Dec 10 2010
Victoria Gold Corp. (TSX VENTURE:VIT) today announced an update pertaining to the analysis of the apparent error in the Cove Upper Zone resource estimate which was the subject of the Company's press release dated November 23, 2010.
Wardrop Retained
Wardrop, a Tetra Tech Company ("Wardrop"), an independent engineering consultant, was retained to review Victoria's QA/QC procedures and the methods used to calculate the Cove Upper Zone resource estimate ("the Estimate") which was announced in a press release on February 4, 2010. The Estimate was set forth in a National Instrument 43-101 ("NI 43-101") compliant Technical Report (the "Technical Report") dated March 5, 2010.
Wardrop has concluded that the database used by another independent consultant to calculate the Estimate contained inaccurate assay information for the holes drilled by Echo Bay Mines Inc. ("Echo Bay") prior to 2000. The Technical Committee of Victoria came to the same conclusion after a recent review. Wardrop advises that because of the invalid Echo Bay holes, the Estimate should no longer be relied upon.
However, Wardrop confirmed that spot checks of holes identifying the Lower Zone inferred resource estimate of 306,000 tonnes grading 19.8 g/t for 194,600 ounces of gold, also set out in the Technical Report, did not reveal any erroneous drill-hole information.
About Cove
Victoria has spent over US$12 million at the Cove Gold Project to date, completing the work commitments to earn a 100% interest in the Cove Gold Project, such interest being subject to (i) a back-in right in favour of Newmont for a 51% interest in exchange for a contribution to the property by Newmont equal to 2.5 times the amount spent on the property by Victoria up to the time of the back-in decision, or (ii) a US$1.5 million cash payment to Newmont and a maximum royalty of up to 5% (including any existing royalties) depending on the prevailing gold price.