Val-d’Or. Québec – Golden Valley Mines Ltd. (“Golden Valley” or the “Company”) (TSX-V: GZZ) announces the receipt from Sirios Resources Inc. (“Sirios”) of results from five more diamond drill holes, thus completing the series of 11 holes drilled last September on the Cheechoo gold property (“Cheechoo gold project”). All five holes intersected gold-bearing zones with the better intervals as follows: 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:
“DDH #28: 2.96 g/t Au over 31.5 metres including 4.35 g/t Au over 20.5 metres (zone Jordi )
including 75.65 g/t Au over 1.0 metre
7.28 g/t Au over 3.8 metres
1.03 g/t Au over 11 metres (zone I)
DDH #24: 4.18 g/t Au over 20.0 metres (zone Jordi ) including 86.00 g/t Au over 0.80 metre
2.63 g/t Au over 20.5 metres including 33.33 g/t Au over 1.0 metre
1.58 g/t Au over 16.1 metres (zone K)
DDH #29: 1.01 g/t Au over 19.2 metres (zone I)
DDH #22: 1.80 g/t Au over 4.75 metres (zone Jordi)
DDH #27: 1.06 g/t Au over 9 metres (zone Jordi)
Drill hole# 28 has intersected the up-dip extensions of zone Jordi and zone I that were intersected by drill hole #18 with 1.53 g/t Au over 19.5 metres and 2.79 g/t over 22.5 metres respectively (press release 8 December 2014); these zones were also intersected at around 30 metres below the hole #18 by hole #20 with 15.61 g/t Au over 9.7 m; 15.04 g/t Au over 12.3 m (press release 1 December 2015).
Two long sections showing the relative positions of gold intersections in zone Jordi and zone I are available at the following link: http://sirios.com/files/LongJI.jpg .With only few drill holes, the zones Jordi and I have already been intersected over an area of around 300 m and 125 m laterally, by 170 m and 225 m, respectively, after their dip.
Drill hole #24 has also intersected another gold zone, Zone K, yielding 1.58 g/t Au over 16.1 m where the edges seem to have been intersected by drill holes #22 and 27.
The gold zones seem to form stacked tabular structures comprised in a low-grade gold halo. It seems there are at least four distinct zones in the property, however, only additional drill holes will allow to identify the number of zones as well as their extents. All identified zones remain open in length and in depth. Other gold zones with lower gold grade or with smaller lengths were also intersected, as indicated in the table below.
MAIN ASSAY RESULTS FOR DDH 22, 24, 27, 28 & 29
|Drill Hole # 15-||From|
|Hole # 15-||From|
* Interval along the hole
*** Maximum goldgrade cut at50 g/t
ms: Gold gradeobtained by fire assay with metallic sieve of asample of around1 kg..
To view the maps associated with this press release, please visit the following links:
Eleven diamond drill holes were completed in last September, for a total of 1,962 metres. All drill holes, without exception, have intersect gold zones, this press release, combined with the ones of December 1 and 16, complete the list of the main results, as of now.
Assay quality control
For holes #22, 24, 27, 28 and 29, 687 samples representing 855 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.