TORONTO, Jan. 03 /CNW/ - Vencan Gold Corporation (VCG, TSX Venture Exchange)

Kirk McKinnon President & CEO stated, “The Company is very pleased to present a full overview of Vencan’s 2006 Exploration Strategy. This review and go forward strategy clearly outlines the potential for gold and VMS success on our extensive property holdings. Although the initial drilling did not produce significant intersections of gold, the new geological information from the drill program on both the gold and VMS targets
should certainly improve the probability of success for the next phase of exploration”.

EXPLORATION PRESENTATION 2006 ON WEBSITE

We encourage our shareholders to carefully review this presentation and cordially invite new prospective shareholders to critique our exploration potential by visiting Vencan’s website at www.vencan.com and reading this report”.

This report provides both historical data and new interpretation that combined deliver a
very compelling exploration opportunity. The potential for a larger VMS discovery on the Falconbridge Ltd. Optioned ground is outlined in the exploration strategy. The gold targets on the acquired Gagne ground are also outlined in the presentation and includes new interpretation from Vencan’s data and historical data.

Exploration Results- Fall 2005 Program

Highlights:

• CC88-05-07 and 08 extended the Main Trench zone (16.87 g/t over 2.0 metres) of brecciated chert-magnetite iron formation to a vertical depth of 85 metres.
• CC88-05-09 intersected a wide zone of gold/silver mineralization (0.46 g/t Au and 14.37 g/t Ag over 5.25 metres) 25 metres vertically below an historic Falconbridge drill hole (668-84-4), which intersected 2.84 g/t Au over 9.3 metres. The historic drill hole was not assayed for silver. These holes were drilled into strongly sulphidized chert-magnetite iron formation in contact with pyritepyrrhotite bearing felsic fragmentals.
• CC88-05-10 intersected two (2) gold-bearing zones beneath the historic L9+50W Trench (3.91 g/t Au over 1 metre) within mineralized chert-magnetite iron formation at vertical depths of 25 and 45 metres.
• Historic data compilation on the Cayenne East property, which contains the Jefferson VMS deposit on ground recently optioned from Falconbridge Ltd., hasbeen completed. This deposit contains an historical (1948) non NI 43-101 compliant resource estimate of 30,100 tons at 7.05% Zn and 4.58% Pb.

A presentation outlining the 2005 exploration results and the 2006 exploration plan can be viewed on Vencan’s website atwww.vencan.com. This report outlines the potential gold targets on the Cayenne Central property and the potential for expanding the Jefferson Pb-Zn deposit along strike and down plunge. The gold and VMS targets are based on a re-interpretation of VenCan’s 2004-2005 work and the historical data.

Cayenne Central Property

The Corporation has received encouraging results from the final four drill holes, CC88- 05-07 to CC88-05-10, completed during the September-October, 2005 period (Table 1). These holes were drilled in areas with known gold mineralization from historical trenches and drilling by Falconbridge Ltd. (1982-1984).

Main Trench Zone

Drill holes CC88-05-07 and 08 were targeted to intersect the gold mineralization of the Main Trench at vertical depths of 25 and 85 metres, respectively. This zone consists of strongly brecciated chert-magnetite iron formation with 5-10% pyrite and 5-10% quartz veins. Chip sampling (Table 2) completed by VenCan in 2005 returned 16.87 g/t Au over 2 metres in this zone.

CC88-05-07:
The zone was successfully intersected at 34.12 metres down the hole, where it ran 3.76 g/t Au over 0.68 metres (Table 1). In addition, 1.46 g/t over 0.80 metres was intersected in a separate zone of moderately brecciated chert-magnetite iron formation with 5-10% pyrite from was intersected from 22.0-23.0 metres down the hole.

CC88-05-08:
The zone was successfully intersected at 108.25 metres down the hole, where it ran 0.88 g/t Au over 0.60 metres.

Southern Felsic Volcanic / Iron Formation Contact Zone

Drill hole CC88-05-09 was targeted to intersect a zone of gold-bearing strongly sulphidized chert-magnetite iron formation in contact with pyrite-pyrrhotite bearing felsic fragmentals. An historic drill hole (668-84-4) completed by Falconbridge intersected this gold bearing zone which contained 1.38 g/t over 25.61 metres, including 2.84 g/t over 9.3
metres. Hole CC88-05-09 successfully intersected the zone at 87.10-108.15 metres down the hole, which is 25 metres vertically below Falconbridge drill hole 668-84-4. In addition to gold the zone contained significant silver (0.46 g/t Au and 14.37 g/t over 5.25 metres). The combination of gold-silver within the rocks intersected in this drill hole
may indicate potential for VMS style mineralization in this area similar to that of the Jefferson VMS deposit. None of the historic drill holes were assayed for silver.

L9+50W Trench Zone

Drill hole CC88-05-10 was targeted to intersect a zone of gold-bearing chert-magnetite iron formation with 3-5% pyrite at a vertical depth of 25 metres. Chip sampling (Table 2) completed by Vencan in 2005 returned 3.91 g/t Au over 1 metre from the historic L9+50W Trench. The zone was successfully intersected at 33.0 metres down the hole and assayed 1.15 g/t Au over 1 metre. A second auriferous zone with 3-5% pyrite in
chert-magnetite iron formation was intersected at 60.0-61.0 metres down the hole, at a vertical depth of 45 metres.

