TORONTO, ONTARIO, Sep. 28, 2010 (Marketwire) -- Victoria Gold Corp. (TSX VENTURE:VIT) ("Victoria" or the "Company") is pleased to provide exploration results from the 2010 summer program conducted at the Company's 100%-owned Dublin Gulch property in the Yukon Territory, Canada.
Diamond drill hole DG10-377C returned an intercept starting 5.6 m below surface of 30.5 m grading 12.03 g/t of gold including 12.2 m grading 27.98 g/t of gold. Several other anomalous gold values were intersected further down this hole including 0.6 m grading 5.68 g/t of gold and 1.7 m grading 10.02 g/t of gold. The total length of the hole was 226 m. Victoria wishes to emphasize that true widths of the gold zones intersected by DG10-377C are undetermined pending confirmation from further drill results.
In the immediate Shamrock exploration target area, anomalous gold values were found on surface over a width of about 100 m and a length of roughly 600 m. Field indications have caused the Company to believe that Shamrock is part of a significant mineralised trend that has been traced for over 7.5 km in length and 3 km in width.
The Company's website (www.vitgoldcorp.com) hosts additional information about DG10-377C including sectional and plan diagrams. Hole DG10-377C is the first hole for which Victoria has received complete assay results from the Shamrock area in 2010.
"The assay results from DG10-377C exceeded our expectations and confirmed to us that the Dublin Gulch property hosts high gold grades", said Chad Williams, CEO, President, and Director. "We expect to receive a large volume of additional exploration results from Shamrock in the near-term -- over 400 samples from 7 other holes drilled at Shamrock are currently being assayed."
Shamrock is located 3 km north-east of the Eagle gold deposit ("Eagle") which is also within the 28 km long by 15 km wide Dublin Gulch property. Eagle hosts a National Instrument ("NI") 43-101 compliant probable gold reserve of 1.75 million ounces gold contained in 66.1 million tonnes grading 0.82 g/t calculated using a gold price of $900/oz. An independent positive pre-feasibility study on Eagle was filed by the Company on SEDAR 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 under US$500/oz.
Acquisition and Construction of an All-Season 200-Person Camp
Two diamond drill rigs are currently turning on the Dublin Gulch property. Drilling has historically shut-down in October due to weather conditions. However, in order to extend the drilling season and start the preparations of the site for eventual mine construction upon the receipt of permits, the Company has acquired, and plans to install in Q4 2010, a 200-person all-season camp facility for a total cost of approximately $5 million.
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.
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, 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 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.
Neither the TSX Venture Exchange, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Victoria Gold Corp.
President & CEO
416-866-8800 ext 230