Victoria Gold Corp.

Victoria Gold Corp.

March 02, 2009 09:08 ET

Victoria Gold Advancing the Helen Zone: Growth Plans Defined

Drilling continues at the Helen Zone, a new high-grade gold discovery in Nevada

TORONTO, ONTARIO--(Marketwire - March 2, 2009) - Marketwire - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or "the Company") is pleased to announce that drilling of hole NW-14 at the Helen Zone of the Cove project is progressing well and is at a current depth of approximately 330 metres, nearly half of its targeted depth.

Growth Strategy

"Nevada gold exploration continues to be a key component of our strategy to build the best emerging gold company," said Mr. Chad Williams, President and CEO of Victoria.

"We have a strong pipeline of projects containing multi-million ounces of gold resources at various stages of advancement in very favorable locations including assets in the Yukon and Guyana to be acquired in the recently announced business combination with Stratagold Corporation (see news release dated February 11, 2009). Our pre-existing property portfolio in Nevada was also enhanced in December 2008 with the acquisition of Gateway Gold Corp.," said Mr. Williams.

Helen Zone Exploration

Drill hole NW-14 will test the Helen Zone below the current 150-metre plunge length defined by the previous thirteen holes of this 15-hole drill program. Victoria intends to drill NW-14 to intersect the zone 50 to 75 metres below NW-13a, which intersected 16.75 g/t of gold over 29.6 metres and 11.85 g/t of gold over 35.6 m of including grades of up to 77.92 g/t of gold, at a depth of 628 metres (see news release dated December 11, 2008). Drill hole NW-13a further demonstrated that the Helen Zone is broad and consistently mineralized. To view new cross section diagrams and a plan view of the Helen Zone based on drilling to-date please visit our website at

Drill hole NW-14 will help Victoria's geologists verify the geometry of the Helen Zone as a steeply plunging intersection zone as defined by current structural analyses. The Company plans to drill NW-15 to a depth of 50 to 75 metres below NW-14. Victoria continues to be encouraged by the success of the innovative drilling techniques developed in hole NW-13a so the Company may also re-enter and deepen holes NW-6a, NW-9, and NW-12 which were stopped prematurely because of geology-related drilling difficulties.

A detailed National Instrument (NI) compliant technical report on the Cove property can be found on The Company intends to complete a NI 43-101 compliant mineral resource on the Helen Zone once its geometry is further defined.

Victoria has recently conducted detailed mapping of several promising additional new intersection zones near the Helen Zone. These are in addition to 13 other previously identified priority exploration targets located elsewhere on the Cove property. All these targets will form part of the longer-term exploration plans for the property.

Future Development of the Helen Zone

The Company is working on a design for an underground exploration adit or tunnel to access the Helen Zone from surface. The intention is to eventually carry out exploration and definition drilling from underground, which should be less costly, more precise and quicker than from surface. A preliminary economic assessment of the Helen Zone will also be undertaken in 2009. Victoria intends to advance the Helen Zone aggressively such that it generates cash flow in a timely manner. The project is advantaged because capital costs should be modest and the development timeline relatively brief since it is located adjacent to an existing open-pit and there is ample infrastructure in the area.

Summary of Helen Zone Discovery

The Helen Zone, which was discovered in January 2007 when the first drill hole, NW-1 reported 38.4 metres averaging 10.95 g/t of gold. It also exhibits high-grade gold content consistent with some of the largest Carlin-type (meaning sediment-hosted low-sulphide content) gold deposits in Nevada. The Helen Zone is located approximately 600 metres northwest of the previously mined Cove pit but is a distinct discovery because it occurs within the Favret Formation, a rock unit not known in the past as a host of strong gold mineralization. Victoria's geologists believe that this further increases the potential for additional discoveries on the property.

Victoria has reported consistently high-grade gold intercepts from the Helen Zone since hole NW-1. Below is a summary of the drilling results reported for the Helen Zone to date.

NW-1 605.0 643.4 38.4 10.95
Includes 605.0 615.4 10.4 21.98
And 622.7 643.4 20.7 9.15
NW-2 Outside the Helen Zone
NW-3 562.4 574.5 12.2 4.96
Includes 562.4 565.4 3.0 8.98
NW-4 586.9 607.5 20.5 6.16
Includes 593.4 607.5 14.0 8.16
NW-5 568.5 630.3 61.9 12.57
Includes 588.1 602.0 13.9 37.21
NW-6a 608.1 647.7 39.6 11.8
Includes 617.2 621.8 4.6 24.1
And 627.9 647.7 19.8 15.7
NW-7 533.4 564.5 31.1 8.46
Includes 544.6 559.3 15.2 16.28
NW-8 546.8 600.2 53.3 3.84
Includes 578.8 588.0 9.1 13.89
NW-9 571.8 651.1 79.2 5.51
Includes 596.2 651.1 54.8 7.67
And 617.5 651.1 33.5 11.48
NW-10 414.8 420.9 6.1 6.33
NW-11 430.7 505.4 74.4 1.87
Includes 468.8 486.2 17.4 5.55
And 479.5 486.2 6.7 11.82
NW-12 Drill hole to be extended/deepened
NW-13a 566.1 601.7 35.6 11.85
And 610.8 640.4 29.6 16.75

Victoria holds a 100% leasehold interest in the Cove project, such interest being subject to (i) a back-in right in favour of Newmont for a 51% interest, or (ii) a US$1.5 million cash payment to Newmont and a maximum royalty of up to 5% (3 % to 5% including previous royalties), such back in right may be exercised any time prior to the delivery of a positive feasibility study in respect of the Cove project supporting at least 500,000 ounces of gold or gold equivalent resources. Upon delivery of such a study, Newmont must make a decision with respect to the back-in within 90 days or the back-in right terminates.

StrataGold Transaction

Pursuant to the Letter of Agreement with StrataGold Corporation, announced on February 11, 2009, the Company and StrataGold signed a Credit Agreement whereby the Company will loan StrataGold a total of $750,000 at an annual interest rate of 15% payable monthly. The maturity date of the loan is September 30, 2009.

About Victoria

Victoria aims to be a high growth, lower risk company focused on gold. The Company's strategy is to add value per share through efficient exploration, project development, accretive acquisitions and effective marketing. Maintaining a low risk profile through project diversification, sound financial management and operating in secure jurisdictions are key priorities for Victoria's management team.

On Behalf of Victoria Gold Corp.

Chad Williams, P. Eng, CEO, President & Director

Cautionary Language and Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Accordingly, readers should not place undue reliance on forward-looking statements.

This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.

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