Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

March 23, 2010 10:35 ET

Golden Valley Mines: Significant New Gold Mineralization Intersected from the Malartic CHL Prospect Including 54 Metres Averaging 1.39 g/t Au

VAL-D'OR, QUÉBEC--(Marketwire - March 23, 2010) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company") (TSX VENTURE:GZZ) is pleased to announce the first set of assay results (5 drillholes totalling 708 metres) from the on-going 26,000 metre drill program on the Malartic CHL Prospect, which includes definition drilling of the Jeffrey Zone. The property is optioned to Osisko Mining Corporation ("Osisko")(TSX:OSK)(FRANKFURT:EWX) who is also the project operator.

These results include the first drillholes testing the historical Mammoth Zone area, located on the southern contact of the Cadillac-Larder Lake Fault Zone. This mineralized zone is located between Osisko's South Barnat Zone and the Jeffrey Zone, and only 200 metres directly east of the proposed open pit shell currently under development by Osisko (See attached maps for geological setting and drillhole location with assay highlights).

First results from the on-going definition drilling program on the Jeffrey Zone will be released in the next two weeks. 

At the Mammoth Zone, both near-surface and deeper high grade gold mineralization have been intersected. Significant drill intersections include 10.9 metres averaging 2.56 g/t Au (CHL09-2191), 8.4 metres averaging 2.39 g/t Au, including 1.7 metres grading 4.8 g/t Au (CHL09-2192), 54.3 metres averaging 1.39 g/t Au, including 1.5 metres grading 16.45 g/t Au (CHL09-2193) and 15.8 metres averaging 1.66 g/t Au (CHL09-2194). Assay results are summarized in the table below and on the drillhole compilation maps attached at the end of this press release:

Mammoth Zone (Pit Area)

Hole No. Section Dip/Az From (m) To (m) Length (m) Au g/t
CHL09-2191 716450 -45º/2º 81.0 86.9 5.9 3.12
Including     81.9 83.2 1.3 5.06
And     94.0 104.9 10.9 2.56
CHL09-2192 716550 -45º/2º 78.5 81.0 2.5 7.0
Including     78.5 79.5 1.0 16.8
And     99.5 107.9 8.4 2.39
Including     99.5 101.2 1.70 4.8
CHL09-2193 716500 -45º/2º 63.7 118.0 54.3 1.39
Including     111.5 113.0 1.5 16.45
And     137.5 153.0 15.5 1.95
Including     148.7 153.0 4.3 4.65
CHL09-2194 716500 -45º/2º 17.0 32.8 15.8 1.66
Including     24.5 26.0 1.5 6.9
CHL09-2195 716550 -45º/2º 148.0 150.8 2.8 0.88

On the Malartic CHL Prospect, the fault zone associated with the Mammoth Zone is defined by the contact between Archean-age Piche Group Volcanic rocks (mafic to ultramafic schists) and the Pontiac Group Sediments (wacke) to the south. The five drill holes were drilled at a spacing of 50 metres on two north-south sections spaced out between 50-60 metres. Disseminated pyrite-gold mineralization consists of series of sub-vertical tabular subzones hosted in silicified greywackes of the Pontiac Group south of the fault contact. North of the fault, mineralization is hosted in both strongly potassic altered quartz-feldspar porphyry dikes and schistose, carbonated and biotite altered ultramafic rocks. Narrower, higher-grade mineralization is hosted in late quartz veins that can contain visible gold.

A previous hole (CHL07-2000 located 25 metres east of CHL09-2193) drilled in 2007 by Osisko Mining in the area was designed to test the vertical extent of the deep-seated Norrie Zone mineralized system, located in Pontiac sediments on the south side of the fault. It intersected significant widths of disseminated gold mineralization in three separate zones. Within the target zone, the hole cut 107 metres averaging 1.47 g/t Au between 1,483 metres and 1,590 metres downhole depth. The relationship, if any, between the near-surface Mammoth Zone and the deep-seated Norrie Zone is presently unknown.

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, Québec. 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. 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 February 3, 2010, the Company holds majority property interests in 153 projects consisting of 3,883 mining claims (229,327 hectares) and 6 projects consisting of approximately 1,413 km² in the Republic of Sierra Leone.

Mr. Glenn J. Mullan, P. Geo., President, CEO, and Chairman of Golden Valley Mines, is the Qualified Person (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.

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Contact Information

  • Golden Valley Mines Ltd.
    Glenn J. Mullan
    Chairman, President, and CEO
    Toll Free: 877.879.1688 ext. 1222