Valerie finds new targets in Ecuador

Stream-sediment sampling on the Santa Barbara copper-gold property in Ecuador has outlined widespread gold values over a 10-sq.-km area.

Junior Valerie Gold Resources (VLG-V) is earning a half-interest in the property from TVX-Normandy Americas, which is owned 50.1% by TVX Gold (TVX-T) and 49.9% by Normandy Mining (NDY-T).

The sampling was conducted in the southern portion of the property, 5 km south of the main SB gold-copper prospect. Although all the stream-sediment samples from the area (referred to as Nayumbe) returned anomalous gold values, Valerie has chosen to concentrate on two zones that returned up to 3.4 grams gold per tonne.

The 3-km-long North Nayumbe target is defined by samples grading 1-3 grams gold. The anomalous sediments were collected from the headwaters of streams draining a hill that trends in a north-southerly direction. Valerie is running a soil geochemical survey over the hill to define the source of the gold. This will be followed by an induced-polarization (IP) survey and, if warranted, drilling.

The Maria Elena target covers 1 sq. km and is defined by a coincidental gold-zinc stream-sediment anomaly and strong chargeability geophysical anomaly. Late in 1999, Valerie drilled 10 holes in the southeastern portion of the SB anomaly, where a trench yielded 466 metres averaging 0.85 gram gold and 0.14% copper in brecciated volcanics and intrusives. Eight of the holes intersected broad intervals of low-grade copper-gold mineralization, including 0.95 gram gold and 0.1% copper over 190 metres.

Results from an IP survey suggest that this drilling tested the periphery of a strong chargeability anomaly. Trenching will attempt to determine the cause of this anomaly.

About 3 km east of the SB anomaly, at the Hito porphyry copper prospect, an IP survey and soil geochemical surveys 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.

Valerie plans to test this area with two drill holes in the second quarter.

To earning its half-interest in the Santa Barbara project, Valerie has agreed to pay US$100,000 in cash and spend US$4 million on exploration over the next three years.