ValGold Reports Initial Resource Estimate for Its Garrison Gold Property, Ontario
April 08 2008 - 9:30AM
Marketwired Canada
ValGold Resources Ltd. ("ValGold" or the "Company") (TSX
VENTURE:VAL)(FRANKFURT:VR2) is pleased to announce that it has received a
positive initial NI 43-101 compliant resource estimate for its 100% owned
Garrison Gold Property (the "Property") in north eastern Ontario. The estimate
was prepared by Peter George, B.Sc., P.Geo. of A. C. A. Howe International
Limited. Mr. George ("the Author") is a Qualified Person as defined by NI 43-101
and has over 40 years experience in the mining industry including extensive
experience in the gold exploration and mining sector in Canada. Much of this
news release is taken directly from the Summary of the report. Highlights of the
report include:
- The main sulphide gold zones as defined by surface and underground diamond
drilling to date host an Indicated Resource of 186,725 tonnes grading 8.06 grams
per tonne gold ("g/T Au") and an Inferred Resource of 1,233,117 tonnes grading
4.97 g/T Au;
- The Author recommends proceeding with advanced underground exploration on the
JP gold zone to expand the current resource base; and,
- The Garrcon Gold Zone is recognized as an excellent exploration target with a
volume of mineralized rock that has the potential for a deposit of the 20 to 30
million tonne range and an in-situ grade potential in the range 1 to 3 grams for
a contained gold potential in the range of 1 to 2 million ounces.
Note, that the Garrcon Gold Zone estimates of geological grade and tonnage
potential are conceptual in nature, there has been insufficient exploration to
define a mineral resource, and it is uncertain if further exploration will
result in the target being delineated as a mineral resource.
The Indicated and Inferred Resources were estimated for four, laterally
contiguous mineralized zones along the Munro Fault which is a splay from the
regional Porcupine-Destor Fault ("PDF"). The mineralization is comprised of
disseminated sulphides in silica-flooded zones within altered mafic and
ultramafic volcanic rocks and is reportedly refractory. The Author is of the
opinion that the refractory nature of the mineralization will not be an economic
factor at today's gold prices.
The results of the resource estimate are summarized in the following table:
---------------------------------------------------------------------------
Indicated Resource Inferred Resource
---------------------------------------------------------------------------
Zone Tonnes g/T Au Ounces Tonnes g/T Au Ounces
---------------------------------------------------------------------------
JP Zone 173,542 7.98 40,392 679,957 4.43 87,855
---------------------------------------------------------------------------
JD Zone 130,172 7.34 27,867
---------------------------------------------------------------------------
RP Zone 9,913 10.89 3,149 111,749 6.22 20,273
---------------------------------------------------------------------------
East Zone 3,270 3.58 341 311,239 4.72 42,847
---------------------------------------------------------------------------
TOTALS 186,725 8.06 43,896 1,233,117 4.97 178,749
---------------------------------------------------------------------------
NOTE - Summation of ounces may not add exactly due to rounding
The resources are NI 43-101 compliant and are in-situ and uncapped (uncut).
Indicated mineral resources were based upon a maximum 15-metre radius of
influence around drill intersection composites and Inferred mineral resources
were based upon a maximum radius of influence of 25 metres. A rock specific
gravity of 2.8 was used to determine tonnages.
The resources are estimated based on analysis of cross sections and level plans
followed by projection of composited assay intervals onto a vertical
longitudinal section. Industry-standard polygonal estimation of volume and grade
was completed. The Author thoroughly reviewed the assay database, manually
determined weighted-average composite assays and an estimation of the horizontal
width of the intersection perpendicular to the plane of the vertical
longitudinal section. The Author also completed a thorough review of the quality
control-quality assurance standards applicable to the database and concludes
that the database is suitable for the estimation of NI 43-101 resources and that
there are no material sampling or analytical issues that would materially impact
on the resource estimation.
During the 1990's a bulk sampling program on 4 sub-levels in the central part of
the JP Zone was completed with a total of 50,640 tonnes being shipped to a
custom mill in Quebec. The bulk sample produced 13,564 ounces of gold for an
average recovered grade of 8.3 g/T Au. Assuming a combined 25% factor for mill
recovery and mine dilution, this would equate to approximately 10.4 g/T Au
in-situ. Historically, there were approximately 112,400 tonnes of developed,
un-mined ore in the bulk sampled area for a total of approximately 163,000
tonnes. The Author estimated the grade and tonnage within the area mined based
on the NI 43-101 compliant polygonal resources estimated from surface
exploration drill holes and surface plus underground exploration holes in order
to reconcile the production versus grade and tonnage determined by drilling. The
results were as follows:
--------------------------------------------------------------------------
Surface plus
Surface Underground Mined Bulk
Drilling Drilling Sample
(part of (part of (part of
NI 43-101 NI 43-101 NI 43-101
Inferred Indicated Indicated
Reconciliation Resources) Resources) Resources)
--------------------------------------------------------------------------
Tonnage (diluted recoverable) 60,750 104,900 163,000
--------------------------------------------------------------------------
Contained Ounces 11,199 16,115 54,508
--------------------------------------------------------------------------
Estimated Millhead Grade (g/T Au) 5.73 4.78 10.4
--------------------------------------------------------------------------
Average Horizontal Width of
Mineralization (m) 1.8 2.9 5.4
--------------------------------------------------------------------------
Clearly, drilling underestimates the potential grade by a factor of 2X, the
width potential by 2X to 3X, and the tonnage potential by 1.5X to 2.5X. This
reconciliation illustrates what geological and management personnel of the
Archean gold mines of Ontario and Quebec have intuitively understood for over a
century which resulted in operating procedures based on "drill for structure"
and "drift for grade". The Author recommended that these factors must be taken
into consideration in the evaluation of future surface and underground
exploration drilling and in determinations of the geological potential of the
Property.
