TORONTO, Jan. 3 /CNW/ - Vencan Gold Corporation (VCG, TSX Venture
Exchange)
Kirk McKinnon President & CEO stated, "The Company is very pleased to
present a full overview of Vencan's 2006 Exploration Strategy. This review and
go forward strategy clearly outlines the potential for gold and VMS success on
our extensive property holdings. Although the initial drilling did not produce
significant intersections of gold, the new geological information from the
drill program on both the gold and VMS targets should certainly improve the
probability of success for the next phase of exploration."
EXPLORATION PRESENTATION 2006 ON WEBSITE
----------------------------------------
We encourage our shareholders to carefully review this presentation and
cordially invite new prospective shareholders to critique our exploration
potential by visiting Vencan's website at www.vencan.com and reading this
report.
This report provides both historical data and new interpretation that
combined deliver a very compelling exploration opportunity. The potential for
a larger VMS discovery on the Falconbridge Ltd. Optioned ground is outlined in
the exploration strategy. The gold targets on the acquired Gagne ground are
also outlined in the presentation which includes new interpretation from
Vencan's data and recently acquired historical data.
Exploration Results - Fall 2005 Program
---------------------------------------
Highlights:
- CC88-05-07 and 08 extended the Main Trench zone (16.87 g/t over
2.0 metres) of brecciated chert-magnetite iron formation to a vertical
depth of 85 metres.
- CC88-05-09 intersected a wide zone of gold/silver mineralization
(0.46 g/t Au and 14.37 g/t Ag over 5.25 metres) 25 metres vertically
below an historic Falconbridge drill hole (668-84-4), which
intersected 2.84 g/t Au over 9.3 metres. The historic drill hole was
not assayed for silver. These holes were drilled into strongly
sulphidized chert-magnetite iron formation in contact with pyrite-
pyrrhotite bearing felsic fragmentals.
- CC88-05-10 intersected two (2) gold-bearing zones beneath the historic
L9+50W Trench (3.91 g/t Au over 1 metre) within mineralized chert-
magnetite iron formation at vertical depths of 25 and 45 metres.
- Historic data compilation on the Cayenne East property, which contains
the Jefferson VMS deposit on ground recently optioned from
Falconbridge Ltd., has been completed. This deposit contains an
historical (1948) non NI 43-101 compliant resource estimate of
30,100 tons at 7.05% Zn and 4.58% Pb.
A presentation outlining the 2005 exploration results and the 2006
exploration plan can be viewed on Vencan's website at www.vencan.com. This
report outlines the potential gold targets on the Cayenne Central property and
the potential for expanding the Jefferson Pb-Zn deposit along strike and down
plunge. The gold and VMS targets are based on a re-interpretation of VenCan's
2004-2005 work and the historical data.
Cayenne Central Property
------------------------
The Corporation has received encouraging results from the final four
drill holes, CC88-05-07 to CC88-05-10, completed during the September-October,
2005 period (Table 1). These holes were drilled in areas with known gold
mineralization from historical trenches and drilling by Falconbridge Ltd.
(1982-1984).
Main Trench Zone
Drill holes CC88-05-07 and 08 were targeted to intersect the gold
mineralization of the Main Trench at vertical depths of 25 and 85 metres,
respectively. This zone consists of strongly brecciated chert-magnetite iron
formation with 5-10% pyrite and 5-10% quartz veins. Chip sampling (Table 2)
completed by VenCan in 2005 returned 16.87 g/t Au over 2 metres in this zone.
CC88-05-07:
The zone was successfully intersected at 34.12 metres down the hole,
where it ran 3.76 g/t Au over 0.68 metres (Table 1). In addition, 1.46 g/t Au
over 0.80 metres (22.2-23.0 metres down the hole) was intersected in a
separate zone of moderately brecciated chert-magnetite iron formation with 5-
10% pyrite.
CC88-05-08:
The zone was successfully intersected at 108.25 metres down the hole,
where it ran 0.88 g/t Au over 0.60 metres.
