Victoria Provides Update on Nevada Gold Projects
TORONTO, ON, December 15, 2009 - Victoria Gold Corp. (VIT.TSX-V)
(�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 favor 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.< /P>
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 (ABX-TSX, ABX-NYSE) 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
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From(m)
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To (m)
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Meters
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g/t gold
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PS-1
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*
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141.4
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144.8
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3.4
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2.70
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148.0
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157.0
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9.0
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1.53
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including
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154.2
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157.0
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2.7
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3.49
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PS-2
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�
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�
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�
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�
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139.9
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151.4
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11.5
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1.07
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176.2
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182.3
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6.1
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1.20
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243.2
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244.8
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1.5
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24.86
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380.1
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381.6
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1.5
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4.66
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402.9
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404.5
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1.5
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9.09
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PS-3
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�������� No significant
assays; several zones with 100-250 ppb gold
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* Poor Recovery
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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.
About Victoria
Victoria Gold Corp. 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
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Cautionary Language and Forward-Looking Statements
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. 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 for
ward-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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