ValGold Resources Ltd.
TSX VENTURE : VAL
FRANKFURT : VR2

ValGold Resources Ltd.

April 08, 2011 09:30 ET

ValGold Reports First Results of 2011 Drill Program on the Tower Mountain Gold Property, NW Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2011) - - ValGold Resources Ltd. (TSX VENTURE:VAL)(FRANKFURT:VR2) ("ValGold" or the Company") is pleased to announce the completion of the first stage of its 2011 exploration program on the Tower Mountain Gold Property (the "Property"). The first stage included 2,100m of core drilling in 13 holes and the results from the first five holes are reported below. The Company will release the remaining assay results as they become available. ValGold will resume its drilling program of an additional 2,500m in April 2011.

Highlights of Drill Results

The significant intersections for the five reported holes are listed in the table below.

  • TM-11-59 with 16.5m grading 1.136 g/t Au within the conglomerate unit
  • TM-11-63 with 73.5m averaging 0.815 g/t Au with 0.04% Cu including an intersection of 21.0m assaying 1.76 g/t Au with 0.10% Cu

The Property is 100% owned by ValGold and is located approximately 40km west of Thunder Bay, Ontario. It is underlain by Archean-age volcanic and sedimentary rocks with a syenitic intrusive complex being an important focal point for the widespread gold (and copper) mineralization. The Company has been exploring for large low-grade bulk mineable deposits within the Property that hosts several zones of interest discovered in earlier drill campaigns. So far in 2011, ValGold has drilled the 04-36 Zone, the 04-9 Zone and the UV Zone, the latter of which contains the NI 43-101 compliant inferred resource of 151,000 ounces within 7.15 million tonnes (see ValGold's Technical Report filed on SEDAR, March 6th 2006).

One of the objectives of the multi-faceted 2011 drilling program as reported in these five holes was to determine the attitude of the 04-36 Zone mineralization and whether there is an association between the gold zone and the conglomerate unit which trends northeasterly toward the UV Zone. Secondly, the 04-9 Zone was pierced normal to the original discovery holes (2004) as it is thought the controlling feature is a feldspar porphyry trending northeasterly.

04-36 Zone Results

The following is a report of the assay results for the first three holes (372m). Holes TM-11-59 to 61 (3) targeted the 04-36 Zone where previous gold results included 50.03 g/t Au over a width of 1.5m.

The best hole in 2011 returned gold mineralization over widths of up to 16.5 meters (core length) with a grade of 1.136 g/t Au in the conglomerate unit. The conglomerate has small fragments of jasper, volcanic rock and sulphide iron formation. The mineralized intersections are reported as core lengths because insufficient data is available to calculate true widths. The table below has the other intersections of interest.

The results from the 04-36 Zone are encouraging as the conglomerate unit has been traced on the property for 1,000m along its NE-SW strike and has been only tested sporadically along this length. Based on field examinations, it is noted that the geological environment of the conglomerate is one of high energy with the potential of hosting gold. More drilling is recommended.

Hole
Number
From
(m
)To
(m
)Core Length
(m
)Grade
(g/t Au
)Host Unit
TM-11-5929.038.09.00.460conglomerate
84.5101.016.51.136conglomerate
120.5125.04.50.992conglomerate
TM-11-6041.044.03.00.620conglomerate
70.572.01.50.638conglomerate
TM-11-619.513.43.90.880Volcanic & conglomerate

04-9 Zone Results

One hole, TM-11-62, was completed in 2011 to further define the 04-9 Zone. The previous mineralized intersections drilled in 2004 are thought to be near parallel to the NE strike of the zone. The current hole was thus drilled at a NW azimuth and intersected an 18.0m core length which graded 0.54 g/t Au. The hole deviated from its intended target and may need to be extended to test for mineralization at the bottom of the hole which ended at 274.0m.

Hole
Number
From
(m
)To
(m
)Core Length
(m
)Grade
(g/t Au
)Host Unit
TM-11-62255.5273.518.00.540Porphyritic dyke

The 04-9 Zone has displayed the potential for elevated gold content in a feldspar porphyry unit which has received limited drilling. The configuration of the zone is not yet understood at this time but results are encouraging and more drilling is warranted.

