Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

May 01, 2007 07:45 ET

Valencia Intersects High Grade Silver Mineralization in Northern Extension of the Cachinal Project

TORONTO, ONTARIO--(CCNMatthews - May 1, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report significant high grade silver mineralization was intersected within broad zones of silver-gold-zinc mineralization in the Northern Extension target of the Cachinal Silver-Gold Project. In addition, the drill results confirm silver mineralization continues to be open along strike to the north. These drill results represent the first phase of Valencia's 2007 exploration program designed to expand the existing mineral resource at Cachinal (as shown in Figure 2).

Significant high grade mineralization zones reported include (see Table 1):



CLRC-58 9m @ 161.33g/t Ag, 0.26g/t Au, 0.87% Zn

CLRC-62 2m @ 319.50g/t Ag, 0.07g/t Au, 0.09% Zn

CLRC-63 7m @ 107.29g/t Ag, 0.06g/t Au, 0.04% Zn

CLRC-67 9m @ 290.56g/t Ag, 0.30g/t Au, 0.23% Zn
Including 4m @ 602.50g/t Ag, 0.61g/t Au, 0.40% Zn

CLRC-68 6m @ 127.33g/t Ag, 0.25g/t Au, 0.08% Zn
10m @ 209.60g/t Ag, 1.33g/t Au, 0.08% Zn
Including 1m @ 1,015 g/t Ag, 6.13g/t Au, 0.11% Zn

CLRC-72 11m @ 118.00g/t Ag, 0.25g/t Au, 0.24% Zn



Doug Bache, President & CEO, commented, "This is a major step for the Cachinal Project and I'm extremely pleased with the progress Doug Currie and his team in Chile continue to make at Cachinal." Adding, "These latest drill results further confirm the extent of silver mineralization and suggest we will be able to greatly expand the resource at the Cachinal Project."

The company expects to commence the next phase of drilling by mid-May to infill this new mineralization zone in the Northern Extension and expand the mineralization zone in the southern extensions. The mineralization remains open both to the north and south and there are other targets on Valencia's property which remain to be tested.

Valencia's Executive Vice-President Exploration & Development, Doug Currie, commented, "I am most encouraged and excited by these results in the Northern Extension where, with widely spaced (100m) drilling over an 800m strike length, we located mineralized intersections with similar grades and widths to those contained in the current Cachinal resource estimate. These results more than double the potential strike length of the mineralization." He added, "I am confident, with positive infill drilling, we will be able to significantly expand the current resource estimate."

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 block 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 (released on February 19, 2007) was based on 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 recent phase of drilling which totalled 2,493m (16 holes) of Reverse Circulation (RC) drilling was focussed on areas adjacent to the existing mineral resource, in the "Northern Extension" to the north of the northernmost drillhole, CLRC-01, along strike from the Sara Vein, and to the south to locate the offsets to the Carmen and Arturo Pratt Veins.

In the Northern Extension, single drillholes were spaced on sections at 50-100m intervals over a strike length of 750m. 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 (see Figure 2). All holes except one reached their target depth and were successful in penetrating both the hangingwall and footwall targets.

In the Northern Extension, very high grade silver mineralization (9m @ 161.33g/t silver) was intersected in hole CLRC-58 immediately to the north of a very large surface stope break-out from historical mining activity, indicative of a potentially wide zone of mineralization (Figure 2).

Between Sections 250-650NNW, a 400m long zone, holes CLRC-67, 68 and 72 contained thick, very high grade silver intersections (Figure 2, Table 1) with the best intersection in CLRC-68 including a 1m sample containing 1,015g/t silver and 6.13g/t gold, an indication of the very high grade veins which remain at Cachinal. (see Figure 3).

To the south, holes CLRC-61 and -62 intersected additional mineralization, including several high grade veins, in the Sara Vein. Drillhole CLRC-63 intersected the extension of the Carmen Vein (7m @ 107.29g/t silver) and drillholes CLRC-64 and -65 also intersected the extension of the Arturo Prat Vein; both of these structures remain open along strike to the south.

