Golden Valley Mines Ltd.
TSX VENTURE : GZZ

Golden Valley Mines Ltd.

May 07, 2008 10:00 ET

Golden Valley Mines Ltd.: Cheechoo Gold Exploration Project Update James Bay Quebec

VAL-D'OR, QUEBEC--(Marketwire - May 7, 2008) - Golden Valley Mines Ltd. ("Golden Valley Mines" or the "Company") (TSX VENTURE:GZZ) is pleased to provide the following report on results from the 2007 exploration program on the Cheechoo gold project.

2007 Program Summary: The Phase I Program included the following ground follow-up components based on results obtained previously in 2005 and 2006:

- Establishment of 4 grids on the Sharks and Cheechoo "B" properties (250 line kilometers or 196 land-based line kilometers;

- 5,496 grid and reconnaissance humus soil samples;

- Detailed grid-mapping and sampling completed over five separate mineralized trends;

- 115.4 linear metres of channel sampling over showings and / or mineralized corridors; and

- 90.11 line kilometers of induced polarization (IP), 36.2 line kilometers of Horizontal Loop Electromagnetic (HLEM) and 196.1 line kilometers of magnetic surveying.

The Phase II Program consisted of follow-up diamond drilling and prospecting of geophysical and geochemical results. The drill program totalled 2,507 linear metres of NQ core in nineteen (19) holes over the Cheechoo A, Sharks and Cheechoo B claim groups, including testing of the "Letang" and "Trap Zone" (Cheechoo A), "Inex southeast extension" now referred to as "Top Fin" (Sharks), "Marchand" (Sharks-Cheechoo B boundary) and "Garrioch" (Cheechoo B) gold showings / mineralized corridors. Drilling was completed over the period from September 24th to December 20th, 2007. A total of 682 core samples were submitted for analysis with final assay results recently received. The primary targeting tool was testing of geophysical responses (induced polarization (IP) chargeability anomalies and horizontal loop electromagnetic (HLEM) conductors) along mineralized corridors or their inferred traces. At the time of drilling, the results for rock / soil / channel sample results remained outstanding due to laboratory backlogs.

Cheechoo A: The first hole (GCHA-07-01) of the program tested the "Letang" Showing where a surface grab sample in 2006 recorded a high-grade gold value of 209.24 g/t from quartz vein material hosted in a granodioritic intrusive. Due to the "Letang" Showing location proximal to the reservoir, surface geophysical or geochemical surveying could not be completed during the summer program. Follow-up mapping in 2007 in the area identified a considerable increase in the number and size of fracturing near the showing, although no additional gold values were recorded in the area. The showing is spatially associated with an inferred late fault structure interpreted from the detailed magnetic data. Two separate and narrow quartz±feldspar vein / chloritic shear systems were intersected, hosting traces of pyrite and/or chalcopyrite. Anomalous gold values of 0.198 g/t and 0.145 g/t over 0.5 m respectively were recorded. The presence of free coarse gold is suspected, as demonstrated by the occurrence of erratic gold values received in 2006 and 2007, and as a result, additional sample testing is on-going.

A further 11 holes (GCHA-07-02 to 12) were drilled along a 2.3 kilometre northwest-trending corridor along the northeast Cheechoo A property boundary. Detailed grid mapping in 2006 identified a well-developed and mineralized shear, associated with a series of airborne / ground electromagnetic, magnetic and induced polarization anomalies, hosted in strongly altered and mineralized diorite, amphibolite (basalt), and conglomerate referred herein as the "Trap Zone". Only weakly anomalous gold values were recorded from this series samples collected from the drillholes. Host rock-types varied between amphibolite (basalt) and fine-grained sediments (paragneiss) to conglomerate located along the mineralized corridor. The better mineralized intersections (gold, silver and zinc) are associated with high sulphide (pyrrhotite-pyrite+/-chalcopyrite+/-sphalerite) contents concentrated in shears / graphitic fault zones with late quartz veining. Alteration is quite variable and dependent on rocktype with silicification and magnetic dominated in the conglomerate, whereas biotite, chlorite, carbonate-epidote and garnet associated with the fine-grained sediments.

