Valencia Ventures Inc.

Valencia Ventures Inc.

February 19, 2007 16:05 ET

Valencia Delineates a Significant Mineral Resource at the Cachinal Silver-Gold-Zinc Project, Chile

TORONTO, ONTARIO--(CCNMatthews - Feb. 19, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) is most pleased to advise shareholders and prospective investors that the Company has completed a mineral resource estimation for its Cachinal Silver-Gold-Zinc Project in northern Chile.

Estimated mineral resources, at a 20g/t silver cut-off grade, are as

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 mineral resource estimation has been prepared by Mr Ralph Gonzalez, P. Eng., P. Geol., of Archean Ingenieria International Ltd. Co., Las Cruces, New Mexico using a 20g/t silver block cut-off grade and a specific gravity of 2.5t/cu -m, in accordance with CIM Standards for Mineral Resources and Mineral Reserves (2005).

Valencia's Executive Vice-President Exploration & Development, Doug Currie, commented, "We are extremely pleased with the outcome of our work at Cachinal this past year resulting in the delineation of this mineral resource." He added, "The Cachinal vein system extends over a strike length of approximately 3km and is covered by Valencia's current land package."

The initial resource estimate relates to a 650 metre portion of the total mineralized structure, which is traceable on surface for up to 2,000 metres and is open both along strike and at depth. Valencia is confident that, with additional drilling, the Company will be able to expand on the current resource estimate and also locate other mineralized structures elsewhere on its expanded property holdings. Further, the Company has commenced the 2007 drill program on Cachinal designed to upgrade and expand the current resource estimate. Valencia expects to release additional results on the program by mid-2007.

Valencia's 2006 exploration program included 1,436 metres of surface trenching and 4,194 metres of RC drilling in 34 holes within the Carmen-Arturo Prat vein system, with the objective of delineating a silver resource potentially amenable to open pit mining. Significant trench results were released in a press release dated July 26, 2006 and significant RC drill intersections were released in a press release dated October 31, 2006, as follows:

- 28m @ 101.18g/t silver (CLRC-18)
Including: 3m @ 128.66g/t silver and 4m @ 460.00g/t silver

- 17m @ 181.35g/t silver (CLRC-25)
Including: 2m @ 611.50g/t silver

- 26m @ 124.77g/t silver (CLRC-36)
Including: 2m @137.50g/t silver, 1m @ 951.0 g/t silver and
3m @ 231.67g/t silver

- 33m @ 142.82g/t silver (CLRC-51)
Including: 2.5g/t silver

- 25m @ 141.44g/t silver (CLRC-56)
Including: 2m @1246.0g/t silver

Late in December 2006, a small diamond drill program comprising 551.90 metres in 5 holes (CLDD-1 to CLDD-5) was completed to twin mineralized intersections in RC drillholes to verify the RC drill results, to provide information on rock density and to provide core for initial metallurgical testwork (See press release dated January 23, 2007).

All drillholes intersected historical mine workings; however, hangingwall target zones were successfully tested in all cases and the footwall zone was penetrated in two of the five holes. The results of this drilling are not available at this time and have not been utilized in the resource estimation.

The resource estimation is based on 42 Reverse Circulation drillholes and surface trenches completed by Valencia since commencement of exploration of the Cachinal Project in 2004. A simple polygonal sectional method utilizing GEMCOM resource modelling computer software was used to interpret and calculate the resources. Cross sections were generated at 50m intervals perpendicular to the average strike of the Carmen and Arturo Prat vein structures. Composite (weighted average) drillhole assay data from one metre drillhole assay intervals were used to approximate average intersection grades. Assay results from surface trench sampling were also incorporated into the model. The Indicated Resource blocks were projected 25m along strike to adjoining sections and half distance between trench or drill hole intersections up/down dip on sections; individual blocks were projected a maximum of 25m down dip below the deepest intersection. Although a limited number of deep drill holes exist, those drilled suggest that the veins can continue to a conservative depth of more than 200m. Inferred Resource blocks have been projected to a depth of 200m and assigned the grade of the adjacent, up dip block. Where evidence of historical mining existed, either stopes visible at surface or intersected in drilling, volumes have been adjusted to refflect potential stope loss. No consideration of mining or metallurgical dilution or recovery has been including in the resource estimation.

The resource estimation is included in a NI 43-101 compliant Technical Report by Mr. Gonzalez, a "Qualified Person", entitled "Geology and Exploration Potential of the Cachinal De La Sierra Silver-Gold Property, II Region - Antofagasta - Chile", which will be filed shortly on SEDAR. Mr. Gonzalez has provided his consent for reference to his report in this press release.

More details of the resource estimation using different cut-off grades are presented in the following table:

Cachinal Silver-Gold Project
Indicated and Inferred Resources
Category Cut-Off Tonnes Average Grade Contained Metal
(Silver) (Millions) Silver Gold Zinc Silver Gold Zinc
(g/t) (g/t) (%)(MM oz.) (000s (MM lbs)
Indicated 20 g/t 4.11 103.92 0.11 0.17 13.73 13.98 15.30
Resources 60 g/t 2.62 138.37 0.12 0.19 11.68 10.08 10.76
80 g/t 0.77 163.89 0.14 0.12 4.06 3.42 2.11
100 g/t 0.67 174.08 0.15 0.14 3.76 3.25 2.00
120 g/t 0.45 207.28 0.17 0.17 2.97 2.39 1.64
Inferred 20g/t 5.09 78.22 0.11 0.16 12.80 18.05 17.98

In his report, Mr. Gonzalez concluded that, "although only 650m of the strike length (of the overall mineralized structure) have been tested, the veins are traceable on surface for up to 2000m, indicating that a potential for additional resources exists along strike" and recommended the following:

- Selective in-fill drilling to increase resources and to upgrade Inferred Resources to Indicated Resources

- Step-out drilling along strike, both to the northwest and southeast, to evaluate potential additional resources along the Sara, Carmen and Arturo Prat structures (Figure 3)

- Additional regional exploration, including additional geochemical sampling, utilizing a Rotary Air Blast (RAB) drill if available, to test several VLF and soil geochemical anomalies in the western and central part of the property

Valencia's President & CEO, Doug Bache also commented, "I am delighted with the progress Doug Currie and his team have made with the Cachinal Project and believe in the potential for a significant expansion in the resource."

Valencia plans to focus a significant portion of the Company's 2007 exploration budget on expanding the potential resource at Cachinal, acquiring additional properties in the area and building on our resource base. The 2007 exploration program is fully funded with the Company's cash on hand and investments.

Valencia's preparations are well advanced to conduct a comprehensive exploration program to expand the potential resource area, to evaluate adjoining structural target areas to the north and elsewhere on the Cachinal project and recently acquired concessions to the north. Details of the Company's 2007 exploration program, which remains subject to formal Board approval, will be released shortly.

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).

All mineral resources referred to above are located within concessions owned by Silver Standard Resources Inc.

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

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.

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 than2m 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 that actual developments or results may vary materially from those in these "forward-looking statements".

To view maps of the Cachinal Project in Chile, please click on the link below:


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