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Valencia Ventures Nears Completion of Resource Definition Drilling at Cachinal Silver Project

Posted on: Thursday, 29 November 2007, 12:00 CST

Valencia Ventures Inc. (TSX VENTURE: VVI) is pleased to report the Phase III resource definition drill program on the Cachinal Silver Project is continuing to progress on schedule. A total of 7,325m (54 holes) have been completed and two RC drills are currently on site. The planned program of approximately 8,500m will be completed within the next 7-10 days.

Encouraging high grade silver intersections, consistent with earlier results from more widely spaced drill holes completed in the Phase II program, have been obtained on 50m line spacings in the Northern Extension zone (See press releases dated May 1 and September 11, 2007 for complete results of the Phase II program). Significant results include (Figure 2):

 - CLRC-113    11.0m @ 141.45g/t Silver, 0.342g/t Gold, 1.21% Zinc - CLRC-117     8.0m @ 111.63g/t Silver, 0.157g/t Gold, 0.15% Zinc - CLRC-119    10.0m @ 149.80g/t Silver, 0.324g/t Gold, 0.04% Zinc - CLRC-128     4.0m @ 107.75g/t Silver, 0.230g/t Gold, 0.23% Zinc               20.0m @ 199.55g/t Silver, 0.108g/t Gold, 0.12% Zinc 

Doug Currie, Valencia's Executive Vice President, Exploration & Development, commented, "We continue to be very encouraged by the results we have received, particularly in the northern portion of the Northern Extension, where substantial high grade silver mineralization, including 20.0m at 199.55g/t silver has been located in CLRC-128." He added, "The drill contractors and our geological field crew are doing an excellent job to meet our goal of completing the infill resource definition drilling early in December so that a revised resource estimate is expected in January 2008."

Valencia released the first mineral resource estimate for the Cachinal Silver-Gold project in February, 2007 (Press Release February 19, 2007). The estimated mineral resources, at a 20g/t silver block cut-off grade, are as follows:

Indicated Mineral Resource: 4.11Mt @ 103.92g/t Silver, 0.11g/t Gold, 0.17% Zinc

Inferred Mineral Resource: 5.09Mt @ 78.22g/t Silver, 0.11g/t Gold, 0.16% Zinc

Results of the Phase I and Phase II drill programs, which included significant drill intersections which were not included in the above resource estimate, indicated a potential for adding 1,200m of mineralized strike length to the north of this existing mineral resource. The initial resource estimate was based on a 650 metre portion of the total mineralized structure, which is traceable on surface for up to 3,000 metres, and is open both along strike and at depth. Valencia geologists aim to establish a resource estimate of 75 million ounces of silver at the Cachinal property. However, such a resource estimate has not yet been substantiated.

The Phase III program, which commenced in late September, will consist of 7,000-9,000m of additional RC drilling, with drillholes along the existing 50m spaced section lines and, where necessary, 25m infill drill fences within the existing Cachinal resource area and the Northern Extension target to define potential resource areas in sufficient detail to enable a revised mineral resource estimation. Additional diamond drilling is also planned to verify RC drill results, and provide geotechnical information and samples for metallurgical testwork.

Valencia recently announced the appointment of SRK Consulting (Canada) Inc. ("SRK") to prepare an updated mineral resource model by the end of January 2008 and a preliminary assessment of the economic potential of a future mining operation at Cachinal towards the end of Q1 2008 (See press release dated, September 18, 2007). A team from SRK's Toronto and Santiago offices recently visited Cachinal and have initiated studies required to assist with the resource estimation and preliminary economic assessment and subsequent feasibility analysis. Geotechnical core logging, baseline environmental assessment, metallurgical testwork and resource modelling have commenced.

Cachinal Silver Project

The Cachinal de la Sierra area is located within the Paleocene Gold Belt of northern Chile, which hosts several significant gold and silver deposits including Meridian Gold's El Penon Silver-Gold Mine. The El Penon mine, 60km to the northeast, is a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers.

