ValGold Resources Ltd.

ValGold Resources Ltd.

November 06, 2007 08:00 ET

ValGold Completes Acquisition of Honnold Properties in Bolivar State, Venezuela

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 6, 2007) - ValGold Resources Ltd. ("ValGold" or the "Company") (TSX VENTURE:VAL) announces that it has completed its acquisition of Honnold Corp., a British Virgin Island company ("Honnold"), from three private companies (collectively, the "Vendors") pursuant to an option agreement entered into among ValGold and the Vendors, dated December 8, 2006 (the "Agreement"). Honnold indirectly owns twenty-one exploration concessions that cover approximately 900 square kilometers ("km2") in Bolivar State, Venezuela.

The Honnold concessions occur in three groupings; the Increible, the Chicanan and the Vuelvan Caras. These sizeable holdings cover known occurrences of gold mineralization and as in the case of the Chicanan may also hold the potential for base metals and industrial minerals.


The three Increible concessions are located in the El Callao Mining District and total approximately 150 km2. Within the concessions several gold occurrences have been delineated, most of which have seen minimal past exploration work. The main occurrence discovered to-date is known as Los Patos. This occurrence is hosted within highly sheared volcanic rocks along the Los Chivos Shear Zone which has been traced across the entire breadth of the Company's Increible 3 concession for a distance of 6.7 km. During the summer of 2007 ValGold drilled 35 core holes on the occurrence and outlined a mineralized zone having a strike length of 160 metres ("m") traceable down plunge for 280m. Some of the more notable drill intercepts include 1.91 grams per Tonne gold ("g/Tonne Au") over 48.9m true width in hole LI307-06 and 7.25 g/Tonne Au over 19.0m true width in hole LI307-09. The mineralization appears to be continuous from surface downwards and remains open in all directions. Micon International has been retained to carry out a 43-101 compliant resource calculation on the Los Patos gold occurrence. This work will begin in late November. A second drill program is planned for 2008 to expand the Los Patos mineralization and to drill test the other gold occurrences along the Los Chivos Shear Zone.


The Chicanan east and west concessions straddle the Chicanan River and are located approximately 40 km northwest of the Kilometer 88 gold camp. The concessions cover 800 km2 of highly prospective Lower Proterozoic granite and greenstone rocks containing numerous gold occurrences and artisanal workings.

Mochila Lineament Gold Occurrences

The Mochila Lineament gold occurrences are located within the Chicanan West concessions and occupy a large area of anomalous gold in soils that measures at least 10 km2. The Mochila is considered by ValGold to be its primary gold target based upon the extent and strength of the gold in soils anomalies and the widespread and long producing artisanal workings within the occurrence.

The underlying geology largely consists of a 2,500m thick, layered, mafic-ultramafic intrusion that has intruded into Lower Proterozoic greenstones. The intrusion has undergone several phases of folding and faulting which have produced a number of prospective sites for gold deposition. The most promising of these sites is along the Mochila Lineament which is a regional break coincident with the most prominent fold axis. Artisanal gold workings are found intermittently along this break for a minimum distance of 10 km. Another important gold target is along the upper contact of the central gabbro layer particularly in association with the Mochila Lineament where gold soil anomalies are present over a strike length of 4 km.

An initial 5,000m drill program is currently underway to test both of these types of targets within the Mochila Lineament gold occurrences. To date, the first 3 drill holes have been completed for a total of 1,101m of core. The fourth hole is being drilled under the El Clarito zone where there is the potential for high-grade gold quartz veins. The location of the El Clarita pit is shown on the map below. No previous drilling has taken place in this area. Photographs of the visible gold in the vein quartz together with the pit area recently visited by Tom Pollock, ValGold's Vice President, Exploration, are being posted on ValGold's website, The initial program should be complete by the end of the year and if the results are encouraging drilling will continue in the New Year.

