ValGold and Revolver Enter Option Agreement to Advance Tower Mountain Gold Property
Published : September 19, 2012
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Keywords :   Canada | Diamond | Gold | Market | Market Conditions | Report |

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2012) - ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL)(FRANKFURT:VR2) and Revolver Resources Inc. ("Revolver") are pleased to report that they have entered into an Option Agreement to advance ValGold's 100%-owned Tower Mountain gold property in north western Ontario (the "Property"). Revolver trades on the TSX-Venture exchange under the ticker symbol; RZ.

Under the terms of the agreement, Revolver may acquire an initial 70% undivided interest in the Property, over the next three years, by making cash payments of $1,700,000 and issuing 7.5 million shares to ValGold. Revolver must also complete $3,500,000 in work expenditures on the property with not less than $500,000 to be spent in the first year of the agreement and not less than $500,000 to be spent in each of the subsequent years. After earning the initial 70% interest, Revolver may increase its interest to 100% over the next three years by making additional payments to ValGold of $2,500,000 in cash and 7.5 million of Revolver common shares and by completing $4,000,000 of additional work on the property. In addition, Revolver would also make a final cash payment of $2.5 million to ValGold within 180 days of the commencement of commercial production from the Property. Closing of the transaction remains subject to the approval of the TSX Venture Exchange.

The Property is subject to a 2.5% Net Smelter Royalty (the "NSR") held by the original property vendor and ValGold has retained the right to purchase 1% of this NSR for $1.0 million.

Stephen Wilkinson, ValGold's President and CEO, commented "This deal for the Tower Mountain gold property must be seen as a positive for both ValGold and Revolver. For Revolver, Tower represents an excellent opportunity to acquire an advanced gold project, complete with known resources and high-priority drill targets. ValGold looks to benefit from its significant equity holding in Revolver as the project is further advanced, in addition to the replacement of its previous expenditures and its right to purchase the NSR as its link to the production potential of the Tower Mountain gold zones."

In connection with the transaction, ValGold will pay an initial finder's fees totalling $13,750 (the "Finder's Fees") to an arm's length party. Subject to the approval of the TSX Venture Exchange, ValGold may, at its option, elect to pay all or a portion of the Finder's Fees in common shares of ValGold at a price of $0.11.

Tower Mountain Project Summary

The Property is located approximately 40km west of Thunder Bay, in north western Ontario and includes 55 claims and 3 patented claims covering 3,875 acres in Conmee Township, 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 mineralization. The exploration targets going forward include both high-grade veins and large low-grade bulk mineable deposits. In 2011, ValGold drilled the 31-Bench Zone (2.00 g/t Au over 27.0m), 04-36 Zone (1.136 g/t Au over 16.5m), the 04-9 Zone (0.54 g/t Au over 18.0m) and the U-V Zone (0.815 g/t Au over 73.5m), the latter of which contains the NI 43-101 compliant inferred resource of 151,000 ounces within 7.15 million tonnes.

Exploration work by ValGold on the Tower Mountain Gold Property began in November 2002 and focused on Diamond drilling. A total of nine drill programs comprising 104 drill holes, for 23,388m, were completed as at 2011 year end. The majority of drilling was conducted in the vicinity of the U and V Trench areas (U-V Zone) and this work 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 400m. The Main Vein mineralized zone measures from 0.6m to 20.0m true width plunging steeply to the southeast. Drill intercepts from this zone returned assays ranging from 304.00 g/t Au over 3.0m in drill hole TM04-3 to 2.58 g/t Au over 55.5m in TM04-9.

Drilling has also delineated low grade, bulk tonnage zones such as the former 04-31 Zone now referred to as the 31-Bench Zone. It is located 800 meters southeast of the U-V Zone with some values up to 0.70 g/t Au over 87.0m (TM-11-67). A hole drilled in 1996 by Avalon Ventures Limited in the vicinity of the 04-31 Zone was orientated sub-parallel to the zone and returned an average grade of approximately 0.3 g/t Au over its entire 739m length. The second high-grade zone identified is the 04-36 Zone and is located 400m southwest of the U-V Zone. Unlike the U-V Zone, the 04-36 strikes north-northeast. Several drill holes have intersected this zone. One hole documented 41.35 g/t Au over 1.5m and a second hole returned an assay of 5.31 g/t over 1.5m.

