ValGold Resources Ltd.
TSX VENTURE : VAL

ValGold Resources Ltd.

March 15, 2007 13:07 ET

ValGold Commences Drilling on the Increible 3 Near El Callao

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) - ValGold Resources Ltd. (TSX VENTURE:VAL) ("ValGold") is pleased to announce that its drill program has commenced at the Increible Concessions in the El Callao Mining District, Bolivar State, Venezuela. ValGold's Increible Concessions 1, 3 & 5 are contiguous and cover a total of 14,950 hectares.

The initial program is planned to consist of eight diamond drill holes of which four holes are to be completed in a line across the central part of the Los Patos gold occurrence located in Increible 3. The Los Patos showing occurs along the Los Chivos Shear Zone. The occurrence was tested during the period from 1992 to 1995 by 19 surface trenches and by eight drill holes totaling 1,189m.

Gold deposits in the El Callao area have been producing for over 100 years with reported total gold production for the district of approximately 8 million ounces. The El Callao greenstone belt is one of a number of early Proterozoic greenstone belts of the Guiana Shield of eastern Venezuela. The main economic gold occurrences are centered proximal to the town of El Callao where mineralization occurs typically within narrow southerly dipping shear zones within basalt and andesite belonging to the El Callao Formation. The main producing mine was the Columbia where 2.3 million ounces of gold were reported to be recovered. More recently, mining has started at Gold Fields Limited ("Gold Fields") Choco 10 gold deposit located 14 kilometers southwest of El Callao. Gold Fields stated on its website that as of January 2005 the Choco 10 mine had resources that totaled 63.6 million tonnes grading 1.7 grams per tonne gold ("g/T Au") within which the proven and probable reserves amount to 20.8 million tonnes averaging 1.8 g/T.

Several important gold targets have already been outlined on ValGold's three Increible concessions by previous exploration programs. One of these targets comprises an east-west striking shear zone referred to as the Los Chivos Shear Zone (LCSZ). This shear zone cuts through the central portion of the Increible 3 concession and is anomalous in gold over most of its seven kilometer strike length. The Los Patos gold zone occurs along the LCSZ as a complex sequence of highly altered tholeiitic lavas, tuffs and volcanoclastic units which in association with the gold mineralization have been subjected to varying degrees of shearing, deformation, alteration and greenschist metamorphism. Gold mineralization is associated with quartz veining and accompanying disseminated pyrite and tourmaline. The above-mentioned surface trenches and eight drill holes tested the Los Patos gold zone over an area measuring 160 m long by 100m deep which varies from 8m to 27m in width and which has a weighted average grade of 1.03 g/T Au. Drill intersections returned very encouraging results including 27.71 m averaging 1.88 g/T Au, 31.17 m averaging 1.24 g/T Au and 23.38 m averaging 1.59 g/T Au. Potential exists in all directions for similar grades and widths. ValGold's drilling will initially focus on expanding the Los Patos occurrence targeting open pit accessible mineralization that could be processed at one of the local mills.

Other important gold occurrences are located within the Increible concessions. In the northeast corner of the Increible 5 concession is the past producing Santa Isabel mine where the gold mineralization is associated with a series of quartz veins in intermediate to mafic volcanics near a contact with sericite talc schist. Other occurrences in the immediate area are the Isabel West and immediately to the east, the Pozo Giron. The latter occurrence lies near the boundary of the Tomi concession where Crystallex is currently mining gold from shallow open pits.

Mr. Tom Pollock, P.Geo., ValGold's Vice-President, Exploration, is the Qualified Person for the project, and is responsible for all of the technical reporting in compliance with NI 43-101. Mr. Pollock has instituted and is responsible for ValGold's program of Quality Control and Assurance ("QC/QA"), using assay control samples and duplicates.

For more information on ValGold and its portfolio of international projects, visit our website at www.valgold.com.

SEC 12g3-2(b) exemption 82-3339

No regulatory authority has approved or disapproved the information contained in this news release.

Contact Information

  • ValGold Resources Ltd.
    Stephen J. Wilkinson
    President & Chief Executive Officer
    (604) 687-4622
    (604) 687-4212 (FAX)
    or
    ValGold Resources Ltd.
    Jeff Stuart
    Investor Relations
    (604) 687-4622
    (604) 687-4212 (FAX)
    Email: info@valgold.com
    Website: www.valgold.com