Cheechoo Gold Project-James Bay, Quebec
Thursday, October 11th, 2007
Golden Valley Mines Ltd. is pleased to report that the 2007 phase II diamond drill program is now underway at the Cheechoo Prospect, located in the James Bay area of Quebec.
Diamond Drill Program: A 3,000 metre drill program has commenced on the Cheechoo Property to test up to thirty (30) targets derived from geological mapping, ground and airborne geophysical surveys and selective geochemical sampling. Initial drilling activities are focused on the Cheechoo “A” Block claims located immediately west of Les Mines d’Or OPINACA’s (Goldcorp) Eleonore property and contiguous with Beaufield’s Opinaca property. Targets to be tested include the high-grade “Letang Showing” (up to 209.24 g/t gold in grab samples) and a well-developed and mineralized shear (2.3 kilometers northwest-trending corridor along the property’s northeast boundary), associated with a series of airborne electromagnetic, magnetic and induced polarization anomalies, hosted in similar altered and mineralized “Roberto-style” sediments, along a quartz-diorite and granodiorite-amphibolitized basalt contact. This mineralized corridor may represent the up-ice and up-slope source area for the five separate and discreet shoreline boulder fields (please refer to January 29, 2007 press release for details), where sampling results of 2.14 g/t gold; 24.2 g/t silver and 2.743% copper and 1.65 g/t gold have been recorded.
Phase 1 Program Update: As outlined in the Company’s July 27, 2007 exploration update, the following fieldwork was completed on the four detailed grids established over the Sharks and Cheechoo “B” properties, to include the “Marchand” Showing (up to 11.96 g/t gold in rock grab sample results; see GZZ News Release dated May 30, 2007) and the “Garrioch” Showing (up to 0.39 g/t gold rock grab sample results) mineralized corridors. In addition, follow-up detailed mapping, prospecting and geochemical surveying was completed over sections of the Cheechoo “A” property as follow-up to results obtained in the 2006 program:
– Establishment of 4 grids on the Sharks and Cheechoo “B” properties (250 line kilometers or approx. 173 land-based line kilometers;
– 5,339 grid and reconnaissance humus soil samples;
– Detailed grid-mapping and sampling completed over five separate mineralized trends;
– 115.6 linear metres of channel sampling over showings and / or mineralized corridors; and
– 40.1 line kilometers of induced polarization (I.P.), 36.2 line kilometers of Horizontal Loop Electromagnetic (H.L.E.M.) and 168.8 line kilometers of magnetic surveying. Due to technical difficulties and weather related delays, the planned I.P. survey coverage is behind schedule and is now currently in progress over the Marchand showing grid.
The 2007 exploration budget for the joint venture properties is currently estimated at a minimum of $1,000,000.
The Cheechoo “A”, “B”, and “C” Prospect as well as the Sharks Prospect are under option from Sirios Resources (TSX VENTURE:SOI) pursuant to which the Company, in each case, will earn an initial 60% interest by funding $1,000,000 in exploration over 4-years. Following initial vesting, the Company may then earn an additional 20% interest by completing a bankable feasibility study within 6 years of vesting. Should SOI then elect to allow the Company to provide the production financing, the Company would then acquire an additional 5% interest (aggregate 85% interest).
Golden Valley Mines now holds a 100%-interest, or is earning an interest pursuant to option joint venture agreements, in a total of 1,017 claims covering 53,377 ha (534- km2) in the James Bay (Opinaca) region. The Company is earning an interest in contiguous claim blocks on both the west and east sides of Les Mines d’Or OPINACA’s (Goldcorp) Eleonore property, which hosts the Roberto Zone gold discoveries. For a map of the project area, please refer to www.goldenvalleymines.com/cheechoo.