Victory Resources (TSX-V: VR) completed a fund raise of $1.01 million at $0.25 per share plus half of a warrant at $0.40 per share. This financing represented the second of two tranches representing an aggregate financing of approximately $2.5 million. Funds raised will be used to meet near term obligations under the Reforma mine option agreement and for general working capital purposes.
VANCOUVER, BC – As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure.
The Reforma property formally owned and operated by “Industrias Peñoles S.A.B. de C.V. (“Peñoles”), of Mexico is a 6,987 hectare land package, located within the eastern portion of Sinaloa State, Mexico, in the Choix Mining District. This land package includes the formerly producing Reforma Mine as well as prospective mineralized zones hosted by the Reforma property. The Company has now received an independent National Instrument 43-101 (“NI 43-101”) technical report by Ruben Verzosa on the Reforma property which addresses and clarifies certain issues relating to the Reforma Property.
In its press release of March 4, 2010 the Company referenced reserve estimates for the Reforma property made by Peñoles. It was also stated that past exploration conducted by Peñoles resulted in the delineation of the “El Chapote” mineral zone which contained a reported mineral reserve. The Company’s press release of April 8, 2010 again made reference to a mineral reserve at the Reforma Mine; this was repeated in the Company’s press release of June 15, 2010. A mineral resource was also as identified as existing in the Reforma South mineral zone, and historical reserves identified at El Chapote were also re-classified as mineral resources. The Company’s new independent report did not verify any of the historically reported resource/reserve estimates under the guidelines established by NI 43-101. As the previously disclosed estimates are not supported by the Report, the Company retracts those estimates; however, the Report will be updated as and when required by NI 43-101.
The new Report is now being finalized and will soon be available for viewing at www.SEDAR.com.
Ruben Verzosa, P. Eng., a Qualified Person (QP) as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.
On behalf of the Board of Directors of Victory Resources Corporation
Wally Boguski, CEO
This news release contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Victory Resources Corp. which may cause actual results, performance or achievements of Victory Resources Corporation to be materially different from the results, performance or expectation implied by these forward looking statements. Such uncertainties include mineral resources or reserves hosted by the Reforma property and the ability of Victory to finance exploration and development of the Reforma property.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Victory Resources Releases Drill Results on Wen Property, BC – Reforma Property Work Program Underway, MexicoAugust 17, 2010
VANCOUVER, BC – VICTORY RESOURCES CORP – TSX-V: VR (the “Company”) is pleased to announce that it has received the assay results from the sampled sections of six diamond drill holes completed on the WEN prospect of the TONI (TOE) property located 30 kilometres southeast of Merritt and eight kilometres east of the historic Aspen Grove mining camp in south-central British Columbia.
In 2008 Victory Resources completed a five hole, 867.5 metre diamond drill program. Drill hole VRW-08-01, which was spotted to test the extension of the indicated W96-1 mineralized quartz vein, failed to intersect the quartz vein or any significant mineralization. Four drill holes to test the Adit#1 mineralized zone (Adit Zone) intersected a quartz zone of up to 7.0 metres wide which assayed up to 8.6 g/t Au over one metre in drill hole VRW-08-02 and greater than 1.00% Cu over 1.26 metres in drill hole VRW-08-04. For more results see Victory news release dated September 24, 2008.
Victory Resources Corp. (TSX-V: VR) has completed the diamond drilling of six holes totaling 713 meters on its 2010 exploration program on the Wen prospect of the Toni property located 30 kilometres southeast of Merritt and eight kilometres east of the historic Aspen Grove mining camp in south-central British Columbia. The holes are in the process of being logged, sampled, split and the samples sent in to the lab for rush assaying. Drilling on the Wen prospect is suspended until assay results are available to evaluate and organize the project for a future exploration program.
In Mexico, the Company has also mobilized a geological crew on its optioned Reforma Mine property, which was formerly owned and operated by Penoles. The property zone review of the Reforma mine site, Reforma South, and El Chapote will result in recommendations for future start up production. The Company is also pleased to announce it is in negotiations to purchase a mill to facilitate its future production requirement. Currently the Company is negotiating on four processing mills ranging in size from 250 tonnes per day to 1000 tonnes per day.
There is an old saying around the mining business that “The best place to find a mine – is next to an existing mine”. Well our newest fully profiled company – Victory Resources, Inc. (TSX-V: VR)- is doing just that, as they are in the process of bringing back to life a once prolific and famous Mexico silver mine: The Reforma Mine, which was a large historical producer located in the Sierra Madre mountains of Sinaloa formerly owned and managed by mining juggernaut Penoles.
In fact, between 1968 and 1980, Penoles produced 1.8 million tonnes from the Reforma Mine grading 91.62 g/t silver, 1.90% lead, 7.44 zinc and 0.63% copper. At current metal values this production is valued at over US$514 million.This region has excellent infrastructure in place and Victory Resources is planning both an aggressive drilling/exploration campaign at three primary mineralized zones at Refroma to build upon the already known resources, as well as the placement of a 500 tonne per day mill operation to start ramping up metal production in the near term.
In addition to the Reforma property, Victory Resources plans to conduct additional exploration work to their AU WEN project area near Merritt, BC – which is in a prolific copper-gold porphyry zone. We are recommending that everyone take a good look at Victory Resources’ Reforma project, so we have included a link to their full presentation below for your review.
Additional information on Victory Resources is located on their website at www.victoryresources.com as well as on the Victory Resources profile page on BabyBulls.com – which is located at: www.babybulls.com/victory_resources.html