximum silver value recorded of 2.19 ppm Ag.

A program of approximately 700m of excavator trenching has recently been completed to further evaluate the main historical workings and the Arturo Prat and Carmen Veins which were intersected in drilling and to evaluate the Relincho gold-silver soil geochemical anomaly. Evidence of quartz stockwork veining over widths of 5 - 15m was exposed around the Arturo Prat and Carmen veins. In the Relincho area, alunite alteration, strong silicification and quartz microfractures were exposed in altered rhyo-dacites and tuffs. Assay results of trench sampling are pending.

Valencia's President & CEO, Doug Currie remarked: "I am very encouraged by the results of the initial and infill soil geochemical sampling and follow-up trenching programs. Although we are awaiting results of the trench sampling, our interpretation is that the anomalous gold and silver soil samples could represent previously undetected buried structures which have the potential to host significant gold or silver mineralization."

The current program of field activities has now been completed. After complete assessment of the results, it is likely the next phase of exploration at Cachinal will consist of additional trenching and drilling in the Carmen -Arturo Prat area to better define the mineralized structure, to outline the potential for an open pit to approximately 150m depth and to determine the extent of previous historical mining of the high grade silver veins. Several deeper diamond core holes may be contemplated to test beneath deeper historical underground mining. Further trenching may be required at the Relincho target prior to an initial program of RC Drilling.

Mt Bundy Gold Project (formerly Rustler's Roost)

In Australia, drilling late in 2003 beneath the historically mined Rustler's Roost Gold Mine had successfully extended known primary gold mineralization and a new resource estimation was completed in May, 2004 which provided confirmation of and increased previous calculations (Press Releases September 7 and 13, 2004). Encouraged by the expanded resource, higher gold prices and advances in metallurgical technologies that could lead to improved recoveries and lower costs, the Board decided to initiate a Feasibility Study to evaluate the economic potential of the Mt Bundy Gold Deposit (formerly referred to as the Rustler's Roost Gold Deposit) (Press Release September 28, 2004).

Preliminary work, including a detailed analysis of the resource estimation, metallurgical test work, pit optimization and operating and capital cost estimates is progressing well. As a result of a detailed review of the resource model and based on a selective mining approach, the Company announced a 22% increase in the resource grade when compared to the bulk mining approach utilized in the May, 2004 resource estimate (Press Release April 14, 2005). Current resources for the Mt Bundy Gold Deposit (formerly referred to as Rustler's Roost Gold Deposit), at a cut-off grade of 0.70g/t gold, are:

- Indicated Resource 15,141,000 tonnes grading 1.34g/t gold (652,400 ounces gold), and

- Inferred Resource 1,461,000 tonnes grading 1.23g/t gold (57,800 ounces gold).

Completion of the Mt Bundy Feasibility Study is the principle focus of the Company.

Idaho Gold Project

The Idaho Gold Project is an advanced exploration project which includes three gold deposits with established mineral resources. Initially Valencia optioned the property from Beartooth Platinum Corporation (TSX VENTURE:BTP); however, Valencia recently entered into an agreement to purchase 100% of the project from Beartooth (Press Releases August 24, 2004 and March 29, 2005).

The project area has significant exploration potential, with a large land position which encompasses many historical lode deposits and large alluvial gold sites and numerous prospective gold targets identified by previous explorers. A Scoping Study has commenced to evaluate the potential for development of a heap leach gold project at the Buffalo Gulch Prospect (Indicated Mineral Resource 4.5 million tonnes at a grade of 0.8g/t gold (Press Releases February 1, 2005 and March 29, 2005).

This press release was prepared by Douglas A Currie, MAusIMM, President & CEO of Valencia and a Qualified Person as defined by cl.2, National Instrument 43-101, who has the ability and authority to verify the authenticity and validity of information contained within this news release.

All analytical work for the Cachinal project in Chile has been completed by ALS Chemex of Antofagasta, Chile. 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. A Quality Control program using routine standards and check and duplicate assays is in place.

Valencia Ventures Inc. ( is an emerging Canadian resource company listed on the TSX Venture Exchange with a focus on the exploration and development of quality precious metal (gold/silver) opportunities worldwide.

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 that actual developments or results may vary materially from those in these "forward-looking statements".

Table 1
Valencia Ventures Ltd
RC Drilling - January-March 2005

Revised Assay Results
Significant Drill Intersection

Hole From To Width Ag Au
m m m ppm ppm
CLRC-12 43 44 1 328.50 0.150
122 162 40 137.87 0.112
including: 122 140 18 231.38 0.193
incl: (127 132) 5 670.00 0.456
143 144 1 104.0 0.189
150 155 5 127.20 0.159
156 157 1 30.0 0.124
158 160 2 105.50 0.149


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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