Golden Valley Mines Ltd.

Golden Valley Mines Ltd.

February 03, 2006 09:31 ET

Golden Valley Mines Ltd.: Malartic CHL Prospect Optioned to Osisko Exploration Ltd.

MONTREAL, QUEBEC--(CCNMatthews - Feb. 3, 2006) - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) announces the principal terms of a letter of intent whereby Golden Valley Mines will vend the Malartic CHL Prospect to Osisko Exploration Ltd. (TSX-V symbol: OSK) in consideration for cash payments of $150,000 ($35,000 at signing) and a work commitment of $2,000,000 over a four year period ($200,000 in the first year). Upon vesting, ownership would be Osisko, 70%, and Golden Valley Mines, 30%. Golden Valley Mines would then be carried to production. Terms of acquisition for the south block include a cash payment of $100,000 at signing to allow Osisko to earn a 100%-interest subject to a 2% net smelter royalty payable to Golden Valley Mines.

These Abitibi Greenstone Belt gold targets consist of 11 claim lots in two separate blocks (north and south) covering an area of 446 hectares, located southeast of Malartic, Quebec in Fourniere Township (NTS map sheet 32D/01) along the Trans-Canada highway (Hwy #117). Golden Valley Mines Ltd. acquired a 100% interest in the property (no royalty) as part of its on-going Abitibi grassroots project generation activities.

The Malartic CHL Prospect claims are strategically located within the Malartic gold camp that has produced approximately 8.4 million ounces (Moz) of gold from 1935-84 (#MM 89-04). The main, north claim block is located along the Cadillac-Larder Lake fault zone that is spatially associated with a number of gold deposits in the Malartic mining camp. Two such examples are the Barnet Mine (0.97 Moz gold) and the East Malartic Mine (2.9 Moz gold) that occur immediately along strike to the west of the property along the same favourable structural and lithostratigraphic corridor. Historic diamond drilling activity is recorded on the property (SIGEOM 32D/01). This includes reported intersections of 8.72 g/t gold over 4.57 metres and 3.33 g/t gold over 1.5 metres in diamond-drill hole EM-87-13 (GM 47841).

The south claim block is located immediately southeast of the Canadian Malartic Mine that produced 1.1 Moz gold and is currently undergoing an aggressive exploration program conducted by Osisko.

Gold deposits documented within this segment of the Malartic mining camp are dominated by the association of porphyry-type gold mineralization hosted in either altered volcanic komatiite and basalt rocks of the Piche Group along the Cadillac-Larder Lake Fault Zone or altered sedimentary rocks of the Pontiac Group to the south.

This transaction is considered consistent with the Company's grass-roots exploration strategy whereby the Company conducts most of its exploration activity on 100%-owned grass-roots properties including Phase-1 diamond drill programs, but seeks partners to fund exploration on other properties having undergone more historical exploration work, or following the Phase-1 programs to continue and extend the exploration process.

About Golden Valley Mines: Golden Valley is adequately funded for the continuance of its current exploration programs. Further updates will be forthcoming from the Abitibi Greenstone Belt (gold, copper-zinc) and James Bay (gold, copper-zinc) programs as drilling and survey results are received and additional drill targets selected.

Michael P. Rosatelli, P. Geo., is the designated Qualified Person responsible for the preparation of this release.

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

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