Golden Valley Mines: Significant Gold Mineralization Intersected in 25 Drillholes on the Malartic CHL Prospect-Results Include 109 Metres Averaging 0.83 g/t Au
VAL-D\'OR, QUEBEC, May 13, 2010 (MARKETWIRE via COMTEX News Network) --
Golden Valley Mines Ltd. (\"Golden Valley Mines\" or the \"Company\")(TSX VENTURE: GZZ) is pleased to announce additional assay results (25 drillholes totalling 7,134 metres) from the definition drill program testing the depth extension of the western portion of the Jeffrey Zone on the Malartic CHL Prospect. The property is optioned to Osisko Mining Corporation (\"Osisko\", OSK: TSX, EWX: Deutsche Boerse ) who is also the project operator. Additional results from the on-going 25,000 metre definition drilling program on the Jeffrey Zone are pending and will be released when received and compiled.
Presently, the Jeffrey Zone has been traced continuously by surface diamond drilling over a strike length of 400 metres and to maximum depths of less than 370 metres. True average width of the zone is estimated at 42.0 metres. The mineralized system remains open along strike to the east for at least 500 metres, where previous drilling (2007 program) intersected significant mineralization and it is open as well in the down-dip direction. The total cumulative east-west strike extent of zone has now been drill tested over a distance of some 900 metres.
This first set of assay results has been derived from recent activity from the western sector of the zone. At the Jeffrey Zone, the drillholes intersected multiple zones of significant near-surface and deeper, higher-grade gold mineralization to depths of up to 372 metres. The zone remains open along strike and down-dip at depth. Over the western sector of the zone, significant drill intersections include:
-- 40.7 metres averaging 0.77 g/t Au (CHL09-2197);-- 109.0 metres averaging 0.83 g/t Au, with 1.5 metres grading 21.2 g/t Au(CHL09-2215);-- 42.8 metres averaging 1.41 g/t Au, with 1.5 metres grading 17.6 (CHL09-2212);-- 52.5 metres averaging 1.19 g/t Au, with 1.5 metres grading 10.65 g/t Au(CHL09-2217); and-- 110.9 metres averaging 0.80 g/t Au, with 1.5 metres grading 9.36 g/t Au(CHL09-2219).
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Definition drilling on the Jeffrey Zone is based on a series of sections spaced at 25 metre intervals over an east-west strike length of 400-metres and north-south distance of 135 metres. All of the drillholes were drilled to the south. The objectives of the program are to obtain both additional drill information along strike and to depth (to the north), required to complete an initial resource calculation on the zone and for planning additional drilling.
Mineralization at the Jeffrey Zone consists of disseminated pyrite-gold in strongly potassic-altered quartz-feldspar porphyry dikes, in contact with a predominately ultramafic flow sequence, and in subordinate diorite-gabbro and sedimentary units. Narrower, higher-grade mineralization is hosted in quartz veined (silicified) porphyry or talcose and chlorite-altered ultramafic schists.
All NQ or HQ core assays reported above were obtained by standard 50 gram fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val-d\'Or, Quebec. Reported weighted averages were calculated using a minimum of 0.40 g/t Au over successive maximum intervals of 20 metres with no upper cut-off of individual assays. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals.
Osisko has the right to acquire a 70% interest in the Malartic CHL Property in consideration for $150,000 in cash payments over a four year period (paid) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley Mines will retain a free-carried interest of 30% to production. Also, Osisko purchased a claim block from Golden Valley Mines located immediately southeast of the Canadian Malartic Mine. Terms of the acquisition included a cash payment of $100,000 at signing to allow Osisko to earn a 100%-interest subject to a 2% net smelter royalty payable to Golden Valley Mines. This claim block covers the Charlie Zone, located immediately southeast of the Canadian Malartic deposit.
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