Viceroy ties into more Gualcamayo gold (July 28, 2004)

Vancouver – Drilling at Viceroy Exploration’s (VYE-V) wholly owned Gualcamayo gold project in the San Juan Province of west-central Argentina continues to cut impressive gold intersections.

Reverse circulation (RC) drilling at the Amelia Ines and Magdalena targets on Gualcamayo has returned significant gold intercepts over considerable widths.

Viceroy is examining the potential for high-grade feeder structures within these areas.

Highlights from this latest drilling program include:

• Hole QDR 86 This RC hole at Amelia Ines intersected 58 metres (from 10 metres) averaging 3.71 grams gold per tonne, including 26 metres of 7.8 grams gold and 10 metres of 17.54 grams. A second, deeper mineralized zone was encountered between 130 and 150 metres returning intervals of up to 2 metres grading 4.39 grams gold, the hole ended in mineralization;
• Hole QDR 89 A 56 metre interval (from 90 metres) at Magdalena returned 4.38 grams gold, including higher grade sections of 22 metres of 10.47 grams and 8 metres of 16.81 grams; a second deeper interval of 12 metres (from 226 metres) was encountered and assayed 0.6 grams gold.

This latest round of RC drilling gives the company sufficient data to now undertake a new resource calculation at Amelia Ines. Data will be combined with surface sampling and previous drill results from Viceroy and previous explorer Anglo American (AAUK-Q). The skarn-hosted, inferred resource at Amelia Ines presently stands at 2.7 million tonnes at 2.63 grams gold.

Additionally, Viceroy now has enough data to prepare an initial resource estimate at Magdalena. The calculation will utilize results from this year’s six RC drill holes coupled with surface sampling and previous Anglo surface and underground drilling. In the 1980s, Anglo undertook extensive exploration at Magdalena, with several surface holes, four adits and 14 underground holes.

Drill testing of surface exposed mineralized breccias at the 3-D target intersected zones of low-grade gold over widths of up to 62 metres.

The main deposit at Gualcamayo is Quebrada de Diablo (QDD), located about one kilometre southeast, along strike, from Amelia Ines and Magdalena. The main zone at QDD has an indicated mineral resource of 12.7 million tonnes grading 1.17 grams gold and an inferred resource of 22.5 million tonnes grading 1.02 grams gold at a cut-off grade of 0.6 grams. Gold mineralization at QDD is hosted in stockwork-fractured carbonates, carbonate breccias and intrusive breccias.

The latest figures show Viceroy having 28.7 million shares outstanding. Investors were impressed with the results, sending the issue up 16, on the news, to close at $1.15 per share on volume of 435,000.