MONTREAL, May 24, 2012 /CNW Telbec/ - GeoVenCap Inc. (TSXV: GOV) ("GeoVenCap") is pleased to announce that diamond drilling has commenced on its California Lake Silver Project located in northern New Brunswick to further delineate silver zones, called A and B, identified in previous drilling. A contract has been signed with Forages La Virole of Rimouski, Quebec to complete a 2000 meter drill program.
Historical drilling had tested the A Zone over a strike length of 579 meters with intersections reported ranging up to 6,987 g/t Ag (see March 26, 2012 news release). The A Zone remains open down dip and along strike to the northwest and southeast. Hole C-87-21, drilled on the northwest end of the A Zone intersected an estimated true width of 4.1 meters (41.1-45.3 meters down hole) grading 42.4 g/t Ag and 0.35 g/t Au, and 1.7 meters (90.1-91.7 meters down hole) grading 1,450 g/t Ag and 0.42 g/t Au. Hole C-87-28, drilled on the southeast end of the A Zone intersected an estimated true width of 6.1 meters (38.3-45.1 meters down hole) grading 106.2 g/t Ag and 0.15 g/t Au. Silver mineralization has also been identified by limited drilling to the southwest of the A Zone.
The B Zone has been intersected by drill hole CL-11-01 that cut 4.0 meters grading 535 g/t Ag, 0.62 g/t Au and C-87-29 that intersected 7.7 meters grading 182 g/t Ag and 0.31 g/t Au. A mineralized zone in CL-04-02 grading 174 g/t Ag and 0.43 g/t Au over 5.3 meters is located approximately 150 meters northwest from the silver zone in CL-11-01 and may also correlate with the B Zone. Due to the paucity of drilling in this area, true widths of drill hole intersections cannot yet be determined.
The current drill program will primarily focus on delineating the strike extensions of the A Zone and further test mineralized zones to the southwest of the A Zone. This program is planned to test the silver zones at shallow depths that could potentially be accessible by open pit mining and will also verify historical drill intersections.
California Lake is located 40 km west of Bathurst, New Brunswick and covers 4,100 hectares. Silver and subordinate gold, lead and zinc mineralization occurs in vein and breccia structures that cross-cut the dominant fabric in the host felsic volcanic rocks. 32 diamond drill holes were completed at California Lake by previous owners that tested the initial silver discovery zone (now referred to as the A Zone). Significant grade and width of silver mineralization were reported in all holes. Most of the drill holes intersected the mineralized structure above 100 meter vertical depth and the zone remains open in all directions with excellent potential to expand the deposit. Mineralization has also been identified approximately 3 km north of the A Zone where a 1988 drill hole was reported with 0.3 meters grading 1,610 g/t Ag and 2.02 g/t Au indicating the potential for the discovery of additional silver-bearing structures at California Lake.
Historical drill hole intersections that tested the silver zones at California Lake are shown in the following Table. All holes tested the A Zone with the exception of C-87-29, CL-04-02 and CL-11-01 that intersected the B Zone.
Arthur Hamilton, P.Geo., Director of Exploration for GeoVenCap Inc. is a Qualified Person as defined under NI 43-101 guidelines and has reviewed the technical information contained in this release
About GeoVenCap
GeoVenCap is a mineral company focused on exploration principally for silver and gold in northern New Brunswick. Its priority is to explore and develop four highly prospective projects located between 30 and 105 km west and southwest of the city of Bathurst, New Brunswick: the California Lake Silver Project, the Upsalquitch Gold Project, the Williams Brook Gold Project and the Bathurst Mining Camp - Base Metal Project. These projects are in close proximity of mines and advanced projects owned by Xstrata, Votorantim and Trevali Mining.
Forward-Looking Statements. This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
"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."