Valley High Ventures Ltd. has entered into an option agreement with Phelps Dodge Corp. of Canada Ltd., a wholly owned subsidiary of Freeport-McMoRan Copper & Gold Inc. to acquire a 100-per-cent interest in the Flume property located in Yukon Territory.

Valley High Copper Flume Property Map

Valley High Copper Property Map

The Flume property is located 60 kilometres southwest of Dawson City, Yukon, and 30 kilometres northwest of Underworld Resources Inc.’s white gold discovery and comprises 191 mineral claims totaling approximately 3900 hectares. It covers the headwaters of Ten Mile creek, a well known placer mining location, as well as the headwaters of Sestak creek, a drainage with reported historical placer mining activity.

The Flume property was staked by PDC in 1998, to cover drainages with anomalous gold and arsenic in government stream sediment samples. PDC subsequently completed property wide soil sampling, geological mapping, prospecting and limited trenching that defined two main target areas primarily characterized by elevated gold and arsenic soil anomalies with minor anomalous antimony (Sb) and molybdenum (Mo). The most recent exploration done on the property was a small mechanical augur program completed in 2007.

The northern Flume target has dimensions of 3.5 kilometres by three kilometres with gold in soil values ranging from 10 ppb to a high of 615 ppb. The best rock sample collected from this area returned 2.7 grams per tonne gold from quartz stockwork-bearing intrusive float. The southern Sestak target has dimensions of 3.7 kilometres by one kilometre as defined by a combined arsenic and gold soil anomaly (max gold value 1,317 ppb). Rock samples collected from this area include 10 samples that assayed greater than 1000 ppb with the best sample returning 3.5 g/t Au from a lead- and zinc-rich skarn developed in a limestone horizon within meta-sediments.

Valley High may earn a 100-per-cent interest in the Flume property from PDC by making cash payments totalling $225,000 and by completing $500,000 worth of work over four years. The initial payment of $10,000 is due on the six-month anniversary of the option and Valley High commits to completing a $200,000 work program by the second anniversary. PDC retains a 2-per-cent NSR royalty of which one-half can be repurchased by Valley High for a sum of $1-million. PDC also retains the right to share in the proceeds derived from the sale or option of the property to a third party in the amount of 50 per cent of proceeds received during the first year and 25 per cent of the proceeds in any subsequent year.

Robert Cameron states, “Having been involved from the staking and initial exploration of this exciting property for PDC, I am pleased to be able to continue with its advancement on behalf of Valley High. The recent gold discovery by Underworld at their White Gold project and the historical gold production from this placer mining region certainly supports the bedrock gold potential of this newly recognised and under explored area. Valley High continues to implement its business model of acquiring high-calibre exploration projects and may seek a joint venture partner to rapidly advance the exploration of this large promising target.”

Robert Cameron, PGeo, who is a qualified person within the context of National Instrument 43-101 has prepared and takes responsibility for this news release.

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