Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

September 11, 2007 17:30 ET

Valencia's Phase II Drill Results Confirm High Grade Silver Mineralization in Northern Extension of the Cachinal Project

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2007) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report its phase II drilling on the Cachinal Silver project intersected additional high grade silver mineralization in the Northern Extension. These drill results confirm the potential for adding 1,200m of strike to the existing mineral resource. The mineralized structure remains open along strike to the north and south and will be further tested later this year.

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



- CLRC-74 11m @ 149.27g/t Ag, 0.09g/t Au, 0.17% Zn
Including 2m @ 331.5g/t Ag, 0.17g/t Au, 0.14% Zn, and
Including 1m @ 338.0g/t Ag, 0.21g/t Au, 0.27% Zn

- CLRC-84 7m @ 202.57g/t Ag, 0.15g/t Au, 0.22% Zn
Including 1m @ 1,235.0g/t Ag, 0.93g/t Au, 0.44% Zn

- CLRC-91 6m @ 210.0g/t Ag, 0.20g/t Au, 0.11% Zn
Including 1m @ 793.0g/t Ag, 0.55g/t Au, 0.10% Zn

- CLRC-96 13m @ 390.0g/t Ag, 0.27g/t Au, 0.29% Zn
Including 3m @ 1,137.0g/t Ag, 0.73g/t Au, 0.56% Zn

- CLRC-97 9m @ 291.56g/t Ag, 0.45g/t Au, 0.43% Zn
Including 4m @ 542.5g/t Ag, 0.84g/t Au, 0.49% Zn
9m @ 170.89g/t Ag, 0.29g/t Au, 0.42% Zn
Including 2m @ 615.5g/t Ag, 0.81g/t Au, 0.80 % Zn


Valencia's EVP, Exploration & Development, Doug Currie, commented, "I continue to be very encouraged by these latest results as they confirm the potential to define a continuous zone with high grade silver mineralization over 1,200m beyond the original 800m resource area and more than double the potential strike length of the resource." He added, "I remain confident that with further infill drilling, we will be able to significantly expand the current resource estimate."

The phase II drilling was designed to follow-up widely spaced intersections in the Northern Extension target area which had successfully intersected significant high grade silver mineralization earlier in 2007, with the objective of expanding and upgrading the current silver resource of approximately 27 million ounces silver (see Press Release July 17, 2007).

The second phase of Valencia's resource expansion and delineation drill program included 4,373m of Reverse Circulation drilling (24 holes, CLRC-73 to -97) and 3,472m of diamond drilling (CLDD-06 to -15). Results of the RC drilling are reported herein; results of the diamond drilling are pending.

Valencia released the first mineral resource estimate for the Cachinal Silver-Gold project in February, 2007 (see Press Release 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 mineral resource estimation, prepared by Mr Ralph Gonzalez, P. Eng., P. Geol., a "Qualified Person", of Archean Ingenieria International Ltd. Co., Las Cruces, New Mexico, in accordance with CIM Standards for Mineral Resources and Mineral Reserves (2005) is included in a NI 43-101 compliant Technical Report, entitled "Geology and Exploration Potential of the Cachinal De La Sierra Silver-Gold Property, II Region - Antofagasta - Chile", which has been filed on SEDAR.

The initial resource estimate 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.

Significant high grade silver mineralization intersected within broad zones of silver-gold-zinc mineralization in the Northern Extension target area in the Phase 1 drilling earlier in 2007 included (see Table 1, Press Release May 1, 2007 for complete results):



- 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
l0m @ 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


These results confirmed silver mineralization extended to the north of the defined Cachinal resource area and was still open both to the north and south. 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.

The Phase 2 program consisted of 50m spaced, single hole infill sections over a total distance of 1200m in the Northern Extension area and several holes in the Carmen Vein and Arturo Prat Vein Extensions to the south (Figure 2).

Several holes contained very significant high grade silver intersections (Table 1). Additionally, holes between these high grade intersections were mineralized, with wide, lower grade intersections indicating continuity of the mineralization between sections (Figure 2).

Two particularly high grade zones 150m in length are centered on drillholes CLRC-74 (11m @ 149.27g/t Ag) and CLRC-91 (6m @ 210.0g/t Ag). These zones are associated with larger historical mining operations. Individual, narrow, extremely high grade values, including 3m @ 1137g/t silver in CLRC-96, were intersected within the better intersections. These higher grade silver intersections are frequently associated with higher grade gold values (0.25g/t Au - 1.00g/t Au). Further, several intersections exceeding 1% zinc were also obtained in CLRC-85.

