Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

August 16, 2007 07:30 ET

Valencia Successfully Completes Drill Programs at Cachinal and Rancheria Projects

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) pleased to advise that it has successfully completed the first portion of the Company's resource definition drilling program at its Cachinal Silver Project in Chile. In addition, the 2007 summer exploration program of airborne geophysics, trenching and diamond drilling at its Rancheria Silver Project in the Yukon has been completed.

At Cachinal, Valencia has completed 4,373m of Reverse Circulation (RC) drilling (24 holes) and approximately 2,000m of diamond drilling (5 holes) providing 50m-spaced in-fill drill holes on the Northern Extension and additional step-out holes along mineralization strike to the south of the existing Cachinal resource area.

This drilling completes the first portion of the planned 15,000m resource delineation drill program which began at Valencia's Cachinal Silver Project in Chile in July (see press release dated July 17, 2007). The main objective of this program is to significantly expand and upgrade the current silver resource of approximately 27 million ounces.

Drilling earlier this year intersected significant high grade silver mineralization within broad zones of silver-gold-zinc mineralization in the Northern Extension target area (see press release dated May 1, 2007). These drill results confirmed silver mineralization remains open along strike, both to the north and south, and there are other targets on Valencia's property which remain to be tested. The current program is focused on resource definition within the Northern Extension and exploration for possible extensions to the mineralized Sara, Carmen and Arturo-Prat vein systems to the south of the current resource. Elsewhere on the Cachinal property, trenching has also been completed on the Islote and Vino target areas.

The Company plans to spend approximately $4.0 million on this program and expects to produce an independent NI 43-101 technical report on the updated mineral resource and preliminary feasibility study by year-end.

One diamond drill is currently on site completing the planned 3,600m (8 hole) diamond drill program. Valencia's exploration team has observed visually encouraging alteration and veining in both RC chips and diamond core. However, estimation of mineralization grades will not be possible until assay results are received at the end of August 2007. The RC drill is scheduled to return to site early in September to commence the final infill drill program. Valencia has requested quotations from various global consulting firms to prepare a NI 43-101 compliant mineral resource report and a preliminary assessment and expects to award of the contract shortly.

At Valencia's Rancheria Silver Project, in Canada's Yukon Territory, the planned summer exploration program of mechanical excavator trenching, airborne geophysics and diamond drilling designed to further evaluate the high-grade silver occurrences located within the Blue Heaven and QB properties to determine the potential for hosting sizeable silver deposits has been completed.

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 plus 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 Ag, 56.2% Pb, 9.5% Zn and 1.2g/t Au.

Fracturing & strong alteration with massive galena was discovered in excavator trenches completed within the Hall Zone on the Blue Heaven Property in 2006. Significant silver mineralization was encountered in six of seven closely spaced trenches over a strike length of approximately 75m (See Press Release November 20, 2006).

Excavator trenching (1,535m - 21 trenches) and Diamond Drilling (605m in 6 holes) has focused on the Hall and Don Zones on the Blue Heaven Property where exploration in 2006 successfully exposed broad zones of high grade silver mineralization in surface trenches and intersected narrow, high grade silver, lead and zinc mineralization in drilling at the Blue and H Zones (See Press Release dated April 11, 2006 for a summary of historical work). A VTEM airborne geophysical survey has also been flown over the QB property to locate the source of very anomalous mineralized float boulders located on the property.

Trenching has exposed what Valencia believes to be multiple narrow strongly altered and mineralized (galena & sphalerite) structures. However, assay results are not yet available to confirm the presence of silver mineralization. Drill holes were positioned to best test these zones. Results of both trenching and drilling are expected in early September, when follow-up drilling could be planned if the results warrant further evaluation.

Doug Currie, Valencia's Executive Vice President, Exploration and Development, who recently visited both the Cachinal and Rancheria projects, commented, "Visually, there is strong alteration and evidence for potential mineralization in the latest drill holes at Cachinal. We are also encouraged by mineralization contained in the trenches and drill holes at Rancheria, but it is difficult to predict the anticipated grades of silver mineralization." He added, "I'm extremely pleased with the excellent progress made at both projects - we have completed substantial programs in the past few weeks and anxiously await the assay results."

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, one of the worlds lowest cost gold producers. The past-producing Guanaco Gold Mine located 12km to the southwest is a high sulphidation-style epithermal deposit historically mined as a heap leach operation. Historical silver production in the Cachinal area is estimated at approximately 32 million ounces as documented in geological reports in the library and files of Chilean Government agency SERNAGEOMIN. 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's Cachinal Silver Project incorporates a large land position totalling approximately 14,300 hectares, comprised of three farm-in agreements and 100% direct interest in additional areas adjoining the JV areas to the north (Islote concessions) and south (Vino concessions).

Valencia recently entered into an agreement with Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI) to acquire Silver Standard's remaining 20% interest in the Cachinal property, the principal joint venture area (see press release dated July 12, 2007).

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. Valencia's seven properties collectively comprise 350 mineral claims and tenures for a total land position of about 9,200 hectares. Historical exploration has demonstrated that 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 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).

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. With a focus on silver and gold exploration in the Americas, Valencia is considering various precious metal property acquisitions.

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

Cautionary Note:

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 has reviewed the technical disclosure in this press release.

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 and timing of future exploration. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results 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, future prices of mineral prices; and risks of the mining industry. 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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY

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
    Email: dcurrie@valenciaventures.com