Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

December 23, 2009 10:28 ET

Golden Valley Mines: Significant New Gold Mineralization Continues to be Intersected on the Shaft Zone and CHL Porphyry Intrusion

Osisko Reports Drilling Results from the Malartic CHL Prospect, New Drillhole Results include 10.5 metres averaging 2.56 g/t Au

VAL-D'OR, QUEBEC--(Marketwire - Dec. 23, 2009) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company")(TSX VENTURE:GZZ) is pleased to announce the results of eighteen (18) drillholes totalling 3,203 metres from the 2008 drill program targeting the Shaft Zone and CHL Porphyry Intrusion on the Malartic CHL Prospect, currently optioned to Osisko Mining Corporation (OSK: TSX, EWX: Deutsche Boerse). Assay results for the final group of sixteen (16) drillholes totalling 2,535 metres are anticipated for release over the next 4-6 weeks.

Additional near-surface, higher grade gold mineralization has been intersected from this group of drillholes. Highlights include, 10.5 metres averaging 2.56 g/t Au, with 1.5m grading 7.69 g/t Au (CHL08-2113), 21.5m averaging 0.89g/t Au, with 7.0m grading 1.35 g/t Au (CHL08-2110) from the Shaft Zone and; 10.15m averaging 0.87g/t Au, with 0.95m grading 2.76 g/t Au and 5.0m averaging 3.8 g/t Au with 1.05m grading 16.15 g/t (CHL08-2139) from mineralization hosted in the CHL Porphyry Intrusion.

Assay results are summarized in the table below and on the drillhole compilation map attached at the end of this press release:



Shaft Zone

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Hole No. Section Dip/Az From (m) To (m) Length (m) Au g/t

CHL08-2109 716800 -74 degrees/ 113.0 120.5 7.5 0.51
2 degrees
And 166.5 169.4 2.9 1.12
And 176.0 179.0 3.0 0.74
And 187.0 194.0 7.0 0.97
Including 187.0 190.7 3.7 1.41
And 218.5 220.2 1.70 2.09

CHL08-2110 716800 -46 degrees/ 64.5 66.0 1.5 1.37
2 degrees
And 78.0 99.5 21.5 0.89
Including 85.0 92.0 7.0 1.35
With 85.0 89.0 4.0 2.03

CHL08-2111 716749 -47 degrees/ 17.0 18.5 1.5 1.56
2 degrees
And 47.0 48.5 1.5 2.9
And 60.0 66.5 6.5 0.84
Including 60.0 62.3 2.3 1.13
And 75.5 102.0 26.5 0.66
With 75.5 87.5 12.0 0.87

CHL08-2112 716700 -47 degrees/ 35.0 40.4 5.4 2.14
2 degrees
Including 38.0 40.4 2.4 3.98
And 57.0 60.0 3.0 1.8

CHL08-2113 716650 -47 degrees/ 37.0 46.0 9.0 1.06
2 degrees
Including 43.0 44.5 1.5 2.60
And 52.0 62.5 10.5 2.56
With 59.5 61.0 1.5 7.69
And 126.0 127.5 1.5 0.909
And 129.0 130.5 1.5 1.11

CHL08-2114 716650 -47 degrees/ 79.5 81.0 1.5 0.76
2 degrees
And 133.1 136.0 2.9 0.73

CHL08-2121 716868 -48 degrees/
349 degrees 75.5 77.0 1.5 1.55
And 165.5 168.0 2.5 1.31
And 170.0 171.0 1.0 3.89
And 176.5 181.0 4.5 0.81
Including 176.5 178.0 1.5 1.66

CHL08-2122 716900 -67 degrees/ 16.0 19.0 3.0 1.51
2 degrees
And 88.0 89.5 1.5 1.5
And 113.5 118.0 4.5 1.03
Including 113.5 115.0 1.5 2.12
And 173.5 175.0 1.5 1.92

