Valencia Ventures Inc.

Valencia Ventures Inc.

March 29, 2005 17:12 ET

Valencia Purchases 100% Interest In Idaho Gold Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: VALENCIA VENTURES INC.

TSX VENTURE SYMBOL: VVI

MARCH 29, 2005 - 17:12 ET

Valencia Purchases 100% Interest In Idaho Gold Project

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - VALENCIA VENTURES
INC. ("Valencia") (TSX VENTURE:VVI) is very pleased to announce that it
has entered into an agreement with Beartooth Platinum Corporation (TSX
VENTURE:BTP) ("Beartooth") to purchase a 100% interest in the Idaho Gold
Project.

The Idaho Gold Project includes three gold deposits with established
mineral resources, including the Buffalo Gulch Deposit which has an
Indicated Mineral Resource of 4.5 million tonnes at a grade of 0.8 g/t
gold (4.81 million tons at 0.023 oz/ton). Valencia is currently
completing a Scoping Study to evaluate the potential for development of
a heap leach gold project at Buffalo Gulch.

Valencia entered into an Option Agreement with Beartooth in August,
2004, to earn a 51% interest in the Idaho Gold Project (See Press
Release dated 24 August, 2004). The Purchase Agreement replaces the
existing Option Agreement.

To purchase a 100% interest in the property, subject to existing royalty
agreements with third parties and a 2% NSR payable to Beartooth,
Valencia will pay Beartooth a total of CDN$1,000,000 over nine months,
as follows:

- CDN$250,000 payable within 14 business days

- CDN$250,000 payable within 90 days

- CDN$250,000 payable within 180 days

- CDN$250,000 payable within 270 days

Valencia will have a 60 day due diligence period during which it may
withdraw from the purchase agreement and elect to convert the
CDN$250,000 first payment to a private placement of Units of Beartooth.
Such Units would consist of one common share of the Company at the
market price of the common shares at the date of such election and one
half of a warrant, with each whole warrant exercisable at two times the
market price of the common shares at the date of such election shares
for a period of two years, subject to regulatory approval. Should
Valencia elect the above conversion, the current Option Agreement will
continue.

Valencia may buy-back 1% of the NSR for CDN$2 Million at any time before
the fifth anniversary of the agreement. Mr. Stan Bharti, P.Eng., a
Director of both Beartooth Platinum Corp. and Valencia Ventures,
abstained from voting on this transaction.

Previous explorers have identified significant zones of gold anomalism
and have defined measurable gold mineralization at four prospects within
the Idaho Gold Project - Buffalo Gulch, Friday/Petsite, Deadwood and
Dixie - associated with the Orogrande Shear Zone, a major structure
which traverses the 40 km long trend of properties. Gold occurs as
disseminations associated with sulphides in broad zones of shearing.
Deep weathering has oxidized the primary mineralization creating zones
potentially amenable to low-cost bulk mining and heap leach extraction
of the gold. Both oxide and sulphide gold deposits are targets for
current exploration.

Historical Mineral Resource estimates, prepared by previous explorers,
were critically reviewed by Mr. Ken Grace, P.Eng. of Micon International
Limited, and in a NI 43-101 Technical Report dated 10 September, 2004
were deemed compliant with NI 43-101 resource criteria and stated as
(See Beartooth Platinum Corporation Press Release September 15, 2004;
www.sedar.com):



Estimated Mineral Resources

BUFFALO GULCH (INDICATED) 4.5 MT @ 0.8 G/T AU (115,750 OUNCES)

FRIDAY/PETSITE (INFERRED) 15.2 MT @ 1.1 G/T AU (540,000 OUNCES)

DEADWOOD (INDICATED) 1.6 MT @ 0.75 G/T AU (38,500 OUNCES)
(INFERRED) 0.7 MT @ 0.75 G/T AU (17,000 OUNCES)


At Buffalo Gulch, historical exploration focused on definition of a
potentially open pittable oxide mineral resource. Mineralization is
oxidized to depths greater than 100m and extensive metallurgical test
work by previous operators indicate the gold could be readily recovered
by conventional heap leach techniques, with recoveries in excess of 85%.
Sulphide mineralization at depth has been inadequately tested and will
require further investigation.