There is some evidence that there are multiple veins, particularly to the north of hole CLRC-86. Although mineralized intervals in these holes, ie CLRC-86, -76, -77, -87 and -88, are generally lower grade, they are wide and the zone is open to the north.

Drilling to the south to follow-up the potential extension of the Carmen-Arturo Prat Vein has located the structures, although the results of holes CLRC-80 and -81 were poor and suggests the zone may be getting weaker in grade. More drilling is necessary to the northwest of CLRC-84 to follow-up the 7m @ 210.57g/t Ag intersection in that hole.

The diamond drill holes were drilled at approximately 400m spaced points along the strike extension of the mineralized zone to evaluate the deeper, down dip potential of the Cachinal silver system. Historical mining is reported to have extended as deep as 320m vertical. Preliminary geological observations indicate that the potentially mineralized structures extend to depth, with encouraging alteration and veining. The drill program has only recently been completed and drill core is currently being logged and sampled; estimation of grades will not be possible until assay results are received in late September or early October.

The next phase of drilling, scheduled to commence on September 24(th), will consist of additional RC drill holes along the existing 50m spaced section lines and, where necessary, 25m infill drilling within the Cachinal resource area and the Northern Extension target to define potential resource areas in sufficient detail to enable a revised mineral resource estimation. The total program will comprise between 7,000-9,000m resource definition drilling and approximately 1,500m to evaluate targets at Vino-9 and Vino Central areas (Figure 1). Additional 25m infill drilling will be completed as required.

Valencia will announce shortly the appointment of an independent geological and engineering consulting firm who will assist with preparation of the updated mineral resource. The Company also plans to provide an updated mineral resource estimation before year-end.

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 and currently owned by Australian explorer Austral Gold NL, 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 2500g/t silver and as much as 3g/t gold reported. The production figures (tonnage and grade) referred to above are historical in nature and 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, comprised of farm-in agreements with Compania Contractual Minera Ojos del Salado (now Minera Aurex Chile), an indirect Chilean subsidiary of Phelps Dodge Corporation, Silver Standard Resources Inc and Atna Resources Ltd (See Press Releases dated October 12, 2004 and February 3, 2005 for terms of each farm-in arrangement, see Figure 1). Valencia has recently entered into an agreement with Silver Standard to acquire a 100% interest in their properties (Press Release July 12, 2007). 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 approximately 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. With a focus on silver and gold exploration in the Americas, the Company also has a number of property acquisitions under consideration.

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 utilizing field and prepared 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 and timing of future exploration and the costs and timing of additional exploration activities on the property. 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.



TABLE 1
SIGNIFICANT RC DRILL RESULTS
PHASE 2 - 2007

--------------------------------------------------------------------------
--------------------------------------------------------------------------
Section Hole ID Depth From To Width Ag Au Zn Target
m m m ppm ppm %
--------------------------------------------------------------------------
--------------------------------------------------------------------------
900 NNW CLRC-74 94 53 67 14 12.07 0.005 0.83
-----------------------------------------------------------------
Northern
67 78 11 61.55 0.036 0.39 Extension
-----------------------------------------------------------------
including 76 77 1 197.00 0.076 0.37
-----------------------------------------------------------------
81 92 11 149.27 0.090 0.17
-----------------------------------------------------------------
including 83 85 2 331.50 0.167 0.14
-----------------------------------------------------------------
including 87 88 1 338.00 0.209 0.27
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
1000 NNW CLRC-75 150 54 58 4 46.50 0.194 0.41 Extension
--------------------------------------------------------------------------

--------------------------------------------------------------------------
1100 NNW CLRC-76 211 23 29 6 22.83 0.012 0.03
--------------------------------------------------------------------------
39 44 5 23.40 0.024 0.05
-----------------------------------------------------------------
48 49 1 20.00 0.010 0.05
-----------------------------------------------------------------
50 51 1 20.00 0.042 0.07
-----------------------------------------------------------------
71 73 2 43.00 0.055 0.12
-----------------------------------------------------------------
84 86 2 52.00 0.104 0.03
-----------------------------------------------------------------
91 112 21 22.57 0.076 0.06
-----------------------------------------------------------------
121 122 1 20.00 0.077 0.06
-----------------------------------------------------------------

