Victoria hits silver near its Yukon gold project

Vancouver – Victoria Gold (VIT-V) has hit several silver intercepts in its first drill program on the Rex-Peso target near its flagship Eagle Gold deposit in the Yukon.

On the Rex vein, hole 10 returned 27.4 metres grading 382 grams silver per tonne from 102 metres depth, while on the Peso vein one hole 2 cut 15.8 metres averaging 82.8 grams silver from 58 metres depth.

The company drilled the Rex, Peso one and two veins in its initial exploration program, while previous exploration has established at least five major veins in the Rex-Peso system. The veins vary in thickness from one to 15 metres while the system extends more than 4.5 km.

Other drill results from the program include 12.2 metres grading 84.27 grams silver from 21 metres depth in hole 9 and 12.6 metres grading 23.68 grams silver from 42 metres depth in hole 12. Results also included varying lead, antimony and zinc grades.

Peso Silver Mines first explored the Rex-Peso system in the early 1960s, going so far as to start underground development and over a km of drifting on the Rex vein. Peso Silver’s work led to a historic, non-compliant resource of 154,000 short tons grading 20 oz. silver per ton and 3.7% lead.

Earlier this year Victoria itself conducted sampling in the area, which sits about four km west of its Eagle Gold deposit. Results then included three rock chip samples ranging from 1,060 grams silver to 6,410 grams silver.

Both the Rex-Peso system and the Eagle Gold deposit form part of Victoria’s Dublin Gulch property, sitting 375 km north of Whitehorse.

The company recently nearly doubled its Dublin Gulch property after striking a deal with the NaCho Nyak Dun First Nation, with the property now spanning 646 sq. km covering 3,408 claims.

The Eagle Gold deposit hosts 222 million indicated tonnes grading 0.68 gram gold for 4.86 million oz. gold, plus 78 million inferred tonnes grading 0.6 gram gold for 1.5 million oz. gold. Victoria Gold is developing the project into a mine, targeting production to start by late 2013 or early 2014.

Victoria Gold’s share price climbed 2¢ to end at 42¢ on the news with 1.2 million shares traded. The company traded as high as $1.04 a year a go and hit a 52-week low of 32¢ in early October. Victoria has 339.3 million shares out and recently closed a $30-million financing.