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VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 19, 2012) – ValGold Resources Ltd. (“ValGold”) (TSX VENTURE:VAL)(FRANKFURT:VR2) and Revolver Resources Inc. (“Revolver”) are pleased to report that they have entered into an Option Agreement to advance ValGold’s 100%-owned Tower Mountain gold property in north western Ontario (the “Property”). Revolver trades on the TSX-Venture exchange under the ticker symbol; RZ.
Under the terms of the agreement, Revolver may acquire an initial 70% undivided interest in the Property, over the next three years, by making cash payments of $1,700,000 and issuing 7.5 million shares to ValGold. Revolver must also complete $3,500,000 in work expenditures on the property with not less than $500,000 to be spent in the first year of the agreement and not less than $500,000 to be spent in each of the subsequent years. After earning the initial 70% interest, Revolver may increase its interest to 100% over the next three years by making additional payments to ValGold of $2,500,000 in cash and 7.5 million of Revolver common shares and by completing $4,000,000 of additional work on the property. In addition, Revolver would also make a final cash payment of $2.5 million to ValGold within 180 days of the commencement of commercial production from the Property. Closing of the transaction remains subject to the approval of the TSX Venture Exchange.
The Property is subject to a 2.5% Net Smelter Royalty (the “NSR”) held by the original property vendor and ValGold has retained the right to purchase 1% of this NSR for $1.0 million.
Stephen Wilkinson, ValGold’s President and CEO, commented “This deal for the Tower Mountain gold property must be seen as a positive for both ValGold and Revolver. For Revolver, Tower represents an excellent opportunity to acquire an advanced gold project, complete with known resources and high-priority drill targets. ValGold looks to benefit from its significant equity holding in Revolver as the project is further advanced, in addition to the replacement of its previous expenditures and its right to purchase the NSR as its link to the production potential of the Tower Mountain gold zones.”
In connection with the transaction, ValGold will pay an initial finder’s fees totalling $13,750 (the “Finder’s Fees”) to an arm’s length party. Subject to the approval of the TSX Venture Exchange, ValGold may, at its option, elect to pay all or a portion of the Finder’s Fees in common shares of ValGold at a price of $0.11.
Tower Mountain Project Summary
The Property is located approximately 40km west of Thunder Bay, in north western Ontario and includes 55 claims and 3 patented claims covering 3,875 acres in Conmee Township, Ontario. It is underlain by Archean-age volcanic and sedimentary rocks with a syenitic intrusive complex being an important focal point for the widespread gold mineralization. The exploration targets going forward include both high-grade veins and large low-grade bulk mineable deposits. In 2011, ValGold drilled the 31-Bench Zone (2.00 g/t Au over 27.0m), 04-36 Zone (1.136 g/t Au over 16.5m), the 04-9 Zone (0.54 g/t Au over 18.0m) and the U-V Zone (0.815 g/t Au over 73.5m), the latter of which contains the NI 43-101 compliant inferred resource of 151,000 ounces within 7.15 million tonnes.
Exploration work by ValGold on the Tower Mountain Gold Property began in November 2002 and focused on diamond drilling. A total of nine drill programs comprising 104 drill holes, for 23,388m, were completed as at 2011 year end. The majority of drilling was conducted in the vicinity of the U and V Trench areas (U-V Zone) and this work defined several mineralized structures. The most continuous of these structures is designated the Main Vein which dips moderately northeast and can be traced along strike for a minimum 400m. The Main Vein mineralized zone measures from 0.6m to 20.0m true width plunging steeply to the southeast. Drill intercepts from this zone returned assays ranging from 304.00 g/t Au over 3.0m in drill hole TM04-3 to 2.58 g/t Au over 55.5m in TM04-9.
Drilling has also delineated low grade, bulk tonnage zones such as the former 04-31 Zone now referred to as the 31-Bench Zone. It is located 800 meters southeast of the U-V Zone with some values up to 0.70 g/t Au over 87.0m (TM-11-67). A hole drilled in 1996 by Avalon Ventures Limited in the vicinity of the 04-31 Zone was orientated sub-parallel to the zone and returned an average grade of approximately 0.3 g/t Au over its entire 739m length. The second high-grade zone identified is the 04-36 Zone and is located 400m southwest of the U-V Zone. Unlike the U-V Zone, the 04-36 strikes north-northeast. Several drill holes have intersected this zone. One hole documented 41.35 g/t Au over 1.5m and a second hole returned an assay of 5.31 g/t over 1.5m.
The following table summarizes the drill programs and presents highlights of each of the nine drilling campaigns conducted by ValGold Resources from 2002 to 2011.
| Highlights of Tower Mountain Gold Zones Drill Intersections | |||||
| Program | Holes Drilled | Total Meters |
Best High-Grade Gold Intersection | Best Low-Grade Gold Intersection | |
| 2002 (Fall) | DDH02-01 to -05 | 1,042 | 23.17g/tAu /1.5m in DDHTM02-02 | 1.05g/tAu /73.5m in DDHTM02-03 | |
| 2003 (Spring) | DDH03-01 to -05 | 1,085 | 11.77g/tAu /3.0m in DDHTM03-02 | 1.01g/tAu /22.5m in DDHTM03-03 | |
| 2003 (Fall) | DDH03-06 to -12 | 1,499 | 19.76g/tAu /1.5m in DDHTM03-11 | 0.62g/tAu /12.0m in DDHTM03-12 | |
| 2004 (Winter) | DDH04-01 to -10 | 2,601 | 304.0g/tAu /3.0m in DDHTM04-03 | 2.40g/tAu /61.5m in DDHTM04-09 | |
| 2004 (Summer) | DDH04-11 to -23 | 3,450 | 68.91g/tAu /0.2m in DDHTM04-19 | 1.93g/tAu /37.5m in DDHTM04-15 | |
| 2004 (Fall) | DDH04-24 to -36 | 3,418 | 41.35g/tAu /1.5m in DDHTM04-36 | 0.58g/tAu /246.8m in DDHTM04-31 | |
| 2005 (Winter) | DDH05-37 to -50 | 3,523 | 16.00g/tAu /1.5m in DDHTM05-38 | 0.77g/tAu /21.0m in DDHTM05-44 | |
| 2007 (Summer) | TM07-51 to 58 | 2,090 | 58.20g/tAu /1.5m in DDHTM07-56 | 0.59g/tAu /21.0m in DDHTM07-56 | |
| 2011 (Summer) | TM11-59 to 87 | 4,680 | 4.93g/tAu /4.50m in DDHTM11-63 | 0.70g/tAu /115.5m in DDHTM11-75 | |
| Total | 104 DDH | 23,388 | |||
A NI 43-101 compliant resource estimate for the U-V Zone was compiled by Caracle Creek International Consulting Inc. of Sudbury, Ontario. The report dated February 9, 2006, is filed on SEDAR. The resource for the U-V zone is estimated to consist of 151,000 ounces within a bulk mineable volume. The zone is open to expansion on strike to the SE and at depth.
Robert Chataway, P.Geo, the qualified person for ValGold, has reviewed the accuracy of the technical portion of the news release.
ABOUT VALGOLD
Incorporated in 1987, ValGold is listed on Tier 1 of the TSX Venture Exchange under the symbol VAL. ValGold is an international mineral development company based in Vancouver, Canada. The Company’s objective is to generate wealth for its stakeholders by seeking out, acquiring and advancing properties with recognizable but under-explored mineral resources.
ValGold’s commitment is to realize value from significant mineral deposits which satisfy key criteria –
For more information on ValGold’s Canadian and international gold projects, please visit our website at www.valgold.com.
Stephen J. Wilkinson, President & Chief Executive Officer
Cindy Chu, Investor Relations
This news release includes “forward-looking information”. All statements in this release, other than statements of historical facts, that address the private placement or mineral exploration programs contain forward-looking information and are based on a number of assumptions, including, but not limited to, that there will not be substantial changes to market conditions, regulatory requirements or costs associated with mineral exploration. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include changes the price of the company’s shares, the costs of labor, equipment and other costs associated with exploration, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.
SEC 12g3-2(b): 82-3339
Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
