Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

October 19, 2009 09:53 ET

Golden Valley Mines-Significant New Gold Mineralization Intersected on the CHL Porphyry Intrusion and Shaft Zone

Osisko Reports Drilling Results from the Malartic CHL Prospect New Drillhole Results include 15.0 metres averaging 8.6 g/t Au

VAL-D'OR, QUEBEC--(Marketwire - Oct. 19, 2009) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company")(TSX VENTURE:GZZ) is pleased to announce the results from thirty-two (32) drillholes totalling 7,175 metres from the 2008 drill program targeting the CHL Porphyry Intrusion and the Shaft Zone on the Malartic CHL Prospect, currently optioned to Osisko Mining Corporation (TSX:OSK) (FRANKFURT:EWX). Additional results from a group of forty-one (41) drillholes totalling 7,175 metres are anticipated to be released over the next 6 weeks with respect to the CHL Porphyry Intrusion and the Shaft Zone.

The results include some of the highest grade intersections over significant widths encountered to date on the property. Highlights include 15.0 metres averaging 8.6 g/t Au (CHL08-2061), 29.5m averaging 3.39g/t Au, with 1.5m averaging 38.40g/t Au (CHL08-2101), 52.5m averaging 0.89g/t Au, with 19.5m averaging 1.02g/t Au (CHL08-2128) and, 18.0m averaging 1.55g/t Au with 1.5m averaging 7.5g/t Au (CHL08-2131).

In conjunction with the results released on September 10, 2009 and April 17, 2008, the total strike length tested to date on the Malartic CHL Prospect is approximately 1.4 kilometres. The Malartic CHL Prospect is located approximately 3.0 kilometres east-northeast of the Canadian Malartic deposit, currently under development by Osisko, and 1.6 kilometres east of the South Barnat deposit.

Drilling intersected a series of near surface and deeper gold mineralized zones across the CHL Porphyry Intrusion and the Shaft Zone. Assay results are summarized in the table below and on the attached drillhole compilation map:



The CHL Porphyry Intrusion

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Hole No. Section Dip/Az From (m) To (m) Length (m) Au g/t
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CHL08-2054 716797 -72/47 degrees 142.0 146.0 4.0 0.91

CHL08-2057 716859 -72/227 degrees 90.3 95.6 5.3 1.96
Including 92.7 95.6 2.9 3.16

CHL08-2059 716859 -45/227 degrees 46.5 51.0 4.5 0.81

CHL08-2060 716915 -72/227 degrees 135.6 141.4 5.8 0.94
And 195.5 233.0 37.5 0.60
CHL08-2061 716915 -64/227 degrees 115.0 130.0 15.0 8.6
Including 118.0 122.3 4.3 16.1
Including 125.5 130.0 4.5 12.0

CHL08-2128 716985 -72/47 degrees 154.5 169.5 15.0 0.71
And 208.5 216.0 7.5 0.57
And 244.5 247.5 3.0 1.85
And 271.5 324.0 52.5 0.89
Including 304.5 324.0 19.5 1.02

CHL08-2131 717071 -72/227 degrees 113.0 116.0 3.0 0.64
And 125.0 129.5 4.5 0.54
And 158.5 161.5 3.0 0.50
And 208.0 211.0 3.0 0.70
And 253.0 272.5 19.5 0.58
And 284.5 302.5 18.0 1.55
Including 289.0 290.5 1.5 7.5
And 334.0 340.0 6.0 0.85

CHL08-2133 717136 -53/227 degrees 99.0 102.0 3.0 1.29

CHL08-2138 717097 -51/227 degrees 131.0 134.0 3.0 1.39
And 182.0 185.0 3.0 1.02
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The Shaft Zone

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Hole No. Section Dip/Az From (m) To (m) Length (m) Au g/t
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CHL08-2092B 716600 -46/2 degrees 207.0 211.5 4.5 1.13

CHL08-2095 716650 -46/2 degrees 129.0 130.0 1.0 5.20
And 135.3 139.4 4.1 3.80
Including 135.3 136.5 1.2 9.23

CHL08-2098 716700 -46/2 degrees 14.0 18.5 4.5 1.24
And 174.0 201.0 27.0 1.24
Including 174.0 175.5 1.5 8.04

CHL08-2100 716700 -75/2 degrees 148.0 154.0 6.0 3.11

CHL08-2101 716752 -46/2 degrees 107.5 123.0 15.5 0.94
Including 122.0 123.0 1.0 5.29
And 154.5 184.0 29.5 3.39
Including 159.0 166.5 7.5 9.52
With 160.5 162.0 1.5 38.4
CHL08-2102 716750 -63/2 degrees 125.5 128.0 2.5 1.68
And 147.0 160.5 13.5 0.88
Including 148.0 149.0 1.0 4.52

CHL08-2103 716752 -75/2 degrees 28.5 42.0 13.5 0.72

CHL08-2105 716784 -64/272 degrees 58.0 64.0 6.0 0.58

CHL08-2106 716800 -61/2 degrees 201.5 206.0 4.5 1.13

CHL08-2107 716850 -46/2 degrees 178.0 185.5 7.5 0.56
And 221.5 226.0 4.5 0.81
And 245.5 249.5 4.0 1.10
And 264.5 267.5 3.0 0.87

CHL08-2108 716850 -59/2 degrees 201.0 208.5 7.5 0.75
And 228.0 240.0 12.0 0.41
And 243.0 259.5 16.5 1.40

CHL08-2119 716900 -61/2 degrees 18.0 21.0 3.0 0.89
And 52.5 57.0 4.5 0.93

CHL08-2120 716900 -73/2 degrees 70.5 78.0 7.5 0.64
And 76.5 78.0 1.5 1.09
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Drillholes CHL08-2054 to CHL08-2061 (table above) represent a 120 metre west-east section across the southwestern margin of the CHL Porphyry Intrusion, and holes CHL08-2128 to CHL08-2138 represent a 150 metre west-east section across the eastern margin of the CHL porphyry intrusion. Both sections are located between the Jeffrey Zone to the southeast and the Shaft Zone to the northwest. Drilling generally comprised 3 holes per set-up along the western margin of the CHL Porphyry Intrusion and single or 2-hole set-ups within the central core and eastern margins of the CHL Porphyry Intrusion. The higher grade zone in drillhole CHL08-2061 was closed at depth and near surface with holes CHL08-2060 and CHL08-2062, but remains open along strike near the contact of the CHL Porphyry Intrusion and ultramafic schists.

Mineralized intersections from the drillholes (CHL08-2092B to CHL08-2120 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, 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 displaced by numerous minor faults within quartz veins and biotite-sericite altered and deformed volcanic rocks (mafic to ultramafic schists) that are associated with sheared feldspathic dikes straddling the eastern strike extension of the Cadillac-Larder Lake Fault Zone 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 maintain 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).

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.

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 October 16, 2009, the Company holds majority property interests in 141 projects consisting of 3,715 mining (221,516 hectares) and 3 projects consisting of approximately 710 km2 in the Republic of Sierra Leone.

Mr. Michael P. Rosatelli, P.Geo. and Vice-President, Exploration and Mr. Glenn J. Mullan, P. Geo., President, CEO, and Chairman of Golden Valley Mines, are the Qualified Persons (as that term is defined in National Instrument 43-101) who have reviewed this news release and are 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.

A map is available at the following address: http://file.marketwire.com/release/GZZ_2009-10-19_Malartic-CHL_EN_Map.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.

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