|  |
| | Thu Jan 7, 2010
Valgold Reports 2009 Exploration Work on Garrison Project and Corporate Update
|
| | Vancouver, Canada (January 7, 2010): ValGold Resources Ltd. ("ValGold" or the "Company") (TSX-V: VAL) is pleased to announce drill results for the first two holes of the 2009 program on its 100% owned Garrison property. Northern Gold Mining Inc. ("Northern Gold") (TSX-V: NGM) is the project operator and is currently in the first year of an option agreement under which it is earning its initial 50% interest in the Garrison property from ValGold by making $4 million in exploration expenditures and paying ValGold $1 million in option payments within the next four years.
The 2009 drill program commenced on October 26 and was reported to be completed on December 11 in a news release by Northern Gold dated December 28th. The program was focused on confirming gold mineralization at the Garrcon shaft area within the North, Shaft and South zones. During 2009, eleven diamond drill holes totaling 2,333 metres were completed so that since ValGold acquired the property in July 2005 the total number of holes drilled is 83 with a total accumulated length of 34,345 metres.
Assays have been received for the first two holesdrilled by Northern Gold, and multiple occurrences of visible gold have been observed in each of the first 5 holes logged to date. Visible gold was also observed in 18 separate intervals in hole GAR-09-02, of which 15 were from the Shaft zone. GAR-09-01 was designed to test the Garrcon North zones and GAR-09-02 was drilled 125 m south of GAR-09-01 and targeted the Shaft and North zones. Northern Gold has provided the following highlights of assays from its first two drill holes:
HOLE ID |
FROM |
TO |
WIDTH (1) |
ZONE |
GRADE |
GAR-09-01 |
127.1 |
149.1 |
22.0m |
North DZ+A |
4.21g/t *VG (2) |
including |
127.1 |
128.8 |
1.7m |
North A |
3.88g/t *VG |
and |
137.9 |
149.1 |
11.2m |
North DZ |
7.03g/t |
including |
144.5 |
145.3 |
0.9m |
|
52.3g/t |
GAR-09-02 |
21.3 |
77.4 |
55.6m |
Shaft C1-A1 |
2.15g/t |
including |
21.3 |
22.3 |
1.0m |
Shaft C1 |
11.0g/t *VG |
and |
30.4 |
32.4 |
2.0m |
Shaft B2 |
9.44g/t *VG |
and |
72.8 |
76.2 |
3.4m |
Shaft A2 |
16.9g/t *VG |
including |
75.0 |
76.2 |
1.2m |
|
36.6g/t *VG |
GAR-09-02 |
199.8 |
229.2 |
29.4m |
North Deep A |
1.05g/t *VG |
including |
217.0 |
218.0 |
1.0m |
|
4.84g/t |
and |
228.8 |
229.2 |
0.4m |
|
6.54g/t *VG |
- All widths are downhole thickness
- Visible gold observed in the interval
Northern Gold also reported that the remainder of the assays from the 2009 drill program to be available early in the New Year.
CORPORATE UPDATE
Through most of its 2008/09 fiscal year, ValGold has been under financial distress. Consequently, the Company has had to severely reduce all areas of its corporate activities and focus on measures to ensure its continuance into an improved economic environment. Measures taken have included curtailment of all non-essential work, major expense cutbacks, staff reduction, reduced or cut salaries and elimination of directors' fees. In addition, ValGold completed prior to the end of the fiscal year a settlement of approximately $1 million of payables in shares of the Company that were valued at $0.05 when the market price lingered at about $0.015. At the same, Management worked to seek alternative sources of funding through the sale or optioning of its exploration properties. This effort resulted in the agreement with Northern Gold and the initial option payment of $200,000. The initial payment was paid in part with 2.2 million Northern Gold shares that were issued to ValGold at a deemed price of $0.08 each. The Northern Gold shares closed on January 6, 2010th at a price of $0.20. ValGold's management is continuing its efforts to seek further sale or option agreements on its non-core assets where such arrangements would further improve the market price for its shares and thus increase the value of the Company for its stake holders.
Audited Financial Statements and Cease Trade Orders
A further consequence of the past year's financial difficulties was that the Company was unable to prepare for and have a timely start to its annual audit process. However, with improving stock market conditions, ValGold was able to raise funds through the sale of its share holdings in other junior companies and the audit was commenced in November and completed on December 15th. With the mandatory filing of the financial statements being inevitably late, the Company applied for but was denied a Management Cease Trade Order ("MCTO"). Cease trade orders ("CTO") were issued by the British Columbia and Ontario Securities Commissions on December 7th 2009 and December 9th 2009 respectively. ValGold is pleased to report that the CTO were fully revoked by December 23rd. It is anticipated that upon acceptance of the above filing, trading of the common shares of the Company on the TSX Venture Exchange should also be reinstated.
For more information on ValGold and its portfolio of international projects, visit our website at www.valgold.com.
Stephen J. Wilkinson
President & Chief Executive Officer
For further information please contact:
Tel: (604) 687-4622 Fax: (604) 687-4212
Email: info@valgold.com
No regulatory authority has approved or disapproved the information contained in this news release.
Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied in the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic condition or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned to not place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. |
| |
| | You can view the Next News Releases item: Wed Jan 27, 2010, Valgold & Northern Gold Issue Update on Drilling on Garrison Project and Correction to Previous News
You can view the Previous News Releases item: Wed Jan 6, 2010, Valgold Proposes Restructuring And Subscription Receipts Offering
You can return to the main News Releases page, or press the Back button on your browser.
|
| |