A discreet mineralized zone appears to be confined to the northern limits of the northwest-trending altered and mineralized shear zone as exhibited in anomalous gold values recorded in drillholes GCHA-07-02 (0.128 g/t / 1.0 m), GCHA-07-05 (0.135 g/t / 1.0 m) and GCHA-07-09 (0.101 g/t / 1.0 m & 0.118 g/t / 1.0 m) over a distance of 1,700 metres. A base-metal association is also present with anomalous copper (ranging from 1155 to 1965 ppm / 0.5-1.0 m) and zinc (2800 to 6900 ppm / 0.5-1.0 m) values intersected in the samples submitted. In addition, detailed mapping and channel sampling (Trap Zone Showing, 150 Showing and 159 Showing) over this zone has also identified strongly altered and mineralized surface expressions ranging in grade from 0.106 g/t / 0.7 m to 0.381 g/t / 0.8 m.

The local source of the four separate and discreet boulder fields defined in 2005 and 2006 remains to be located. The better gold-bearing anomalous samples are hosted by paragneiss (fine-grained sediments), amphibolite or diorite and occasional conglomerate which exhibited a distinctive gold-copper, or gold-only metal zonation patterns, suggestive of potentially multiple bedrock sources. Highlights of the sampling in this area included 2.14 g/t gold; 24.2 g/t silver and 2.743% copper and 1.65 g/t gold. Similarly to the "Letang" Showing, the mineralized float samples are suggestive of potentially being spatially related to late fault structures.

Please refer to attached Figures 1, 2, and 2A, 2B and 2C for details at www.goldenvalleymines.com/cheechoo.

Total drilling over the Cheechoo A block claims amounted to 1,568 metres with 342 samples submitted for assaying.

Humus soil sampling results highlighted two new priority target areas. One sample of 0.273 g/t gold was recorded immediately west along strike of GCHA-07-05 long the "Trap Zone" mineralized corridor. The second priority target area lies along the east flank of the late fault structure hosting the "Letang" Showing where values of 0.345 g/t, 0.122 g/t and 0.115 g/t were recorded (see attached Figure 3 for details at www.goldenvalleymines.com/cheechoo).

Sharks: The second round of the drill program resumed here. A total of 4 holes (GSHK-07-02 to 05) were drilled to test IP anomalies along strike of the inferred "Top Fin" mineralized corridor, as well as a possible sub-parallel feature to the north (GSHK-07-01B). Prospecting and detailed mapping completed in 2006 and 2007 identified a weakly mineralized zone on surface and hosted in a distinctive biotite altered horizon, within a regional extensive garnet-cordierite (peraluminous) paragneiss unit. Sulphide content was weakly developed (1% pyrite-pyrrhotite) and sometimes associated with chloritic shears. No significant assays were recorded from the samples submitted from the five drillholes.

Please refer to attached Figures 4, 5, 6 and 6A for details at www.goldenvalleymines.com/cheechoo.

Total drilling over the Sharks claim block amounted to 669 metres with 240 samples submitted for assaying.

Humus soil sample results outlined an erratic distribution of weakly anomalous gold values over the grid, with the exception of a single high-grade value of 8.4 g/t gold. This sample was collected in the extreme northeast corner of the grid where no previous prospecting or sampling has been completed (see attached Figure 7 for details at www.goldenvalleymines.com/cheechoo).

Cheechoo B: Due to technical drilling difficulties encountered by the contractor, drilling had to be cut back to ensure the two priority targets ("Marchand" and "Garrioch" Showings) were tested. One hole (GMC-07-01) tested for the eastern strike extension of the "Marchand" Showing. Detailed surface mapping of the showing area identified the well developed sulphide (pyrite-pyrrhotite-chalcopyrite) mineralization (11.96 g/t Au grab 2006) to be concentrated by folding within a distinctive migmatized (metatexite) garnet paragneiss unit. The prospective horizon was intersected, but did not contain any significant assays from the samples submitted from the hole. Channel sampling results (received after the drill program) over the showing provided positive results with the best being a series of three 1.0 m sample intervals grading 1.065 g/t, 0.343 g/t and 0.113 g/t Au. Significant grab sample results derived from this area after mapping and channel were completed included two samples assaying 1.91 g/t Au and 3.76 g/t Au.

Please refer to attached Figures 4, 5, 8, 8A and 9 for details at www.goldenvalleymines.com/cheechoo.

At the "Garrioch" Showing, a single hole (GGH-07-01) tested the western strike extension of the mineralized corridor where it is folded back to the east and is associated with a broad zone of strong chargeability. The end of the hole was marked by a migmatized (metatexite) garnet-biotite paragneiss hosting up to 20% visible pyrrhotite. Three assays graded 0.171 g/t / 1.0 m, 0.255 g/t / 1.0 m and 0.103 g/t / 1.0 m starting at 117.0 m to end of hole. Channel sampling results (received after the drill program) over the showing confirmed the mineralized zone identified in 2006 (0.39 g/t Au - 0.43 g/t Au to east along strike) with two assays of 0.110 g/t Au / 0.7 m.

