Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

November 20, 2006 16:05 ET

Valencia Confirms High Grade Silver Mineralization at Rancheria Project

TORONTO, ONTARIO--(CCNMatthews - Nov. 20, 2006) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report initial results for the 2006 exploration program on the Rancheria Silver Project in the Yukon Territory and British Columbia include intersections of high grade silver mineralization. These intersections were contained within the Hall Zone on the Blue Heaven property (as shown in Figure 1)

Significant silver mineralization was encountered in six closely spaced trenches over a strike length of approximately 75m (see Figure 2). Initial results include:

- TR-01 6.0m @ 60.4g/t Ag, 0.14% Pb

- TR-03 10.3m @ 76.5g/t Ag, 0.73% Pb

- TR-04 2.65m @ 231.6g/t Ag, 0.77% Pb

- TR-05 10.45m @ 446.5g/t Ag, 1.12% Pb

- TR-06 6.0m @ 21.1 g/t Ag, 0.19% Pb

The trenches were excavated to evaluate an east-northeasterly trending vein zone which had been identified by closely spaced hand trenching in 2002. Narrow intervals of massive and semi massive galena were exposed within the trenches in the core area identified in 2002; galena from the hanging wall portion of the vein returned up to 37.6 opt Ag, 23.1% Pb and 0.52% Zn across 10 cm (See Valencia Press Release dated April 11, 2006 for a summary of historical work).

Doug Currie, Valencia's Executive Vice-President Exploration & Development, commented: "We are very encouraged by these initial results at Rancheria." Adding, "The wide, high grade nature of the mineralization exposed within the trenches is evidence that the zone of mineralization may have substantial thickness. The Hall Zone represents an excellent target and is a high priority for further trenching and drilling in 2007."

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, a lead sulphide indicating the presence of lead and silver mineralization. Most fracture zones are steeply northward dipping and are associated with manganese staining and infilling which is not uncommon in many areas across the property.

The Hall Zone coincides with one of a number of strong east to northeast trending linears that were deep auger tested in 2002, the samples from which were analysed in 2006 (Figure 1). Moderate and strongly anomalous silver values (to 7.4 g/t) were obtained from the linears along strike from the Hall Zone and from several linears 500m east toward the Blue Zone. No excavator trenching was conducted within the linears peripheral to the Hall Zone and these anomalies remain as potential future exploration targets.

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.

In addition to the trenching at the Hall Zone, described above, a total of 517m of diamond drilling was also completed on the Blue Heaven property, at the H Zone (3 holes) and Blue Zone (1 hole).

The first three holes tested a 50m 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. The results generally displayed low grade silver mineralization but provided encouraging zinc values. A vein zone intersected in hole BH-06-02 from 54.30 to 56.11m containing higher quartz vein density and sphalerite mineralization with individual veins of massive sphalerite up to 25cm assayed 8.52% Zn, 16.5g/t Ag and 0.046% Pb over 1.81m.

A fourth hole was drilled across the Blue Zone which is located approximately 600m north of the H Zone. Mineralization at the Blue Zone is hosted within granodiorite and consists of a 40m 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 south easterly trending ladder veins. The vein zone has been exposed for approximately 290m; the best mineralization documented on surface occurs at the north eastern 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. Two narrow veinlets reported high grade values:

- 1.0m @ 348g/t Ag, 3.37% Pb, 0.92% Zn (7cm vein from 18.11m)

- 0.49m @ 1400g/t Ag, 14% Pb, 14.9% Zn (49cm vein from 66.76m)

Further evaluation of the H and Blue Zones will be conducted in junction with continuing evaluation of the Blue Heaven Property.

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 exists.

Excavator trenching (573m) was completed along a 300m portion of the steeply eastward dipping northeasterly 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 30m interval with the strongest and best developed zone in the hanging wall up to 8m wide. Pyrite is the most common sulphide observed and localized massive and semi massive sphalerite zones (up to 23cm wide) were also noted. Ninety-seven chip and sawn channel samples were collected from five of the seven trenches.

Modest silver (0.30 -19.0g/t Ag) and zinc (0.06 -1.68% Zn) values were obtained over widths of 1-10m within the mineralized zones; several narrower, 0.10 -0.23m, higher grade intervals (to 124g/t Ag and 37.0% Zn) were intersected.