Silver mining began at Cachinal in 1862 and, including production of approximately 170,000 tons @ 280g/t Ag, 0.58g/t Au reported for a three year period 1985-1987, historical production is estimated at approximately 32 million ounces of silver in historical geological reports in the library and files of Chilean Government agency SERNAGEOMIN. Extensive historic workings at Cachinal reportedly extend to a depth of 320m although most of the workings only went to a depth of 120-150m, generally within the oxidized zone. Historical grades apparently averaged 500-600g/t silver with an unknown quantity of trace gold, with some local values of up to 2500g/t silver and as much as 3g/t gold reported. The production figures (tonnage and grade) referred to above are historical in nature and has not been verified by the issuer's Qualified Person, and should not be relied upon.

Valencia also recently announced an agreement to acquire up to an 80% interest in the Nuevo Juncal Property, approximately 125km southeast of Cachinal (See press release dated November 1, 2007).

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia's development strategy is focused on the exploration and development of silver and gold properties, including the Cachinal and Juncal Silver Projects in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. With a focus on silver and gold exploration in the Americas, the Company also has a number of property acquisitions under consideration.

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Valencia's Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has reviewed the technical disclosure in this press release. Field work in Chile has been performed under Mr Currie's supervision by SBX Consultores Ltda, Santiago, Chile.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is an international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.

Samples are transported from the field project to the ALS Chemex sample preparation facility in Coquimbo, Chile by the Contractor's personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 - 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 - specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 - Gold using a 50g Fire Assay-AAS finish.

All Reverse Circulation drill samples were geologically logged and sampled by the Contractor's geologists in one meter sample intervals; the archive portion of the sample is securely stored at the Contractor's facility in La Serena, Chile. The Company has initiated a QA/QC program consisting of utilizing field and prepared standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital for exploration projects, exploration expenditures and timing of future exploration and the costs and timing of additional exploration activities on the property. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

