TORONTO, ONTARIO--(Marketwire - Aug. 14, 2008) - Marketwire - Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") has engaged the services of Renmark Financial Communications Inc. to assist with its investor relations activities. Renmark has a team of 30 investor relations professionals who provide a range of investor relations and financial communications services. In consideration of the services to be provided, Victoria is committed to pay a monthly retainer fee of $6,000.00 for an initial four-month period.
Victoria has just completed drilling core hole NW-11 at its Cove-McCoy project and is making rapid drilling progress at its Hilltop property. Both projects are located in North-Central Nevada, a region recognized for its relatively low risk and high gold production. The Company has three drills operating, two at Cove-McCoy and one at Hilltop.
Drill hole NW-11 into the Helen Zone of the Company's Cove-McCoy property has been completed to a depth of 670 metres. Complete assay results from this core drill hole are expected shortly. The pierce point of drill hole NW-11 is located within the eastern limb of the Helen Zone. Diagrams showing the location of these holes can be found at www.vitgoldcorp.com.
To improve drilling rates and reduce drilling costs for drill hole NW-12, a new drill rig has been moved to Cove-McCoy and drilling of NW-12 has commenced and as of August 13, 2008 had reached 85 metres. This drill hole target is located 50 metres down plunge of NW-6A, which intersected 39.6 metres of 11.8 g/t (released on April 10, 2008) and 30 metres east of NW-5, which intersected 61.9 metres of 12.57 g/t (released on December 11, 2007).
Drill hole NW-9 is currently at a depth of 577 metres. Its target is in the eastern wing of the Helen Zone. The drill rig on this hole was halted recently for mechanical modifications to increase efficiency and drilling has now recommenced at an accelerated pace.
Holes NW-11, NW-9, and NW-12 are the continuation of a fifteen-hole Phase II drill program designed to provide information on the geometry and gold content of the Helen Zone. This zone is located approximately 610 metres northwest of the Cove open pit and old underground working, which were mined between 1987 and 2001, producing 2.3 million ounces of gold and 100 million ounces of silver. The Helen Zone is one of 8 intersection zones within one of 14 drill-ready target areas defined by Victoria on the 6,982 hectare Cove-McCoy property.
"Our positive outlook for the Helen Zone's gold potential continues to be very high so maintaining rapid, efficient and cost-effective drilling is a key priority for us. We were dissatisfied with the performance of the previous drilling contractor on hole NW-11 so we secured a new company and drilling crews for the next hole NW-12." said Chad Williams, President & CEO of Victoria Gold Corp.
An environmental contractor will be engaged shortly to compile the data required for a permit application to drive an adit (tunnel) into the Helen Zone. This adit would serve to more aggressively and cost-effectively explore the gold mineralization from underground, and possibly provide access to the Helen Zone for mining if continued underground exploration drill results demonstrate the economic viability of ore extraction.
Core drilling at Hilltop commenced on July 15, 2008. Hole HT-7 is targeting an intersection zone within lower plate carbonate rocks in the southern part of the property. The target, below upper plate thrust sheets, was defined using structural systematics; methods that are proprietary to Victoria. The hole is being drilled in the pediment along the eastern flank of the Northern Shoshone Range.
Drilling has progressed very rapidly and, as of August 13, 2008, the drill hole was at a depth of 726 metres. Core recovery has also been good and several thick, strongly altered and mineralized zones have been intersected. The upper plate is notorious for difficult drilling, but is being drilled very effectively by the new drilling contractor. The targeted depth for this hole is approximately 975 metres, or whatever shallower depth is necessary to hit the lower plate rocks. If warranted by encouraging assays, Victoria will undertake further drilling at Hilltop.
The Hilltop property is in a very prolific gold-bearing region. The large, multi-million ounce Pipeline, Cortez, Cortez Hills, and Gold Acres gold mines as well as the Tenabo gold mining district are located nearby.
Transition to New Name
The Company's new name "Victoria Gold Corp." was officially registered on July 18, 2008 and a new CUSIP number has been issued: 92625 W 10 1. The trading symbol for the Company remains unchanged: VIT. The transfer agent remains Computershare Investor Services Inc.
Market Volatility Opens Up Opportunities
"Victoria is committed to a steady information flow to our shareholders particularly in light of the difficult conditions facing the equities market at present. Victoria's management is optimistic about the long-term outlook for gold especially because of the inflationary potential caused by the need for financial authorities around the world to stimulate their economies to prevent worsening conditions. The volatility in the equities markets, especially in junior gold mining company share prices, is highly unusual and, in my opinion, is exacerbated by low trading volumes caused by the summer holiday period. One positive aspect is that these conditions may open up new growth opportunities for Victoria. The Company is well positioned to advance its projects with existing cash and no debt, " said Chad Williams.
The Helen Zone is one of eight postulated significant structural intersection zones located within the "NW-Cove" target. In turn, the NW-Cove target is just the first of fourteen larger target areas on the Cove-McCoy property to be structurally mapped and drill-tested by Victoria.
Victoria is earning up to a 100% interest in the Cove-McCoy project through annual work commitments, such interest being subject to (i) a back-in right in favour of Newmont Mining Corporation for a 51% interest, or (ii) alternatively US$1.5 million cash payment to Newmont and a maximum royalty of up to 5% (3.5 % to 5% including previous royalties) upon the delivery of a positive feasibility study completed by Victoria.
Victoria has a mining lease and sub-lease agreement with Newmont for the Hilltop-Slaven property in terms of which the Company is earning up to a 100% interest in the property by completing annual work commitments. The Company has until August 15, 2008 to complete the work commitments required for the current year. Newmont has a back-in right that it may exercise within 90 days after the delivery of a positive feasibility study. Should Newmont exercise this right the property will revert to a 51% Newmont/49% Victoria joint venture. To earn such a joint venture Newmont is required to fund the joint venture expenditures to an amount equal to 250% spent on the property from the inception of the agreement. Should Newmont not exercise the joint venture option, the Company will deliver to Newmont a 3.5% net smelter return royalty.
About Victoria Gold Corp.
Victoria Gold Corp. 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, 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victoria Gold Corp.
President & CEO
(416) 866-8800 ext 230
Victoria Gold Corp.
Director Public & Corporate Affairs
(416) 866-8800 ext 226