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

Chlorite, sericite, carbonate and silica alteration was observed in all holes. Pyrite, sphalerite, galena and trace chalcopyrite occur in zones up to approximately 6.0m in width. Anomalous silver and zinc values are reported within zones of manganiferous jasperoid alteration; however, results were generally low and are not considered significant. Arsenic and antimony are elevated within the alteration zones and select intervals were selected for gold analyses. These results are pending.

Rancheria Silver Project

The Rancheria Silver Project is located approximately 300km east of Whitehorse in a 130km long by 50km wide belt that straddles the Yukon and British Columbia border (Figure 1). The seven properties collectively comprise 350 mineral claims and tenures totalling about 9,200 hectares. Historical exploration has demonstrated silver mineralization occurs within the Rancheria projects in both high grade vein and Carbonate Replacement (CRM) style settings similar to those found within productive silver camps elsewhere in the Cordillera of Canada, United States and Mexico.

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 October 18, 2006). Trenching and diamond drilling focused on two of the seven properties comprising the Rancheria Silver project, the Blue Heaven and Touchdown properties. Prospecting, geological mapping, and soil and rock geochemistry and geophysical surveying were conducted on two of the other properties.

Results of exploration completed on the Ranch and QB properties will follow shortly upon receipt of final assay results. Valencia expects to spend at least $1.25 million on the Rancheria Project in 2007 and is developing a drill program to further progress these high potential properties.

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.

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., President 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).

The 2006 exploration program for the Rancheria Silver Project was carried out under the supervision of Mr. Wengzynowski, PEng, President of Archer, Cathro & Associates (1981) Limited, the project operator. Samples were transported by Archer Cathro senior personnel to Whitehorse where they were shipped by surface freight to ALS Chemex in North Vancouver. ALS Chemex is recognized as an ISO 9000 registered laboratory. The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101. Mr. Wengzynowski is designated as the Qualified Person who reviewed this information.

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 silver and gold 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 is considering a number of properties in South America.

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. Trench Sample Results
Hall Zone-Blue Heaven Property

------------------------------------------------------------------
TRENCH FROM TO WIDTH(m) Ag(g/t) Pb(%)
------------------------------------------------------------------
TR-06-01 14.4 m 24.5 m 10.1 m 36.4 0.09
------------------------------------------------------------------
incl 16.0 m 22.0 m 6.0 m 60.4 0.14
------------------------------------------------------------------
Tr-06-02 6.0 m 28.0 m 22.0 m 2.5 0.05
------------------------------------------------------------------
incl 10.0 m 14.0 m 4.0 m 7.5 0.36
------------------------------------------------------------------
Tr-06-03 8.0 m 26.7 m 18.7 m 44.2 0.42
------------------------------------------------------------------
incl 12.0 m 22.3 m 10.3 m 76.5 0.73
------------------------------------------------------------------
incl 15.93 m 15.97 m 0.04 m 4,090 greater
than 30
------------------------------------------------------------------
Tr-06-04 38.0 m 48.15 m 10.15 m 71 0.29
------------------------------------------------------------------
incl 42.0 m 44.65 m 2.65 m 231.6 0.77
------------------------------------------------------------------
incl 44.6 m 44.65 m 0.05 m greater than greater
10,000 than 30
------------------------------------------------------------------
Tr-06-05 0.0m 14.45 m 14.45 m 324 0.82
------------------------------------------------------------------
incl 0.0 m 10.45 m 10.45 m 446.5 1.12
------------------------------------------------------------------
incl 9.55 m 9.60 m 0.05 m greater than greater
10,000 than 30
------------------------------------------------------------------
Tr-06-06 9.0 m 24.0 m 15.0 m 9.9 0.11
------------------------------------------------------------------
incl 9.0 m 15.0 m 6.0 m 21.1 0.19
------------------------------------------------------------------
Tr-06-07 5.0 m 20.0 m 15.0 m 0.8 0.01
------------------------------------------------------------------
Note: Over Limit Assays and Gold Assays Pending
------------------------------------------------------------------


To view a copy of the figures "Blue Heaven Property Auger Drill Results" and "Blue Heaven Property Hall Zone Excavator Trenching", please click the link bellow:

http://www.ccnmatthews.com/docs/vvi_maps.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
    (416) 861-8165 (FAX)
    Email: info@valenciaventures.com
    Website: www.valenciaventures.com