                                     TABLE 1                           SIGNIFICANT RC DRILL RESULTS                                 PHASE III - 2007                            (Update: November 27, 2007) ---------------------------------------------------------------------- Section   Hole ID      Depth  From    To  Width  Silver    Gold   Zinc                                  m     m      m  g/t Ag  g/t Au   % Zn ---------------------------------------------------------------------- -50NNW   CLRC-108      100.0    52    61      9  223.33   0.259  0.624                    including    55    58      3  415.00   0.417   0.75 ---------------------------------------------------------------------- -50 NNW  CLRC-109        150    98   103      5    5.60   0.004   0.31                                104   105      1   26.00   0.046   0.66                                109   110      1   23.00   0.007   0.32                                111   116      5   51.40   0.037   0.36 ---------------------------------------------------------------------- 00 NNW   CLRC-110        180    12    16      4    8.25   0.008   1.10                                 18    20      2  362.50   1.312   0.28 ---------------------------------------------------------------------- 00 NNW   CLRC-111        100   no significant values ---------------------------------------------------------------------- 00 NNW   CLRC-112        180   137   151     14   10.71   0.016   0.56                    including   142   143      1   94.00   0.181   0.30 ---------------------------------------------------------------------- 50 NNW   CLRC-113        180    49    58      9  pending assays                                 58    59      1   63.00   0.011   0.02                                127   128      1   54.00   0.056   0.04                                141   142      1   20.00   0.075   0.22                                146   157     11  141.45   0.342   1.21                    including   150   151      1  323.00   0.870   1.05                    including   154   156      2  375.00   0.496   2.45 ---------------------------------------------------------------------- 100 NNW  CLRC-114        164   122   130      8   41.50   0.067   0.29 ---------------------------------------------------------------------- 300 NNW  CLRC-115         70    31    33      2   20.50   0.012   0.09                                 41    43      2   21.00   0.014   0.10                                 46    49      3   21.67   0.041   0.09 ---------------------------------------------------------------------- 300 NNW  CLRC-116        180   148   150      2   35.00   0.095   0.14 ---------------------------------------------------------------------- 350 NNW  CLRC-117         70    14    15      1   23.00   0.116   0.06                                 18    36     18   30.44   0.010   0.10                                 40    48      8  111.63   0.157   0.15                    including    45    46      1  286.00   0.288   0.17                                 60    70     10  pending assays ---------------------------------------------------------------------- 350 NNW  CLRC-118        178     7    67     60  pending assays                                134   142      8   61.50   0.097   0.29                                161   163      2   26.50   0.116   0.14 ---------------------------------------------------------------------- 400 NNW  CLRC-119         70    27    37     10  149.80   0.324   0.04                    including    34    37      3  368.67   0.934   0.06 ---------------------------------------------------------------------- 400 NNW  CLRC-120        170    33    35      2   21.00   0.052   0.07                                112   114      2  117.00   0.121   0.05                                140   142      2  200.00   0.080   0.29                                146   149      3   78.67   0.164   0.58 ---------------------------------------------------------------------- 600 NNW  CLRC-121         78   no significant values ---------------------------------------------------------------------- 600 NNW  CLRC-122        212     8    50     42  pending assays                                206   208      2  131.00   0.401   0.07 ---------------------------------------------------------------------- 850 NNW  CLRC-123         46    23    28      5   35.40   0.039   0.07                                 33    41      8   49.63   0.028   0.32                                 44    45      1   47.00   0.044   0.31 ---------------------------------------------------------------------- 850 NNW  CLRC-124        234   160   168      8   70.25   0.084   0.05 ---------------------------------------------------------------------- 900 NNW  CLRC-125         36    35    36      1   23.00   0.007   0.63 ---------------------------------------------------------------------- 900 NNW  CLRC-126        200   146   160     14   66.21   0.052   0.15                    including   147   149      2  261.00   0.177   0.18 ----------------------------------------------------------------------                                                            less                                                            than 950 NNW  CLRC-127        100    42    43      1   36.00   0.005   0.14 ---------------------------------------------------------------------- 950 NNW  CLRC-128        190   129   133      4  107.75   0.047   0.23                                137   157     20  199.55   0.108   0.12                    including   147   149      2  526.00   0.185   0.12                    including   154   155      1  585.00   0.193   0.09                                157   158      1  pending assays                                158   163      5  old workings - no                                                   samples                                163   190     27  pending assays ---------------------------------------------------------------------- 1050 NNW CLRC-129        100    22    44     22  pending assays                                 44    53      9   21.89   0.035   0.12                                 61    84     23   32.17   0.049   0.16 ---------------------------------------------------------------------- 1050 NNW CLRC-130        190    61    64      3   31.33   0.030   0.12                                 86    88      2   20.00   0.064   0.07                                102   104      2   34.00   0.029   0.09                                106   108      2   39.50   0.051   0.12                                112   125     13   35.54   0.198   0.35                                137   145      8   39.63   0.178   0.49                                158   190     32   pending assays ---------------------------------------------------------------------- NB: (1) All drillholes drilled at -60 degrees to the west on azimuth         250 degrees,     (2) Highlighted mineralization is shown as down hole intersection         widths; the current density of drilling precludes estimation of         "true thickness"     (3) Tabulated Significant Drill Results are selected on intersections         with Silver values greater than 20g/t Silver; emboldened         intersections have Silver greater than 60g/t Silver , Gold         greater than 0.20g/t Gold or Zinc greater than 1.0% 

To view a map of "Valencia Ventures Inc. CACHINAL", please visit the link below:

http://www.ccnmatthews.com/docs/vvi_figure1.pdf

To view a map of "Resources Definition Drilling", please visit the link below:

http://www.ccnmatthews.com/docs/vvi_figure2.pdf

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

 Contacts: Valencia Ventures Inc. Doug Bache President and CEO (416) 861-5884 Email: info@valenciaventures.com  Valencia Ventures Inc. Doug Currie EVP, Exploration and Development Email: dcurrie@valenciaventures.com

SOURCE: Valencia Ventures Inc.

Source: MARKET WIRE

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