Please refer to attached Figures 4, 5, 10 and 10A for details at www.goldenvalleymines.com/cheechoo.

Total drilling over the Cheechoo B claim block amounted to 270 metres with 100 samples submitted for assaying.

In addition, a grid was cut over the "Last Day Showing" located about 7 kilometres to the east-northeast along strike to the Garrioch Showing, over a corridor of gold and base-metal enrichment outlined in 2006. Two separate channel cuts were completed over the favourable mineralized horizon characterized by a 0.3 m wide rusty and siliceous paragneiss unit hosting +10% sulphides (pyrite-bornite-chalcopyrite) copper oxides (malachite and azurite) and green beryl. No IP surveying was completed over the grid due to summer water coverage (see attached map 12 and 12 A for details at www.goldenvalleymines.com/cheechoo).

Humus soil sample results over the "Marchand" Showing, "Garrioch" Showing and "Last Day" Showing did not outline a strong and coherent correlation between the showings and/or favourable stratigraphy. Gold distribution is erratic over the grids occurring either along strike with the showings or associated with IP anomalies (see attached Figures 9, 11 and 13 for details). Reconnaissance sampling was attempted over the Cheechoo B Southwest priority target area, but the presence of low-lying, swampy cover precluded the development of normal soil profiles for ideal sampling. Prospecting and mapping was also attempted previously (2006) over the area south and southwest to the property boundary, but the thick overburden cover limited productivity in identifying outcropping "Roberto Zone" gold zone hostrock units and alteration and where Eastmain Resources Inc. are currently drill testing their "JT Target" (see attached figures 4, 5 and 14 for details at www.goldenvalleymines.com/cheechoo).

Additional detailed check and back-split sampling is currently in progress on selective drillcore sections and where anomalous gold values were received, but where the assay intervals are not closed off. This work includes core from the "Letang Showing", "Trap Zone", "Top Fin", "Marchand" Showing, and "Garrioch" Showing. All drillcore was of NQ-size, and was logged, sampled and split at the Company's Cheechoo field camp or Val d'Or office, in intervals ranging from a minimum of 0.3 metre to a maximum of 1 metre. The samples were then sealed in plastic bags, and sent to ALS CHEMEX Laboratory with sample preparation completed in Val-d'Or (QC) and analyses completed at ALS CHEMEX in Vancouver (BC). Channel sample intervals varied from a 0.27 m minimum to a maximum of 1.0 m. Each sample was described in the field and then sealed in plastic bags for shipping. Gold values were determined by 30 gram fire assay with a FA-AA finish and ME-ICP61, 33 element four acid ICP-AAS. The humus samples were analyzed for gold only. Gold values were determined by 30 gram fire assay with a FA-AA finish. Over limits for gold (if gold values equals 10,000 ppm) were re-analyzed by 30 g fire assay with a gravimetric finish (Au-GRA21).

The Cheechoo "A", "B", and "C" Prospect as well as the Sharks Prospect are under option from Sirios Resources (TSX VENTURE:SOI) pursuant to which the Company, in each case, will earn an initial 60% interest by funding $1,000,000 in exploration over 4-years. Following initial vesting, the Company may then earn an additional 20% interest by completing a bankable feasibility study within 6 years of vesting. Should SOI then elect to allow the Company to provide the production financing, the Company would then acquire an additional 5% interest (aggregate 85% interest).

Golden Valley Mines now holds a 100%-interest, or is earning an interest pursuant to option joint venture agreements, in a total of 1,016 claims covering 53,324 ha (533- km2) in the James Bay (Opinaca) region. For a map of the project area, please refer to www.goldenvalleymines.com/cheechoo.

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 May 7, 2008, the Company holds majority property interests in 135 projects consisting of 4,238 mining titles (236,881 hectares) in Saskatchewan, Ontario and Quebec.

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

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. Accordingly, readers should not place undue reliance on such forward-looking statements.

Contact Information

  • Golden Valley Mines Ltd.
    Glenn J. Mullan
    President and CEO
    877-879-1688, ext. 222
    819-824-3379 (FAX)
    or
    Golden Valley Mines Ltd.
    Michael P. Rosatelli
    Vice President - Exploration
    819-824-2808 ext. 205
    819-824-3379 (FAX)
    info@goldenvalleymines.com