ValGold Resources Ltd.
TSX VENTURE : VAL
FRANKFURT : VR2

ValGold Resources Ltd.

January 25, 2011 13:29 ET

ValGold Starts Drill Program on the Tower Mountain Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2011) - ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL)(FRANKFURT:VR2) is pleased to announce the commencement of its 2011 exploration program of approximately 4500m of core drilling on the Tower Mountain gold property. The Tower Mountain property is owned 100% by ValGold and is located approximately 40km west of Thunder Bay, Ontario.

The drill program is designed to be completed in two rounds of which the initial round should consist of 8 to 10 holes for 2,000m. The first target is the 4-36 gold zone where ValGold's diamond drill hole TM 04-36 had a core-length intersection of 24.0m of 3.90 g/t Au within which a 1.5m length returned 41.35 g/t Au. The mineralization in the 4-36 gold zone is hosted within an intermediate tuffaceous unit that contains subangular volcanic and jasperitic rock fragments. The host commonly contains pyrite and may be modestly silicified. The three initial holes of the 2011 drill program TM 11-59, 60 and 61 target the 4-36 gold zone and the fourth hole, TM 11-61 will target the broad zone of mineralization intersected in hole, TM-04-09 which returned 61.5m grading 2.40 g/t Au.

Tower Mountain Gold Project

The geology of the Tower Mountain property is analogous in many respects to the setting of world class gold deposits found in the Timmins and Kirkland Lake Camps in north-eastern Ontario. The property is underlain by Timiskaming-like clastic sediments and felsic to intermediate alkali volcanics which are, in turn, intruded by felsic to intermediate stocks and sills. Numerous gold occurrences, spatially related to felsic intrusions, large zones of alteration and sulphide mineralization, and the presence of several small and large-scale faults indicate characteristics favourable for both bulk tonnage, disseminated and high-grade vein styles of gold mineralization. ValGold has identified numerous gold occurrences proximal to the contact of the Tower Mountain Intrusive Complex ("TMIC") and along the contacts of dykes radiating out from the TMIC. Broad zones of disseminated gold mineralization, often containing discrete high-grade vein material, are accompanied by up to 25% pyrite. Gold mineralized zones commonly are altered by quartz, ankerite, tourmaline, hematite, chlorite, epidote and sericite. Several gold occurrences are also hosted by pyritic breccias containing up to 20% tourmaline.

The following table summarizes the drill programs and highlights of ValGold's seven historical drill programs to date.

Highlights of Tower Mountain Gold Property Drill Programs
         
Program Holes Drilled Total Meters Best High Grade Gold Intersection Best Low Grade Gold Intersection
2002 (Fall) TM02-01 to 05 1042 23.17g/tAu /1.5m in TM02-02 1.05g/tAu /73.5m in TM02-03
2003 (Spring) TM03-01 to 05 1085 11.77g/tAu /3.0m in TM03-02 1.01g/tAu /22.5m in TM03-03
2003 (Fall) TM03-06 to 12 1499 19.76g/tAu /1.5m in TM03-11 0.62g/tAu /12.0m in TM03-12
2004 (Winter) TM04-01 to 10 2601 304.0g/tAu /3.0m in TM04-03 2.40g/tAu /61.5m in TM04-09
2004 (Summer) TM04-11 to 23 3450 68.91g/tAu /0.2m in TM04-19 1.93g/tAu /37.5m in TM04-15
2004 (Fall) TM04-24 to 36 3418 41.35g/tAu /1.5m in TM04-36 0.94g/tAu /106.5m in TM04-31
2005 (Winter) TM05-37 to 50 3523 16.00g/tAu /1.5m in TM05-38 0.77g/tAu /21.0m in TM05-44
2007 (Summer) TM07-51 to 58 1661 4.97g/tAu /1.5m in TM07-55 0.73g/tAu /13.5m in TM07-55
Total 75 DDH 18,279    

Exploration work by ValGold on the Property began in November 2002. A total of eight diamond drill programs comprising 75 drill holes for 18,708m have been completed to date. The majority of drilling has been in the vicinity of the U and V Trench areas (U/V Zone) and this work has defined several mineralized structures. The most continuous of these structures is designated the Main Vein which dips moderately northeast and can be traced along strike for a minimum of 400m. The Main Vein mineralized zone measures from 0.6m to 20.0m true width and plunges steeply to the southeast. Drill intercepts from this zone returned assays of 304.00 g/t Au over 3.0m in drill hole TM04-3 and 2.40 g/t Au over 61.5m in TM04-9.

Additional zones of high-grade mineralization have also been delineated by diamond drilling. The 04-31 Zone, located 800m southeast of the U/V Zone, appears similar to the U/V Main Vein. ValGold has tested this target with two holes with the best drill intercept returning 21.14 g/t Au over 1.5m.

Information in this news release of a scientific or technical nature has been reviewed by Robert Chataway, P.Geo, who is a Qualified Person as defined in National Instrument 43-101. A NI 43-101 compliant resource estimate for the U/V Zone was compiled by Caracle Creek International Consulting Inc. of Sudbury, Ontario. The report dated February 9, 2006 is filed on SEDAR. The resource for the U-V was estimated to be 150,000 ounces within a bulk mineable volume. The zone is open on strike to the SE and to depth.

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 & 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