Table 1: Cayenne Central Drill Intersections

Table 2: Cayenne Central Drill Intersections

Vencan Gold Corporation is encouraged with the gold values intersected in drill holes CC88-05-07 and 08, which will require follow-up drilling to outline the strike extent and depth extent of the Main Trench mineralized zone. In addition, the VMS potential of the Cayenne Central property has been greatly enhanced by the results of drill hole CC88-05- 09. The discovery of gold/silver values in the strongly sulphidized chert-magnetite iron formation in contact with pyrite-pyrrhotite bearing felsic fragmentals outlines the similarity of this area with the Cayenne East area 10 kilometers to the northeast with respect to VMS potential.

Cayenne East Property-VMS Target

This property lies on the eastern portion of the Cayenne Property package, approximately 10 kilometers northeast of the Cayenne West drill holes. Part of this land package consists of ground optioned from Falconbridge Ltd. in September, 2005 (November 8, 2005 press release). This optioned ground contains the Jefferson VMS deposit with an estimate was completed by Duncan R. Derry in 1948, and is not considered to be 43-101 compliant. The Jefferson Deposit occurs within strongly sulphidized chert-magnetite iron formation in contact with felsic fragmentals. The work completed by Vencan in 2005 consisted of historic data compilation, review of Falconbridge’s historic drill holes (1993) and sampling the existing trenches (Table 4). This work resulted in a re-interpretation of
the area geology and structure which suggest there should be very good potential for expanding the Jefferson Pb-Zn deposit along strike and down plunge. The VMS deposit type being explored for on the Cayenne East property would be a GECO type analogue (60 Mt at 1.9% Cu, 3.8% Zn and 53 g/t Ag). The Jefferson Deposit occurs within strongly sulphidized chert-magnetite iron formation in contact with felsic fragmentals, a similar environment as intersected by drill hole CC88-05-09.

Table 3: Historical Work Jefferson Resources Estimates

Table 4: Jefferson Trench Grab Samples from 2005 Work program

QA / QC Procedures

Vencan implemented the following quality assurance/quality control (QA/QC) procedures for the Cayenne Central drill program under the guidance and onsite supervision of GeoVector Management Inc.

NQ core was logged and then sawn in half, with one side bagged and labeled. The other side was placed in core boxes for a permanent record and is stored at a secure facility in Timmins, Ontario. Core samples varied from 0.5 to 1.5 metres. All samples were transported to Swastika Laboratories Ltd. in Swastika, Ontario for crushing, pulverization and analysis. The core samples were initially crushed to ½ inch in a Denver jaw crusher; with the final crush to 10 mesh completed by a Rolls crusher. A 350 gram sample was split off using a Jones riffle and pulverized to 150 mesh and homogenized. The remaining split was placed in a plastic sample bag and stored in a secure area on the laboratories property. A 30 gram sample of the homogenized material is analyzed by the standard fire assay / atomic absorption method. Any samples returning equal to or greater than 1 g/t are re-assayed by the standard fire assay / gravimetric method.

Swastika Laboratories Ltd. inserted a Rocklabs Ltd. standard and a blank with each fire assay tray of samples. In addition to this Vencan inserted, at random, a Rocklabs Ltd. standard and a blank in each sequential series of 19 samples in order to ensure each fire assay tray contained one reference standard and one blank. Vencan uses one low grade, one moderate grade and one high grade Rocklabs Ltd. standard. None of the analyses were outside the accepted range of the reference standards used. All the blanks returned no gold values. Six percent of the coarse rejects from the Vencan drill program were submitted to another lab for check assaying. These results were all within acceptable limits.

FINANCING

Richard Schler, Vice President & CFO of Vencan Gold Corporation (the "Corporation") is pleased to announce the following financing arrangement. The first tranche of private placement financing has been completed, which raised $250,000 in gross proceeds. We will raise an aggregate of about $720,000 to support our next phase of exploration in
early 2006.

All securities sold or issued under the Offering are subject to a four-month hold period.

The proceeds of this financing will be used to advance exploration on Vencan’s Cayenne and Chili properties located in Heenan Township near Timmins and for General Working Capital purposes.

ADMINISTRATION

The Board granted the issuance of 250,000 stock options exercisable at $0.10 “per share” to Directors, Officers and Consultants of the Corporation under the terms of an Incentive Stock Option Plan approved by shareholders at the last AGM held on February 17, 2005.

Alan Sexton, P. Geo is the qualified person responsible for the technical information presented in this release.

For further information: please contact J. A. Kirk McKinnon, President and Chief Executive Officer; Richard Schler, Vice President & CFO, (416) 364-7024, (416) 364-2753 (FAX), vencan@vencan.com; www.vencan.com

WARNING: The Company relies upon litigation protection for "forward- looking" statements.