TORONTO, ONTARIO--(Marketwire - November 03, 2008) - Victoria Gold Corp. (TSX VENTURE: VIT) ("Victoria" or "the Company") is pleased to provide the following update on the Company's progress.
Cove Work Commitment Satisfied Early
As of October 20, 2008, Victoria had spent over US $8.5 million in exploration at its Cove project to early satisfy its seven-year work commitment under the Minerals Lease and Agreement dated June 15, 2006 between Newmont McCoy Cove Limited ("Newmont") (a wholly owned subsidiary of Newmont Mining Corporation) and Victoria Resources (US) Inc (a wholly owned subsidiary of Victoria).
"This is an important milestone because it secures Victoria's interest in a property with excellent gold potential as evidenced by the significant drill results from the Helen Zone at Cove released in a consistent manner by the Company," said Chad Williams, President and CEO of Victoria Gold Corp.
Victoria now holds a 100% leasehold interest in the Cove project, such interest being subject to (i) a back-in right in favour of Newmont for a 51% interest, or (ii) a US$1.5 million cash payment to Newmont and a maximum royalty of up to 5% (3.5% to 5% including previous royalties), such back in right may be exercised any time prior to the delivery of a positive feasibility study in respect of the Cove project supporting at least 500,000 ounces of gold or gold equivalent resources. Upon delivery of such a study, Newmont must make a decision with respect to the back-in within 90 days or the back-in right terminates. As per the Minerals Lease and Agreement, satisfaction of the work commitment is subject to audit and confirmation by Newmont, which is expected once Victoria has submitted its regular bi-annual exploration report to Newmont no later than February 2009.
Exploration Update
Drilling is ongoing at the Helen Zone. Hole NW-13a recently started and is progressing well, currently at a depth of over 330 metres. Hole NW-13 was stopped due to drill casing deviation at a depth of about 200 metres and is being replaced by hole NW-13a.
Hole NW-12 is at a depth of 593 metres (467 metres vertical) where a dyke caused slower than normal drilling advancement. The Company believes that this dyke could have acted as a barrier to gold-bearing hydrothermal fluids from depth that may have pooled below the dyke. For example, some of the higher gold grades from drill hole NW-9 (released on October 2, 2008) were near this same dyke. Most of the higher-grade intercepts from Victoria's previous holes into the Helen Zone were located at depths of over 600 metres down-hole, below the depth reached by NW-12 so far, so deepening NW-12 is important. Victoria is using some new drilling techniques in NW-13a to maximize the ability to penetrate challenging drilling areas, such as this dyke. Assay results will be released when NW-12 has reached its targeted depth.
Filing of 43-101 Report on Cove and Mill Canyon
As part of the regulatory requirements associated with the acquisition by Victoria of Gateway Gold Corp. ("Gateway"), announced on August 19, 2008 (the "Gateway Transaction"), Victoria was required to complete and file comprehensive technical reports on the Cove and Mill Canyon projects using the NI 43-101 reporting standards. These reports have been filed and can be found on SEDAR (www.sedar.com) from November 4, 2008. This is the first NI 43-101 technical report on Cove. The reports on both properties were prepared by Mine Development Associates ("MDA") of Reno, Nevada.
The reports concluded that the Cove and Mill Canyon properties are "properties of merit" and are "deserving of further work." The Cove report recommends that a "preliminary assessment should be completed for the Helen Zone to determine if the deposit warrants an underground decline and additional underground drilling." MDA noted that, "the quality control procedures employed by Victoria are good."
Exploration Plans
The Company's management and board are of the view that continued exploration activities are an important part of Victoria's strategy. Our 2009 drilling budget and strategy will be finalized following the closing of the Gateway Transaction scheduled for early December 2008.
With the completion of the Gateway Transaction, Victoria will have interests in 17 gold exploration projects in Nevada covering approximately 50,000 hectares. This large land position includes a 1.2 million ounce NI 43-101 compliant inferred gold resource at the Big Springs project. Readers are referred to the technical report prepared for Gateway by Gustavson Associates LLC, filed on March 14, 2006, for a more detailed analysis of this resource estimate.
Each project in the Company's portfolio, including Gateway's key properties, was selected using our strict geologic criteria and each thus has the potential to host a multi-million ounce gold system. One of Victoria's most important competitive advantages is the use of innovative techniques to vector in on higher-grade gold zones more cost-effectively, more quickly, and with a higher probability of success than our peers, to identify a new gold discovery.
Financial Resources
Victoria's fiscal Q2 financial results and MD&A were filed on October 30, 2008 and can be found on www.sedar.com and on the Company's website at www.vitgoldcorp.com.
Marketing Initiatives
As part of Victoria's ongoing marketing program to increase its profile amongst investors, Chad Williams will be presenting to retail investment brokers in Victoria, Vancouver, Montreal and Quebec City during November. Investors interested in attending these presentations should contact Linda Dorrington, Director of Public and Investor Relations. See contact details below.
In addition, to further increase the Company's visibility amongst US retail investors, Victoria will engage Torrey Hills Capital as a marketing consultant for the sum of $5,000.
Share Price Performance and Gold Outlook
"We can't control the market's gyrations but we can control the activities of the Company," said Chad Williams, President and CEO. "We continue to drill at Cove, conduct exploration work on other properties, meet with investors, and seek accretive acquisition opportunities which, in our opinion, have increased exponentially in number over the past few months. Our growth potential has never been better, however, our share price is near an all time low and that is an important divergence."
About Victoria
Victoria 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, 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.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director
Cautionary Language and Forward-Looking Statements - This press release contains "forward-looking statements" and "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performances of Victoria Resource Corporation, its subsidiaries and their respective projects, the future price of gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, capital, operating and exploration expenditures, costs and timing of future exploration, requirements for additional capital, government regulation of exploration, development and mining operations, environmental risks, reclamation and rehabilitation expenses, title disputes or claims, and limitations of insurance coverage. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "is expecting", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved. The purpose of forward-looking information is to provide the reader with information about management's expectations and plans for the Company. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Victoria and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Although Victoria has attempted to identify statements containing important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein is made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.
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.