The following table summarizes the drill programs and presents highlights of each of the nine drilling campaigns conducted by ValGold Resources from 2002 to 2011.

Highlights of Tower Mountain Gold Zones Drill Intersections
Program Holes Drilled Total
Meters
Best High-Grade Gold Intersection   Best Low-Grade Gold Intersection
2002 (Fall) DDH02-01 to -05 1,042 23.17g/tAu /1.5m in DDHTM02-02   1.05g/tAu /73.5m in DDHTM02-03
2003 (Spring) DDH03-01 to -05 1,085 11.77g/tAu /3.0m in DDHTM03-02   1.01g/tAu /22.5m in DDHTM03-03
2003 (Fall) DDH03-06 to -12 1,499 19.76g/tAu /1.5m in DDHTM03-11   0.62g/tAu /12.0m in DDHTM03-12
2004 (Winter) DDH04-01 to -10 2,601 304.0g/tAu /3.0m in DDHTM04-03   2.40g/tAu /61.5m in DDHTM04-09
2004 (Summer) DDH04-11 to -23 3,450 68.91g/tAu /0.2m in DDHTM04-19   1.93g/tAu /37.5m in DDHTM04-15
2004 (Fall) DDH04-24 to -36 3,418 41.35g/tAu /1.5m in DDHTM04-36   0.58g/tAu /246.8m in DDHTM04-31
2005 (Winter) DDH05-37 to -50 3,523 16.00g/tAu /1.5m in DDHTM05-38   0.77g/tAu /21.0m in DDHTM05-44
2007 (Summer) TM07-51 to 58 2,090 58.20g/tAu /1.5m in DDHTM07-56   0.59g/tAu /21.0m in DDHTM07-56
2011 (Summer) TM11-59 to 87 4,680 4.93g/tAu /4.50m in DDHTM11-63   0.70g/tAu /115.5m in DDHTM11-75
Total 104 DDH 23,388      

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 zone is estimated to consist of 151,000 ounces within a bulk mineable volume. The zone is open to expansion on strike to the SE and at depth.

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

ABOUT VALGOLD

Incorporated in 1987, ValGold is listed on Tier 1 of the TSX Venture Exchange under the symbol VAL. ValGold is an international mineral development company based in Vancouver, Canada. The Company's objective is to generate wealth for its stakeholders by seeking out, acquiring and advancing properties with recognizable but under-explored mineral resources.

ValGold's commitment is to realize value from significant mineral deposits which satisfy key criteria -

  • Mineral rights to extensive areas in prospective but non-traditional and under-explored regions.
  • Mineral exploration projects with potential for substantial development.
  • Projects that require experienced management with exploration, mining and financial expertise.

For more information on ValGold's Canadian and international gold projects, please visit our website at www.valgold.com.

Stephen J. Wilkinson, President & Chief Executive Officer

Cindy Chu, Investor Relations

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.

ValGold Resources Ltd.
Stephen J. Wilkinson
President & Chief Executive Officer
(604) 646-5895
or
ValGold Resources Ltd.
Cindy Chu
Investor Relations
(604) 646-5895
(604) 558-3471 (FAX)
info@valgold.com
www.valgold.com
Data and Statistics for these countries : Canada | All
Gold and Silver Prices for these countries : Canada | All

Valgold Resources ltd.

EXPLORATION STAGE
CODE : VAL.V
ISIN : CA9191472070
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Valgold Res. is a gold exploration company based in Canada.

Valgold Res. holds various exploration projects in Canada.

Its main exploration properties are TOWER MOUNTAIN, GARRISON and GARRISON - JONPOL / MONETA in Canada.

Valgold Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 4.8 millions as of today (US$ 3.7 millions, € 3.1 millions).

Its stock quote reached its highest recent level on June 06, 1997 at CA$ 9.50, and its lowest recent point on March 04, 2016 at CA$ 0.01.

Valgold Res. has 38 250 407 shares outstanding.