CHL08-2123 716941 -45 degrees/ 50.5 51.5 1.0 1.38
47 degrees

CHL08-2125 716978 -45 degrees/ 11.55 15.5 3.95 1.35
47 degrees
Including 13.5 15.5 2.0 2.09
And 49.5 51.0 1.5 1.43
And 57.0 58.5 1.5 1.14

CHL08-2126 716979 -72 degrees/ 8.25 10.5 2.25 0.62
47 degrees
And 11.1 15.0 3.90 0.75
And 22.0 29.0 7.0 1.03
And 49.0 55.0 6.0 0.68
With 50.0 51.0 1.0 1.26
And 70.0 72.7 2.7 1.82
Including 70.0 72.05 2.05 2.29
And 104.8 108.0 3.2 2.76
Including 105.8 108.0 2.2 3.72
With 105.8 106.8 1.0 (i)5.86
And 137.0 141.3 4.3 0.54

CHL08-2135 717167 -48 degrees/
92 degrees NSA

CHL08-2137 717111 -50 degrees/
317 degrees 18.5 21.65 3.15 0.95
Including 18.5 19.5 1.0 1.52
And 26.8 27.9 1.1 1.54
And 53.4 54.33 0.93 1.61
And 54.62 55.3 0.68 4.69
And 55.65 56.25 0.60 1.19
And 56.85 60.75 3.90 2.02
Including 58.8 60.75 1.95 3.51
With 60.0 60.75 0.75 (ii)5.91
And 69.1 70.1 1.0 1.62
And 80.5 81.9 1.4 1.52
And 102.4 106.0 3.6 0.91
Including 102.4 103.55 1.15 1.35
And 110.0 111.0 1.0 3.01
-------------------------------------------------------------------------
(i) Sample duplicate assayed 11.1g/t Au
(ii) Sample duplicate assayed 8.43g/t Au



CHL Porphyry Intrusion

-------------------------------------------------------------------------
Hole No. Section Dip/Az From (m) To (m) Length (m) Au g/t

CHL08-2127 716986 -45 degrees/ 73.7 76.0 2.3 2.32
47 degrees
And 124.9 132.0 7.1 0.70
And 134.0 140.85 6.85 1.10

CHL08-2129 717071 -45 degrees/ 133.0 136.5 3.65 1.25
227 degrees 133.0 136.5 3.65 1.25
And 212.2 214.3 2.1 1.02

CHL08-2130 717071 -64 degrees/ 120.6 123.8 3.2 1.04
227 degrees

CHL08-2132 717068 -48 degrees/ NSA
317 degrees

CHL08-2139 717111 -45 degrees/ 60.25 70.4 10.15 0.87
227 degrees
Including 66.3 67.25 0.95 (i)2.76
And 129.0 134.0 5.0 3.8
Including 129.0 130.05 1.05 16.15
And 137.0 139.15 2.15 10.5

Including 138.15 139.15 1.0 22.0
-------------------------------------------------------------------------
(i) Sample duplicate assayed 13.1g/t Au


Drillholes CHL08-2127, CHL08-2129 to 2130, CHL08-2132 and CHL08-2139 (see table above for assay result summaries) represent in-fill drill assay results (980m) previously reported over a west-east section across the eastern margin of the CHL Porphyry Intrusion. These drill results are located between the Jeffrey Zone to the southeast and the Shaft Zone to the northwest.

Mineralized intersections from the drillholes (CHL08-2109 to CHL08-2114; CHL08-2121 to CHL08-2123; CHL08-2125 to CHL08-2126; CHL08-2135; and CHL08-2137 - assay result summaries listed in table above) targeting the Shaft Zone are all from the deeper portion of the zone or from zones of lower grade disseminated mineralization located in the CHL Porphyry Intrusion immediately south of the Shaft Zone. These new drill results (2,224m) along with previously reported intersections from the Shaft Zone, presently suggests a minimum 150 metre strike length of unknown true width.

