TORONTO, ONTARIO--(Marketwire - July 20, 2009) - Victoria Gold Corp. ("Victoria" or the "Company") (TSX VENTURE:VIT) is pleased to report gold exploration results from the BRL Venture in Guyana, a joint venture with Newmont Overseas Exploration Limited ("Newmont"), a subsidiary of Newmont Mining Corporation (NYSE:NEM) that exceeded the expectations of the company. The BRL Venture became a part of Victoria's gold asset portfolio through the acquisition of StrataGold Corporation ("StrataGold") which closed on June 4, 2009.
Phase I 2009 Exploration Results Exceed Expectations
Two distinct new promising gold exploration projects have been identified in the Phase I 2009 work program. Each of projects "A" and "B" has anomalous surface gold values, road accessibility, and is located near existing BRL Venture infrastructure.
Project A covers an area of approximately 16 square kilometers (km2). Gold mineralization appears within anticlines and thrust faults. A series of north-south trending gold-bearing quartz veins run through the centre of Project A. The area shows evidence of former artisanal mining including relatively deep shafts and adits. Anomalous gold grades (greater than 1 g/t) in soils have been tested over an area of 2,000 metres (m) by 1,400 m. The highest soil sample grade was 13.0 g/t gold and the highest quartz vein sample returned 33.8 g/t gold. Further exploration is required to confirm the structural makeup of this target.
Project B is characterized by a large structural break/shear zone that cuts through the target. Gold mineralization at this target appears to be widespread and also occurs in other sub-parallel structural zones. The highest soil grade returned 22.1 g/t gold. There is evidence of historic artisanal gold mining at this target as well.
During the 2009 Phase I exploration program, a total of 2,996 ridge and spur samples, 314 grab samples and 375 channel samples were taken in these new target areas. The results compiled to date from Phase I are encouraging and the Phase II exploration program is currently being planned and is anticipated to include additional soil sampling as well as drilling.
"The unusually high gold grades at this early stage of exploration over a very large area from these new projects within the BRL Venture are very promising and, in our opinion, are better than the majority of exploration projects at the same stage in Guyana and elsewhere in the prolific Guiana Shield", said Chad Williams, CEO, President, and Director.
Background on BRL Venture
StrataGold and Newmont have been actively exploring properties in Guyana since October 2005 and have acquired the dominant land position within the prolific Arakaka Gold District which has been placer mined for gold over the past 100 years, but until recently was not explored systematically using modern techniques.
A series of gold exploration targets were identified on the Monosse Project during an extensive exploration program (in excess of $10M in expenditures) that has been ongoing since 2006. Victoria has a 32.79% interest in the BRL Venture.
Through the StrataGold acquisition, Victoria gained an impressive portfolio of projects in Guyana, a country with an extensive gold mining history and strong exploration potential. Victoria is very pleased with the recent gold exploration success and remains encouraged by the potential of the Company's aggregate portfolio of gold assets in Guyana including the Tassawini advanced-stage gold project which hosts a National Instrument 43-101 Indicated resource of 10,766,000 tonnes averaging 1.3 g/t gold for a total of 436,600 ounces gold and an Inferred resource of 614,000 tonnes averaging 1.7 g/t gold for a total of 32,500 ounces gold.
To determine how the recent exploration results fit in context within the Company's primary plans of bringing the Cove Project in Nevada and the Eagle Gold Project in the Yukon to production in a timely manner, Victoria has appointed Paradigm Capital Inc. ("Paradigm") as advisors. Paradigm will assist the Company in evaluating the merit of either retaining, selling, or joint-venturing all or some of the Company's Guyana assets.
Victoria Announces 100% Warrant Exercise
Victoria is also pleased to announce the exercise of 100% of the warrants issued pursuant to the December 2008 financing. The warrants were exercised at a price of $0.25 per common share resulting in gross proceeds to the company of $2,661,750.
Quality Control and Assurance
A rigorous Quality Control and Assurance program (QC/QA) is in place, using control samples and duplicates, as well as Chain of Custody (COC) protocols. The samples were prepared by ACME laboratories in Georgetown, Guyana, and analyzed by ACME laboratories in Santiago, Chile. ACME laboratories are recognized as an ISO 9000 registered laboratory. The control samples and duplicate assay results received for the program demonstrated to Victoria that the results are considered reliable. The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101. The technical contents of this press release were reviewed by Terry Tucker, Independent Consulting Geologist. Mr. Tucker is a Professional Geologist (P. Geo.) and is a Qualified Person as defined in National Instrument 43-101.
Victoria is a high growth gold company with a focus on adding 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Victoria Gold Corp.
President & CEO
416-866-8800 ext 230