Toronto, ON - Victoria Gold Corp. (VIT.TSX-V) (“Victoria” or the “Company”) is pleased to report results from diamond drill holes BH-5, BH-6, and KR-1 from the Santa Fe gold exploration project, Nevada.
“Santa Fe’s exploration results continue to exceed our expectations”, said Chad Williams, President, CEO, and Director. “The results from hole BH-6 are particularly encouraging and we anticipate that the information gained from this hole will facilitate the targeting of other higher-grade zones on the property. Santa Fe has become a very promising exploration asset and Victoria is of the view that it is showing signs of being a large gold system.”
These holes were part of Victoria’s Phase 1 drill program, which was designed primarily to determine the post-mineral faulting on, and the vertical extent of, gold mineralization in two targeted zones called “BH” and “KR”.
The gold mineralization in BH-6 extends more than 30 meters beneath the mineralization in BH-3 (284 meters grading 2.50 g/t announced January 12, 2010). In addition, the higher gold grades in BH-6 occur near the surface and therefore may be more easily accessible for possible open pit mining. BH-6 results are summarized in the table below.
Table 1: Drill Hole BH-6 Gold Assay Summary Table:
The table above includes all intervals of >1.52 meters grading >=300 ppb gold
BH-5 intersected numerous zones of mineralization separated by post-mineralization faults that contained lower gold grades. The depth of mineralized zones extends to a down hole depth of 831 meters (776 meters vertical) in BH-5. A minimum of two mineralized zones occur deeper than any mineralization drilled by previous operators.
Table 2: Drill Hole BH-5 Gold Assay Summary Table:
The table above includes all intervals of >1.52 meters grading >=300 ppb gold
KR-1 was a step-out exploration hole which targeted a structural intersection zone 1,000 meters northwest of BH-5 and 300 meters northwest of the pit. KR-1 encountered 7.5 meters of gold grading 0.58 g/t from a depth of 23.3 meters to 30.8 meters. KR-1 mineralization was cut off at 35 meters down hole by a post-mineral fault zone. The rest of the hole did not contain gold. KR-1 is thought to have been drilled into a “leakage zone” which is an area of lower gold values located near the source of higher gold grades. KR may be a distinct mineralized zone from BH.
A plan view and cross sections of the location of BH-6 (azimuth 331°, inclination -75°), BH-5 (azimuth 44°, inclination -69°), and KR-1 (azimuth 278°, inclination -64°) is located at www.vitgoldcorp.com. Additional geologic descriptions and cross sections can also be found on the website.
Conclusions and Next Steps:
The Phase 1 drill program was successful and provides a foundation for future drilling by Victoria at Santa Fe. Principal observations were:
- Post-mineral faulting is critical to understanding both the vertical and horizontal extent of gold mineralization at Santa Fe. Post-mineral faults correlate between drill holes and with structures mapped on the surface.
- The gold mineralization blocks between post-mineral fault zones are tabular in shape. Mineralized fractures within the blocks occur at varying angles to the post-mineral fault zones. The geometry of the mineralized blocks will be further defined in more detailed mapping of the core.
- Post-mineral faults cause variable dilution of the grade within the juxtaposed blocks of mineralized limestone. BH-5 was an example of this, encountering numerous gold zones of greater than 1 g/t (including 3 meters of gold grading 7.42 g/t) separated by zones with less than 0.30 g/t (see BH-5 table). These mineralized zones extend for 600 meters down hole and thus more than 200 meters beneath previously known mineralization.
- The large gold intercept of BH-6 is one of the most continuous and largely unfaulted zones of gold mineralization in the drilling thus far.
- The styles of gold mineralization within the mineralized blocks between the postmineral faults include variable amounts of silica and sulfide in breccias and fracture zones. No correlation of these blocks has been made to date, although strikes and dips of fracture and breccia systems are systematically oriented within the blocks.
- Ash-flow tuff which is prevalent on the property, altered in several holes and contains gold mineralization of 0.3 g/t to 1 g/t in BH-6.
- The Phase 2 exploration program has begun. All gold mineralization zones defined by Victoria to date remain open at depth and laterally. The true thickness of the mineralization drilled in Phase 1 is unknown.
- Future drilling will seek higher-grade and more continuous gold values in the host rock that has been displaced by these multiple faults.
- Victoria will continue to test the KR area in an attempt to vector into higher, more continuous gold values.
- The gold mineralization in ash-flow tuff along with targeted structural intersections will also be explored during Phase 2 drilling.
Victoria will host a conference call on the drilling results at Santa Fe, Nevada. The call will be hosted by Chad Williams, President, CEO, and Director and John McConnell, Executive VP and Director.
An archived audio recording of the call will be available on the Company’s website following the call. www.vitgoldcorp.com
Conference Call Details:
Title: Santa Fe drill results
Date: Monday, April 19, 2010
Time: 11:00 a.m. EST
Local dial-in number: 416-340-2217
Toll free dial-in number: 1-866-696-5910
Participant code: 6662052
Conference Call Replay available until midnight Monday, April 26, 2010.
Local dial-in number: 416-695-5800
Toll free dial-in number: 1-800-408-3053
Participant code: 5424767
Santa Fe Background
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 comprises 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. Cumulative expenditures in the past two years against the US$6.5 million earn in are approximately US$2.0 million. Victoria has also staked 42 unpatented claims within the Area of Interest for the Santa Fe project.
Homestake Mining does not have a back-in right with respect to the Santa Fe project. A summary table of historical drilling at the Santa Fe property can be found at www.vitgoldcorp.com.
Drilling of BH-5, BH-6 and KR-1 was carried out using HQ and NQ-sized core. The assays were prepared, processed and assayed by Inspectorate in Reno, NV. The cut-off grade for exploration purposes used by Victoria at the Santa Fe project 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. Assays shown include all intervals over 1.5 m and grading 0.300 g/t gold or more.
The technical contents in this press release were reviewed by Nancy J. Wolverson, Independent Consulting Geologist. Ms. Wolverson 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 and is responsible for the geologic interpretation.
Victoria is a high growth gold company with a focus on adding value per share through efficient exploration, project development, accretive acquisitions and effective marketing. Maintaining a low risk profile through project diversification, sound financial 3 management, and operating in secure jurisdictions are key priorities for Victoria’s management team.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director
Cautionary Language and Forward-Looking Statements
Neither the TSX Venture Exchange, nor its Regulation Services Provider 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, 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 forwardlooking 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 forwardlooking 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.
For Further Information Contact:
President & CEO
Victoria Gold Corp
Tel: 416-866-8800 Ext. 230