Valerie confirms gold-copper system in Ecuador

A 2,500-metre drill program on the Santa Barbara gold-copper property in Ecuador has outlined a body of mineralization measuring 150 by 1,000 metres.

Valerie Gold Resources (VLG-V) drilled 10 holes in the southeastern portion of the SB anomaly, where a trench yielded 466 metres averaging 0.85 gram gold per tonne and 0.14% copper in brecciated volcanics and intrusives.

Eight of the holes intersected broad intervals of low-grade copper-gold mineralization. Results are as follows:

– hole 1 intersected 114 metres grading 0.7 gram gold and 0.21% copper starting at a down-hole depth of 35 metres;

– hole 2 cut 48 metres grading 0.54 gram gold and 0.18% copper starting at a down-hole depth of 22 metres;

– hole 3 intersected 72 metres grading 0.26 gram gold and 0.14% copper at 108 metres down-hole;

– hole 5 hit 190 metres grading 0.95 gram gold and 0.1% copper (including 70 metres averaging 1.5 grams gold and 0.14% copper) starting from the surface;

– hole 6 cut 52 metres grading 0.62 gram gold and 0.11% copper at a down-hole depth of 46 metres;

– hole 8 intersected 139 metres grading 0.25 gram gold and 0.1% copper starting from the surface;

– hole 9 hit 60 metres grading 0.65 gram gold and 0.12% copper starting at a down-hole depth of 16 metres;

– hole 10 intersected 114 metres grading 0.64 gram gold and 0.12% copper starting 150 metres down-hole.

The copper-gold mineralization occurs in plugs of diorite and porphyritic dykes that intrude the volcanic wall rocks. Sulphide mineralization is dominated by pyrite with lesser chalcopyrite. The company reports that occasional grains of visible gold were observed and that the mineralization remains open to the north, south and east.

About 3 km east of the SB anomaly, Valerie has upgraded the Hito porphyry copper prospect to the drill stage. Induced-polarization geophysical and soil geochemical anomalies have outlined a 500-by-2,000-metre target. The anomaly, which remains open to the north and south, is marked by a 500-parts-per-million copper contour that measures 750 by 300 metres. Hand trenching has returned up to 0.95% copper from heavily leached surface rocks.

In the Napintza area, 5 km south of SB, Valerie has identified three gold zones — Maria Elena, Nayumbi and Yapi — along a 5-km-long, northeasterly trending structural corridor.

Limited work has returned anomalous gold values of up to 1 gram per tonne.

Preliminary results from an induced-polarization geophysical survey indicate a strong chargeability response over the Maria Elena target. Stream sediments in the area are reported to carry up to 2.4 grams gold per tonne. The highest gold values were obtained from the Nayumbi target, where stream sediment samples ranged up to 3.5 grams gold.

The company plans to continue drilling the SB anomaly next year, and carry out reconnaissance drill program on the Hito prospect. Follow up geochemistry, trenching and drilling will be performed on the Yapi, Nayumbi and Maria Elena targets.

Valerie is earning a half-inter- est in the property from TVX- Normandy Americas by paying US$100,000 in cash and spend- ing US$4 million on exploration over the next three years. TVX-Normandy is owned 50.1% by TVX Gold (TVX-T) and 49.9% by Normandy Mining (ndy-t).

TVX has also been granted escalating warrants over the 3-year period. Sixty per cent of the proceeds it receives from the warrants is to be spent on the property.

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