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Financings of Valgold Resources ltd.
5/4/2011Completes Non-Brokered Private Placement Financing
4/28/2011Announces Increase in Non-Brokered Financing
4/13/2011Reports $1.8 Million Non-Brokered Financing
7/25/2008Completes Non-Brokered Private Placement Financing
6/26/2008Announces Non-Brokered Private Placement Financing
Option Grants of Valgold Resources ltd.
4/8/2011(angl) Grant of 50,000 options to IR provider
5/14/2010Grants Stock Options and Reprices Consolidated Options
Nominations of Valgold Resources ltd.
1/16/2015Announces Appointment of New Director and Director Resignati...
6/22/2012Announces New Directors
Project news of Valgold Resources ltd.
1/23/2013(Tower Mountain)Revises Agreement on Tower Mountain Gold Property, Ontario
9/19/2012(Tower Mountain)and Revolver Enter Option Agreement to Advance Tower Mountai...
10/12/2011Releases MBK Project Media Coverage
9/22/2011to Acquire Past Producing Gold-Silver Mine and Surrounding R...
8/16/2011in Negotiations for a Property Acquisition in Central Europe
5/27/2011(Tower Mountain)Commences Phase 2 Drill Program on Tower Mountain Gold Prope...
5/16/2011(Garrison)and Northern Gold Close Garrison Property Sale
5/12/2011(Tower Mountain)Reports Further Assay Results from the Tower Mountain Gold P...
4/8/2011(Tower Mountain)Reports First Results of 2011 Drill Program on the Tower Mou...
4/7/2011(Garrison)Northern Gold and Valgold Announce Agreement to Consolidate ...
3/31/2011(Garrison)Reports Six Additional Drill Holes for Garrison Gold Project...
3/1/2011(Garrison)Reports Strong Wide Intersections At Garrison Gold Project, ...
2/24/2011(Garrison)Reports Metallurgical Tests Indicate High Gold Recoveries fo...
2/22/2011(Garrison)Reports Further Infill Drill Results at Garrison Gold Projec...
3/5/2010(Garrison)Reports Final Results Of 2009 Drilling On Garrison Project, ...
2/23/2010(Garrison)Reports Additional Drill Results For The Garrcon Area, Garri...
1/29/2010(Garrison)& Northern Gold Issue Update on Drilling on Garrison Project...
9/15/2009(Garrison - Jonpol / Moneta)& Northern Gold Sign Option Agreement On Garrison Gold Prope...
8/25/2008(Tower Mountain)Completes Acquisition of Tower Mountain Property
5/21/2008(Garrison - Jonpol / Moneta) Files Technical Report For Its Garrison Gold Property, Onta...
4/8/2008(Garrison - Jonpol / Moneta) Reports Initial Resource Estimate For Its Garrison Gold Pro...
3/19/2008(Los Patos) Receives Positive Initial Gold Mineral Resource Estimate Fo...
Corporate news of Valgold Resources ltd.
1/16/2015ValGold Announces Appointment of New Director and Director R...
12/4/2014ValGold closes secured convertible financing
11/12/2014ValGold Arranges Non-Brokered Secured Convertible Financing
7/24/2013Announces Annual General & Special Meeting Results
6/5/2013Provides Update And Announces Advance Notice Policy
9/24/2012Grants Stock Options
8/7/2012has Relocated!
1/26/2012Raises Funds for Ukraine Venture from Partial Disposal of No...
11/30/2011Launches its New Corporate Website
7/25/2011(Tower Mountain)Announces Additional Positive Drill Results from the Tower M...
6/22/2011(Tower Mountain)Announces Further Positive Drill Results from the Tower Moun...
4/8/2011Reports On Annual General Meeting; Appointment Of Investor R...
4/22/2010Shareholder Update April 2010
4/13/2010Completes Oversubscribed Financing
3/3/2010Completes Restructuring And Subscription Receipts Offering
2/4/2010Reports On Annual And Special Meeting
1/28/2009Status Report
1/7/2009Default Status Report
5/28/2008for our Shareholder's and Supporters
3/31/2008Defines Gold Targets In NW Guyana
3/17/2008 Discovers New Copper/Nickel/Platinum/Palladium Target In Gu...
1/9/2008 Hiring
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