The sulphide mineralization accompanying the 04-9 Zone gold mineralization is of a low tenor and the arsenic analysis is low, usually less than 50ppm. This observation is based on historical records of multi-element analysis.

UV Zone Results

The UV Zone has been the primary target of the previous drill programs (2002-2007). In 2011, the aim of the one drill hole, TM-11-63 was to expand the wide, low-grade copper-gold mineralization beneath the gold resource. The best intersection in the current drilling is 0.815 g/t Au over a 73.5m core length with a copper value of 0.04%. Included in this interval is a section 1.76 g/t Au with 0.10% Cu over 21.0m. Near the bottom of the hole there is an interval grading 1.75 g/t Au and 0.13% Cu over 9.0m starting at 356.0m. The host rock is a syenite, part of the Tower Mountain Intrusive Complex. The mineralization is open to the northeast and southeast where surface geophysical anomalies may indicate extensions of the zone.

The mineralized intersections are reported as core lengths as insufficient data is available to calculate true widths. A Drillhole Location Database is presented in the table below. The Drill Location Plan is now available on the Company's website, www.valgold.com.

Hole
Number
From
(m
)To
(m
)Core Length
(m
)Grade
(g/t Au
)Host Unit
TM-11-63152.0225.573.50.815Syenite 0.043% Cu
Including168.5189.521.01.760averaged 0.10% Cu
Including180.5188.07.53.440
Including180.5185.04.54.930
228.5239.010.50.361Syenite
302.0312.510.50.411Syenite
323.0341.518.50.398Syenite
356.0365.09.01.750Syenite averaged 0.13% Cu
Drillhole Location Database
UTM EUTM NLength
HoleZone 16NAD 83ElevmAzimuthDip
TM-11-592999035377944380125135-47
TM-11-602999635377891384122315-47
TM-11-612999205377966382125135-47
TM-11-623003565378323380274300-57
TM-11-633004175378352380371153-57

Sample Preparation, Assays and Quality Assurance/Quality Control ("QA/QC")

ValGold has implemented a QA/QC protocol for its exploration work. ValGold recently completed a diamond drilling program on the Tower Mountain Gold Property and the drilling contractor was Cobra Diamond Drilling Ltd. The NQ core was delivered to the secure Core Shack facility on the property by the drillers. In addition to recovery and RQD (Rock Quality Designation) data, geological parameters including lithology, alteration, quartz veining, presence and identification of sulfide mineralization along with other geologic parameters were noted and recorded on logging forms. Generally, the core was marked in 1.5 meter intervals for splitting, sampling and assaying, unless geological data indicate a shorter sample interval. Prior to splitting, all core were photographed. Core splitting was done with a hydraulic core splitter and ½ of the drill core was submitted to Accurassay Laboratories in Thunder Bay, Ontario. The remainder of the core was stored at the property.

The drill core sample (approximately 5kg) was dried, crushed to 70% -8 mesh (2mm), split and pulverised to 90% -150 mesh (106u). Silica abrasive was used to clean between each sample. Gold was fire assayed using a 30.0 gram aliquot sample with an Atomic Absorption finish (AA) and multi-element analysis was by Aqua Regia Digestion with an Induced Coupled Plasma (ICP) finish.

ValGold inserts gold standard samples and blank samples into the sample stream at a rate approximating 6% of total original samples. The laboratory also inserts blank samples for internal quality control and runs duplicate analysis on every 10th sample. Samples are normally transported in a Company truck from the Property to Accurassay in Thunder Bay, Ontario. Chain of Custody protocols are used for the tracking of sample shipments.

Robert Chataway, P.Geo, the qualified person for the Company, has reviewed the accuracy of the technical portion of the news release.

For more information on ValGold's Canadian gold projects (Tower Mountain and Garrison) and its international projects, please visit our website at www.valgold.com.

Stephen J. Wilkinson, President and Chief Executive Officer

This news release includes "forward-looking information". All statements in this release, other than statements of historical facts, that address the private placement or mineral exploration programs contain forward-looking information and are based on a number of assumptions, including, but not limited to, that there will not be substantial changes to market conditions, regulatory requirements or costs associated with mineral exploration. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include changes the price of the company's shares, the costs of labor, equipment and other costs associated with exploration, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.

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

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

Contact Information