Prior to establishment of the Option Agreement with Valencia, Beartooth
completed drilling at the Friday/Pepsite and Buffalo Gulch prospects. At
Buffalo Gulch, Beartooth drilling confirmed the grade and continuity of
the gold mineralization intersected by previous operators (See Press
Release September 15, 2004):



Highlights of the four holes drilled at Buffalo Gulch include

- BBD-11 0.72 g/t Au over 32.0m true width
including 1.06 g/t Au over 7.5 m true width;
- BBD-12 0.90 g/t Au over a true width of 12.0m
including 1.15 g/t Au over a true width of 6.0 m; and
- BBD-13 1.21 g/t Au over a true width of 11.0 m
including 1.85 g/t Au over a true width of 2.1 m.


Since assuming management of the Idaho Gold Project in September,
Valencia has assembled a project team to compile and evaluate
Beartooth's results in conjunction with the extensive historical
database; preliminary observations indicate there are strong structural
controls to the mineralization and potential exists to expand the
current resource with additional exploration.

Valencia have engaged Golder Associates Ltd., Toronto, Canada, to
complete a Scoping Study to evaluate the potential to develop the
Buffalo Gulch prospect as a heap leach gold mine (See Press Release
dated February 1, 2005).

At the Friday/Petsite prospect, oxide and sulphide gold mineralization
occurs within and adjacent to the Orogrande Shear Zone. Gold occurs as
disseminated low grade gold mineralization in broad zones of shearing
and as higher grade gold in quartz veins. The mineralization is open in
all directions and will require further drilling to define the extent of
the zone.

Beartooth reported the results of their drilling at the Friday/Pepsite
prospect to include (See Beartooth Platinum Corp Press Release dated
July 22, 2004):



- BFD-30 9.33 g/t Au over 2.9m true width
(8.75g/t Au high cut to 30g/t Au)
- BFD-31 8.29 g/t Au over 13m true width
(8.13g/t Au high cut to 30g/t Au)
- BFD-32 3.54 g/t Au over 25m true width,
including higher grade intervals of:

9.29 g/t Au over a true width of 1.9m, and
9.75 g/t Au over a true width of 1.3m


Valencia's President and CEO, Doug Currie, commented, "Acquisition of
100% interest in the Idaho Gold Project is an important step towards
becoming a gold producer. I believe there is significant potential to
advance the Buffalo Gulch prospect as a heap leach gold development
project; the Scoping Study will be completed at the earliest opportunity
and follow-up drilling to expand the resource and a Feasibility Study
will be initiated upon receipt of positive results of the current
Scoping Study. We are planning an aggressive exploration program in 2005
to evaluate the other prospects within the project area."

Valencia Ventures Inc. (www.valenciaventures.com) 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.

Valencia has exploration properties in Australia, Chile and Idaho, USA.
The Company is currently completing a Feasibility Study on it's Rustlers
Roost Gold Deposit in the Northern Territory of Australia where an
Indicated Resource of 14.49Mt @ 1.1g/t Au containing 512,500 ounces gold
and an Inferred Resource of 9.38Mt @ 1.0 g/t Au containing 301,600
ounces has been estimated (See Press Releases dated September 7, 13 and
28, 2004). SRK Consulting in Toronto, Canada are managing the
Feasibility Study; metallurgical and mine engineering studies have
commenced. In Chile, Valencia has negotiated farm-in agreements on the
Cachinal Silver-Gold Project and has recently completed a drill program
(results pending). Valencia continues to review available exploration
and development opportunities in Australia, Chile and elsewhere in North
and 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".

To view the attached map please click on the following link:

http://www2.ccnmatthews.com/database/fax/2000/vviig.jpg


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Valencia Ventures Inc.
    Doug Currie
    President
    (416) 861-9500
    info@valenciaventures.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.