Zulia Gold Occurrences

The Zulia gold occurrences are reportedly on strike with the Mochila area approximately 10 km to the northeast and include three known gold soil anomalies measuring up to 2,000m long and up to 500m across. Little is known about the geology of the occurrences but based on aeromagnetic surveys it appears that the Zulia gold zones are underlain by the same layered intrusive rocks and have similar structural settings. Also, similar to the Mochila area, the gold soil anomalies are coincident with a fold axis and in one instance with one of the intrusive layered contacts. Two of the best soil anomalies include 1.63 g/Tonne gold over 60m (three samples, max. 2.42 g/Tonne Au) and 3.47 g/Tonne gold over 40 metres (two samples, max. 4.20 g/Tonne Au). Another single soil sample gave a value of 19.91 g/Tonne gold. During 2008 the Zulia gold in soil anomalies will be followed up by trenching and, if warranted, drilling.

Carolina Gold Occurrences

The Carolina gold occurrences may be the oldest known gold occurrences in the region. Discovered in the late 19th century, the Carolina gold occurrences have reportedly been mined intermittently for more than 110 years with small-scale minero operations still currently active. The Carolina occurrences cover numerous gold zones and artisanal workings along the regional scale Chicanan-Carolina Shear Zone. The shear zone is up to five kilometers wide and follows the Chicanan River through the central portion of the six Chicanan East concessions over a distance of approximately 40 km and is associated with several other prospective gold occurrences. Rocks within the shear zone are comprised mostly of intermediate schists and the abovementioned layered ultramafic intrusion and various intermediate porphyries. Gold occurrences have been outlined through a combination of soil and auger sampling programs, drilling and mapping within artisanal pits. This work was carried out by Gold Fields over a period of 1991 to 1999. Because of the area's unique structural setting and the presence of numerous gold occurrences the Carolina area offers many exceptional drill targets. These targets lie along a 15 km strike length of the shear zone and provide the potential for multiple discoveries. Drilling in the Carolina area is expected to begin as early as the spring of 2008.

To view the map accompanying this press release please click on the following link:


Previously, ValGold optioned to purchase the Honnold shares and advanced to the Vendors US$500,000 cash and issued 5,000,000 ValGold common shares having a deemed value of US$0.20 per share. The cash and shares were advanced following approval of the transaction by ValGold shareholders and regulatory approval. On October 26, 2007, ValGold exercised the option and paid the Vendors an additional US$1,500,000 in cash and issued ValGold 15,014,443 common shares having a deemed value of US$5,000,000. The deemed per share value of the ValGold shares issuable to exercise the option was calculated as an amount equal to US$0.20 plus one-half of the difference between US$0.20 and the average closing price of ValGold shares as traded on the TSX Venture Exchange over the 90-day period prior to the exercise date.

The Vendors will retain a collective 10% free carried interest in the Venezuelan properties until the completion of a bankable feasibility study on the properties or any portion thereof. If they elect to maintain this interest, they would be obligated to provide their share of funding as required or their 10% interest would be diluted. The Vendors will also retain a 2% net smelter returns royalty interest in the exploration licenses.

Mr. Pedro Tinoco, a principal of one of the Vendors, is currently a director of the ValGold. At the time the Agreement was entered into among ValGold and the Vendors, all of the holders of the Honnold shares were at arm's length to the Company.

A second installment of a finder's fee to an arm's length party of 890,073 common shares (or a value of US$375,000.00) was paid on the close of the acquisition. The total finder's fee was 5% of the value of the acquisition paid in two installments. The first payment was by the issuance of 375,000 ValGold shares at a deemed value of US$0.20 per share.

Mr. Tom Pollock, P.Geo., ValGold's Vice-President, Exploration, is the Qualified Person for the projects, and is responsible for all of the technical reporting in compliance with NI 43-101. Mr. Pollock has instituted and is responsible for ValGold's program of Quality Control and Assurance ("QC/QA"), using assay control samples and duplicates.

For further information on this major acquisition, our Company and its portfolio of international exploration projects and joint ventures, visit our website at

Stephen J. Wilkinson, President & Chief Executive Officer

This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's filings that are available at or the Company's website at

SEC 12g3-2(b) exemption 82-3339

No regulatory authority has approved or disapproved the information contained in this news release.

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