Golden Valley Mines Ltd. ("Golden Valley" or the "Company") announces partial results of gold assays from diamond drillhole #40 on the Cheechoo gold property ("Cheechoo gold project").
The information that follows has been prepared by partner and program operator Sirios Resources Inc. and has not been independently verified by Golden Valley:
"As announced in the February 9 2016 news release, drillhole #40 intersected a biotite schist unit over 36 metres (true width unknown). The section with visible gold yielded 2.12 g/t Au over 11.5 metres between 315.5 to 327.0 metres, including 3.05 g/t Au over 6.4 metres with a highest grade value of 6.13 g/t Au over 1.2 metres. A section containing all the biotite schist unit, yielded 1.27 g/t Au over 39 metres between 295 to 334 metres. In addition, a sample of 2.88 g/t Au over 3.2 metres was obtained between 346.9 to 350.1 metres. Presently, assays results are only available for the last section of drillhole #40 between 287 to 355.4 metres, overall this section yielded a grade of 1.0 g/t Au over 68.4 metres.
Nine drillholes (#42 to 50) were completed in an area between 0.5 to 1.5 kilometres northwest of the known gold halo delineated 1.1 kilometres to the northwest by drillholes #15 to 30. Visible gold was observed in three drillholes (#42, 47 and 48) proximal to the geological contact between tonalite and meta-sedimentary rocks. The presence of visible gold is now confirmed at more than 1 kilometre northwest of the known gold halo. In drillholes #47 and #48, new mineralogical assemblages were observed in meta-sedimentary rocks and in tonalite, which are marked by geological alteration of diopside, garnet, brown tourmaline, chlorite and black quartz-tourmaline veinlets.
A map showing the localisation of drill holes is available at the following link: http://sirios.com/files/carte-2016-03-07.jpg
Assay quality control
NQ-caliber drill cores of current campaign 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). Samples with visible gold were assayed by pyro-analysis with metallic sieve (SCR24)"
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 an aggregate $4,200,000 in exploration expenditures prior to June 13, 2016 (of which $3,172,213 has been indicated as spent as of January 31, 2016, leaving approximately $1,027,787remaining);
- 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.