Victoria resumes drilling at Red Rock

Vancouver-based junior Victoria Resource (VIT-V) is gearing up for a second round of reverse-circulation drilling at the Red Rock gold-silver property in southwestern Nevada’s Esmeralda Cty.

The company will test a series of structurally controlled high-grade oreshoots discovered within a 90-by-600-metre area, under 60 metres of gravel.

Last year, Victoria re-logged old core at Red Rock and carried out a 1,600-metre, 7-hole drilling campaign that determined orientations of two main intersecting structures.

Highlights included:

– 1.5 metres grading 14.3 grams gold per tonne and 6.8 grams silver per tonne in hole 1;

– 25.9 metres of 1.4 grams gold and 34.7 grams silver in hole 3;

– 1.5 metres of 6.9 grams gold and 77.8 grams silver in hole 6; and

– 1.5 metres of 12.9 grams gold and 14.3 grams silver in hole 7.

Gold and silver are hosted by quartz-adularia veins, stockworks and breccia within siliceous sediments.

In addition, two holes intersected broad zones of anomalous gold in underlying limestones, suggesting a potential for high-grade replacement mineralization at the structural intersection.

Victoria says it has re-interpreted the property’s mineralizing controls, proposing that high-grade gold occurs where northwest and northeast structures crosscut. Previous drilling did not test these zones, which are thought to plunge to the northeast at 50.

Victoria can earn a 51% interest in the Red Rock and the nearby Mustang Canyon properties from Romarco Minerals (R-T) by spending US$750,000 before 2005. This stake can be boosted to 70% with additional spending of US$500,000 before Aug. 1, 2005.

Victoria must also make US$52,500 worth of underlying property payments and spend a cumulative US$200,000 on exploration by the end of 2001.

Finally, in 2005, a US$2.25-million payment is due on the Red Rock property, a burden that will be shared between Victoria and Romarco on a pro rata basis.

Victoria is serving as operator during the earn-in phase, though, in effect, the program is being managed by Victoria’s 42%-owner, Bema Gold (BMG-T).

The money for this year’s work came from a $700,000 financing completed in December 2000, with Victoria privately placing 3.5 million units priced at 20 each.

Victoria also allocated 495,000 shares for director and employee stock options at an exercise price of 30 per share. The allocation is a correction to an announcement made in November 2000.

Meanwhile at Victoria’s head office, Ken Booth has resigned as president and director. The board has since appointed Roger Richer as president.