Valencia Ventures Inc. said Wednesday that surface trenching results confirm high grade silver mineralization over a 600m strike length at the Cachinal Silver Project, Chile. Further, the company will commence a 4000m Reverse Circulation drill program on the project shortly and expects to report results in late September.

Silver mineralization is associated with two intersecting northwesterly trending vein systems, the Carmen and Arturo-Prat Veins, which extend over 600m in strike length.

High grade mineralized zones within this trend include:
- T-22 22m @ 121.18 g/t Ag,0.17g/t Au
- T-26 10m @ 194.20 g/t Ag, 0.18g/t Au
- T-31 2m @ 313.00 g/t Ag, 0.64g/t Au
- T-38 21m @ 103.33 g/t Ag, 0.10g/t Au
and 12m @ 100.83 g/t Ag, 0.07g/t Au
- TRS-2 2m @ 1030 g/t Ag, 0.58g/t Au
- TRS-4 2m @ 544 g/t Ag, 0.29g/t Au
- TRS-6 9.5m @ 288.26 g/t Ag, 0.17g/t Au

Historical silver workings related to quartz veins within northwesterly trending structures extend over a zone approximately 1500m wide and 2.5 km in strike and have been reported to extend to a depth of 320m. Drilling and trenching in the 2005 program focussed on the southern portion of the vein system where limited historical trenching had reported highly anomalous silver mineralization.

Excavator trenches in 2005 exposed several encouraging mineralized zones associated with argillic altered, limonitic quartz stockworks in dacitic tuffs and volcaniclastic sediments (See Press Release April 18, 2006). Better results included T-9 – 24m @ 243.16g/t Ag, 0.06g/t Au, including 6m @ 740.66g/t Ag, 0.13g/t.

Valencia's 16 hole, 2,294m Reverse Circulation drilling program in 2005 encountered several high grade silver intersections, including 14m @ 114.57g/t Ag (3.68 oz/t silver) in CLRC-01, 21m @ 189.29g/t Ag (6.09 oz/t silver) in CLRC-02 and 40m @ 137.87g/t Ag (4.43 oz/t silver) in CLRC-12, including 18m @ 231.38 g/t Ag and including 5m @ 670.00 g/t Ag and 0.689g/t Au, at approximately 95m below surface, in the hanging wall of the Carmen Vein. (Press Releases April 29 and June 8, 2005).

The mineralized holes designed to evaluate the historical Cachinal de la Sierra silver vein structures and extensions along strike to the north and south, were located over a 600m long zone where two historical veins, the Carmen Vein and the Arturo Prat Vein, intersect. Wide zones of silver mineralization intersected in the initial drill program in both the hanging wall and footwall adjacent to historically mined narrow high grade silver veins have demonstrated potential may exist for a bulk mineable silver deposit.

Valencia's Executive Vice-President Exploration & Development, Doug Currie commented: "I am very encouraged by the results of the trenching program, which has demonstrated good continuity of wide zones of high grade silver mineralization over more than 600 along strike. The mineralized zone is open to the southeast, adding significant opportunity for increasing the resource potential." He added, "Cachinal is an advanced silver target with historical production and encouraging trench and drill results." "The 2006 exploration program will advance our understanding of the mineralized system and hopefully, if results continue to be positive, allow an initial, potentially open-pit, resource to be defined in the Arturo Prat-Carmen area".
Cachinal Silver Project

Historically a significant silver district, 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 Inc's El Penon Silver-Gold Mine, a low sulphidation-style epithermal silver-gold deposit and one of the worlds lowest cost gold producers, 60km to the northeast, and Diamond Rose NL's Guanaco Gold Mine, a high sulphidation-style epithermal deposit which was mined as a heap leach operation during the early 1990's by Amax Gold Inc and later Kinross Gold Corporation, 12km to the southwest.

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 in the preceding sentences are historical in nature, have not been verified by the issuer's Qualified Person, and should not be relied upon.

Valencia assembled a large land position totalling 9,200 hectares at Cachinal late in 2004, entering into farm-in agreements with Compania Contractual Minera Ojos del Salado, an indirect Chilean subsidiary of Phelps Dodge Corporation, Silver Standard Resources Inc and Atna Resources Ltd to acquire interests in their properties which cover the historic mining center.

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 precious metal properties, particularly the Cachinal Silver Project in Chile and the Rancheria Silver Project in the Yukon Territory and British Columbia, Canada. The company has recently completed a feasibility study for the Mt. Bundy Gold Project in the Northern Territory, Australia, and is considering various development strategies. With a focus on silver, the company has a number of precious metal acquisitions under consideration.