Valencia Ventures Inc.

Valencia Ventures Inc.

April 11, 2006 17:25 ET

Valencia Options Rancheria Silver Project

TORONTO, ONTARIO--(CCNMatthews - April 11, 2006) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to announce that it has acquired an option to earn up to a 100 percent working interest in seven mineral properties comprising the Rancheria Silver project from Pyre Company AB ("Pyre"), subject to an existing option agreement with Strategic Metals Ltd. ("Strategic Metals").

The Rancheria Silver project is located approximately 300 kms east of Whitehorse in a 130 km long by 50 km wide belt that straddles the Yukon and British Columbia border (see Figure 1 - Property Location). The properties collectively comprise 350 mineral claims and tenures totalling about 9,200 hectares. Each of the seven properties hosts at least one high grade silver occurrence. Valencia intends to conduct an aggressive drill program on various high priority targets at two or more of the properties beginning in June 2006.

The Ranch property hosts vein and fracture filling mineralization associated with a series of strong faults that cut the Cassiar Batholith. The silver occurs in a low sulphidation system with minor amounts of lead, bismuth and molybdenum. Rock specimens taken from quartz vein float boulders typically assay between 100 and 500 g/t silver, and includes grades of 3,130 g/t silver. Attempts to locate bedrock sources for the mineralized boulders were frustrated by deep felsenmeer and talus. The best grade chip sample from bedrock returned 1525 g/t silver across 1.5 m. This sample was taken across the entire width of bedrock exposed in a hand trench and consisted of 0.93 m of quartz vein plus 0.57 m of weakly clay and sericite altered granitic wallrock, which is rusty weathering and contains minor disseminated pyrite. This property has never been drilled or tested by mechanized trenching.

The Touchdown property lies directly alongside the Cassiar Batholith and features veins and carbonate replacement mineralization (CRM) developed in adjacent metasedimentary horizons. No drilling or mechanized trenching has been done on those targets. The most prospective zone is 450 m long and up to 50 m wide. It is marked by a strong soil geochemical anomaly and has produced several samples contain high silver and zinc with varying amounts of lead and copper. The average for seven specimens of CRM collected in 1998 was 275 g/t silver, 14.0% zinc and 0.43% lead.

The Blue Heaven property covers part of the Cassiar Batholith, a satellite plug and surrounding calcareous and non calcareous sediments. A total of 16 zones have been identified on the property, including: high grade silver veins, silver-lead-zinc CRM and tungsten±copper skarns. The veins are strongest where they cut granitic rocks and are typically lensy containing argentiferous galena and tetrahedrite. Some of the veins have been partially explored by trenching but none have been drilled. A 1999 bulk sample of hand sorted material from shallow excavations on two of the vein zones contained 51.47 dry tonnes grading 8563 g/t silver, 56.2% lead, 9.5% zinc 1.2 g/t gold. The CRM zones are confined to a 200 to 500 m thick section of calcareous metasediments that extends 4 km along the length of the property. The zones have produced extensive soil geochemical anomalies and are best developed where vein faults cut thick limy horizons. The mineralization has been exposed in several excavator trenches and one diamond drill hole. It typical grades between 5 and 100 g/t silver, trace to 5% lead and 2 to 5% zinc. Little work has been done on the tungsten skarn zones but rock specimens in one area averaged 3.6% WO3 and a trench in another area averaged 0.3% WO3 over 9.3 m.

The Quarterback property is located 17 km northeast of the Cassiar Batholith, about midway between two smaller granitic intrusions. Most of the property is underlain by metasedimentary rocks but a few felsic dykes have been noted. All three types of silver mineralization have been noted in glacial boulders, scattered outcrops and diamond drill holes. Bedrock exposure is very limited but soil geochemistry has returned moderately to strongly anomalous values in several clusters scattered over an area 6000 m long and 1500 m wide. The highest assays are found in the eastern part of the property (Area A) where ten sulphide rich CRM and vein float boulders discovered in glacial till averaged 143.9 g/t silver, 9.10% lead and 9.98% zinc. Although nine diamond drill holes in this area returned encouraging results including 107.5 g/t silver, 8.43% lead and 13.50% zinc over 1.75 m, the character and distribution of this mineralization does not adequately explain the float boulders. The other main area of interest lies 5 km to the west (Area B) and consists of intensely silica altered horizons exposed in several outcrops. Exploration here has included a few hand trenches and two diamond drill holes. Where exposed the main horizon has a true thickness of about 2 m and typically grades between 76 and 125 g/t silver, 1.17 and 1.70% lead, 2.79 and 2.55% zinc and 0.22 and 0.45% copper. These horizons have gentle dips and considerable lateral extent.

