TORONTO, ONTARIO, Oct. 26, 2009 (Marketwire) -- Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") will host a conference call to update shareholders on recent developments involving the Company, including the drill results announced last week from the Santa Fe gold exploration project. The call will be hosted by Chad Williams, President, CEO, and Director. John McConnell, Executive VP and Director and Raul Madrid, VP. Exploration as well as other members of the Victoria team to also be on the call. An archived audio recording will be available on the Company website following the call.
Date: Tuesday, October 27, 2009
Time: 10:30 a.m. EST
Local dial-in number: 416-507-9740
Toll free dial-in number: 1-866-512-0904
Participant code: 1539190
Additional Information on Santa Fe Gold Exploration Project, Mineral County, Nevada
Until the conference call, the following information is designed to address common questions asked by investors since the release by Victoria of the gold assay information from diamond hole BH-2 on October 22, 2009:
Question 1: Does Barrick Gold Corp. "Barrick" have a back-in right on the Santa Fe property?
No, Homestake Mining Company of California (the indirect subsidiary of Barrick Gold Corporation that Victoria is under agreement with on the Santa Fe Project) does not have a back-in right. Victoria has the right to earn up to a 70% interest in the Santa Fe property from Homestake.
Question 2: Was BH-2 drilled down the known plunge of a breccia pipe?
BH-2 was drilled at azimuth 74 degrees and inclination -53 degrees to test the geometry of a postulated structural intersection zone and post-mineral offsets located near and to the northeast of the Santa Fe open pit. Detailed mapping of the open pit and detailed geologic logging of BH-1 indicate post-mineral faulting of the mineralized structural zone (previously described "breccia pipe"). Unfortunately BH-2 did not reach the target depth due to poor drilling conditions. The primary purpose of this and future drill holes is to better define the mineralized zones and post-mineral offsets to expand the resource.
Question 3: Is the mineralized zone intersected by BH-2 constrained both horizontally and vertically by previously-drilled holes?
If Victoria believed that the mineralization was constrained both horizontally and vertically, there would be little room for upside potential at Santa Fe. The indicated post-mineal faulting that locally offsets the mineralization is the primary target the already completed holes and future drilling. The intersection of ash flow tuff and then additional deeper mineralization in BH-2 indicates that these younger rocks have been downdropped on post-mineral faults. These offset mineralized zones are the target of Victoria's drill program and could extend the mineralization both horizontally and vertically.
Question 4: Aren't the metallurgical characteristics of the mineralization intersected in BH-2 challenging?
Victoria has not yet tested the metallurgical characteristics of BH-1 and BH-2. The gold mineralization in BH-2 was primarily contained in sulfides. Tests by earlier operators indicated that advanced processing, such as roasting were required to liberate the gold. Until further metallurgical testing is completed, Victoria's investors should assume that the mineralization in BH-2 has these same characteristics.
Question 5: Where will Victoria drill the next hole at Santa Fe?
The Company is further evaluating the data generated by holes BH-1 and BH-2 along with detailed geologic mapping. The next drill holes will be located and oriented to further define the mineralization, complex structural setting and the post-mineral faults.
The location of the holes in any future drill program will be released as soon as practical.
Question 6: What were the silver grades in hole BH-2?
The silver grades intersected in BH-2 were not significant, with almost all assays returning less than 30 g per tonne. For information purposes, the silver assay information will soon be added to the Victoria website.
About the Santa Fe Gold Exploration Property
Victoria has the right to earn from Homestake Mining Company of California, an indirect subsidiary of Barrick Gold Corporation (TSX:ABX)(NYSE:ABX), 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. Cumulative expenditures to date by Victoria are approximately US$1.2 million. Victoria has also staked 42 unpatented claims within the area of interest to the Santa Fe project.
The technical contents in 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 and is responsible for the geologic interpretation.
On Behalf of Victoria Gold Corp.
Chad Williams, P. Eng, CEO, President & Director
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, 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 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.