Valencia Ventures Inc.

Valencia Ventures Inc.

February 27, 2007 08:00 ET

Valencia Ventures Inc.: 2007 Drill Program Underway to Expand Resource at the Cachinal Silver-Gold Project

TORONTO, ONTARIO--(CCNMatthews - Feb. 27, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) has commenced the first phase of its 2007 exploration program to expand the existing resource at the Cachinal Silver-Gold Project in northern Chile. The exploration program will focus on four immediate target areas of potential mineralization with a 2,500 metre reverse circulation (RC) drill campaign. Valencia's board of directors approved the C$2.0 million exploration program and the Company intends to fund the expenditures from its cash on hand and investments.

The program is designed to drill potential mineralized extensions stepping out from the mineral resource delineated in 2006 and announced in the press release dated February 19, 2007 as follows:

Table 1. Mineral Resource Estimate, Cachinal Silver-Gold Project

Ore Contained Metal
Resource Category
MM tonnes Silver Gold Zinc
Indicated Resource 4.11 103.92g/t Ag 0.11g/t Au 0.17% Zn
Contained Metal 13.73 MMoz 13,980 oz 15.30 MMlbs
Inferred Resource 5.09 78.22g/t Ag 0.11g/t Au 0.16% Zn
Contained Metal 12.80 MMoz 18,050 oz 17.98 MMlbs


1. A cut-off grade of 20 g/t silver; gross metal content, excluding
consideration for mining and metallurgical dilution and recoveries.
2. The mineral estimation involved a 650 metre strike length within the
overall 3,000 metre strike area that has demonstrated surface
3. For complete details see the Press Release dated February 19, 2007.

Valencia's Executive Vice-President Exploration & Development, Doug Currie, commented, "Our work during 2006 that resulted in defining a mineral resource at Cachinal was a significant milestone for Valencia. We plan to continue our aggressive exploration of the Cachinal property in 2007 to expand the existing resource and develop other targets contained within our recently enlarged land position."

Valencia is also reviewing other opportunities in the region with a view to making the Cachinal area a major focus of the Company's South American activities.

The mineral resource estimation has been prepared by Mr Ralph Gonzalez, P. Eng., P. Geol., of Archean Ingenieria International Ltd. Co., Las Cruses, 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). The resource estimation is included in a NI 43-101 compliant Technical Report prepared 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 has been filed on SEDAR. Mr Gonzalez has provided his consent for reference to his report in this press release.

The Cachinal vein system extends over a strike length of approximately 3km. The initial resource estimate relates to a 650 metre portion of the total structure 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 and also locate other mineralized structures elsewhere on its expanded property holdings.

The 2,500 metre RC drill program will be focussed on areas directly adjacent to the resources, along strike from the Sara Vein, to the north of the northernmost drillhole, CLRC-01, and to the south to locate the offsets to the Carmen and Arturo Pratt veins (Figure 2).

Additional geological mapping, geochemical sampling, deep Rotary Air Blast (RAB) or auger geochemical drilling and ground geophysics will be completed to evaluate adjoining structural target areas to the north and elsewhere on the Cachinal project and recently acquired concessions to the north (Islote) and south (Vino).

Phase 2 of the program includes approximately 5,000 metre of RC drilling to delineate any new potential resource areas discovered in the Phase 1 program, completion of an updated mineral resource, preliminary metallurgical testwork and if appropriate, completion of a Preliminary Assessment mid year.

If required, a third phase of exploration and resource delineation drilling will be completed in the second half of the year, with the objective of commencing a feasibility study later in 2007.

Valencia has allocated 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.

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, by entering into farm-in, joint venture (JV) 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 70% to 100% interests in their properties which cover the historic mining camp. (See Press Releases dated October 12, 2004 and February 3, 2005 for terms of each farm-in arrangement, Figure 1). All mineral resources referred to previously are located within the concessions currently owned by Silver Standard Resources Inc.

Valencia has also acquired 100% direct interests in additional properties adjoining the JV areas to the north (Islote concessions) and south (Vino concessions).

Valencia is a Canadian resource cmpany 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, particularly 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 its Cachinal Silver-Gold Project and plans to aggressively expand the resource in 2007. With a focus on silver exploration in the Americas, the Company has a number of property acquisitions under consideration.

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

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 than 2m 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
    (613) 264-4825
    Valencia Ventures Inc.
    David Meyer
    Vice-President, Business Development
    (416) 861-5891