Valencia Completes Diamond Drilling, Resource Estimation in Progress for Cachinal Silver Project
Valencia Ventures Inc. is pleased to advise shareholders and prospective investors that diamond drilling has been completed at its Cachinal Silver Project in Chile. The program was designed to confirm twin high grade silver intersections previously indicated by reverse circulation drilling. This additional data will assist with completion of the resource estimation and NI43-101 report due shortly. It will also provide a guide for our 2007 exploration program, which includes further drilling to evaluate deeper high grade mineralization.
Mr Ralph Gonzalez, P. Eng., P. Geol., of Archean Ingenieria International Ltd. Co., Burnaby, B.C. has been contracted to complete a Mineral Resource estimation and to prepare a NI43-101 compliant Technical Report. This work is well advanced and results of the diamond drilling and mineral resource estimation are expected early in February 2007.
Late October, Valencia released results of its Reverse Circulation (RC) drilling program at the Company’s Cachinal Silver Project in northern Chile, which included the following high grade silver intersections (see Press Release dated October 31, 2006):
– 28m @ 101.18g/t silver (CLRC-18) Including: 3m @ 128.66g/t silver
4m @ 460.00g/t silver
– 17m @ 181.35g/t silver (CLRC-25)
Including: 2m @ 611.50g/t silver
– 26m @ 124.77g/t silver (CLRC-36) Including: 2m @137.50g/t silver 1m @ 951.0 g/t silver
3m @ 231.67g/t silver
– 33m @ 142.82g/t silver (CLRC-51)
Including: 2m @ 1702.5g/t silver
– 25m @ 141.44g/t silver (CLRC-56)
Including: 2m @1246.0g/t silver
The diamond drill program included 551.90m in 5 holes (CLDD-1 to CLDD-5) designed to twin mineralized intersections in RC drillholes to verify the RC drill results, to provide information on rock density and to provide core for initial metallurgical testwork.
All drillholes intersected historical mine workings; however, hangingwall target zones were successfully tested in all cases and the footwall zone was penetrated in two of the five holes. Future testing of the footwall zone will require different drill equipment than was available for this short program.
The Company has been very fortunate to be able to engage the services of Mr Ralph Gonzales, P. Eng., P. Geol. of Archean Ingenieria International Ltd. Co., Burnaby, B.C. to visit the site during the diamond drilling program and to work on the resource estimation and preparation of the NI43-101 Technical Report. Mr Gonzalez was based in Chile for 10 years during 1992 to 2002 and is quite familiar with the geology of northern Chile and the Cachinal style of epithermal mineralization.
Valencia’s Executive Vice-President Exploration & Development, Doug Currie, commented “I am very pleased with the efforts and progress that our Chilean geological consultants, SBX Consultores Ltda, and Mr Gonzales have made to complete the drilling and field investigations through Christmas holiday. We are on track to calculate Valencia’s first mineral resource estimation for Cachinal in early February. We are convinced of the potential at the Cachinal Project and are planning to focus much of the Company’s 2007 exploration program on expanding the potential resource at Cachinal, completing the acquisition of additional projects in the area and building our resource base.”
Preparations are well advanced to initiate a comprehensive exploration program to expand the initial potential resource area, to evaluate adjoining structural target areas to the north and elsewhere on the Cachinal project and recently acquired concession areas to the north. The details of this program, which remains subject to Board approval, will be released shortly.
Cachinal Silver Project
Historically a significant silver district, the Cachinal de la Sierra area is located within the Paleocene Gold Belt of northern Chile which hosts several significant gold and silver deposits, including Meridian Gold Inc’s El Penon Silver-Gold Mine, a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers, 60km to the northeast, and Diamond Rose NL’s Guanaco Gold Mine, a high sulphidation-style epithermal deposit which was mined as a heap leach operation during the early 1990′s by Amax Gold Inc and later Kinross Gold Corporation, 12km to the southwest.
Silver mining began at Cachinal in 1862 and, including production of approximately 170,000 tons @ 280g/t Ag, 0.58g/t Au reported for a three year period 1985-1987, historical production is estimated at approximately 32 million ounces of silver in historical geological reports in the library and files of Chilean Government agency SERNAGEOMIN. Extensive historic workings at Cachinal reportedly extend to a depth of 320m although most of the workings only went to a depth of 120-150m, generally within the oxidized zone. Historical grades apparently averaged 500-600g/t silver with an unknown quantity of trace gold, with some local values of up to 2500g/t silver and as much as 3g/t gold reported. The production figures (tonnage and grade) referred to in the preceding sentences are historical in nature, have not been verified by the issuer’s Qualified Person, and should not be relied upon.
Valencia assembled a large land position totalling 9,200 hectares at Cachinal late in 2004, entering into farm-in agreements with Compania Contractual Minera Ojos del Salado, an indirect Chilean subsidiary of Phelps Dodge Corporation (NYSE: PD), Silver Standard Resources Inc (Nasdaq: SSRI; TSX: SSO) and Atna Resources Ltd (TSX: ATN) to acquire interests in their properties which cover the historic mining center. (See Press Releases dated October 12, 2004 and February 3, 2005 for terms of each farm-in arrangement, Figure 1). Valencia has also acquired 100% direct interest in additional areas adjoining the JV areas to the north (Islote concessions) and south (Vino concessions).
Shareholders are encouraged to visit Valencia’s website (www.valenciaventures.com) to view a recent corporate presentation which provides images and more technical information on these projects. For additional information, e-mail info@valenciaventures.com or contact:
Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia’s development strategy is focused on the exploration and development of precious metal properties, particularly the Cachinal Silver Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. The company has recently completed a feasibility study for the Mt. Bundy Gold Project in the Northern Territory, Australia, and is considering various development strategies. With a focus on silver, the company has a number of precious metal acquisitions under consideration.
Regulatory Footnotes:
Mr. Douglas A. Currie, MAusIMM, Valencia’s Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release. Field work in Chile has been performed under Mr Currie’s supervision by SBX Consultores Ltda, Santiago, Chile.
All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.
Samples are transported from the field project to the ALS Chemex sample preparation facility in Coquimbo, Chile by the Contractor’s personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 – 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 – specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 – Gold using a 50g Fire Assay-AAS finish.
All Reverse Circulation drill samples were geologically logged and sampled by the Contractor’s geologists in one(1) meter sample intervals; the archive portion of the sample is securely stored at the Contractor’s facility in La Serena, Chile. The Company has initiated a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.
Trench samples are chip-channel samples taken over a 5-10cm wide channel cut in the bottom of an excavated trench. Sample intervals are normally 2m composites in zones of alteration or mineralization and less than 2m composites through well defined vein or veinlets zones.
Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “forward-looking statements”.
NOTE: There are maps available for viewing through CCNMatthews’ website, please visit the following links.
http://www.ccnmatthews.com/docs/Valmap1.pdf
http://www.ccnmatthews.com/docs/Valenciamap2.pdf
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Valencia Ventures Inc. Doug Bache President and CEO
(416) 861-5884
Valencia Ventures Inc. Doug Currie Executive Vice-President, Exploration and Development
(416) 861-5898
Valencia Ventures Inc. David Meyer Vice-President, Business Development (416) 861-5891 Email: info@valenciaventures.com
Website: www.valenciaventures.com
