Golden Valley Mines Ltd.: Exploration Update: James Bay Gold Projects, Quebec, Mistassini and Otish Basins Quebec and Athabasca Basin, Saskatchewan Uranium Projects
VAL-D'OR, QUEBEC -- May 30, 2007 - Golden Valley Mines Ltd. (TSX VENTURE: GZZ) is pleased to report on the company's gold and uranium exploration activities, exclusive of the on-going Abitibi Greenstone Belt grassroots program.
Cheechoo Gold Prospect, James Bay Quebec: The 2007, Phase 1 exploration program is now underway with the objective of detailed follow-up of encouraging rock sample results obtained in 2006 over the Sharks and Cheechoo B properties. Four detailed grid systems are to be established (total of 225 line kilometres), including over the "Marchand" Showing (up to 11.96 g/t gold in rock grab sample results and "Garrioch" Showing (up to 0.39 g/t gold rock grab sample results) mineralized corridors (see GZZ News Release dated January 29, 2007) This will permit completion of geophysical surveying with follow-up prospecting, mapping and geochemical sampling.
Additional follow-up prospecting, mapping and sampling are also planned over separate encouraging results obtained in 2006, including the "Letang" Showing on the Cheechoo A property block where a rock sample assayed an impressive 209.24 g/t gold, and along with other areas on the property deemed as high priority target areas.
A Phase II, 5,000-metre Diamond drill program is currently planned to commence in the 4th quarter.
The 2007 exploration budget is currently estimated at a minimum of $1,000,000.
The Cheechoo "A", "B", and "C" Prospect and Sharks Prospect are both option - joint ventures with Sirios Resources (SOI :TSX/V) pursuant to which the Company, in each case, will earn an initial 60% interest by funding $1,000,000 in exploration over 4-years. Following initial vesting, the Company may then earn an additional 20% interest by completing a bankable feasibility study within 6 years of vesting. Should SOI then elect to allow GZZ to provide the production financing, GZZ would then acquire a final additional 5% interest.
Top-Corner Gold Prospect, James Bay Quebec: Concurrent with the 2007 Cheechoo Gold Project program, prospecting, reconnaissance mapping and sampling are also planned over fifteen (15) 100%-owned property blocks (429 claims for 22,604 ha). The objective of this portion of the program is to define priority areas for ground follow-up for definition of possible drill targets, based on encouraging lake sediment sample results obtained in 2005 and 2006.
Phase I of the 2007 exploration budget at the Top Corner Prospect is estimated at $150,000.
Golden Valley Mines now holds a 100%-interest, or is earning an interest through the above option - Joint Ventures, in a total of 1,006 claims covering 52,793 ha (528- km2) in the James Bay - Opinaca region. The Company is earning an interest in contiguous claim blocks on both the west and east sides of Les Mines d'Or OPINACA's (Goldcorp) Eleonore property, which hosts the Roberto Zone gold discoveries. For a map of the project area, refer to www.goldenvalleymines.com/cheechoo.
Mistassini and Otish Basins Uranium Prospects, Quebec: Airborne survey bid tenders are being reviewed with the contractor selection process on-going. A July start-up is projected based on contractor availability and dry summer ground conditions required for effective radiometric measurements. Concurrent with this work, detailed grids for completion of ground geophysical surveys are planned over a minimum of three known historical uranium showings.
The Phase I program has been budgeted at a minimum of $750,000 for 2007. Further details will be provided as the program progresses and exploration targets are defined. Lexam Explorations Inc. (LEX: TSX/V) may earn a 50%-interest by funding $3,000,000 in exploration expenditures over a 3-year period. Golden Valley Mines is the operator of the program.
The Golden Valley-Lexam option/joint venture has expanded its property holdings over the northeastern portion of the Otish Basin with the staking of 1,134 new claims totalling 60,153.2 Hectares (148,639 acres). Official claim certificates have now been received from the Ministere des Ressources naturelles et de la Faune ("MRNF") of Quebec. Final confirmation from MRNF on 271 additional map designated claims ("CDC") located elsewhere in the Otish and Mistassini Basins remains pending. The Golden Valley - Lexam option/joint venture is currently believed to be the dominant landholding position in the region when combined with its prior landholdings, now totalling approximately 83,000-hectares. Targeting for the property acquisitions was principally focused on unconformity-type targets.
Beartooth Island Prospect, Athabasca Basin Saskatchewan: The final data and report from the MT Logger Survey completed in April, 2007 is expected shortly from the contractor. Procurement of a barge-mounted Diamond drill rig, camp and permit has been initiated. The scope and size of the planned program will be contingent on the final results received from the ground geophysical survey according to the number of drill targets defined.
Ditem Explorations Inc. (TSX VENTURE: DIT) may earn an initial 50%-interest by incurring aggregate exploration expenditures of $1,000,000 over three years. In the fourth year of the agreement, DIT may then elect to increase its interest by 10% (aggregate 60% interest) by incurring an additional $2,000,000 in exploration expenditures. Finally, DIT may then enhance its position by acquiring an additional 6% interest (aggregate 66%) in the property provided that it deliver a bankable feasibility study within 10-years from the signing of the final agreement. Golden Valley will retain an aggregate 34% interest following vesting. Golden Valley is the operator during the option period.
About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority-owned grassroots projects. As of May 30, 2007, the Company holds majority property interests in 113 projects consisting of 3,950 mining titles (222,570 hectares) in Saskatchewan, Ontario and Quebec.
Michael P. Rosatelli, P. Geo. is a "Qualified Person" as defined in National Instrument 43-101 and is responsible for the technical information presented in this news release.
Forward Looking Statement:
This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict and are not to be interpreted as guarantees for future performance. These forward looking could cause actual events or results to differ materially from those anticipated in such forward-looking statements. All forward looking statements speak only as of the date of this press release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on such forward-looking statements.
CONTACT INFORMATION
Glenn J. Mullan
President and CEO
Toll Free: 877-879-1688, ext. 222
mullan@goldenvalleymines.com
Michael P. Rosatelli
Vice President - Exploration
Toll Free: 866-219-4678, ext. 230
rosatelli@goldenvalleymines.com
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