Victoria to Begin Drilling at Black Canyon; Kinross Gold Corporation Intends to Participate in Previously Announced Private Placement; Options Granted
Thursday October 25, 1:54 pm ET
TORONTO, ONTARIO--(MARKET WIRE)--Oct 25, 2007 -- Victoria Resource Corporation (the "Company" or "Victoria") (CDNX:VIT.V - News) announces the intent to start drilling at the 100%-owned Black Canyon gold exploration project imminently.
About Black Canyon
- Victoria's Black Canyon property is located approximately two kilometres (1.25 miles) southeast of the Florida Canyon mine and three kilometres (1.9 miles) northeast of the Standard mine in North-central Nevada.
- The property contains an unusually wide (over 700 m or 2,100 feet) structural system containing quartz-tourmaline-galena sheeted vein swarms.
- Although it was the site of high-grade, narrow-vein gold mining activity that peaked in the 1880s, Victoria understands that this property has never been drilled.
- Further details about this property can be found in Victoria's October 18, 2005 news release and at the Company's website (www.victoriaresourcecorp.com).
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Victoria's Phase 1 Drilling Campaign Strategy at Black Canyon
- Drilling is to focus on a large structural intersection zone. It has an estimated width of greater than 700 meters or 2,100 feet as delineated by Victoria's recent detailed structural mapping. Most visible-gold surface grab-samples taken by Victoria geologists grading up to 108 ounces per ton (3,714 g/t gold) occur within this zone.
- The Company expects to drill at least three holes to a depth of about 700 meters (2,100 feet) each to evaluate the structural orientation of this intersection zone and evaluate its possible deeper gold content.
- The drilling is expected to continue at Black Canyon until the onset of winter conditions. Although newly constructed, the site's drill-access road is not an all-weather road and will therefore not allow the Company to continue drilling over the short three months of winter.
- Should the results of Phase 1 drilling be positive, a Phase 2 program could commence in the Spring of 2008.
"It must be remembered that Black Canyon is one of Victoria's earliest-stage exploration targets", stated Chad Williams, CEO, President and Director. "However, the abundance of visible-gold grab samples taken by our team, the fact that previous gold mines exist on the property, and its location along a major structural belt encompassing many other precious metal mines make this an attractive project for the Company" he added, "and this Phase 1 campaign may only be the beginning of our exploration efforts at Black Canyon.
Participation of Kinross
- Kinross Gold Corporation ("Kinross") has been allocated an amount of approximately $3 million under Victoria's brokered $13.5 million private placement of units announced on October 17, 2007.
Grant of Options
- The Company also announces the granting of stock options to certain officers and a consultant of the Company to purchase in the aggregate up to 900,000 common shares at an exercise price of $0.70 per share until October 23, 2012 pursuant to the Company's stock option plan. The company wishes to clarify that 1.9 million stock options were granted to directors and an officer on August 20, 2007 and not 2.1 million as stated in the press release of the same date.
The Company
Victoria is a high-growth, lower-risk company focused on gold. The Company endeavors to add value per share through efficient exploration and completing accretive acquisitions.
In addition, Victoria's management keeps a constant vigilance on lowering the Company's risk profile through project diversification, prudent management of its financial resources, and choosing to operate in lower-risk jurisdictions.
Victoria currently has interests in 8 promising gold exploration projects located in Nevada covering an area of more than 100,000 acres.
The Company's strengths lie in its exceptional property portfolio and its experienced and dedicated exploration team.
Near-term catalysts related to exploration results, the constant evaluation of accretive corporate transactions, and other factors such as a higher gold price environment should assist the Company in adding value per share.
On Behalf of VICTORIA RESOURCE CORPORATION
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