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Victoria Gold Corp. (TSX-V:VIT - News) ("Victoria"
or the "Company") today announced an update pertaining to the
analysis of the apparent error in the Cove Upper Zone resource estimate which
was the subject of the Company's press release dated November 23, 2010.
Wardrop Retained
Wardrop, a Tetra Tech Company ("Wardrop"), an independent engineering consultant,
was retained to review Victoria's QA/QC procedures and the methods used to
calculate the Cove Upper Zone resource estimate ("the Estimate")
which was announced in a press release on February 4, 2010. The Estimate was
set forth in a National Instrument 43-101 ("NI 43-101") compliant
Technical Report (the "Technical Report") dated March 5, 2010.
Wardrop has concluded that the database used by
another independent consultant to calculate the Estimate contained inaccurate
assay information for the holes drilled by Echo Bay Mines Inc. ("Echo
Bay") prior to 2000. The Technical Committee of Victoria came to the
same conclusion after a recent review. Wardrop
advises that because of the invalid Echo Bay holes, the Estimate should no
longer be relied upon.
However, Wardrop
confirmed that spot checks of holes identifying the Lower Zone inferred
resource estimate of 306,000 tonnes grading 19.8
g/t for 194,600 ounces of gold, also set out in the Technical Report, did not
reveal any erroneous drill-hole information.
About Cove
Victoria has spent over US$12 million at
the Cove Gold Project to date, completing the work commitments to earn a 100%
interest in the Cove Gold Project, such interest being subject to (i) a back-in right in favour of
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 royalty of up to 5% (including any existing royalties)
depending on the prevailing gold price.
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
Klaus Triebel,
CPG, Principal Geologist, Wardrop has reviewed the
contents of this press release.
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.
Contact:
Contacts:
Victoria Gold Corp.
Katherine Fedorowicz
Investor Relations Coordinator
416-866-8800 ext 226
Kfedorowicz@vitgoldcorp.com
www.vitgoldcorp.com
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