Overview

Canada

Mexico
Cumeral
Sta Cristina
Sta Valeria
La Tuna

In April 2010, the Company finalized a formal agreement with 2 Mexican individuals (the "Optionee") relating to a 665-hectare gold mining project known as Cumeral (the "Property") consisting of 3 mining concessions, in the State of Sonora, Mexico.

The Property is located in the municipality of Imuris in northwestern Mexico, approximately 200 kilometres (km) to the north of Hermosillo in northern Sonora State. Road access by a network of well maintained gravel roads from the main paved highway, is excellent with travel time from the nearest small town, where all necessary services and infrastructure are available, about 30 minutes, indicating low cost exploration and development.

The Agreement provides an option to acquire a 100% interest in the Property in consideration for US$800,000 plus applicable taxes ("VAT"). The Property is subject to a 2% Net Smelter Return Royalty. A finder’s fee of US$5,000 and 330,000 shares of the Company is payable to 3rd parties who were instrumental in arranging the transaction. The Agreement is subject to the approval of the TSX Venture Exchange.
The Property is located in the vicinity of the well mineralized Sierra La Jojoba trend which is host to numerous other prospects and small mines, including the Mina Lluvia de Oro and Mina La Jojoba deposits, 20 km to the northeast of Mina Lluvia de Oro. The Mina Lluva de Oro and Mina La Jojoba deposits contain reported, NR 43-101 compliant, measured and indicated resources of approximately 300,000 ounces plus inferred resources of approximately 200,000 ounces of gold with excellent exploration potential.

The Property is underlain by interbedded muscovite-biotite schists, formerly rhyodacitic units, of Jurassic age with quartz diorite dikes also noted. The structural fabric is dominated by northwest striking, dextral, wrench fault systems with associated shears and normal faults, a structural regime favourable for dilational structural zones required for the emplacement of large, epithermal gold mineralized systems. The Cumeral mineralized zone can be traced along strike for 3 km over widths up to 1 km with the zone open along strike to both the northwest and southeast. Sericite-illite alteration, quartz vein stockwork and abundant iron oxides are noted, with the alteration reportedly related to both low and high angle structures. Gold is associated with hematite (after pyrite) and quartz veinlets and has reportedly been panned from the Tularcito altered zone by previous workers.

Due diligence work including data compilation and sampling is ongoing. Four grab samples gave gold values from 0.03 to 6.03 grams per ton (g/t), with three significant values of 3.4, 3.52 and 6.03. Another 89 rock samples have been taken recently and have been submitted to the laboratory for analysis. Results will be reported shortly. Exploration planned for 2010 consists of regional prospecting, sampling and mechanical trenching followed by a drilling program.

Sta Cristina Property

The Company has an option to acquire the Sta Cristina property (the "SC Property") of 498.5 ha, located in the Sierra Madre gold trend, approximately 60 km to the south of Hidalgo del Parral, Chihuahua State, in northern Durango State, Mexico. The Company has made option payments in the amount of 3,850,000 Mexican Pesos and issued 400,000 common shares of the Company with an additional 750,000 shares to be issued. In May 2010, the Option Agreement was renegotiated to reduce future payments to 2,400,000 Mexican Pesos allowing our Mexican subsidiary to acquire a 100% interest in the Property with the exclusive right to explore and develop it until May 28, 2013. The property is subject to a 2% net smelter royalty.

The SC Property was worked by Gambusinos (artisanal miners) however it has never been evaluated by modern exploration techniques such as diamond drilling. The 2009 exploration program comprised prospecting over the entire Property plus geological mapping followed by a 8-hole diamond drill program totalling 1106.5 metres (m) which tested the mineralized Gambusinos–Maria Louisa (GML) trend over a 450 m strike length.

Gold mineralization at Santa Cristina occurs on a 1 km long trend, associated with Tertiary age volcanic rocks and extensive silification and argillization. Due diligence sampling has given grab sample values ranging from 60 ppb (0.06 g/t) to 5.77 g/t Au with an average of 2.21 g/t Au from the hematized breccia. One sample from a hematized breccia in a pit approximately 50 m west of the Maria Louisa showing returned 8.2 g/t Au and 2.3 g/t Ag while a sample from the Maria Louisa pit returned 0.241 g/t Au and 0.5 g/t Ag. Four, pin-sized, specks of visible gold were observed by the QP in a cut sample taken from the Maria Louisa locality. The half of the sample, without visible gold ("VG") noted, assayed 3.5 g/t Au and 1.1 g/t Ag. A composite grab sample of float of banded, epithermal style, quartz veining, located across the valley away from the main mineralized trend, returned 5.0 g/t Ag and 5 ppb Au indicating the potential for other epithermal systems in the area.

Prospecting over the entire property resulted in the acquisition of 108 rock samples from float and outcrop. Significant alteration consisting of white clay and silicification including some banded, epithermal style, quartz veining was noted at various locations, however sample results for Au and Ag were generally low with no significant values.

The diamond drilling targeted hematite bearing breccia zones and silicified zones associated with a major northeast trending shear system along the GML. Drill-holes STC-01, 1A-09 and STC-02-09 tested the auriferous hematite bearing breccia zone in the vicinity of the Maria Louisa showing in the western part of the zone. Hole STC-01 was abandoned in the shear zone. Erratic, weakly anomalous gold values from 0.11 to 0.68 g/t over 1.5 m each, were intersected in the upper sections of the holes. Hole STC-03-09 missed the zone as it was drilled to the north of the structure. Holes STC-04 and 05 tested broad areas of silicification developed along the northeast trending ridge above the GML trend. Wide intervals, up to 30 plus metres, of moderate to strong silicification were noted in the holes, however no mineralization or gold values were found. Drill-holes STC-06, 07 and 08 were drilled in the eastern part of the zone, from the same setup, targeting the down dip extensions of the old workings at the Gambusinos showing on the northeast side of ridge (STC-06), a possible cross fault (STC-08) and a silicified zone on the south side of the ridge (STC-07). A number of narrow, weakly auriferous, silicified zones were intersected with the highest values in Hole STC-07-09, 1.5 m from 49.5 to 51.0 meters, which gave 1.42 g/t gold (Au) and 2.6 g/t silver (Ag).

