Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

June 03, 2005 10:42 ET

Golden Valley Mines Ltd.: Exploration Update

VAL D'OR, QUEBEC--(CCNMatthews - June 3, 2005) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ)

- Airborne geophysical targets defined at Cheechoo & Sharks
prospects, James Bay, QC
- Diamond drilling to start at Mona Lisa prospect, Duparquet, QC
- Drill results at Winnie Lake prospect (Ontario) extend favourable
Copper-Zinc-Lead target

Golden Valley Mines Ltd. (TSX VENTURE:GZZ) provides the following update on its exploration activities in Ontario and Quebec:

1) James Bay ("Mid-North"), Quebec: Following a technical review of the recently received airborne geophysical (magnetic and EM) data on the Cheechoo and Sharks prospects, several target areas have been selected for ground follow-up to consist of detailed prospecting and ground-based geophysical surveys. The east blocks of Cheechoo and the Sharks property collectively cover approximately 40 kilometres of strike length along a west-southwest east-northeast magnetic trend, and includes portions of several broad geochemical indicator anomalies derived from lake bottom sediments collected by the Ministere des Ressources Naturelle et de la Faune du Quebec (MRNFQ). Historic regional airborne geophysical signatures and geological mapping appear to indicate that the groups are located along the flanks of felsic intrusive features and are underlain by the same favourable metasediments described as the host rocks at the Virginia Gold Mines' Roberto discoveries.

The west block covers a separate geochemical anomaly and several other northwest to southeast striking linear geophysical features. Other than the reconnaissance geochemical sampling work performed by the MRNFQ, and the historical regional airborne geophysical surveys, there is no previous work reported as being undertaken on either the Cheechoo or Sharks properties.

Further details regarding the 2005 summer work programs will be provided following completion of program and logistics planning. Golden Valley Mines has become one of the principal claim holders in the Eleonore gold discovery area, now holding mineral interests covering 500 km2 (124,000 acres) on its James Bay project. Golden Valley Mines holds contiguous claim blocks on both the east and west sides of Virginia Gold Mines' Eleonore property that hosts the Roberto Zone discoveries. Refer to the project map on the Golden Valley Mines website,

2) Abitibi Greenstone Belt - Grassroots Exploration Programs:

Winnie Lake Prospect (Cu-Zn-Pb-Ag project) - Kirkland Lake, Ontario (VMS, #38 on map): Six diamond drill holes (632 metres) were completed on the property to test induced polarization (IP) anomalies and a time domain electromagnetic (TDEM) anomaly. Drilling 1.4 kilometers west of the historic "shaft zone" returned the following anomalous base metals values in an exhalite sequence similar to that observed near the original shaft occurrence:

24.00 to 25.76 metres: 0.76% zinc (Zn), 2.59% lead (Pb) & 1.59 g/t
silver (Ag) over 2.16 metres
Including 0.82 metres that assayed: 1.96% Zn, 4.73% Pb & 2.94 g/t
Ag from 25.34 to 25.76 metres

36.0 to 38.24 metres: 0.6% Zn, 0.42% Pb & 1.0 g/t Ag over 2.51 metres
Including 0.2 metres that assayed: 1.37% Zn, 0.78% Pb & 1.3 g/t Ag
from 38.04 to 38.24 metres

The IP anomaly is open along strike in both directions. In addition, two contiguous claims located to the east and north of the property have been purchased at nominal cost with no royalty payable.

An updated property compilation map showing the Winnie Lake claims, bedrock geology, IP anomalies and drill holes has been added to Golden Valley Mines' website at Due to a backlog at the assay laboratory, assays for only the first three holes have been received.