There are a number of other exploration targets on the Property with the most
significant in the Author's opinion being the Garrcon Gold Zone. The Garrcon
area is located approximately 1,200m east-south-east of the J.P. shaft within
the Garrcon claim group of the Property. The Garrcon shaft was constructed in
the mid-1930's as part of the exploration program conducted in the footwall of
the PDF by Cominco Ltd. Multiple zones of gold mineralization have been
identified in the area of the Garrcon shaft including the North Zone, the Shaft
Zone ("A", "B", and "C" zones) and the South Zone.
Drilling in the Garrcon Gold Zone has outlined a significant area of widespread,
low-grade gold mineralization, which is non-refractory quartz stringer type. The
footprint of the area is approximately 175 metres east-west, 300 metres
north-south, and drilling indicates depths in excess of 200 metres. The open pit
tonnage potential of the area would be in the 20 to 30 million tonne range and
the in-situ grade potential would be in the range 1 to 3 grams for a contained
gold potential in the range of 1 to 2 million ounces. In addition to existing
surface drilling, there is a significant amount of underground exploration and
development information that could be digitized and integrated into a resource
model. In the Author's opinion, this should be a high priority for the Company.
Note, that the Garrcon Gold Zone estimates of geological grade and tonnage
potential are conceptual in nature, there has been insufficient exploration to
define a mineral resource, and it is uncertain if further exploration will
result in the target being delineated as a mineral resource.
The Author concludes that the Property is a property of merit as defined in NI
43-101 and warrants additional expenditures. In addition, based on a preliminary
economic assessment of the JP Zone and related zones, the Author concludes that
the Property has economic potential based on current knowledge of gold
recoveries and current gold prices.
The Author recommends that the Company plan an underground exploration and
development program and budget for the JP Zone and adjacent JD and RP Zones. The
program should include sufficient lateral development to provide access for
drilling to upgrade sufficient inferred and indicated resources to indicated and
measured resources that would justify a production decision. In tandem with the
underground exploration program, the Company should do additional metallurgical
test work to determine the optimum milling process for the refractory ores. In
addition, the Company should initiate environmental studies in anticipation of
needing to generate an environmental impact statement before permits could be
granted for mining.
Furthermore, the Author recommends that the Company commence a study of the
Garrcon Zone and once completed to layout a program and budget to test the
potential for a bulk tonnage, open-pit operation.
Project Summary
The Garrison Gold Property is located 40 kilometres (km) north of the Town of
Kirkland Lake, 100 km east of Timmins and 8 km west of and on strike with St.
Andrew Goldfields' Holloway and Holt-McDermott gold mines. Access to the
property is by Ontario highway 101 that runs along the north boundary of the
property. The mining leases cover approximately 4 km of the famous Destor
Porcupine Fault Zone and a major splay, the Munro Fault Zone ("MFZ").
The gold mineralization on the property occurs as sulphide-rich bodies within
the two major fault zones, and within the intervening Timiskaming sediments
associated with quartz-pyrite vein stockworks. Sulphide mineralization within
the MFZ forms a series of five high-grade shoots that occur near the footwall of
the fault. Previous operators completed a total of 199 drill holes focusing
primarily on gold zones over the 1.7 km long strike length of the fault zone and
to a depth of 300m (1,000 ft). The individual mineralized shoots are estimated
to be up to 300m (1,000 ft) in strike length, average 3.35m (11 ft) in thickness
and contain gold associated with albite, sericite and pyrite alteration. An
advanced underground exploration program was initiated on the J.P. gold zone in
October 1995. The underground development included a 12 x 14-foot, 18-20-degree
decline excavated to the 476-level.
Mr. Tom Pollock, P.Geo., ValGold's Vice-President, Exploration, is the Qualified
Person for the project, and is responsible for all of the technical reporting in
compliance with NI 43-101. Mr. Pollock has instituted and is responsible for
ValGold's program of Quality Control and Assurance ("QC/QA"), using assay
control samples and duplicates. The Author has reviewed and agrees with the
technical content of this news release as an accurate representation of the
report.
For information on ValGold and its portfolio of international projects, visit
our website at www.valgold.com.
Stephen J. Wilkinson, President & Chief Executive Officer
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.
SEC 12g3-2(b): 82-3339
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