ValGold Resources Ltd.
TSX VENTURE : VAL
FRANKFURT : VR2

ValGold Resources Ltd.

February 24, 2011 09:40 ET

ValGold Reports Metallurgical Tests Indicate High Gold Recoveries for Garrcon Deposit Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2011) - ValGold Resources Limited (TSX VENTURE:VAL)(FRANKFURT:VR2) ("ValGold" or "the Company") is pleased to report that a Scoping Level metallurgical test program has been completed by SGS Minerals Services of Lakefield, Ontario ("SGS") on two composite samples of drill core supplied from the current diamond drilling program on the Garrcon Deposit at ValGold's 100% owned Garrison Gold Property. Northern Gold Mining Inc. ("Northern Gold") as project operator is in the second year of an option agreement to earn an interest in the Garrison gold property from ValGold. (See ValGold news release dated September 23, 2010). Figures 1 & 2 graphically illustrate the recoveries obtained using the various mill process flow sheets which tested combinations of gravity separation, gravity tailing flotation, flotation concentrate cyanidation, whole ore cyanidation and whole ore flotation. Based on this test work, SGS confirmed the free milling nature of the gold mineralization and determined that a combination of gravity concentration and cyanidation or simply cyanidation of the whole ore produced the best overall gold recoveries. 

To view Figures 1 and 2, please click on the following link: http://media3.marketwire.com/docs/vala224.pdf.

Northern Gold commissioned SGS to complete the Scoping Level metallurgical test work utilizing the six different flow sheet options for the recovery of gold. Two samples were submitted to SGS. Sample A consisted of 60 kilograms of 1 meter long, ½ core samples from five (5) different holes in the Shaft Zone area of the deposit and the average assayed head grade was 1.17 g/t. Sample B consisted of 60 kilograms of 1 meter long, ½ core samples from five (5) different holes in the North Zone mineralization and the average assayed head grade was 2.52 g/t. The test program included a number of standard gold processing options including gravity separation, cyanidation, and flotation, separately and in various combinations. Figures 1 & 2 indicate that a combination of gravity recovery plus cyanidation of the gravity tails and cyanidation of the whole ore achieved the best recoveries, exceeding 97% for all four tests. There are no other metals with a concentration high enough to be significant. The test work also indicates that the mineralization does not present environmental problems as no deleterious elements were present. Concentrations of silver, lead, and zinc are all reported to be less than 55 ppm.

In a news release dated February 24, 2011, Northern Gold reported that this metallurgical test work demonstrated the potential for excellent gold recoveries and confirmed the free milling nature of the Garrcon gold mineralization. Northern Gold reiterated their view that the Garrcon Gold Deposit has strong potential to become a large open pit bulk mineable operation. Northern Gold also stated that the results of this test work will be incorporated into the Preliminary Economic Assessment (PEA) being completed in conjunction with the updated resource calculation expected to be completed by the end of this quarter. The combination of the updated resource calculation and the PEA may be expected to demonstrate the significant potential seen by Northern Gold for the Garrcon Gold Deposit.

Quality Assurance/Quality Control

Northern Gold reported that it has implemented a QA/QC protocol for its exploration work. Northern is currently diamond drilling the Garrison Gold Property and the drilling contractor is Major Drilling Group International Inc. Core size is NQ, to give good sample sizes and to enable the possibility for at least two step-downs if ground conditions should require it. For further information regarding the QA/QC protocols and assay procedures and controls see the Northern Gold news release dated February 24th 2011.

The Garrison Gold Property

In July 2005, ValGold purchased a 100% interest in the Garrison Gold Property. The Property is located on the Golden Highway of NE Ontario and straddles the Porcupine-Destor Fault and the Munro Fault systems along the prolific Abitibi greenstone belt. The Property hosts several gold zones including the advanced stage Jonpol and Garrcon Deposits and the 903 gold mineralized area. Drilling has been carried out on these gold zones with the earliest work dating back to the 1930's. The Property has good infrastructure with producing gold mines and mills located in close proximity. The Jonpol Project contains an indicated resource of 253,100 tonnes @ 7.77 g/t containing 63,000 ounces of gold and an inferred resource of 1.6 million tonnes @ 4.93 g/t Au containing 247,000 ounces of gold. (See the NI 43-101 Technical Report filed by Northern Gold on SEDAR on 21 October 2009). The Garrcon Project has an initial indicated resource of 3.8 million tonnes @ 1.2 g/t containing 144,000 ounces of gold and an initial inferred resource of 18.5M tonnes @ 0.9 g/t containing 530,000 ounces of gold. (See Valgold news release dated September 23 2010). Northern Gold optioned the Property in September 2009 and has been working toward earning an 80% interest.

The technical aspects of this press release has been reviewed by Dr. A. Darryl Drummond, P.Eng., a Director of ValGold, who is the "Qualified Person" as defined by NI 43-101 for this project.

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) exemption 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

  • ValGold Resources Limited
    Stephen J. Wilkinson
    President and Chief Executive Officer
    (604) 687-4622
    (604) 687-4212 (FAX)
    info@valgold.com
    www.valgold.com