Vancouver, BC -- May 27, 2008. We have witnessed some very difficult market conditions since August of last year. Price volatility continues to be a serious issue for public companies, both small and large cap, and most recently for both precious and base metals. The circumstances surrounding these trying market conditions are unique, driven by global forces in large part related to the U.S. financial crisis and its impact on the western world's banking and investment industry. These conditions have been manifest in the erosion of ValGold's share price.
It is important for our shareholders to fully understand that ValGold's current share performance in no way reflects our exceptional exploration successes or what we believe to be our Company's underlying value. The pressure on ValGold's share price should not detract from the fact that ValGold has demonstrated a superior degree of effectiveness when it comes to searching for, discovering and defining mineral deposits of economic significance.
Since last August, when the U.S. financial crisis began to take its toll on our markets, ValGold's geologists and field personnel have delivered repeated positive results in each of our major project areas.
In Guyana, our work programs have resulted in significant discoveries for gold, platinum group metals, and uranium. Our gold discoveries have been mainly concentrated in our 100% owned 42-kilometer long Whana Gold Belt. We are now mobilizing the crews and the equipment for this season's work program. We intend to focus our efforts on the west end of the Whana belt where our Reiss gold occurrence is defined by a six kilometer long soil anomaly within which we have found up to 5 zones of high grade anomalies. Our geologists plan to drill several holes into these high grade gold areas to find the sources of the gold that has been small-scale mined by Guyanese locals for several decades.
The recent announcement of our new platinum occurrence in the Masawaki area in Guyana created positive interest from a number of other exploration companies. The platinum soil anomalies occur in at least five, parallel, northwest/southeast striking belts and range in width from about 100m to 300m. These belts are almost equally spaced across a 6,000m strike length. Nickel and chromium anomalies are concentrated mostly in a single belt with a maximum width of roughly 850m and correlate with
palladium and gold. Several other elements are anomalous in the Masawaki soils including Cu, Co, Fe, Cr and Ti. We believe that these results are indicative of a significant exploration target that could have a major influence on ValGold's fortunes. We continue to receive more results from our exploration work in Guyana and anticipate even more positive and value-building news from this huge project.
Across the border in Venezuela, we concluded a 35-hole drill program on our 100% owned Increible 3 concession, with the last and deepest hole returning an impressive 13.67 G/Tonne gold over 3m to confirm the deep continuity of the Los Patos discovery. Just a few weeks ago we announced the significant Indicated Resources defined by that drilling. This gold target is called the Los Chivos Shear Zone and it holds the potential for a world class gold deposit for which our initial discovery is merely a precursor! It is unfortunate that political volatility has for the time-being devalued this excellent occurrence that otherwise would be an important driver of value for our shares. Even though we have suspended our work for the near term, we believe that the Los Chivos Shear Zones are worth waiting for and will benefit us in the future.
With the completion of the NI 43-101 compliant resource on the Garrison Gold Project in the Timmins, Canada belt we now have independent reports on of each of ValGold's major projects. Our total gold resources stand at approximately 400,000 ounces Inferred and 168,000 ounces Indicated. It is our belief that with such gold resources our market capitalization stands well below industry standards for gold explorers. In addition, we anticipate adding significantly to these resources with continued successes drilling on identified targets associated with them. We believe that there is the potential for multi-million ounce occurrences at each of the Garrison and Increible projects.
Overall, we are convinced that ValGold is a company with impressive prospects and potential that stands at the forefront of its peer group. Its portfolio of projects ranges from blue sky properties in newly discovered Guyanese occurrences to advanced development projects such as Garrison. We have mitigated the traditional exploration risks by acquiring a portfolio of properties located in varied locations.
We have maintained our website at
www.valgold.com, with more detailed information than we have presented to you here and we encourage you to visit at your leisure. In addition, we are always at your disposal to speak with you directly and are happy to talk to any and all shareholders or other investors who have questions or comments. Please feel free to call me or Jeff Stuart at Investor Relations, 604 687 4622.
Sincerely yours and on behalf of our dedicated staff and Directors,
Stephen J. Wilkinson
President & Chief Executive Officer
For further information please contact:
Jeff Stuart, Investor & Corporate Communications
Tel: (604) 687-4622 Fax: (604) 687-4212
Email: jstuart@valgold.com or info@valgold.com
No regulatory authority has approved or disapproved the information contained in this news release.