--------------------------------------------------------------------------
less
than Northern
1100 NNW CLRC-77 235 20 21 1 20.00 0.005 0.02 Extension
--------------------------------------------------------------------------
28 30 2 31.00 0.021 0.02
-----------------------------------------------------------------
35 38 3 24.67 0.033 0.03
-----------------------------------------------------------------
62 63 1 57.00 0.025 0.03
-----------------------------------------------------------------
66 68 2 22.00 0.031 0.03
-----------------------------------------------------------------
108 115 7 51.00 0.098 0.07
-----------------------------------------------------------------
including 113 114 1 134.00 0.203 0.08
-----------------------------------------------------------------

--------------------------------------------------------------------------
Carmen -
Arturo
750 SE CLRC-78 180 45 56 11 39.45 0.072 0.05 Prat
--------------------------------------------------------------------------
86 89 3 48.00 0.080 0.05
-----------------------------------------------------------------
106 107 1 31.00 0.550 0.04
-----------------------------------------------------------------

--------------------------------------------------------------------------
Carmen -
Arturo
800 SE CLRC-79 180 78 80 2 30.00 0.015 0.10 Prat
--------------------------------------------------------------------------
172 176 4 82.75 0.004 0.07
-----------------------------------------------------------------
including 173 174 1 242.00 0.010 0.12
-----------------------------------------------------------------

--------------------------------------------------------------------------
Carmen -
Arturo
900 SE CLRC-80 214 no significant values Prat
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Carmen -
Arturo
1000 SE CLRC-81 160 no significant values Prat
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Sara
500 SE CLRC-82 220 10 13 3 93.67 0.318 0.08 Extension
--------------------------------------------------------------------------
including 11 12 1 225.00 0.946 0.11
-----------------------------------------------------------------
47 53 6 74.67 0.033 0.14
-----------------------------------------------------------------
including 50 51 1 153.00 0.066 0.12
-----------------------------------------------------------------

--------------------------------------------------------------------------
Carmen
200 SE CLRC-83 316 69 70 1 22.00 0.007 0.26 Extension
--------------------------------------------------------------------------
77 87 10 50.50 0.014 0.27
-----------------------------------------------------------------
148 149 1 30.00 0.087 0.03
-----------------------------------------------------------------
216 220 4 20.25 0.026 0.45
-----------------------------------------------------------------
231 233 2 22.00 0.009 0.13
-----------------------------------------------------------------
234 235 1 20.00 0.010 0.12
-----------------------------------------------------------------
271 273 2 54.50 0.007 0.05
-----------------------------------------------------------------
276 277 1 40.00 0.009 0.10
-----------------------------------------------------------------
287 288 1 27.00 0.005 0.09
-----------------------------------------------------------------