Southern Felsic Volcanic / Iron Formation Contact Zone
Drill hole CC88-05-09 was targeted to intersect a zone of gold-bearing
strongly sulphidized chert-magnetite iron formation in contact with pyrite-
pyrrhotite bearing felsic fragmentals. An historic drill hole (668-84-4)
completed by Falconbridge intersected this gold bearing zone which contained
1.38 g/t over 25.61 metres, including 2.84 g/t over 9.3 metres. Hole
CC88-05-09 successfully intersected the zone at 87.10-108.15 metres down the
hole, which is 25 metres vertically below Falconbridge drill hole 668-84-4. In
addition to gold the zone contained significant silver (0.46 g/t Au and
14.37 g/t over 5.25 metres). The combination of gold-silver within the rocks
intersected in this drill hole may indicate potential for VMS style
mineralization in this area similar to that of the Jefferson VMS deposit. None
of the historic drill holes were assayed for silver.
L9+50W Trench Zone
Drill hole CC88-05-10 was targeted to intersect a zone of gold-bearing
chert-magnetite iron formation with 3-5% pyrite at a vertical depth of
25 metres. Chip sampling (Table 2) completed by Vencan in 2005 returned
3.91 g/t Au over 1 metre from the historic L9+50W Trench. The zone was
successfully intersected at 33.0 metres down the hole and assayed 1.15 g/t Au
over 1 metre. A second auriferous zone with 3-5% pyrite in chert-magnetite
iron formation was intersected at 60.0-61.0 metres down the hole, at a
vertical depth of 45 metres.
<<
Table 1: Cayenne Central Drill Intersections
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Drill Hole From (m) To (m) Interval Au (g/t) Ag (g/t)
ID (m)
-------------------------------------------------------------------------
CC88-05-07 22.2 23.0 0.80 1.46 -
-------------------------------------------------------------------------
CC88-05-07 34.12 34.8 0.68 3.76 -
-------------------------------------------------------------------------
CC88-05-08 108.25 108.85 0.60 0.88 -
-------------------------------------------------------------------------
CC88-05-09 87.1 108.15 21.05 0.20 5.93
-------------------------------------------------------------------------
Includes
-------------------------------------------------------------------------
CC88-05-09 96.85 102.1 5.25 0.46 14.37
-------------------------------------------------------------------------
CC88-05-10 33.0 34.0 1.00 1.15 -
-------------------------------------------------------------------------
CC88-05-10 60.0 61.0 1.00 2.17 -
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Table 2: Cayenne Central Drill Intersections
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Trench Sample ID Interval (m) Au (g/t) Drill Hole
Section
-------------------------------------------------------------------------
Main Trench 4396 2.0 16.87 CC88-05-07
and 08
-------------------------------------------------------------------------
L9+50W 4031 1.0 3.91 CC88-05-10
Trench
-------------------------------------------------------------------------
Vencan Gold Corporation is encouraged with the gold values intersected in
drill holes CC88-05-07 and 08, which will require follow-up drilling to
outline the strike extent and depth extent of the Main Trench mineralized
zone. In addition, the VMS potential of the Cayenne Central property has been
greatly enhanced by the results of drill hole CC88-05-09. The discovery of
gold/silver values in the strongly sulphidized chert-magnetite iron formation
in contact with pyrite-pyrrhotite bearing felsic fragmentals outlines the
similarity of this area with the Cayenne East area 10 kilometers to the
northeast with respect to VMS potential.
Cayenne East Property - VMS Target
----------------------------------
This property lies on the eastern portion of the Cayenne Property
package, approximately 10 kilometers northeast of the Cayenne West drill
holes. Part of this land package consists of ground optioned from Falconbridge
Ltd. in September, 2005 (November 8, 2005 press release). This optioned ground
contains the Jefferson VMS deposit with an historical resource estimate of
30,100 tons at 7.05% Zn and 4.58% Pb (Table 3). This estimate was completed by
Duncan R. Derry in 1948, and is not considered to be 43-101 compliant. The
Jefferson Deposit occurs within strongly sulphidized chert-magnetite iron
formation in contact with felsic fragmentals. The work completed by Vencan in
2005 consisted of historic data compilation, review of Falconbridge's historic
drill holes (1993) and sampling the existing trenches (Table 4). This work
resulted in a re-interpretation of the area geology and structure which
suggest there should be very good potential for expanding the Jefferson Pb-Zn
deposit along strike and down plunge. The VMS deposit type being explored for
on the Cayenne East property would be a GECO type analogue (60 Mt at 1.9% Cu,
3.8% Zn and 53 g/t Ag). The Jefferson Deposit occurs within strongly
sulphidized chert-magnetite iron formation in contact with felsic fragmentals,
a similar environment as intersected by drill hole CC88-05-09.
