TORONTO, Jan. 16 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the
Company") announces that its Chinese joint venture company, Tong Guan Glory
Mining Corporation Limited (the "CJV") reports its first revenues since the
start its operations in July 2005. Production commenced in August 2005,
following in which the CJV poured the first gold bars derived from its Xing
Tong Gold Mine operations in the Shaanxi Province of the People`s Republic of
China.
For the 3rd quarter ending October 31st 2005, as reported in our
financial statements, the CJV recorded gross gold sales revenue of CAD$815,000
(5.5 million RMB) and a gross profit of CAD$490,000 (3.2 million RMB), from
the Xing Tong operations. At as of November 30, 2005, cumulative gold
production reached 2,727 ounces and additional gold sales revenues amounted to
CAD$370,500 (2.54 million RMB) representing a net gain of $243,000
(1.67 million RMB) to the CJV for November. VVC is entitled to 60% of these
amounts and upon completion of its capital contribution will have earned a 70%
interest in the CJV.
Since August, the CJV has shown a constant growth of its gold production,
principally from acquisition of new gold bearing veins already in production
and from new discovery as well. The CJV is currently finalizing the
development of two new veins, the Q24 and the Q237, which were recently
discovered on two of its seventeen permits. Mining of these veins is schedule
to start by mid January. The additional ore from these veins will supplement
current production and permit the CJV's mills to operate near the full
capacity rate 450 tonnes per day. With sufficient additional increase in
production the CJV will look to acquired new milling facilities later in 2006.
"At the start of the CJV, VVC was required to set-up new administration
and production teams, as well as implementing new control over the day to day
operations, and as such incurred one-time start-up expenses. In spite of those
expenses, the CJV managed to generate significant cash flow, enough in fact to
pay for the underground exploration and development of two recently discovered
gold-bearing veins, Q24 and Q237, which will be in production in the days
ahead. The rising price of gold and the steady growth of production combined
with economies of scale over the coming months will start showing better
profitability of our operation in China" stated Mr. Jean-Paul Boily, President
and CEO of VVC.
For more financial information on the Company, please consult the
recently filed Financial Statements and MD&A for the 9-months ended October
31st, 2005 and other public documents filed on SEDAR at www.sedar.com.
About VVC:
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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 Project 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
(Signed)
Michel J. Lafrance, Secretary-Treasurer
