Consolidated Big Valley Resources Inc.
TSX VENTURE : CBG

November 21, 2006 09:30 ET

Big Valley Enters an Agreement for Option to Purchase 100% Interest Rousseau Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 21, 2006) - Consolidated Big Valley Resources Inc. (TSX VENTURE:CBG) announces the entering into an agreement for an option to purchase 100% interest in the Rousseau gold property in Rousseau township, Quebec from Globex Mining Enterprises Inc. (GMX-Toronto, G1M-Frankfurt, Stuttgart, Berlin, Munich, Xetra and GLBXF-U.S. Pink Sheets). Terms are $30,000 cash and issuance of an aggregate of 100,000 common shares, at a deemed price of $0.20 per share upon approval of the regulatory authorities and $35,000 within 60 days of approval. The property is also subject to a 6% Net Metal Royalty.

The Rousseau property is 23 kilometres (km) northeast of the city of La Sarre and 110 kilometres (km) north of Rouyn-Noranda and Consolidated Big Valley's Granada mine and mill property in northwestern Quebec. Access to the property is gained by all season gravel roads.

The Rousseau gold property was first worked by the Teck Huges Gold Mines in 1929. Two short shafts were sunk; Shaft # 1 to 13.7 metres on the Principal Vein and Shaft # 2 to 4.6 metres on the Mercier Vein. During the same period trenching was performed on both gold bearing veins.

In 1979, International Standard Resources drilled 14 holes for total length of 324 metres on the Principal and Mercier veins. Two surface bulk samples from were taken from the Principal Vein which returned the following assays:

- Bulk sample #1: 28 tonnes grading 23.9 g/t gold and 201.8 g/t silver.

- Bulk sample #2: 12.8 tonnes grading 6.2 g/t gold and 29.1 g/t silver.

In 1980, a further 1,644 metres of drilling was completed and a bulk sample was taken from the Shaft # 1:

- Bulk sample:50.5 tonnes grading 3.4 g/t gold and 27.6 g/t silver.

In the fall of 1980, a 428 metre ramp to a vertical depth of 91.4 metres with 188 metres of cross cuts in to the Principal Vein was tunnelled. A bulk sample was taken with the following results:

- Bulk Sample: 75.6 tonnes grading 14.46 g/t gold and 66.34 g/t silver.

912 metres of underground drilling was done as well as an additional 992 metres of surface drilling on the west extension of the Principal Vein.

In 1982 a 150 tonne per day mill was installed on site and 500 tonnes of ore was processed. During the same year another bulk sample of 2,987 tonnes was taken which graded 4.9 g/t gold.

Between 1988 and 1989 two drills campaigns were undertaken. The first consisted of 7 holes totalling 1,521 metres on the Principal and Mercier Veins; the second, 14 holes totalling 1,545 metres on the Mercier Vein.

In 1992, the property was optioned by Ressources minieres Cancaco Ltee. The underground was sampled over the following dimensions:



- Level 60: 3 metres x 1.0 metre - 9.66 g/t Au
- Level 100: 12 metres x 1.05 metres - 7.18 g/t Au
- Level 130: 6 metres x 1.0 metre - 7.18 g/t Au
5 metres x 1.0 metre - 72.45 g/t Au
- Level 200: 34 metres x 1.0 metre (raise) - 22.97 g/t Au
9 metres x 1.0 metre - 6.86 g/t Au
- Level 220: 33 metres x 1.0 metre - 22.22 g/t Au
6 metres x 1.0 metre - 13.71 g/t Au
6 metres x 1.0 metre - 5.55 g/t Au
- Level 290: 12 metres x 1.0 metre - 14.74 g/t Au
9 metres x 1.0 metre - 11.66 g/t Au


In 1985, OP Resources calculated a (pre-NI 43-101) proven and probable resources as 39,600 tonnes at 13.7 g/t Au accessible from the existing ramp.

The vein systems are open to depth and previous exploration has indicated gold values along strike.

The Company is in the process of reviewing the documentation and plans to reactivate the Rousseau property and take a bulk sample of ore for processing at the Granada mill.

The resource estimate cited above predate, and therefore does not conform to, the more stringent reporting requirements of NI 43-101 and should not be relied upon regarding the historical resource estimate according to those standards. The Company has not done sufficient work yet to verify or classify the historical estimates as a current mineral resource and the Company is not treating the historical estimates as a current mineral reserve or resource. The Company believes that the historical estimates provide a favourable indication of the gold potential of the property, but should not be relied upon and intend to embark on an exploration program of the original five veins in order to quantify new resources and upgrade historical resource to NI 43-101 compliance. The Company places no reliance on these historical values and they should not be relied upon.

Financing

The Company is also pleased to announce that they have entered into financing agreements to complete a private placement to raise up to $500,000 through the issuance of both flow-through and non flow-through common shares. The flow-through will be comprised of units at $0.185, each unit will consist of one flow-through common share and one non flow-through warrant exercisable at a price of $0.22 for two years from closing. The non flow-through will be comprised of units at $0.16, each unit will consist of one common share and one warrant exercisable at a price of $0.20 for two years from closing. The proceeds of the private placement will be used for continued exploration work and general working capital. A finder's fee will be payable in accordance with the rules and polices of the TSX Venture Exchange. The terms of the financing and finders' fee are subject to regulatory approval.

The contents of the above news release have been reviewed and verified by Frank J. Basa, P. Eng., a qualified person under NI 43-101.

CONSOLIDATED BIG VALLEY RESOURCES INC.

Frank Basa, Chairman

This press release has been prepared by management.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this press release.

Contact Information

  • Consolidated Big Valley Resources Inc.
    Frank Basa
    Chairman
    (604) 683-6648
    (604) 683-1350 (FAX)
    Website: www.bigvalleyres.com