--------------------------------------------------------------------------
850 SE CLRC-84 200 45 52 7 202.57 0.150 0.22
--------------------------------------------------------------------------
including 48 49 1 1235.00 0.927 0.44
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
-50 NNW CLRC-85 203 83 87 4 106.75 0.196 0.31 Extension
--------------------------------------------------------------------------
including 85 86 1 256.00 0.220 0.76
-----------------------------------------------------------------
93 104 11 119.55 0.117 0.44
-----------------------------------------------------------------
including 93 94 1 968.00 0.774 2.05
-----------------------------------------------------------------
139 141 2 24.00 0.019 0.34
-----------------------------------------------------------------
145 148 3 36.67 0.020 0.28
-----------------------------------------------------------------
156 157 1 30.00 0.254 0.40
-----------------------------------------------------------------
163 167 4 73.75 0.139 0.44
-----------------------------------------------------------------
including 166 167 1 188.00 0.275 0.46
-----------------------------------------------------------------
172 192 20 36.15 0.051 1.09
-----------------------------------------------------------------
including 189 190 1 153.00 0.320 1.55
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
1050 NNW CLRC-86 200 27 28 1 24.00 0.014 0.04 Extension
--------------------------------------------------------------------------
33 34 1 23.00 0.021 0.05
-----------------------------------------------------------------
39 43 4 40.75 0.051 0.04
-----------------------------------------------------------------
47 50 3 27.33 0.044 0.03
-----------------------------------------------------------------
52 54 2 25.00 0.160 0.03
-----------------------------------------------------------------
60 61 1 34.00 0.066 0.05
-----------------------------------------------------------------
66 68 2 79.00 0.115 0.15
-----------------------------------------------------------------
77 94 17 63.18 0.055 0.14
-----------------------------------------------------------------
including 91 93 2 270.50 0.118 0.14
-----------------------------------------------------------------
99 102 3 27.00 0.030 0.15
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
1150 NNW CLRC-87 250 10 23 13 43.00 0.011 0.05 Extension
--------------------------------------------------------------------------
including 13 14 1 125.00 0.017 0.04
-----------------------------------------------------------------
30 31 1 31.00 0.008 0.03
-----------------------------------------------------------------
39 40 1 20.00 0.016 0.01
-----------------------------------------------------------------
43 46 3 22.67 0.014 0.02
-----------------------------------------------------------------
49 50 1 21.00 0.026 0.05
-----------------------------------------------------------------
52 59 7 31.29 0.035 0.04
-----------------------------------------------------------------
74 75 1 36.00 0.060 0.13
-----------------------------------------------------------------
117 119 2 25.00 0.188 0.16
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
1200 NNW CLRC-88 250 26 27 1 20.00 0.030 0.03 Extension
--------------------------------------------------------------------------
50 63 13 27.15 0.013 0.04
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
150 NNW CLRC-89 150 103 104 1 31.00 0.326 0.04 Extension
--------------------------------------------------------------------------
120 122 2 43.00 0.085 0.10
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
250 NNW CLRC-90 150 71 79 8 40.88 0.077 0.09 Extension
--------------------------------------------------------------------------

-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
350 NNW CLRC-91 153 44 45 1 39.00 0.467 0.05 Extension
--------------------------------------------------------------------------
76 82 6 210.00 0.198 0.11
-----------------------------------------------------------------
including 77 78 1 793.00 0.549 0.10
-----------------------------------------------------------------
85 86 1 20.00 0.125 0.09
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
450 NNW CLRC-92 150 30 32 2 20.50 0.003 0.05 Extension
--------------------------------------------------------------------------
76 78 2 84.00 0.097 0.05
-----------------------------------------------------------------
105 107 2 48.00 0.194 0.04
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
550 NNW CLRC-93 150 66 67 1 23.00 0.008 0.17 Extension
--------------------------------------------------------------------------
70 74 4 134.25 0.280 0.08
-----------------------------------------------------------------
80 81 1 36.00 0.390 0.06
-----------------------------------------------------------------
131 135 4 49.50 0.052 0.07
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
650 NNW CLRC-94 150 60 62 2 44.50 0.106 0.09 Extension
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Northern
750 NNW CLRC-95 150 96 98 2 30.00 0.105 0.03 Extension
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Northern
850 NNW CLRC-96 109 87 88 1 25.00 0.010 0.44 Extension
--------------------------------------------------------------------------
92 105 13 390.00 0.271 0.29
-----------------------------------------------------------------
including 97 100 3 1137.00 0.733 0.56
-----------------------------------------------------------------

--------------------------------------------------------------------------
Northern
950 NNW CLRC-97(4) 150 64 65 1 32.00 0.037 0.08 Extension
--------------------------------------------------------------------------
71 80 9 291.56 0.445 0.43
-----------------------------------------------------------------
including 71 75 4 542.50 0.842 0.49
-----------------------------------------------------------------
87 96 9 170.89 0.289 0.42
-----------------------------------------------------------------
including 92 94 2 615.50 0.810 0.80
--------------------------------------------------------------------------
--------------------------------------------------------------------------

NB: (1) All drillholes drilled at -60degrees to the west on azimuth
250 degrees, except CLRC-78 to CLRC-84 which are drilled on
azimuth 225 degrees.
(2) Highlighted mineralization is shown as down hole intersection
widths; the current density of drilling precludes estimation of
"true thickness"
(3) Tabulated Significant Drill Results are selected on intersections
with Silver values greater than 20g/t Silver; emboldened
intersections have Silver greater than 60g/t Silver or Gold
greater than 0.20g/t Gold
(4) Assay results for CLRC -97, 124m - 150m are pending


To view Figure 1 and 2, please visit the following link: http://www.ccnmatthews.com/docs/vvi911b.pdf

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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