The Pigskin property adjoins the Quarterback property and has a similar geological environment except that limy strata are rare. Mineralization comprises a relatively unexplored fracture zone within a silver-lead-zinc soil geochemical anomaly. A high grade silver vein is associated with one of several smaller anomalous geochemical clusters. The vein zone has been traced by hand trenching over a 20 m length where it consists of two main lenses of mineralization. Chip samples returned a weighted average grade of 1176 g/t silver across 0.87 m for a length of 8.15 m on one lens and 2386 g/t silver across 0.5 m for a length of 6.1 m on the other lens. No drilling has been done on the Pigskin property.

The End Zone property is the most easterly of the Rancheria Silver properties. It lies 5 km from the closest mapped granitic intrusion. Bedrock exposure is extremely limited and the area is heavily glaciated. CRM occurs in metasediments along a creek cut but six diamond drill holes that attempted to trace the mineralized horizon to depth did not intersect similar material. Based on drill results, folding and faulting in the area are believed to be more complicated than indicated by outcrop mapping. Chip samples through the mineralized stratigraphic section averaged 14.41 g/t silver, 1.05% lead and 1.81% zinc across 8.22 m. Individual intervals included yields of 46 g/t silver, 3.17% lead and 4.67% zinc over 0.7 m. Near surfaces soil samples on this property yielded mostly low values but samples from deeper pits produced much stronger results.

The Shar property is located 24 km southeast of the Ranch property in the Cassiar Batholith. It is the least explored of the seven properties and is the only one that Strategic Metals has not worked on. Previous explorers traced very strong lead and silver values from stream sediment soil and rock samples to their probable source area at the head of an alpine drainage. Vein float collected along the creek cut included assays of 11,378 g/t silver with minor base metals. No trenching or drilling has been done on the Shar property.

The above referenced initial results have been extracted from a NI 43-101 technical report on the Properties prepared for Valencia Ventures Inc. by William A. Wengzynowski, P.Eng. of Archer, Cathro & Associates (1981) Limited, who is the "qualified person" as defined under NI-43-101. Mr. Wengzynowski has considerable experience in silver exploration and has, at various times, has worked on all the properties, except the Shar property.

In acquiring the properties from Pyre, Valencia will assume all of Prye's obligations under its option agreement with Strategic Metals and make a one time cash payment of $150,000 to Pyre. To earn a 70% interest in the properties, Valencia is required to: (1) spend a total of CDN$3.0 million in exploration over three years, with CDN$750,000 to be spent by the first year anniversary of the agreement, CDN$1,000,000 to be spent by the second year anniversary of the agreement and the balance to spent by the third year anniversary of the agreement; (2) issue Strategic Metals 800,000 common shares and 1,000,000 warrants at an exercise price of $0.41 for a period of 12 months and an additional 200,000 common shares to W4 Joint Venture (to eliminate a royalty on the Blue Heaven property); (3) make a cash payment of $250,000 or issue Strategic Metals 250,000 common shares (at the election of Strategic Metals) upon the first year anniversary of the agreement; and (4) make a cash payment of $250,000 or issue Strategic Metals 250,000 common shares (at the election of Strategic Metals) upon the second year anniversary of the agreement.

Upon earning the 70% interest, Valencia has the right to earn the remaining 30% interest by making a cash payment of CDN$4,000,000 to Strategic Metals (or at Strategic Metal's election, the issuance of the equivalent value of CDN$4,000,000 worth of shares, based on Valencia's average closing price for the previous 20 trading days). Any property that Valencia elects not to advance to bankable feasibility within 12 months of earning a 70% interest shall thereafter be owned 50% by Valencia and 50% by Strategic Metals in a joint venture. Regardless of Valencia's ultimate interest, the Rancheria Silver project would be subject to 2% net smelter return royalty held by Pyre and a 2% net smelter return royalty held by Strategic Metals. The transfer and assumption of the option agreement by Valencia (including the issuance of any shares) remains subject to regulatory approval.

"We are very excited about the mineralization structures and potential at Rancheria Silver and look forward to testing key mineral occurrences later this year," commented, Doug Bache, President and CEO. Adding, "the Rancheria Silver project is an ideal fit for Valencia's strategy of acquiring substantial positions in silver and gold mineral belts that support precious metal geological models and host known mineralization."

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia is focused on the exploration and development of precious metal properties and the company is currently reviewing the feasibility of the Mt. Bundy gold project in the Northern Territory, Australia. Valencia's development strategy is focused on its silver exploration properties and the company has a number of precious metal acquisitions under consideration.

To view Rancheria Silver Project, Figure 1 - Property Location, please click on the following link:

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

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