Garrison Gold Property, Ontario

Property Acquisition

In July 2005, Valgold Resources Ltd. purchased a 100% interest in the Garrison gold property subject only to a Net Smelter Return (NSR) on twelve of the thirty-five patented claims comprising the property. The twelve claims are referred to as the Garrcon block and are subject to a NSR of 1.5% payable to Teck-Cominco from ores mined above 400 feet and a 2.0% NSR from deeper levels.

Property Location and Access

The Garrison gold property is located in Garrison Township, 40 kilometres north of Kirkland Lake and 100 kilometres east of Timmins, Ontario. Access is via Highway 101 that passes by the northern boundary of the property. Eight kilometers to the east along the same highway is Newmont Mining Corp's Holt-McDermott and Holloway gold mines.

Geology and Mineralization

The Garrison property is situated within the central portion of the Abitibi Greenstone Belt that extends from Timmins, Ontario to Chibougamou, Quebec. Rocks comprising this belt include an assemblage of Archean aged, metamorphosed, volcanic, sedimentary and related intrusive rocks, and are host to many of Canada's most prolific gold and base metal mines. All of the significant gold mines occur in the vicinity of major east to northeast trending structures such as the Destor Porcupine Fault Zone (DPFZ) and the Cadillac-Larder Lake Fault. The DPFZ parallels the Abitibi belt and passes through the southern portion of the Garrison property.

The extensive DPFZ, with which are associated the Holloway and Holt-McDermott mines to the east and the Ross mine to the west, dominates the geological setting of the Garrison property. Broadly viewed, the DPFZ in this area separates Kinojevis Group tholeiitic basalts to the south from a narrow, 800 metre wide belt of subvertical, arkosic metasediments to the north. A splay off the DPFZ referred to as the Munro Fault forms the northern boundary of the sedimentary belt and is roughly coincident with the northern boundary of the property. To the north of the Munro Fault is a package of Hunter Mine Group intermediate calcalkaline volcanics, Stoughton-Roquemaure Group komatiites, and a number of large ultramafic to mafic sills.

Numerous zones of gold mineralization have been discovered on the Garrison property to date the most prospective of which are found within the Munro Fault zone. Five zones have been discovered along this fault over a minimum strike length of 1600 metres. The best continuity in grade and width along strike is the J.P. zone which was bulk sampled underground on the 476 foot level. This work indicated a continuous length of 465 feet (141 m) averaging 0.255 opt (8.67 g/t) gold over an average width of 11.85 feet (3.6 m). Drilling below the zone has suggested that it continues to depths of at least 2,000 feet (600 m) below surface. Gold mineralization is associated with an albite-sericite-pyrite + arsenopyrite assemblage which is a hydrothermally altered portion of the metavolcanic komatiitic rocks present near the footwall of the Murno Fault.

Gold mineralization has also been discovered proximal to the footwall of the south dipping DPFZ and associated with minor faults cutting sediments immediately to the north of the fault. Several of these zones have been explored to relatively shallow depths through a combination of drilling and underground workings. The South zone, for example, comprises a silicified breccia zone near the footwall of the DPFZ and has been traced over a minimum strike length of 1,300 feet (400 m). Drilling has tested the zone only to a depth of 600 feet, however, one hole intersected 0.175 opt (5.95 gpt) gold over 19.5 feet (5.9 m) at a depth of 370 feet (112.8 m). Immediately to the north of the South zone lies the Garrcon Shaft zone that was explored underground by Cominco in the 1930's.

Previous Work

Surface and underground exploration by Cominco in the mid-30's concentrated on delineating gold mineralization associated with quartz-pyrite veinlets hosted by sediments immediately north of the DPFZ. No orebody could be outlined at that time so exploration was suspended in 1937. Major exploration on the property did not resume on the property until 1985 when Jonpol Explorations funded a joint venture exploration program with Cominco. In the years to follow, Jonpol drilled more than 250,000 feet of core on the property and bulk sampled the J.P. zone via a 605 foot (184.4 m) vertical shaft and a decline. Metallurgical testing was carried out on the mineralization and resource figures calculated for the five gold zones along the Munro Fault zone.

Current Exploration

Since acquiring the property in July 2005, Valgold has compiled a digital database for the Munro Fault hosted gold zones and is currently preparing a 43-101 compliant technical report and resource figures. In November 2005, the Company started a 10,000 m diamond drill program to further test the potential of the J.D zone located immediately to the west of the main J.P. zone and to find extensions to the main J.P. zone. Results for the first 11 holes are described in a February 8, 2006 ValGold news release. Work on the Garrison Property is comprized primarily of drilling in search for extensions to the existing zones of mineralization already outlined along the Munro Fault Zone and DPFZ. Minimal drilling was carried out below 600 feet vertical and only a handful of holes were drilled below the 1,000 foot vertical level. This opens the possibility for many new zones of mineralization to be discovered at depth along both fault zones. Drilling was ongoing through most of 2006 and results have been reported in news releases dated February 8th, May 1st, June 13th, July 25th, August 1st and October 4th, 2006, which are available in this website's News Releases section.