Toronto, ON - Victoria Gold Corp. (VIT.TSX-V) (“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:
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.
- 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 grading12.60 g/t gold (143.7 m to 145.1 m)
- 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/tgold (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)
- DG10-395C: 3.02 m grading 8.24 g/t gold (from 36.88 m to 39.90 m)
- 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.
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.
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 (including the Resource Estimate) andprojected 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.