Ventura Gold Corp.

Ventura Gold Corp.

June 08, 2005 15:03 ET

Ventura Options Navelgas Gold Property in Spain From Rio Narcea Gold Mines Gold Mines

SCOTTSDALE, ARIZONA--(CCNMatthews - June 8, 2005) - Ventura Gold Corporation ("Ventura") (TSX VENTURE:VGO) has entered into a Letter Agreement with Rio Narcea Gold Mines Ltd. ("Rio Narcea") to option Rio Narcea's 100%-held Navelgas gold property (the "Property") in northwestern Spain, located approximately 30km south of the city of Luarca in the province of Asturias. The Property comprises 105 square km of investigation permits which are held by Rio Narcea pursuant to licenses granted by the provincial government. The Letter Agreement remains subject to regulatory approval.

The Property is contained within the Navelgas gold belt, which comprises three major northeast-trending structural zones. This gold belt is some 70km long and 18km wide and hosts more than 40 Roman gold workings. It is similar geologically and structurally to the Rio Narcea gold belt approximately 30km to the east, which hosts Rio Narcea's El Valle and Carles gold mines, which combined have reportedly produced approximately one million ounces of gold since 1998.

Each of the three structural zones within the Navelgas gold belt has a distinct style of mineralization:

(a) in the La Freita Zone, gold mineralization is present in veins in a major shear-related system. Rio Narcea has identified a 2.5km-long by 250m-wide gold soil geochemical anomaly (with individual soil sample values up to 1.2 g/t gold) extending south from the La Freita Roman pit, the largest Roman pit in Asturias. This anomaly has never been drilled and is considered by Rio Narcea to be one of the highest priority targets on the Property. A rock chip sample value of 338 g/t gold from a 0.7 to 1.0m wide quartz vein has been reported by Rio Narcea from this area.

(b) in the Linares Zone, gold mineralization is found in a previously unknown gold porphyry system that was discovered by Rio Narcea in 1998. It is located in a geological setting similar to Rio Narcea's El Valle Mine and the geochemical signature and alteration show classic porphyry zonation, with potential also for skarn-type mineralization under a shallow cover of recent sediments. Only limited core drilling (1,150m) has been carried out to date by Rio Narcea.

(c) in the Pola de Allande Zone, sediment-hosted epithermal gold mineralization is related to a major fault and Rio Narcea reports rock chip samples up to 18.4 g/t gold in jasperoid breccias.

To date, all of the core drilling (6,250m) on the Property has tested less than 10% of the length of the potentially mineralized structures. The last phase of drilling was conducted as part of a joint venture with Barrick Gold in 2000 and included 1,962m in four deep holes but was focused only on the northern part of the Pola de Allande trend. Barrick's program included a 235 square km airborne geophysical survey (magnetics / electromagnetics / radiometrics) that covers most of the Navelgas gold belt and which has provided a wealth of data that identifies new targets for additional exploration.

Ventura's initial exploration program will involve a combination of rock and soil geochemical sampling, geophysical surveys and approximately 1,100m of core drilling over an estimated 3 to 4 month period, with an initial budget of approximately US$260,000. The initial drill program will focus on the Linares and La Freita projects and it is expected that drilling can start within a short period due to the fact that Rio Narcea has already obtained the necessary drilling permits.

Basic Terms of Letter Agreement

Under the Letter Agreement, which remains subject to regulatory approval, Ventura has an option ("Option") to acquire from Rio Narcea an initial 51% interest in the Property by spending US$1.0 million on exploration and related expenditures over a 3 year period, commencing from the later of the regulatory approval date for the Letter Agreement and the date of completion of legal due diligence by Ventura (the "Effective Date"). Minimum exploration and related expenditures of US$250,000 in the first year, US$300,000 in the second year and US$450,000 in the third year must be incurred by Ventura to maintain the Option.

Ventura will have an additional option ("Additional Option") to acquire a further 15% interest in the Property (for an aggregate 66% interest) by funding and completing a bankable feasibility study within a seven-year period from the Effective Date.

Following the exercise by Ventura of the Option (to earn a 51% interest), the parties will then form a joint venture for further exploration and development of the Property.

Rio Narcea will be the operator during the period of the Option. Ventura has the right, but not the obligation, to be the operator of the Property during the period of the Additional Option and the joint venture, unless Ventura's participating interest is reduced to less than 50%, in which case Rio Narcea will have the option, but not the obligation, to become operator.

Ventura has a maximum 60-day due diligence period from the signing of the Letter Agreement for legal review of the Property title, related agreements and other documentation.

Subject to regulatory approval, a finders fee is payable by Ventura in connection with its acquisition of the Property.


Stephen J. Kay, President/CFO

The TSX Venture Exchange neither approves nor disapproves the information contained in this News Release.

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