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Victoria Gold Corp. (TSX-V:VIT - News) ("Victoria"
or the "Company") is pleased to provide new exploration results
from the Company's 100%-owned Dublin Gulch property in the Yukon Territory,
Canada.
New Gold and Silver Zones Found Near
Eagle
Victoria's first generative exploration
campaign at Dublin Gulch identified many new zones containing higher-grades
of gold and silver over a large area located near the advanced Eagle gold
deposit ("Eagle").
An independent positive pre-feasibility
study on Eagle was reported by the Company on April 23, 2010 demonstrating
planned production starting in 2013 at an average rate of over 170,000 ounces
of gold per annum at a total cash cost of about US$500/oz.
The purpose of the Company's
2010-field-season exploration program was to seek additional gold
mineralization outside of the Eagle gold reserves to further enhance the
property's economic potential.
The Dublin Gulch property covers a large
area of 28 kilometres by 15 kilometres;
however, the 2010 work program focused on an area located adjacent and to the
north/northeast of the Eagle deposit to maximize the economic benefit of any
new discovery for potential synergies with the future Eagle gold mine.
Geological mapping was followed by
surface sampling. Mineral anomalies were then diamond-drilled. A total of 26
exploration diamond holes outside of Eagle were drilled for a total advance
of about 5,500 metres in 2010.
Emergence of Potato Hills Trend
Victoria's 2010 exploration campaign
successfully identified an important large-scale structural corridor now
referred to as the Potato Hills Trend ("PHT"). The name is derived
from the Potato Hills area located approximately 4 kilometres
north-east of the Eagle deposit which was the site of extensive placer gold
mining starting about 100 years ago.
The PHT corridor hosts
structurally-controlled vein arrays containing gold and silver mineralisation over an area of at least 7.5 kilometres in length and up to 3 kilometres
in width. The PHT shows excellent continuity and remains open to the east and
west. To illustrate the potential of the PHT, selective surface samples
representing the "ten best" assays from the 2010 season are tabled
below:
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Location Sample Number Gold (g/t) Silver (g/t)
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Shamrock I017963 41.4 109.0
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Shamrock G319885 25.0 150.0
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Shamrock G319883 15.4 207.0
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Shamrock G319882 6.7 24.5
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Olive I017966 20.3 19.6
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Olive I017960 9.4 5.8
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Olive I017959 8.6 2.2
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Catto I016007 35.7 10.5
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Catto I016003 17.9 65.4
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Catto I016004 15.3 33.1
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For perspective, a total of 19 surface
samples were taken from the Shamrock area of which 8 contained gold values
over 1 g/t. Five surface samples were taken in the Olive area of which 4
graded over 1 g/t gold. Twelve samples were taken from the Catto area of which 5 were over 1 g/t gold. Numerous
other surface samples were taken from various other locations on the PHT -
full details can be found at www.vitgoldcorp.com.
Note that these samples are selective by nature and are unlikely to represent
average grades on the property.
Gold and Silver Found in Several
Different Geologic Contexts
The Dublin Gulch property is underlain
by Proterozoic to Lower Cambrian-age Hyland Group metasediments and the Cretaceous intrusive Dublin Gulch granodioritic stock. The Hyland Group is comprised of interbedded quartzites and phyllitic metasedimentary
rocks. The Dublin Gulch stock is comprised of four phases, the most
significant of which is granodiorite. The stock has
intruded the Hyland Group metasediments.
Victoria's recent drilling revealed
several styles of gold mineralization: first, hosted in the granodiorite intrusive like Eagle, new gold and silver
zones in high-grade veins (e.g. at Shamrock) and broader, more disseminated
areas (e.g. at Olive) were discovered. Second, gold and silver bearing zones
hosted in metasedimentary rocks outside the granodiorite intrusive were also discovered (e.g. at Catto), and third, a massive sulphide
vein system was discovered in a detached, highly altered granodiorite
cupola at Popeye.
"The discovery of zones with gold
grades that are much higher than those at Eagle plus the finding of precious
metals outside the granodiorite are two very
significant developments for Victoria at Dublin Gulch", said Chad
Williams, P. Eng, President, CEO, and Director. "This overturns the
previous paradigm that gold was to be found only in the granodiorite
intrusives which only make up about 5% of the
surface area of our property; we can now be optimistic about finding precious
metals in other types of host rocks on the large property which adds to the
potential size of the deposits. Indeed, management views Victoria's first
full exploration season at Dublin Gulch as being very successful."
