Ryan Gold Corp.
TSX VENTURE : RYG

Ryan Gold Corp.

October 20, 2010 09:00 ET

Valdez Gold and Millrock Intersect 3.8 g/t Gold Over 32 m at the Bluff Gold Project, Alaska

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) - Valdez Gold Inc. (TSX VENTURE:VAZ)(""Valdez" or the "Company") along with its partner Millrock Resources Inc. (MRO-TSXV) ("Millrock") are pleased to announce results of a drilling program at their Bluff gold project on the Seward Peninsula of western Alaska.

Mineralisation at the Bluff project is structurally controlled within a 6.4 km long, arcuate band of schistose rocks in close contact with marble. Previous exploration and drilling had defined three zones of mineralisation, Daniel's Creek, Saddle and Koyana. The main focus of this year's drilling was to confirm the mineralisation at Daniel's Creek.

A total of 2,800 m from 24 reverse circulation holes were drilled by Millrock. Drill holes were drilled to an average depth of 130 m. The Daniel's Creek mineralisation was confirmed and extended in a westerly direction by 375 m and easterly direction by 250 m, for a now known strike extend of approximately 900 m.

The best intersection of the program was in hole BLF2021, which consisted of 32.0 m grading 3.8 g/t Au, including a section grading 9.0 g/t Au over 12.2 m. This intersection appears to be from a previously undiscovered, parallel zone situated at a lower stratigraphic level than the known Daniel's Creek zone. In addition drill hole BLF2015 intersected 32 m at 1.93 g/t Au including 18.3 m at 3.03 g/t Au. The results of the drill program are listed in the table below. The reported intersection widths are believed to be approximate true widths. However, as drilling was conducted using the reverse circulation method there is little geological control on the true widths of the mineralised intersections.

Hole   From (ft)   To (ft)   Width (ft)   Width (m)   Au (g/t)
BLF2002   130   145   15   4.6   0.48
    265   290   25   7.6   0.54
    340   350   10   3.1   2.69
    495   515   20   6.1   0.88
                     
BLF2003   50   60   10   3.1   0.42
    150   190   40   12.2   0.88
    230   240   10   3.1   0.67
    315   325   10   3.1   0.82
    470   495   25   7.6   2.02
                     
BLF2005   150   165   15   4.6   0.60
    375   395   20   6.1   1.78
    430   440   10   3.1   0.54
                     
BLF2006   10   35   25   7.6   0.95
    130   140   10   3.1   2.54
                     
BLF2007   25   40   15   4.6   1.62
    45   55   10   3.1   0.44
    335   345   10   3.1   0.54
    350   360   10   3.1   0.48
    500   510   10   3.1   2.31
                     
BLF2008   10   50   45   13.7   0.81
    75   85   10   3.1   0.95
    115   140   25   7.6   0.43
    165   175   10   3.1   0.42
    195   210   15   4.6   0.39
                     
BLF2009   155   165   10   3.1   1.22
                     
BLF2012   95   115   20   6.1   0.74
                     
BLF2013   110   120   10   3.1   0.39
                     
BLF2014   50   85   35   10.7   1.44
Including   50   60   10   3.0   4.32
                     
BLF2015   30   45   15   4.6   1.95
    165   270   105   32.0   1.93
Including   165   225   60   18.3   3.03
    275   225   50   15.2   0.44
                     
BLF2017   5   20   15   4.6   0.54
    65   85   20   6.10   1.84
Including   65   75   10   3.1   3.30
    495   505   10   3.1   0.38
    515   525   10   3.1   4.08
                     
BLF2018   30   45   15   4.6   1.51
    115   125   10   3.1   0.31
                     
BLF2019   80   105   25   7.6   0.76
                     
BLF2020   5   20   15   4.6   1.84
    130   150   20   6.1   0.49
                     
BLF2021   0   30   30   9.1   1.66
    40   145   105   32.0   3.81
Including   40   80   40   12.2   9.00
* 200 ppb cut off used for composite calculations

The Bluff property is comprised of a land tract covering a total of 142 km2 approximately 80 km east of the town of Nome and 24 km east of the Big Hurrah gold deposit, which NovaGold Resources Inc. is considering for production and processing at the Rock Creek Mine. The land is owned by the Bering Straits Native Corporation and the White Mountain Native Corporation. Millrock has an option to lease the lands for mining. Valdez is funding exploration work on the property to earn up to a 75% interest in the project under the terms of an agreement announced originally on April 30, 2010. Millrock is presently the operator for exploration activities on the project. 

Drill cutting samples from the Bluff drilling program were collected at the drill site, sealed in bags and shipped to Fairbanks, Alaska for assay at ALS Chemex, an international laboratory with stringent quality control and quality assurance programs. Millrock also had its own quality control / quality assurance programs in place.

The technical information in this news release was reviewed by Gregory Beischer, Millrock's President and CEO, a Qualified Person as defined in NI 43-101.

Valdez continues to pursue its proposed transaction with Ryan Gold Inc. previously announced on September 27, 2010. Valdez is currently negotiating a definitive agreement with Ryan Gold. In accordance with TSX Venture Exchange policy, the trading halt for the Valdez shares will generally be lifted once the exchange has had an opportunity to review, among other things, a draft of the definitive agreement, a geological report for Ryan Gold's Ida Oro property and audited financial statements for Ryan Gold. Valdez anticipates holding a special shareholders' meeting in December, where shareholders will be asked to approve certain matters in connection with the proposed transaction.

This press release contains forward-looking statements within the meaning of applicable securities legislation. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, business and financing plans and business trends. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any mineral that may be produced, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitability, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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