Symbol: VVC - TSX VEN
TORONTO, June 28 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the
"Company") reports a new milestone in its recent gold production in China. One
month after its official Joint Venture poured its first ounce of gold, the
Chinese management responded enthusiastically to VVC's plans to double gold
production within the next six months.
The official Joint Venture Company ("JVC" or "Joint Venture"), called
Tong Guan Glory Mining Corporation Limited, is the result of an official
Chinese government agreement between the Tong Guan County Xing Tong Mining
Co., Ltd. ("Xing Tong") (Tong Guan county owned), which keeps a 40% stake in
the JVC, and Orient Will Investment ("OWI"), a 100% owned VVC subsidiary,
which retains the remaining 60% stake in the JVC. The city of Tong Guan has
recently been named as "China National Gold City" by the Beijing government.
With the expected new revenue from gold production, VVC plans to exercise its
right to increase its stake in the JVC to 70%.
Effective May 17, 2005, a business license for the JVC was issued by the
Chinese authorities and OWI became the operator of the JVC and therefore took
over management of the fourteen existing small Xing Tong gold mines (adits)
and, as a consequence, became eligible to benefit from their 60% share of the
profit from the ongoing Xing Tong mining operation. As reported previously,
the JVC mining licenses cover 3.9 km2 and its three (3) exploration permits
cover another 10.3 km2 in the province of Shaanxi, in central North-East
China.
VVC, through its OWI subsidiary, also secured 20% to 80% interests on
various, adjacent, most promising properties. An extensive exploration
campaign is being planned, to hopefully confirm, according to Canadian
standards, important gold reserves in areas traditionally known to be rich in
gold.
The Xing Tong processing facilities are reportedly currently operating at
a maximal rate, processing the ore mined from each of the 14 small mines
(adits) owned by the JVC which as of today, has stockpiled approximately
7,000 tonnes of ore. The Joint Venture owns milling capacity of approximately
450 tons of ore per day. The resulting concentrate is fed to a secondary
flotation-cyanidation plant (under license) with a processing capacity of
50 tons of concentrate per day. The JVC has contracted International
Metallurgical and Environmental Inc (IME) of Kelowna, BC (ore processing
experts) to review the overall operations. Their preliminary review showed the
plant to be mostly efficient, with gold recovery rates in excess of 90 % based
on routine sampling results. The JVC personnel has reported the feed grade to
the mill to average 10.28 g/t over the last four working days and the tailings
to be averaging 0.45 g/t, gold achieving an average gold recovery of 95.62%.
The JVC is currently reviewing several recommendations by IME to
significantly ramp up both the JVC (under license) cyanidation facilities and
its daily milling capacity to meet the JVC's planned production increases over
the next few months. The Tong Guan district also offers abundant extra,
unused, ore processing facilities. VVC is in the process of acquiring
exploration permits over promising prospects in a 84 km2 area previously under
military jurisdiction.
The technical aspects of this news release were reviewed by independent
(QP) Joe Hinzer of Watts, Griffis & McOuat.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
Dated: June 28, 2005
On behalf of the Board of Directors
(signed)
Michel J. Lafrance, Secretary-Treasurer
%SEDAR: 00007564E
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