THOROLD, ON--(Marketwired - October 05, 2016) - ValGold Resources Ltd. ("ValGold") (TSX VENTURE: VAL) is pleased to share results released by Osisko Mining Inc. ("Osisko") from its initial drill program on the 100%-owned Garrison Gold Project situated 100 kilometres east of Timmins, Ontario. Osisko announced on July 13, 2016, that it would conduct a 20,000 metre program designed to confirm previous work on the property. The program would also follow up potential higher grade underground zones at the bulk tonnage Garrcon deposit and further explore the underground resource potential which remains open at depth on the Jonpol deposit.
ValGold holds a 2% net smelter royalty ("NSR") on the Garrison Gold Project, which is subject to a buyback of 1% for $10 million.
The results of Osisko's drill program include a gold intersection of 14.9 grams per ton (g/t) over 7.7 metres on the Jonpol deposit interpreted as a mineralized extension of the main deposit 200 metres below the current historical resource area. In addition, a drill hole on the Garrcon deposit intersected 63 metres of 1.02 g/t gold. Additional information and disclosure on the results and drilling is contained in Osisko's press release dated September 28, 2016, available on Osisko's website at www.osiskomining.com and on SEDAR under Osisko's issuer profile (press release filed October 4, 2016) at www.sedar.com.
The Jonpol results demonstrate there is good potential to increase the known mineral inventory through continued deposit definition and exploratory drilling, specifically from depth extensions of the main deposit. Historic drilling was limited to areas from surface to 600 metres with much of the drilling above 350 metres.
The Garrison Gold Project has total resource estimates compiled in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects by A.C.A. Howe International Limited on both the Jonpol and Garrcon deposits as follows:
|| ||521,000 ozs
|| ||526,000 ozs
|| ||616,000 ozs (a)
|| ||1,663,000 ozs
|| ||150,000 ozs
|| ||192,000 ozs
|| ||342,000 ozs
|| ||521,000 ozs
|| ||676,000 ozs
|| ||808,000 ozs
|| ||2,005,000 ozs
|(a) Includes underground bulk mining resources.|
Additional information on the resource estimates is available in Osisko's press release and in the Garrison Gold Project technical report available on Osisko's website and under Northern Gold Mining Inc.'s issuer profile at www.sedar.com.
ValGold is a mineral exploration and development company which holds a 2% NSR on the Garrison Gold Project, a 100% interest in the Tower Mountain Gold Project near Thunder Bay, Ontario, and exploration properties in Venezuela (see ValGold's annual and interim financial statements and Management's Discussion and Analysis on SEDAR for further information on and the risks associated with the Venezuelan properties).
ON BEHALF OF THE BOARD OF DIRECTORS OF VALGOLD RESOURCES LTD.
Chairman and Chief Executive Officer
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This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements.