Golden Valley Mines Ltd.: Golden Valley Mines: 2000 M Drill Program Underway Otish Basin Uranium Project
- Golden Valley Mines Ltd. ('Golden Valley Mines' or the 'Company') (TSX VENTURE:GZZ)) and its partner Lexam Explorations Inc. (TSX VENTURE:LEX)(OTC:LEXEF)(FRANKFURT
2Q), are pleased to report that the phase I drill program has commenced on the Otish Basin Uranium Project, located in north-central Quebec, Canada. Phase I Drill Program: A fully operational camp has now been established with geological and drilling crews on site. The first phase, helicopter-supported drill program will focus on extending the uranium mineralization that has been identified on the Mistassini project area and test other prospective targets that have been outlined along the favourable mineralized corridor. A compilation of the historical holes drilled by Western Mines Ltd (Ministere de l'Energie et des Ressources naturelles documentation technique GM 35584) in 1979 identified a zone of uranium mineralization on the Mistassini portion of the project area that is larger and higher grade than was previously believed to exist. Holes within the zone were reported to reach up to 5100 ppm (0.51%) U3O8 and ten holes returned values better than 850 ppm (0.085%) U3O8 over a drill indicated strike length of over 60 metres (196.9 ft.). The U3O8 mineralization is shallow, located about 20-25 meters (65.5-82.0 ft.) below surface. The mineralized zone is spatially related to the unconformity (up to 5 metres above it) occurring along the margin of the sedimentary basin along a bedding facies contact of upper, coarser-grained arkose-conglomerate with fine-grained greywacke. The approximate thickness of the higher-grade mineralized envelope averages 2-3 meters (6.0-9.8 ft.) and remains open. The inferred strike extension of the above described mineralized zone was intersected in historical drilling by SOQUEM (Ministere de l'Energie et des Ressources naturelles, documentation technique GM 36262) in 1979 about 2.4 kilometres to the north along trend. Here a single hole intersected a best value of 1040 ppm (0.104%) U3O8. A minimum of forty-six drillholes are planned for this phase of the program. Each hole will be probed via a Spectral Gamma Borehole Logging Tool and mineralized sections sampled for traditional analytical assaying methods. Drilling is anticipated to be completed in about 4-6 weeks depending on drilling conditions and the weather. The Phase II will include follow-up drilling, as well as the testing of other targets in the Otish portion of the project area. The total cost of the program is estimated to be CDN$2 million. Lexam Explorations Inc. may earn a 50%-interest by funding $3,000,000 in exploration expenditures over a 3-year period. Golden Valley Mines is the operator of the program. The Golden Valley Mines - Lexam option/joint venture is currently believed to be the dominant landholding position in the Otish Basin totalling approximately 86,224 hectares or 213,059 acres (1,623 mining titles). Targeting for the property acquisitions was principally focused on unconformity-type uranium deposit models similar to those found in the world-class Athabasca Basin mines in Saskatchewan, Canada, that currently account for approximately 30% of total global production. Much of the historical work that was preformed in the area (1967-83) was conducted by companies also then active in northern Saskatchewan and using similar prospecting techniques. Additional exploration opportunities and geological potential recently described by Strateco Resources Inc. and the continuing exploration presence of Cameco provided the motivation for new property acquisitions and exploration work activities on the GZZ-LEX Option/Joint Venture project.