The Company plans to aggressively follow-up these positive results immediately, to better define the mineralization in the Northern Extension with the objective of updating the mineral resource and commencing a Preliminary Assessment during Q3-2007. Work will also continue to trace extensions of the existing resource to the south.

Valencia has also completed additional work elsewhere on the Cachinal property. A ground magnetic survey has been completed in the Carmen-Arturo Prat area and preliminary geological investigations on the recently acquired Islote property to the north of Cachinal. Valencia plans to continue to assess the remainder of the Cachinal project area to evaluate several other targets areas. Additional geological mapping, geochemical sampling, deep Rotary Air Blast (RAB) or auger geochemical drilling and ground geophysics, if required, will be completed.

Plans are in progress to commence a 10-12,500m RC and 3-4,000m diamond drilling program during May as soon as contract drill equipment is available. Valencia recently completed a $7.0 million private placement financing and believes that it has sufficient funds to complete the required program.

Cachinal Silver Project

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's El Penon Silver-Gold Mine. The El Penon mine, 60km to the northeast, is a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers. The past-producing 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 is 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 2,500g/t silver and as much as 3g/t gold reported. The production figures (tonnage and grade) referred to above is historical in nature and has 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, comprised of 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) (See Press Releases dated October 12, 2004 and February 3, 2005 for terms of each farm-in arrangement, see 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, including 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 the Cachinal Silver-Gold Project and plans to aggressively expand the resource in 2007. With a focus on silver and gold exploration in the Americas, the Company also has a number of property acquisitions under consideration.

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. For additional information, e-mail info@valenciaventures.com.

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 an 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.

This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, and title disputes or claims. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; accidents, labour disputes and shortages and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. There may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.




TABLE 1: PHASE I - SIGNIFICANT RC DRILL RESULTS
CACHINAL SILVER-GOLD PROJECT

---------------------------------------------------------------------------
Hole Section Azi Dip Depth From To Width Au Ag Zn Target
degrees degrees m m m m g/t g/t %
---------------------------------------------------------------------------
CLRC North-
-58 100 NNW 250 60 186 62 71 9 0.26 161.33 0.87 ern
-------------------------------- Exten-
incl- sion
uding 67 69 2 0.57 416.00 1.05
--------------------------------
75 77 2 0.04 23.50 0.34
---------------------------------------------------------------------------
CLRC North-
-59 0 NNW 250 60 150 No Significant Values ern
Exten-
sion
---------------------------------------------------------------------------
CLRC North-
-60 50 NNW 250 60 125 42 46 4 0.11 42.50 0.14 ern
-------------------------------- Exten-
55 82 27 0.10 32.22 0.55 sion
--------------------------------
incl-
uding 65 66 1 0.66 105.00 0.65
---------------------------------------------------------------------------
CLRC
-61 50 SE 225 60 156 79 86 7 0.07 63.14 0.18 Sara
-------------------------------- Vein
incl-
uding 80 81 1 0.23 126.00 0.19
--------------------------------
89 99 10 0.02 28.20 0.26
--------------------------------
111 114 3 0.15 28.67 0.23
--------------------------------
149 153 4 0.02 38.75 0.13
--------------------------------
incl-
uding 151 152 1 0.01 98.00 0.17
---------------------------------------------------------------------------
CLRC
-62 100 SE 225 60 170 95 114 19 0.01 51.74 0.20 Sara
-------------------------------- Vein
incl-
uding 102 104 2 0.07 319.50 0.09
--------------------------------

