TORONTO, Sept. 7 /CNW Telbec/ - VVC EXPLORATION CORPORATION ("VVC" or the
"Company") is pleased to announce that its 70% owned Chinese Joint Venture
("CJV"), Tong Guan County Glory Mining Corporation, owner of the gold
producing Xing Tong mine, has recently acquired a new project in partnership
with Shaanxi Hongyuan Industry Co. Ltd (SHICL) for an aggregate cost of
12.5 million RMB (CAD$ 950,000) to be owned 50.1% by CJV and 49.9% by SHICL.
Earlier this year, a local private miner located a new vein (tagged
NQ512), believed to be an extension of the Q512 vein currently being mined
approximately 1.3 km to the southeast by the CJV, under Permit 512.
The vein was mined from a drift approximately 250 meters long at a rate
of 80 tons per day. The vein can be traced horizontally for 250 meters, on
three mining levels. Approximately 4,000 tons of ore were extracted by the
previous owner with the ore processed at the Xing Tong plant under a
processing fee contract. The new ore attracted the attention of the Xing Tong
geologists, which resulted in commencement of negotiations for the property by
the JVC.
The vein appears to be continuous along strike and to depth, trends.
East-West, and exhibits banding and shearing, with minor variations in width
(from 0.40 to 0.60 meter). Sulfide content varies from 10 to 50 % and consists
of pyrite, chalcopyrite and minor galena.
Values as high as 200 g/t were reported by the previous owner and
confirmed by preliminary sampling by Xing Tong CJV personnel. Grade appears to
be increasing to the west. Wall rock alteration is sericite and pyrite. The
NQ512 vein dips 45 degrees to the south, parallel to the Laoyacha anticline
axis and also parallel to other gold bearing veins (Q507, 518, 552, 504, 503,
502, 512, 501) to the South.
Grab samples from the underground stopes of NQ512, taken by Xing Tong
personnel are been assayed at the Xing Tong mine laboratory, with results to
be released when they are received. Check assays for the samples have been
sent to the SGS (Tianjin) Geochemical Labatories.
Dean O'Keefe, an independent QP with Micromine Ltd, resampled the veins
and these samples are also being assayed by SGS (Tianjn) Geochemical
Labatories. Mr. O'Keefe, a geologist, visited the CJV Properties and examined
the geology of the various underground workings and will act as the QP for the
CJV and VVC.
"We are pleased to be associated with this new partner", commented
Mr. Chen Ju, CJV local manager. "The President and CEO of SHICL is a well
known business man in the Shaanxi Province. His company operates very
successful businesses in different fields, including construction and
real estate in Xi'an, the capital, and in the Tong Guan gold producing area as
well".
"We hope that this deal will be the first step to a more extensive
co-operation, with our new partners. The partnership shows the trust by the
Chinese business community and lends more credibility to other JV projects in
China", stated Mr. Jean-Paul Boily, President and CEO of VVC. "The careful
examination of NQ512 will result in new clues and opens a new window on the
high potential of the gold bearing veins in this area, with good potential for
new discoveries."
Future exploration will hopefully unveil similarities between this
discovery and numerous EW parallel veins lying to the south. The CJV 100%
owned Q512 permit is well located and will benefit from other discoveries in
the area. A diamond drilling program will be launched next season to probe
possible deeper extensions of the gold bearing veins.
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 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: 00007564E
