Drillholes Intersect New Gold-Bearing Zones at the Cheechoo Gold Project, Opinaca Area, James Bay, Québec
December 16, 2015
Val-d’Or, Québec – December 16, 2015 – Golden Valley Mines Ltd. (“Golden Valley” or the “Company”, TSX-V symbol: GZZ) announces the receipt from Sirios Resources Inc. (“Sirios”) of results from four (4) new diamond drillholes undertaken in September on the Cheechoo gold property ("Cheechoo gold project"), which is currently under option to Sirios. The information that follows has been prepared by partner and program operator Sirios Resources Inc. (TSX venture: SOI) and has not been independently verified by Golden Valley:
“Three drill holes (#23, 25 and 26), situated between 200 and 250 metres from the two first drill holes #20 and 21 (press release December 1, 2015) intersected other distinct gold zones. These zones, yielding grades between 4.66 g/t Au and 18.95 g/t Au over lengths between 1 m to 3 m, are also included in intervals of lower grades reaching up to 1,00 g/t Au over 33 metres in hole #26. Other gold zones with smaller lengths were also intersected by these drill holes, as indicated in the table below.
As for drill hole #30 that is located at more than 650 metres from drill holes #20 and 21, and close to drill hole #15 undertaken in 2014, has intersected a zone grading 0.79 g/t over 23.90 metres including 1.78 g/t Au over 3.5 metres centered on a fault. Drill hole #15 was stopped in this fault zone at 72 metres of depth yielding a grade of 1.16 g/t Au over 9 metres at the end of the hole.
Eleven diamond drill holes were completed in last September for a total of 1,962 metres. Note that visible gold was observed in eight of these drill holes. The complete results of the other five drill holes will be released when re-assays will be finished. Two of the five drill holes are located in the same zone of drill holes 18, 20 and 21, while the other three are located between 50 and 150 metres from the latter.
Main Assay Results of Drill Holes #23, 25, 26 and 30
|Drill hole #
* Interval along the hole
** Visible Gold
L.C.: Lost core
Assay quality control
For holes #23, 25, 26 and 30 respectively, 551 samples, representing 682 metres of NQ drill core, were sawed in half, with one half sent to a commercial laboratory for analysis and other half retained for future reference. A strict QA/QC program was followed by integrating blanks and certified reference materials to the drill core samples, all of which were prepared by IOS Services Géoscientifiques inc. of Chicoutimi, and assayed for gold by fire assay and atomic absorption finish (AA24) by the ALS Minerals laboratories in Val d'Or, Quebec. Samples grading more than 3 g/t were re-assayed by fire assay with gravimetric finish. (GRA22).”
Mr. Dominique Doucet, P. Eng., President of Sirios, is the Qualified Person pursuant to National Instrument 43-101, who has prepared and reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed, the sampling, and the analytical and QA-QC data underlying the technical information.
Golden Valley currently owns a 55% interest in the Cheechoo gold project, with Sirios owning the remaining 45% interest. Under the terms of a revised JV agreement, Sirios may acquire Golden Valley’s remaining 55% interest subject to the following general conditions:
- Sirios must spend $4,200,000 in exploration expenditures prior to June 13, 2016 (of which $3,200,000 has been indicated as spent as of September 30, 2015, leaving approximately $1,000,000 remaining);
- Sirios issued 9.9% of its share capital to Golden Valley as of December 31, 2013 (2,898,374 shares, currently representing approximately 4% of Sirios); and
- Sirios must make a payment to Golden Valley of $500,000 (cash or equivalent in SOI shares) prior to June 13, 2016 (notwithstanding the foregoing, Sirios shall have the obligation to pay in cash that portion of the $500,000 which would result in Golden Valley becoming an insider of Sirios).
As additional consideration for the grant of the Option and in order for Sirios to acquire Golden Valley’s remaining 55% interest in the Cheechoo gold project, Sirios has granted to Golden Valley a royalty (the “Royalty”) equal to 4% of the net returns from all mineral products mined or removed from the Cheechoo gold project. Notwithstanding the foregoing, the royalty relevant to gold mineral products mined or removed from the Cheechoo gold prospect (the “Gold Portion”) may be reduced as follows depending on the market price of Gold at the time of the payment of the Gold Portion:
- If the price of Gold is less than $3,000 per ounce and higher than $2,400 per ounce, a 3.5% royalty on the Gold Portion shall be payable to Golden Valley;
- If the price of Gold is less than $2,400 per ounce and higher than $1,200 per ounce, a 3% royalty on the Gold Portion shall be payable to Golden Valley; and
- If the price of Gold is less than $1,200 per ounce, a 2.5% royalty on the Gold Portion shall be payable to Golden Valley.
About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds property interests in projects in Canada (Saskatchewan, Ontario and Québec).
For additional information, please contact:
Glenn J. Mullan
Chairman, President, and CEO
Golden Valley Mines Ltd.
152, chemin de la Mine École
Val-d’Or, Québec J9P 7B6
Telephone: 819.824.2808 ext. 204
Forward Looking Statements:
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
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