TORONTO, Sept. 8 /CNW/ - Vencan Gold Corporation is pleased to report that the summer's extreme forest fire conditions on its Cayenne & Chili Properties and surrounding areas in the Abitibi/Swayze Greenstone Belt have subsided and we have been given permission by the Ministry of Natural Resources to resume our exploration program. Kirk McKinnon, President & CEO stated that "the fall drill program got underway on September 8th. It is unfortunate that these conditions slowed us down but the safety of the crew and participation in fire prevention was fully necessary. We look forward to a successful fall exploration program and the opportunity to explore this large enriched land position. Drilling Resumes ---------------- A 1200 to 1500 metre drilling program consisting of 12-15 drill holes have been outlined, to test at depth and along strike in the area of the "Main Showing" on the Central Cayenne Property. As well, selected new additional targets outlined by the geophysical surveys and mapping/prospecting on work just completed will be included in this drill program. The recently completed exploration program and current drill program is being managed by Alan Sexton, P. Geo. Falconbridge/Vencan Letter of Intent ------------------------------------ Vencan Gold is pleased to announce that the Company has signed a Letter of Intent to acquire six contiguous claims owned by Falconbridge Limited on Vencan's Cayenne East Property. This property represents a VMS/Gold opportunity. A 1996 Falconbridge Annual Report on the property states, "The potential for base metal mineralization on the property remains high and the area with the best potential remains to be the northeastern part of the claim block located in the Genoa Township. This report further states "The potential of the Burton Conductor should be evaluated in the next phase of exploration on the property". The Burton Conductor is located on Vencan's Cayenne East Property east of the Falconbridge claim block. The main points of historical exploration interest on the Falconbridge claims are - A mineral inventory estimate was completed on the Jefferson Mines Ltd. discovery by Duncan R. Derry in 1948. This estimate was completed to a vertical depth of 30.5 meters and used narrow mineralized widths for each lense which outlined 30,100 tons at 7.05% Zn and 4.58% Pb. This estimate was not NI 43-101 complaint. No precious metals results were reported as being tested. - Just to the West of the Falconbridge property, the 1958 Stockpool Mining Company Ltd. results included two intersections of note: 3.35m of 1.55% Cu 3.3% Zn and 15.08 g/t Au in altered felsic volcanic rocks and 3.2m of 11.98% Zn in altered iron formation. - During the last quarter of 1992 Falconbridge completed nine (9) drill holes and a new zone of Zn-Pb mineralized was intersected approximately 250 meters north of the known mineral inventory in drill hole GA61-07 (1.58% Zn and 0.57% Pb over 7.5m). Financing --------- In order to ensure the full completion of the summer/fall exploration program the company has agreed to a brokered and non brokered flow-through financing of up to $200,000 at $0.10 per Unit. Each Unit consists of one (1) common share and one-half (1/2) warrant exercisable at $0.12 for a period of twenty-four (24) months. Richard Schler, Vice-President & CFO stated "We want to allow some latitude in the drill program and provide initial exploration dollars for our recent land acquisition prior to winter." The company would also like to announce the completion of the 187 claim unit Cayenne East acquisition situated in the Marion/Genoa townships in Ontario. The July 25th, 2005 agreement between Vencan Gold Corporation and GeoVector Management was for a total consideration of 500,000 shares and 500,000 warrants exercisable at $0.15 for a period of twenty-four (24) months.