121 142 21 0.13 38.00 0.24
--------------------------------
incl-
uding 123 124 1 0.20 117.00 0.29
--------------------------------
incl-
uding 138 139 1 1.56 225.00 0.23
--------------------------------
157 161 4 0.02 20.75 0.29
---------------------------------------------------------------------------
CLRC Carmen
-63 750 SE 225 60 162 80 87 7 0.06 107.29 0.04 SE
-------------------------------- Exten-
incl- sion
uding 83 85 2 0.20 334.50 0.04
--------------------------------
105 115 10 0.13 60.30 0.12
--------------------------------
incl-
uding 112 113 1 0.53 416.00 0.28
--------------------------------
120 127 7 0.08 59.57 0.09
--------------------------------
incl-
uding 121 123 2 0.19 163.00 0.12
---------------------------------------------------------------------------
CLRC A. Prat
-64 650 SE 225 60 222 132 137 5 0.05 22.80 0.11 SE
-------------------------------- Exten-
165 169 4 0.01 23.75 0.05 sion
---------------------------------------------------------------------------
CLRC A. Prat
-65 650 SE 225 60 160 16 23 7 0.10 39.29 0.05 SE
-------------------------------- Exten-
incl- sion
uding 20 21 1 0.20 85.00 0.07
---------------------------------------------------------------------------
North-
ern
CLRC Exten-
-66 150 NNW 250 60 150 No Significant Values sion
---------------------------------------------------------------------------
CLRC
-67 300 NNW 250 60 130 67 68 1 0.03 32.00 0.13
-------------------------------- North-
76 85 9 0.30 290.56 0.23 ern
-------------------------------- Exten-
incl- sion
uding 76 80 4 0.61 602.50 0.40
--------------------------------
incl-
uding 78 79 1 1.45 1295.00 0.29
---------------------------------------------------------------------------
CLRC
-68 400 NNW 250 60 130 23 54 31 0.03 22.74 0.12
--------------------------------
57 63 6 0.25 127.33 0.08
-------------------------------- North-
incl- ern
uding 60 61 1 0.92 387.00 0.04 Exten-
-------------------------------- sion
67 77 10 1.33 209.60 0.08
--------------------------------
incl-
uding 70 74 4 2.99 452.75 0.10
--------------------------------
incl-
uding 71 72 1 6.13 1015.00 0.11
---------------------------------------------------------------------------
CLRC
-69 500 NNW 250 60 150 58 60 2 0.15 171.5 0.09 North-
-------------------------------- ern
Exten-
70 81 11 0.05 30.55 0.06 sion
--------------------------------
incl-
uding 80 81 1 0.25 113.00 0.08
---------------------------------------------------------------------------
North-
ern
CLRC Exten-
-70 700 NNW 250 60 150 117 119 2 0.05 13.50 0.02 sion
---------------------------------------------------------------------------
CLRC North-
-71 800 NNW 250 60 150 74 79 5 0.11 46.80 0.12 ern
-------------------------------- Exten-
incl- sion
uding 76 78 2 0.20 102.50 0.08
---------------------------------------------------------------------------
CLRC
-72 600 NNW 250 60 150 40 56 16 0.03 30.38 0.08 North-
-------------------------------- ern
incl- Exten-
uding 49 51 2 0.15 152.00 0.08 sion
--------------------------------
112 123 11 0.25 118.00 0.24
--------------------------------
incl-
uding 116 120 4 0.59 277.75 0.22
---------------------------------------------------------------------------
CLRC North-
-73 200 NNW 250 60 152 63 76 13 0.07 44.69 0.08 ern
-------------------------------- Exten-
incl- sion
uding 71 72 1 0.27 157.00 0.04
---------------------------------------------------------------------------


To view the Figure 1 Gold Deposits of Northern Chile, please visit the following link: http://www.ccnmatthews.com/docs/valenciafigure1.pdf

To view the Figure 2 Resource Definition Targets, please visit the following link: http://www.ccnmatthews.com/docs/valenciafigure2.pdf

To view the Figure 3 CRLC-68 Section 400NW, please visit the following link: http://www.ccnmatthews.com/docs/valenciafigure3.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