CACHINAL

A technical report dated Apr 30/08 was released and documents the resource model for a revised mineral resource estimate on the property. See Mar 27/08 entry for further details. The report recommended drilling at a spacing at twenty-five to thirty metres to allow conversion of Indicated to Measured Mineral Resources. The aggregated mineral potential for the Cachinal deposit is estimated at between 1.1 and 2.8 million tonnes grading between 80 to 120 gpt silver, or between 2.9 and 10.9 million potential ounces of silver to a depth of 150 metres. The underground mineral potential is estimated at between 0.1 and 0.2 million tonnes grading between 144 and 216 gpt silver or between 0.3 and 1.5 million potential ounces of silver below 150 metres to a depth of 250 metres. The underground mineral potential below the 250 metre depth has not been evaluated.

An independent resource estimate was reported. Based on metal price assumptions of US$12.50 per ounce silver, US$650 per ounce gold and metallurgical recoveries of 85% for both silver and gold, indicated resources total 5.66 Mt grading 101 g/t Ag, 0.13 g/t Au and 0.22% Zn, containing 18.41 Moz Ag, 24,030 oz Au and 27.72 Mlbs Zn. Inferred resources are estimated at 0.82 Mt grading 115 g/t Ag, 0.12 g/t Au and 0.22% Zn for 3.02 Moz Ag, 32,600 oz gold and 4.03 Mlbs Zn. The cut-off was 40 g/t silver-equivalent.

Valencia Ventures announced results of an independent mineral resource estimate for the Cachinal silver project in Chile.