Victoria Resource Corporation

Victoria Resource Corporation

April 04, 2006 18:34 ET

Victoria Signs LOI for Acquisition of Former Large Gold-Silver Producer: Cove-McCoy Mine Property, North-Central Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2006) - Victoria Resource Corporation (TSX VENTURE:VIT) ("Victoria" or the "Company"), a 30% owned affiliate of Bema Gold Corporation (TSX:BGO)(AMEX:BGO)(AIM:BAU) is pleased to report it has signed a letter of intent, subject to regulatory approval, to lease a portion of the Cove-McCoy Mine project from Newmont McCoy-Cove Limited and Newmont USA Limited, subsidiaries of Newmont Mining Corporation. The Cove-McCoy property reportedly produced over 3.5 million ounces of gold and over 115 million ounces of silver from open pit and underground high-grade mining over a period of 18 years, which ended in 2004. Management believes the project has good exploration potential in several areas, which were previously only partially tested.

Victoria has identified a large number of gold-silver targets at Cove-McCoy. The first two target areas, NW Cove and Windy Point, have good grade drill intercepts from previous operators within structural zones located northwest of the old Cove pit. These are open along strike and up and down dip. Near surface, previous drilling in the NW Cove target has intercepted 14.91 grams per tonne (g/t) gold from 0 to 18.3 metres, while similar gold grades of 11.06 g/t gold over 6.1 metres occur at the Windy Point target, but at a depth of approximately 400 metres. Both targets have potential to host high grade structurally controlled deposits. Selected intercepts of previous drilling for these two target areas are included in the table below.



Gold intercept Gold intercept
(m) at g/t grade @ g/t
Drill Hole (starting depth Drill Hole (starting depth
(inclination) in metres) (inclination) in metres)
BTA-5-89: 54.86m @ WPA-7-86: 18.29m @
(-90) 1.99 g/t (393.19m) (-90) 14.09 g/t (0m)
457m Total incl: 6.10m @ 24m TD incl: 6.10m @
Depth (TD) 11.07 g/t (399.29m) 24.07 g/t (0m)
BTA-7-90: 6.10m @ WPA-14-87: 12.19m @
(-90) 1.89 g/t (387.10m) (-90) 2.26 g/t (6.10m)
457m TD incl: 1.52m @ 61m TD incl: 4.57m @
4.08 g/t (390.14m) 4.01 g/t (7.62m)
36.58m @ WPA-32-87: 7.62m @
1.23 g/t (411.48m) (-45) 3.63 g/t (6.10m)
incl: 3.048m @ 61m TD incl: 3.05m @
3.26 g/t (428.24m) 7.88 g/t (6.10m)
MCM-2: 41.15m @ WPA-34-87: 6.10m @
(-90) 2.88 g/t (445.01m) (-45) 7.78 g/t (0m)
(2004) incl: 16.76m @ 35m TD incl: 3.05m @
5.01 g/t (457.20m) 14.26 g/t (1.52m)
MCM-4: 59.44m @ WPA-2-88: 16.76m @
(-90) 2.06 g/t (396.24m) (-90) 6.65 g/t (0m)
(2004) incl: 7.62m @ 457m TD incl: 4.57m @
8.43 g/t (402.34m) 14.88 g/t (0m)
& 3.05m @ & 3.05m @
6.96 g/t (417.58m) 9.60 g/t (9.14m)
(i) The drill results above have not been checked by Victoria and the
quality of the QA-QC program is unknown.

The Cove-McCoy property is undergoing reclamation by Newmont, which should be completed by the end of the year. Reclamation has been completed in the portion of the property that is being leased to Victoria. This portion includes all of the Cove open pit area, Cove underground, and exposures to the west along the north edge of the McCoy open pit including 388 unpatented and 7 patented claims to the north. This area contains most of the critical host rocks and targets identified by Victoria. Victoria has a first right of opportunity on the residual property portions that first require reclamation completion, should they later be vended by Newmont. The remaining ground to be reclaimed is to the south of the McCoy open pit and east along the range-front pediment. Victoria has the right to map these residual areas in support of work done on its leased property provided that such work does not cause additional disturbance or interferes with any reclamation efforts being undertaken.

Under the lease, Victoria will also be subject to escalating yearly work commitments that total US$8.5 million over 7 years, of which a minimum of US$1,000,000 must be expended within 24 months of signing the final agreement. Newmont will have a one-time back-in right upon Victoria's completion and delivery of a positive feasibility study for a minimum of 500,000 ounces of gold resources. Should it be exercised, the property will revert to a 51% Newmont - 49% Victoria joint venture with Newmont as operator. The back-in requires that Newmont must spend 2.5 times the exploration expenditures of Victoria to earn its 51% interest in the property. Should Newmont elect not to back-in, Victoria will pay a US$1,500,000 cash payment to acquire Newmont's remaining rights to the project and will grant Newmont a sliding scale net smelter return royalty which will be 5% for a gold price over US$500 per ounce. Victoria has also agreed to preferential processing rights whereby Newmont, with processing facilities as close as Phoenix some nine miles to the north, may provide an alternative to reconstruction of a processing facility on the Cove-McCoy property.

The acquisition of the Cove-McCoy property provides an excellent exploration opportunity. Previous drilling in the property has outlined at least two areas with the potential to host structurally controlled high grade gold mineralization. Exploration will consist of detailed structural analysis and geological mapping followed by diamond drilling.

The qualified person under National Instrument 43-101 is Tom Garagan, P.Geo.

All dollar figures are in United States dollars unless otherwise indicated.


Roger T. Richer, President and Director

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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

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