This property is located 8 km to the east of the Ketza River mine site in the Yukon Territory. Extensive soil sampling was conducted in 1968, which yielded several anomalies that were quickly explored with a bulldozer. This work exposed the Key 18B vein, which assayed 55 opt silver and 49% lead over a width of 2.4 meters.
Two mine levels (adits) were excavated to explore the vein, at approximately 20 meters and 50 meters below the surface exposure respectively. Underground channel sampling yielded values as high as 63 opt silver and 64% lead. A 17 meter length of the mineralized zone averaged 22.8 opt silver and 19.9% lead. Gold ran as high as 6 grams per tonne, but was only analyzed for in a few of the samples. A 1977 Iona Silver Mines report lists an inferred resource of 15,000 tons at 17 opt silver and 12% lead. This calculation pre-dates National Instrument 43-101, and the Company is not aware of how the estimate compares to the categories of resources set out in NI 43-101.
Holes drilled to date at Silver Valley are on only one portion of one exposed vein within the geologically prospective project area. A ground geophysical survey was carried to identify extensions of this vein system. Two other ground geophysical grids covered the Silver Rain and Silver Belle targets, 2.25 and 3.75 kilometers southeast of the current area of drilling respectively. VG has recently conducted the following geophysical surveys to help guide exploration including: ground gravity (2011); DIGHEM V aerial geophysics (2007); and a horizontal loop electromagnetic (HLEM) ground survey (2007). Additional drilling at Silver Valley is targeted for 2012 to test the geophysical targets and favorable geologic areas.