TORONTO, ONTARIO, Dec. 15, 2009 (Marketwire) -- Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") is pleased to provide a status update on several of the Company's Nevada gold projects.
Cove Preliminary Resource/Engineering Study
Scott-Wilson Roscoe Postle ("SWRPA") is now in the final stages of completing a preliminary resource/engineering evaluation of the Helen Zone located at the Cove property, Nevada. The delivery timeline has been revised to early 2010 because of the following scope changes instituted to optimize the study:
1) comprehensive analysis (including digitizing) of exploration information generated by several previous operators in the general Helen Zone area; and
2) evaluation of alternate sites for the portal location of the adit to access the underground Helen Zone from surface.
"By providing a preliminary indication of the resource and its economic potential, this study will be an important next step toward the advancement of the Helen Zone", said Chad Williams, CEO, President and Director. "Victoria has drilled 15 holes from surface into the deposit - of which 4 holes were drilled outside the mineralized envelope or were abandoned. As such, we still have a relatively small amount of information about the Helen Zone's true potential. There is little doubt that the next phase of exploration will include a decline from surface and underground diamond drilling to establish the full vertical extent of the resource and to accelerate the exploration of other nearby targets in a more efficient manner than drilling from surface."
Victoria has spent over US$10 million at Cove to date, completing the work commitments to earn a 100% interest in the Cove project, such interest being subject to (i) a back-in right in favour of Newmont Mining Corporation (NYSE:NEM) ("Newmont") for a 51% interest in exchange for a contribution to the property by Newmont equal to 2.5 times the amount spent on the property by Victoria up to the time of the back-in decision, or (ii) a US$1.5 million cash payment to Newmont and a maximum aggregate royalty of up to 5% depending on the prevailing gold price (including previous royalties). The back-in or cash payment decision by Newmont is required to be made within 90 days following the delivery by Victoria of a positive feasibility study based on a minimum of 500,000 ounces of gold.
Santa Fe Gold Exploration Project
Drilling of BH-3 at the Santa Fe project is progressing well. This is the third hole of Victoria's first exploration campaign on this property. At the end of last week, BH-3 was at a depth of about 380 meters, or about half of its targeted depth. A plan view of the location of this hole can be seen at www.vitgoldcorp.com. BH-3 is designed to test for gold mineralization at depth and to the east of the mineralization intersected by BH-2 (309 meters grading 2.25 g/t gold reported on October 22, 2009). BH-3 is targeting postulated higher-grade zones of gold mineralization where the frequency of post mineral faulting is expected to be less than intersected in BH-2.
Victoria has the right to earn from Homestake Mining Company of California an indirect subsidiary of Barrick Gold Corporation (TSX:ABX)(NYSE:ABX) up to a 70% interest in the Santa Fe gold property, which is comprised of 24 patented claims and 226 unpatented claims, by incurring exploration expenses in an aggregate amount of at least US$6.5 million over a six year period. Victoria has also staked 42 unpatented claims within the Santa Fe project area of interest.
Summit Gold Exploration Project
Victoria recently completed the 2009 exploration drilling program at the Summit property. This was the Company's first ever drill campaign on this property. Three diamond drill holes totaling 1279 meters were drilled beneath gold mineralization reported by previous operators. The purpose of the program was to find gold-bearing structural intersections or feeder zones. Narrow zones of gold mineralization were intersected in diamond drill holes PS-1 and PS-2, as shown in the Table 1 below. Hole PS- 3 was drilled from the bottom of the reclaimed open pit but did not encounter gold grades similar to those reported by previous operators. The true width of these mineralized zones is unknown.
Table 1: Summit Drill Results
From (m) To (m) Meters g/t gold
PS-1 (i) 141.4 144.8 3.4 2.70
148.0 157.0 9.0 1.53
including 154.2 157.0 2.7 3.49
139.9 151.4 11.5 1.07
176.2 182.3 6.1 1.20
243.2 244.8 1.5 24.86
380.1 381.6 1.5 4.66
402.9 404.5 1.5 9.09
PS-3 No significant assays; several zones with 100-250 ppb gold
(i) Poor Recovery
Drilling at Summit was carried out using HQ and NQ-sized core with assays taken mostly at 1.5 m intervals. The assays were prepared, processed and assayed by Inspectorate in Reno, NV. The cut-off grade for exploration purposes used by Victoria at Summit is 300 ppb. Assaying was done by fire assay with an atomic absorption ("AA") finish, and samples with AA results greater than 3,000 ppb were re-run by fire assay with gravimetric finish. Standards, blanks, and duplicate assays were also run for QA-QC.
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.
The technical contents of this press release were reviewed by Nancy J. Wolverson, Independent Consulting Geologist. She reviewed the analytical results and the QA/QC procedures in place at the facilities of the Company and the analytical laboratory. Ms. Wolverson is a Certified Professional Geologist (C.P. Geo.) through the American Institute of Professional Geologists (AIPG) and is a Qualified Person as defined in National Instrument 43-101. Dr Raul Madrid, Vice President, Exploration of the Company, directs the drilling and logging procedures at the Nevada properties and is responsible for the geologic interpretation.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.