It is evident that more geological interpretation and compilation is required to allow proper targeting of additional holes to test the depth potential of the gold anomalous areas along the GML trend. This will allow the drilling to be focused along the structural features which appear to control the gold mineralization in the area. In 2010, the Company proposes to conduct an exploration program consisting of geological mapping and sampling in preparation for a drilling program to test the geological models defined.

Rock and core samples were analyzed at ALS Chemex de Mexico SA de CV and Servicio Geologico Mexicano, both based in Chihuahua using a fire assay technique, with an atomic absorption finish, for gold plus an ICP- 41 technique for other elements including gold pathfinder elements such as silver, arsenic and antimony.

Sta Valeria Property

In March 2009, the Company optioned the Santa Valeria Property (the "SV Property"), located approximately 150 km south of the City of Chihuahua, Chihuahua State, Mexico. The Company can acquire a 100% interest in the SV Property and has the exclusive right to explore and develop it over the next five years in consideration of 400,000 common shares of the Company, already issued, and total cash payments of MXN$ 7,700,000 Mexican pesos before September 1, 2013. The Property is also subject to a 1% NSR Royalty.

The Property covers 714 hectares (ha) and is situated along a major north-northwest trending structure, in Oligocene felsic volcanics and Cretaceous limestone. The mineralization is located in east-west and north-northwest trending, brecciated and altered, quartz-manganese and calcite-bearing zones, carrying mainly silver, lead and zinc (Ag-Pb-Zn) mineralization. Geological mapping was carried out, with a total of 51 samples collected from three mineralized zones.

The main east-west structure hosts 2 significant mineralized zones, Veta 1 and Veta 2. It is oriented east-west and dips 80˚ to the south. It has been tested by 7 shallow, vertical, exploration pits which show a 20 to 50 m thick alteration / mineralized zone with locally intense alteration / brecciation, and quartz-calcite-manganese-barite veining and stockwork. A total of 34 samples were taken on the easily accessible Veta 1 Zone, on surface and in the vertical pits. Most of the underground walls, whether mineralized or not, were channel sampled. Selected results from the Veta 1 Zone are as follows:

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, centimetre-size fragments of sedimentary and possible igneous origin, and is associated with hematization, silicification and argillization. Mineralization includes siderite, barite and calcite, as noted in surface pits and underground workings.

The mineralized zones are summarized below.

Holes 4, 6 and 7 did not reach their intended target depth, stopping short of the vein system. All holes were oriented to the north with a 50 degree inclination. The mineralized section averages 4.5 m thick (4 m true) and is located in a brecciated zone averaging 20 m in thickness. The zone remains open to the west and at depth. All data will be compiled in preparation for a second phase drill program planned for 2010.

The work is being carried out by Invesmin San Miguel S de RL de CV ("Invesmin") under contract to VVC, with due diligence property visits by the QP.

La Tuna Property

The Company has recently acquired a 3,533-hectare gold project known as La Tuna located in the Municipality of Alamos, State of Sinaloa, at the junction of The Rio Fuerte and The Rio Baboyahui (News release June 22, 2010).

VVC’s Mexican subsidiary has acquired a 100% interest in the Property for US$40,000 plus applicable taxes and 300,000 shares of the Company, subject to a 2% NSR Royalty (the "NSR") with a buy-back option.

The Property has gold potential in paleo placers, present day placers derived from the paleo placers and vein type deposits such as the La Perdida deposit. The river placer deposit and the paleo-placer zone are located mainly along the Rio Baboyahui near the river junction extending to the Rio Fuerte, over an area of approximately 500 by 500 meters. The paleo-placer zone carries gold associated with magnetite (from black sand) which may allow definition of the paleo-channels by magnetic surveys. Limited historical sampling in the period from 1987-91 by an Australian company, in a "drift" in a paleo placer channel gave grades ranging from 1 to 3 g/m3 Au. Historical data (non 43-101 compliant), from 1994 from a Mexican engineer, Alberto J. Terrones Langone, indicated that the area contains 3.7 million m3 at 2 g/m3, equivalent to approximately 200,000 ounces of gold. It should be noted that the "paleo placer" was sampled as a placer deposit however since it is a hard rock deposit it should be sampled using channel, chip or drill core samples, not bulk samples in cubic metres, which has little relevance in a hard rock deposit.

The La Perdida vein deposit, which averages 2.75 m in width, is located in the north-west part of the property with the structure hosting the deposit, trending north-west and dipping 25 degrees to the south-east. The deposit has not operated since the 1940’s however historical results from 4 grab samples taken in 1991 by an Australian company, are: portal area - 12.49 g/t; ore zone - 3.29 and 16.23 g/t; and development muck  - 11.24 g/t.

No work has been carried out by VVC since the option on the property and the results described above are not 43-101 compliant, have not been subject to due diligence sampling and should be treated with caution. The company will be carrying out an evaluation of the property consisting of data compilation and sampling of all gold zones over the next few months. Results will be reported as they are received.