Mona Lisa Prospect - Duparquet, Quebec - (Gold target, #21 on map): Drill mobilization and set-up is underway at the Mona Lisa Prospect. The property is located in Duparquet Township, approximately nine kilometres east of the village of Duparquet. The Destor-Porcupine fault zone is located immediately south of the property and is an important structural control for the focus of gold mineralization, at the nearby Duparquet, Quebec (1.2 million ounces of historical gold production) and Harker-Holloway, Ontario (1.4 million ounces) gold camps along strike to the west, and at the Timmins, Ontario camp further to the west (64 million ounces).

Previous exploration on the property included soil sampling and various geophysical surveys, however no drill testing was completed. One diamond drill hole is planned to test a coincidental IP and positive magnetic anomaly trending east-northeast to east-west along a favourable mafic flow/gabbro lithological contact that is sheared. Two other east-northeast trending fault/shear zones transect across the property to the south of the proposed drill hole. These structures are oblique to the southeast trending Destor-Porcupine fault zone and are inferred to be splays off of the main break and may represent similar fault/shear systems that are associated with gold mineralization such as the Golconda deposit (409,100 tonnes grading 5.9 g/t gold) located approximately two kilometres south of the property. Fieldwork conducted by Golden Valley Mines has consisted of line cutting, prospecting and geophysical surveys (magnetic and IP).

Double Trouble Prospect - Duparquet, Quebec - Abitibi Greenstone Belt (Gold target, #8 on map): No significant results were received from the four-hole drill program recently completed (refer to press release March 4, 2005). An updated property compilation map showing the Mona Lisa and Double Trouble claims, bedrock geology, IP anomalies and completed/planned drill holes have been added to the Company's website at

Ducros Township Group Prospects - Senneterre, Quebec - Abitibi Greenstone Belt (nickel-copper-platinum-palladium and gold targets, #54 on map); Fieldwork consisting of prospecting, sampling, and channel sampling is expected to be underway over the next week (refer to press release November 8, 2004).

Glenn J. Mullan, P. Geo. and President of Golden Valley Mines Ltd. is the designated Qualified Person responsible for the exploration programs on the properties and the person responsible for the preparation of this release. All assaying was completed by ALS Chemex with sample preparation completed in Val-d'Or, QC and analysis completed in Vancouver, B.C. Base metal and silver values were determined by four acid ICP-AES and ore grade Zn, Pb, Cu via four acid / AAS. Gold values were determined by 30-gram fire assay with FA-AA finish.

Summary - Project Abitibi Strategy

Golden Valley is exploring its grass roots property portfolio (60 properties) consisting of both precious metals and VMS (Cu-Zn-Ag) prospects located within the Abitibi Greenstone Belt in northwestern Quebec and northeastern Ontario. Property selection was largely directed by public domain geophysical data, historical work in the main camps (Timmins and Kirkland Lake, Ontario; Rouyn-Noranda, Cadillac, Malartic and Val-d'Or, Quebec), and recent work in Quebec by the MRNFQ, and in Ontario by the Ministry of Northern Development and Mines. Exploration targets in the Abitibi Greenstone Belt include:

- the eastern portion of the Destor-Porcupine Fault Zone north of
- the western portion of the Blake River Group volcanics in Ontario
- several previously untested airborne electromagnetic (AEM)
anomalies and structural features elsewhere in the Abitibi region

Golden Valley plans to test, by diamond drilling, approximately one group per month while also conducting work on its additional property interests in the Nunavik (Ungava), Labrador, Mistassini and Otish regions of Northern Quebec. Total claim and property holdings in Quebec, Ontario and Saskatchewan now encompass over 1,730 square kilometers (420,000 acres, 3057 claims).

Exploration has taken place at 30 project areas in the Abitibi Greenstone Belt project area since 2003 with 59 drill holes completed (6,466 metres). Further updates will be forthcoming as drilling progresses, and upon receipt of assay and geophysical survey results.

Annual General Meeting

Golden Valley Mines wishes to invite shareholders and the public to its Annual General Meeting, which will be held at the company's Montreal office on June 16, 2005 at 16:00. An open house and corporate presentation will follow the meeting at 16:30.

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

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