Mineralization along the CHL Porphyry Intrusion consists of disseminated pyrite-gold in strongly potassic altered quartz-feldspar porphyry dikes in contact with a predominately ultramafic flow sequence, and in subordinate gabbro and sedimentary units. Narrower, higher-grade mineralization is hosted in quartz veins; brecciated and silicified porphyry and/or talc/chlorite altered and sheared ultramafic rocks.

Current structural interpretation by Osisko indicates that the Jeffrey and Shaft Zones are located at the southeastern and northwestern extremities, respectively, of the CHL Porphyry Intrusion, which has been deformed into a Z-shaped body by sinistral strike-slip motion along the Cadillac-Larder Lake Fault Zone. The geological model suggests potential for additional mineralization along dilation zones at the contact between the porphyry and the ultramafic schists.

A very similar structural setting occurs at the recently opened Lapa Mine, Agnico-Eagle's highest-grade gold mine (3.8 million tonnes of proven and probable reserves grading 8.8 grams of gold per tonne and containing 1.1 million ounces of gold; Agnico Eagle Mines Limited website). At the Lapa deposit, many of the gold-mineralized zones are located in the hinges of fold structures and are displaced by numerous minor faults. The mineralized zones are hosted in quartz veins and deformed, altered (biotite-sericite) volcanic rocks (mafic to ultramafic schists), that are associated with sheared feldspathic dikes straddling the Cadillac-Larder Lake Fault Zone, as it occurs on the Malartic CHL Prospect.

All NQ or HQ core assays reported above were obtained by standard 50 gram fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.40g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals.

Osisko has the right to acquire a 70% interest in the Malartic CHL Property in consideration for $150,000 in cash payments over a four year period (paid) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley Mines will retain a free-carried interest of 30% to production. Drilling completed to date by option/joint venture partner and operator Osisko included 19,746 metres (101 drillholes) on the property in 2008 and 15 holes totalling 6,544 metres in 2007 (total drilling to date: 26,290-metres). Concurrently, a 19,000 metre program is underway on the property testing the Jeffrey Zone on sections 25 metres apart over a strike length of 400 metres with an additional 1,000 metres allocated to testing of the fault near the historical Mammoth Zone area located on the southern contact of the Cadillac-Larder Lake Fault Zone.

Also, Osisko purchased a claim block from Golden Valley Mines located immediately southeast of the Canadian Malartic Mine. Terms of the acquisition included a cash payment of $100,000 at signing to allow Osisko to earn a 100%-interest subject to a 2% net smelter royalty payable to Golden Valley Mines. This claim block covers the Charlie Zone, located immediately southeast of the Canadian Malartic deposit.

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority-owned grassroots projects. As of December 22, 2009, the Company holds majority property interests in 145 projects consisting of 3,832 mining (227,094 hectares) and 3 projects consisting of approximately 710 km2 in the Republic of Sierra Leone.

Mr. Glenn J. Mullan, P. Geo., President, CEO, and Chairman of Golden Valley Mines, is the Qualified Persons (as that term is defined in National Instrument 43-101) who has reviewed this news release and is responsible for the technical information reported herein.

Forward-Looking Statement: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict and are not to be interpreted as guarantees for future performance. These forward-looking statements could cause actual events or results to differ materially from those anticipated in such forward-looking statements. All forward-looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on such forward-looking statements.

The Project Malartic CHL Prospect Figure 1 and Figure 2 are available at the following addresses:

Fig. 1: http://media3.marketwire.com/docs/Fig.1_1223.pdf

Fig. 2: http://media3.marketwire.com/docs/Fig.2_1223.pdf

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Golden Valley Mines Ltd.
    Glenn J. Mullan
    Chairman, President, and CEO
    Toll Free: 877-879-1688 ext. 1222
    or
    Golden Valley Mines Ltd.
    Michael P. Rosatelli
    Vice President, Exploration
    819-824-2808 ext. 205