TORONTO, July 13 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the
"Company") reports encouraging news from its initial review of its Joint
Venture's(x) properties in the Tong Guan area (Shaanxi Province, People's
Republic of China).
The joint venture partners and VVC's local geological team is currently
undertaking a preliminary investigation of the important quartz veins which
reportedly carry visible gold (vg) and are currently being mined. The
following is a summary of the results to date:
Vein Q512: This vein, 51% owned by the JVC, reportedly produced 9,000
tonnes of ore in 2004 with an average grade of 4.8 g/t Au. The presence of
local zones in the vein with widths of 2-3 m and heavy sulphide concentration
were noted as well as the presence of a number of adjacent veins. VVC
anticipates that additional exploration of this vein and the adjacent veins
will lead to significant increases in production.
Vein Q115: This vein, 20% owned by the JVC, reportedly produced 17,000
tonnes of ore in 2004 with a grade ranging from 5-20g/t Au. The grade of ore
currently being mined is reported at being over 12 g/t Au.
Vein Q12: This vein, 100% owned by the JVC, reportedly produced 2,500
tonnes of ore in 2004 at an average grade of 8.6 g/t Au.
Vein Q315: This vein, 41% owned by the JVC, reportedly produced 33,000
tonnes of ore in 2004 with an average grade of 7.2 g/t Au.
Vein Q456: This vein, 80% owned by the JVC, reportedly produced 11,000
tonnes of ore in 2004 with an average grade of 3.8 g/t Au. The mine is
currently closed to repair unsafe areas.
The JVC is currently negotiating to purchase 49% of the Q512 and 80% of
the Q115 bringing its interest in these 2 veins to 100%. Details will be
announced upon finalization of these transactions anticipated to occur within
a week. In addition, the JVC is investigating the possibility of purchasing
the remaining interest in the Q315, Q456 and other veins.
The above information is reported as received from the joint venture
operations team in China. The quoted tonnages and grades and noted
observations have not been made by or under the supervision of, nor verified
by a QP as defined by NI 43-101at this time.
The mesothermal type quartz veins under VVC's control in the Tong Guan
district have been superficially mined for decades, mostly using extraction
techniques that North Americans would generally qualify as antiquated. The
overwhelming presence of gold in this area is well known but its exploitation
has been limited to small scale individual vein based operations with little
if any attempts to study the larger scale potential. Under VVC's guidance, the
JVC intends to carry-out substantive exploration on both the mining licences
and the exploration licence areas.
The JVC's 14 gold mining operations are located in the Tong Guan, area,
which is referred to as the "National Gold Capital of China". VVC's strategy
is to use its capital investment and the revenue from current gold mining
activity to assist in upgrading the operations to North-American standards
over time as originally recommended by Watts, Griffis and McOuat and to
further explore the untested underground veins, both of which expect to yield
a gradual increase in production.
(x) The official Joint Venture Company ("JVC" or "Joint Venture"), called
Tong Guan Glory Mining Corporation, is the result of a Chinese government
agreement between the Xing Tong Mining Company ("Xing Tong") (Tong Guan county
owned), and Orient Will Investment ("OWI"), a 100% owned VVC subsidiary, which
retains 60% stake in the JVC. VVC plans to exercise its right to increase its
stake in the JVC to 70%.
The technical aspects of this news release were reviewed by independent
(QP) Joe Hinzer of Watts, Griffis & McOuat.
About VVC
VVC Exploration Corporation is a Canadian exploration company with
properties in Canada and China. Its main assets are the participation of VVC
in Joint Ventures in producing gold mines in China, and its participation in
the Beaver Brook Antimony Mine in Newfoundland, Canada. The Company's
objective is to generate significant cash flow from operations in order to
aggressively pursue other projects in China. Please visit our Website at
www.vvcexploration.com .
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this news release.
On Behalf of the board of Directors
Michel J. Lafrance, Secretary-Treasurer
%SEDAR: 00007564EF
