Vancouver, August 25, 2008, ValGold Resources Ltd. ("ValGold") reports that, pursuant to an agreement (the "Agreement") dated June 25, 2002, it has commenced paying an annual pre-production royalty on its 100% interest in the Tower Mountain Gold Property (the "Property"). The Property comprises 49 mineral and 3 patent claims located in the Matawin Gold Belt approximately 40 kilometres west-northwest of Thunder Bay, Ontario.
Under the terms the Agreement, ValGold acquired a 100% interest in the Property by making total cash payments of $220,000 and by completing $1,000,000 in work on the Property over a four year period.
ValGold's interest is subject a 2.5% net smelter return royalty ("NSR"), which ValGold has the right to reduce to a 1.5% NSR by making a $1,000,000 payment at any time up to commencement of production. Until the commencement of production, ValGold must pay an annual pre-production royalty of $25,000 or, subject to regulatory approval, $25,000 worth of ValGold common shares to be valued by averaging ValGold's common share closing price on the TSX Venture Exchange over the 20-day trading period immediately preceding the applicable payment date. The form of compensation payment to be made is at ValGold's sole discretion.
Numerous gold occurrences are found on the Property hosted by Timiskaming volcanics and sedimentary and intrusive rocks proximal to and associated with the Tower Mountain syenite complex. Both high-grade mineralization, associated by quartz-carbonate veins, and bulk tonnage/stockwork-style mineralization are found on the Property. Exploration work by ValGold on the Property began in November 2002 and has focused on diamond drilling. A total of eight drill programs comprising 75 drill holes, totaling 18,708 m, have been completed to date.
The table below summarizes the drill program and present highlights of each of the seven drill programs conducted by ValGold. Furthermore, details of the Property including a resource estimate for the U/V zone are provided in a NI 43-101 compliant report dated February 9, 2006, which can be found at
www.SEDAR.com.
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) |
5 |
1,042 |
23.17g/Tonne /1.5m in TM02-02 |
1.05g/Tonne /73.5m in TM02-03 |
| 2003 (Spring) |
5 |
1,085 |
11.77g/Tonne /3.0m in TM03-02 |
1.01g/Tonne /22.5m in TM03-03 |
| 2003 (Fall) |
12 |
1,499 |
19.76g/Tonne /1.5m in TM03-11 |
0.62g/Tonne /12.0m in TM03-12 |
| 2004 (Winter) |
10 |
2,601 |
160.0g/Tonne /1.5m in TM04-06 |
0.77g/Tonne /52.5m in TM04-09 |
| 2004 (Summer) |
23 |
3,450 |
68.91g/Tonne /0.2m in TM04-19 |
1.93g/Tonne /37.5m in TM04-15 |
| 2004 (Fall) |
36 |
3,418 |
41.35g/Tonne /1.5m in TM04-36 |
0.94g/Tonne /106.5m in TM04-31 |
| 2005 (Winter) |
50 |
3,523 |
16.00g/Tonne /1.5m in TM05-38 |
0.77g/Tonne /21.0m in TM05-44 |
| 2007 (Summer) |
8 |
2,090 |
58.20g/Tonne/1.5m in TM-07-56 |
0.59g/Tonne/21.0m in TM-07-56 |
| Total |
67 |
18,708 |
|
|
ValGold is listed on the TSX Venture Exchange under the trading symbol: VAL. For further information on ValGold and its portfolio of international projects, visit our website at
www.valgold.com.