Table 3: Historical Work Jefferson Resources Estimates
-------------------------------------------------------------------------
TONNAGE GRADE TONNAGE COMPANY & YEAR
FACTOR
-------------------------------------------------------------------------
100,625t 3.1% Pb 8 cubic feet Jefferson Mining Corp., 1928
4.6% Zn
-------------------------------------------------------------------------
30,100t 4.58% Pb 10 cubic feet Central Sudbury Lead-
7.05% Zn Zinc Mines Ltd., 1948
-------------------------------------------------------------------------
Table 4: Jefferson Trench Grab Samples from 2005 Work program
-------------------------------------------------------------------
SAMPLE ID CU (%) PB (%) ZN (%) AG (g/t)
-------------------------------------------------------------------
4972 0.41 2.55 5.05 15.1
-------------------------------------------------------------------
4974 0.09 26.05 19.77 21.0
----- -----
-------------------------------------------------------------------
4976 0.92 31.16 17.51 37.7
---- ----- -----
-------------------------------------------------------------------
QA / QC Procedures
------------------
Vencan implemented the following quality assurance/quality control
(QA/QC) procedures for the Cayenne Central drill program under the guidance
and onsite supervision of GeoVector Management Inc.
NQ core was logged and then sawn in half, with one side bagged and
labeled. The other side was placed in core boxes for a permanent record and is
stored at a secure facility in Timmins, Ontario. Core samples varied from 0.5
to 1.5 metres. All samples were transported to Swastika Laboratories Ltd. in
Swastika, Ontario for crushing, pulverization and analysis. The core samples
were initially crushed to 1/2 inch in a Denver jaw crusher; with the final
crush to 10 mesh completed by a Rolls crusher. A 350 gram sample was split off
using a Jones riffle and pulverized to 150 mesh and homogenized. The remaining
split was placed in a plastic sample bag and stored in a secure area on the
laboratories property. A 30 gram sample of the homogenized material is
analyzed by the standard fire assay / atomic absorption method. Any samples
returning equal to or greater than 1 g/t are re-assayed by the standard fire
assay / gravimetric method.
Swastika Laboratories Ltd. inserted a Rocklabs Ltd. standard and a blank
with each fire assay tray of samples. In addition to this Vencan inserted, at
random, a Rocklabs Ltd. standard and a blank in each sequential series of 19
samples in order to ensure each fire assay tray contained one reference
standard and one blank. Vencan uses one low grade, one moderate grade and one
high grade Rocklabs Ltd. standard. None of the analyses were outside the
accepted range of the reference standards used. All the blanks returned no
gold values. Six percent of the coarse rejects from the Vencan drill program
were submitted to another lab for check assaying. These results were all
within acceptable limits.
FINANCING
---------
Richard Schler, Vice President & CFO of Vencan Gold Corporation (the
"Corporation") is pleased to announce the following financing arrangement. The
first tranche of private placement financing has been completed, which raised
$250,000 in gross proceeds. We will raise an aggregate of about $720,000 to
support our next phase of exploration in early 2006.
- A non-brokered private placement of 2,500,000 flow-through units of
the Corporation ("F/T Units") for gross proceeds of $250,000 (the
"Offering"). Each F/T Unit is comprised of one common share of the
Corporation and one-half (1/2) warrant ("Warrant"), with one whole
Warrant being exercisable to purchase one common share of the
Corporation at an exercise price of $0.15 and $0.20 per common share
for a period of 12 months and 24 months respectively after the Closing
Date. (The "Offering").
All securities sold or issued under the Offering are subject to a four-
month hold period.
The proceeds of this financing will be used to advance exploration on
Vencan's Cayenne and Chili properties located in Heenan Township near Timmins
and for General Working Capital purposes.
ADMINISTRATION
--------------
The Board granted the issuance of 250,000 stock options exercisable at
$0.10 "per share" to Directors, Officers and Consultants of the Corporation
under the terms of an Incentive Stock Option Plan approved by shareholders at
the last AGM held on February 17, 2005.
Alan Sexton, P. Geo is the qualified person responsible for the technical
information presented in this release.
WARNING: The Company relies upon litigation protection for "forward-
looking" statements.
>>
%SEDAR: 00004007E
