Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

November 09, 2006 13:09 ET

Exploration Update-Cheechoo Gold Project, James Bay, Quebec First Assay Results Expected in Two Weeks

VAL-D'OR, QUEBEC--(CCNMatthews - Nov. 9, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces the successful completion of Phase II of the 2006 field work program on the Cheechoo Gold Project. First assay results are expected in approximately two weeks.

Three main mineralized corridors were identified during the current prospecting, mapping, and sampling program:

- Cheechoo B Southwest: The main mineralized zone is located in the southwest corner of the main Cheechoo B property and consists of four mineralized areas (pyrite, arsenopyrite, pyrrhotite, chalcopyrite, sphalerite) located astride a major northwest to southeast trending regional scale lineament interpreted to extend from the "Roberto" gold deposit to the northwest and associated with coincidental airborne electromagnetic (AEM) anomalies and linear magnetic features (outlined in the Golden Valley Mines 2005 airborne geophysical survey). Mineralized bedrock and boulders extend intermittently along 3.5 kilometres of strike length.

- Sharks Northwest: Prospecting was concentrated in the area adjacent to and east of the property boundary with Everton Resources along the projected trend of occurrences described by Everton as the "Inex Zone & Inex Zone Extension". Several well mineralized outcrop areas were identified. Mineralization is comprised of 5-10% sulphide content (arsenopyrite-pyrrhotite-pyrite-chalcopyrite +/- galena) hosted within a hematitic brecciated unit within a silicified and biotite-rich facies of paragneiss.

- Cheechoo East: Field crews identified a mineralized structural corridor apparently on strike east-southeast with Everton Resources "Manuel Zone" (or possibly a parallel mineralized zone) associated with coincidental AEM anomalies and linear magnetic features (outlined in the Golden Valley Mines 2005 airborne geophysical survey). Several occurrences have been outlined across two separate trends intermittently over 1 kilometre and 800 metre strike lengths. The mineral occurrences are hosted within silicified, biotite-rich and/or hematized paragniess. Mineralization consists of pyrite-pyrrhotite, chalcopyrite, molybdenum, arsenopyrite and magnetite.

A total of 452 rock and channel samples were collected on the Cheechoo and Sharks properties during the course of the Phase II field program. All samples have now been submitted to the laboratory for analysis, and will be reported on once compiled and interpreted.

The objective of the program was to complete geological mapping, prospecting and sampling work over seven priority target areas, based on encouraging results obtained in 2005 (airborne electromagnetic-magnetic survey, rock sampling, lake sediment survey and data compilation). The geophysical programs were conducted over most of the large property landholdings east and west of Goldcorp's Roberto gold deposit located in the James Bay region of Northern Quebec and the rock and lake sediment sampling were concentrated in areas closest to the Roberto discovery area.

The exploration program was subsequently expanded to include additional follow-up work over the Cheechoo "A" block based on favourable geophysical and rock sampling results obtained from the Phase I program (refer to news releases: March 20 & August 23, 2006) where detailed grid mapping and ground-based geophysical surveys conducted over the summer identified a well-developed and mineralized shear zone.

Prospective targets identified in the airborne geophysical data and/or anomalous gold rock samples outlined or identified during the 2005 and 2006 Phase I program, were the primary focus of the Phase II field work. Detailed prospecting, including the use of a "beep mat" geophysical device, geological mapping and sampling were conducted over the selected priority target areas. Hand stripping and trenching were completed on well-developed mineralized structural zones to obtain fresh, representative and selective alteration/mineral zonation samples. Additional ground follow-up is planned to define possible diamond drill hole collar locations.

Golden Valley Mines is one of the principal claim holders in the area to the east and west of Goldcorp's Eleonore gold project which hosts the Roberto gold deposit. Golden Valley Mines' James Bay projects include 1,017 claims in 14 wholly owned (100%) properties, and two option/joint ventures with Sirios Resources Inc. (refer to news release February 4, 2005) covering a total of 52,846 hectares (529 km2) in the region. Golden Valley Mines may earn an initial 60% interest in the Sirios properties by incurring expenditures of $1,000,000 over four years on each of the two agreements (Cheechoo Properties and Sharks Property). Following vesting, the Company may then increase its interest to 80% by completing a Bankable Feasibility Study within six years of vesting.

Uranium Exploration Update: as previously reported (refer to news release October 2, 2006), the airborne geophysical survey conducted at the Beartooth Island Prospect (Athabasca Basin, Saskatchewan) has been completed and preliminary reports received. Final interpretive reports are expected in early December. The MEGATEM II system appears to have outlined several north-south trending lineaments in the western portion of the property and northeast trending lineaments in the eastern part of the property all thought to potentially represent fault zones. In the east portion of the property, these are considered of interest due to their proximity to the Black Bay fault zone which is associated with uranium mineralization closer to the Uranium City and Beaverlodge areas to the northeast. Note that the Beartooth Island Prospect is located approximately 10 kilometres southeast of the Maurice Bay uranium deposit (Cameco). The terms of the Option/Joint Venture Agreement with Ditem Explorations Inc. (TSX-V: DIT), together with background information about the geology and historic exploration have been described in Golden Valley Mines' press releases dated January 20; June 6; July 24, 2006; and November 18, 2004. Golden Valley Mines' website has been updated with a map and information about the general geology (www.goldenvalleymines.com/beartoothisland) and a number of historic photographs from the fieldwork program completed in 1979 (www.goldenvalleymines.com/beartoothislandphotos).

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 31, 2006, the company holds majority property interests in 130 projects consisting of 3,663 mining titles (203,831 hectares) in Saskatchewan, Ontario and Quebec.

Michael P. Rosatelli, P. Geo. is a "Qualified Person" as defined in National Instrument 43-101 and is responsible for the technical information presented in this news release.

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

Contact Information