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VVC Exploration Renegotiates Option Agreement on Santa Valeria Silver-Lead-Zinc Property, Chihuahua State, MX

^{Published on 2009-12-29 13:35:12 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2009) - VVC EXPLORATION CORPORATION (TSX VENTURE:VVC)(FRANKFURT:V7S) ("VVC" or the "Company") is pleased to announce the renegotiation of the option agreement for the Santa Valeria Ag-Pb-Zn property (the "SV Property"), located in south central Chihuahua state.

The Company optioned the SV Property from Invesmin San Miguel S. de RL de CV ("ISM") in March 2009 after ISM had previously been granted an option on the Property from Corporativo Minero SA de CV ("CM"). Following negotiations with both ISM and CV, ISM has given up its option on the CV Property and VVC has signed a new option agreement with CV, whereby:

- VVC's Mexican subsidiary will acquire the Property directly from CM;

- the option payments of 825,000 MXN pesos, due July 1, 2009 and 825,000 MXN pesos due on January 1, 2010, will be satisfied by the payment of US$20,000 and the issuance of 150,000 shares of VVC, subject to the approval of the TSXV;

- the remaining option payments totalling 5,225,000 MXN pesos (approximately CA$ 430,000) payable over time until September 1st, 2013 will remain;

- the NSR Royalty of 2% payable to ISM and CM jointly will remain in the agreement.

This new agreement will permit VVC to preserve cash while maintaining its interest in the SV Property and allowing further exploration to take place.

Seven drill holes totalling 1021 metres (m) were drilled over a strike length of 200 m testing the Veta 1 veins in the vicinity of old shafts and pits (News releases March 11 and 25, and June 19, 2009). Four of the seven holes cut the mineralized breccia vein which carries lead-zinc mineralization and silver values. The breccia contains sub-angular, centimeter-size fragments of sedimentary and possible igneous origin, and is associated with hematization, silicification and argillization. Mineralization includes siderite, barite and calcite, the same as noted in surface pits and underground workings. The mineralized zones are summarized below.

Hole Number Section Mineralized Thickness Ag g/t Pb % Zn %
 Section
----------- ------- ------------- --------- ------- ----- ------
StV-01-09 386 950 E 104 to 107.25 3.25 m 60.8 0.11 0.84

StV-02-09 387 000 E 54.1 to 64.5 10.4 m 34.9 0.09 0.12
 incl. 54.1 to 61 6.9 m 43.2 0.10 0.17

StV-03-09 387 050 E 61.5 to 64.5 3.0 m 78.8 0.12 0.29
 incl. 63 to 64.5 1.5 m 145.0 0.17 0.39
 and 70.5 to 74.5 4.0 m 19.1 0.34 1.17

StV-05-09 387 100 E 81 to 84 3.0 m 54.4 0.08 0.16

Neither the TSXV nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release.