Highlights of drill assay results from
the 2010 drill program are tabled below. Go to www.vitgoldcorp.com
for full drill-hole assay results plus comprehensive diagrams showing the hole locations.
All intersection widths and distances
stated below are measured down-hole. The true widths of the mineralization
are not known at this time given the early stage of exploration on the PHT.
Shamrock Zone
-- DG10-379C: 1.20 m grading 23.8 g/t gold (from 110.4 m to 111.6 m) with
21.70 g/t silver
-- DG10-386C: 10.83 m grading 2.11 g/t gold (from 143.7 m to 154.53 m)
including 1.40 m grading 12.60 g/t gold (143.7 m to 145.1 m)
Olive Zone
-- DG10-373C: 39.59 m grading 0.87 g/t gold (from 159.32 m to 198.91 m)
with 4.95 g/t silver
-- DG10-376C: 31.90 m grading 1.00 g/t gold (from 157.4 m to 189.3 m) with
3.12 g/t silver
-- DG10-378C: 21.37 m grading 1.11 g/t gold (from 106.93 m to 128.30 m)
-- DG10-384C: 20.30 m grading 1.93 g/t gold (from 18.1 m to 38.4 m) plus
41.10 m grading 0.96 g/t gold (from 49.1 m to 90.2 m)
-- DG10-391C: 12.16 m grading 1.25 g/t gold (from 95.17 m to 107.33 m) plus
31.90 m grading 1.23 g/t gold (from 125.66 m to 157.58 m) and 18.38 m
grading 0.84 g/t gold (from 183.38 m to 201.76 m)
Catto Zone
-- DG10-395C: 3.02 m grading 8.24 g/t gold (from 36.88 m to 39.90 m)
Popeye Zone
-- DG10-404C: 8.90 m grading 6.00 g/t gold (from 25.20 to 34.10 m)
including 2.00 m grading 19.83 g/t gold (from 27.0 m to 29.0 m) with
23.6 g/t silver
New Camp at Dublin Gulch to Allow
Uninterrupted Drilling
The camp announced by Victoria in a
press release on September 28, 2010 is being erected at Dublin Gulch on time
and within budget. Pictures of the camp construction are located at www.vitgoldcorp.com.
Because of the all-season nature of the camp, Victoria will be able to
re-start exploration to follow up on the encouraging results received in the
2010 campaign by early 2011 - many months ahead of the traditional spring
seasonal start at Dublin Gulch.
About Dublin Gulch
The Dublin Gulch property covers an area
of 34,576 hectares, is road accessible year-round, and is situated in the
Mayo Mining District of Yukon Territory, Canada. The Eagle gold deposit hosts
a National Instrument ("NI") 43-101 compliant probable gold reserve
of 1.75 million ounces gold contained in 66.1 million tonnes
(oxide) grading 0.82 g/t calculated using a gold price of $900/oz.
About Victoria
Victoria is a high-growth gold company
with a focus on adding value per share through efficient exploration, project
development, and accretive acquisitions. Maintaining a low risk profile
through project diversification, sound financial management, and operating in
secure jurisdictions are key priorities for Victoria's management team.
Qualified Person
The technical contents of this news
release were reviewed by Dr. William Keats, independent consulting geologist.
He was present on site during the exploration drilling program and has
reviewed the analytical results and the QA/QC procedures in place, and is
satisfied that the assay results herein identified are of industry standard
quality and reliable. Dr. Keats is a Practicing Member of the Association of
Professional Geoscientists of Ontario (P.Geo., APGO) and is a Qualified Person as defined in NI
43-101.
Assays were performed at ALS Chemex (North Vancouver) with ISO 9001 certified
preparation and ISO 17025 analysis (awarded by Standards Council Canada).
Samples of 1000 g were pulverised to 85% passing 75
micron or better. Gold assays were by fire assay with over-limits re-assayed
using gravimetric finish.
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, results of exploration activities,
realization of resource estimates, anticipated metal production, internal
rate of return, estimated ore grades, commencement of production estimates
and projected exploration and capital expenditures (including costs and other
estimates upon which such projections are based) 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.
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