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ValGold’s (TSX.V:VAL) Incredible 3


ValGold (TSX.V:VAL), is a Vancouver-based international mining development company focused on the exploration of high-value targets in a portfolio of properties in the Guiana Shield of South America. ValGold’s holdings in South America comprise approximately 4,900km2 in Guyana, and 882 km ² in Venezuela. Valgold started life as Valerie Gold and was a high flying stock in the last cycle. Less than stellar results and the last bear market lead to a long quiet period for VAL. This being said, Valgold has undergone many changes in the past few months, with a new project focus in the Guyana Shield and a greatly increased pace of activity.

Los Patos Gold Occurrence

Throughout the summer of 2007, ValGold had an active drill program exploring the Los Patos gold occurrence located in Bolivar State, Venezuela. The Los Patos gold occurrence is located within the Lo Increible 3 concession approximately 20 kms northeast of the town of El Callao and 4.5 kms northeast of Crystallex's La Tomi gold mine. It is one of several gold occurrences found along the east-west striking, 6.8 km long, Los Chivos Shear Zone which cuts through the central portion of the Lo Increible 3 concession.

Los Patos is the first gold occurrence in Venezuela to be drilled by ValGold. During the spring and early summer of 2007, the Company tested the occurrence with 28 diamond drill holes for an accumulated length of 7,971 metres. These holes outlined up to five parallel zones of mineralization which when averaged with the intervening lower grade material gave zones up to 58.0 metres wide assaying 1.27 g/t gold (true width 95%). Other notable intersections include 4.75 g/t gold over 17.0 metres in hole LI307-07 and 3.98 g/t gold over 36.0 metres in hole LI307-11. With depth the mineralization appears to coalesce into one or two zones but sometimes with very high grades such as those found in hole LI307-22 which averaged 14.66 g/t over 4.0 metres.

On September 6, the company announced drill results from its first program on Lo Increible, the strongest of which were 7.25 grams/tonne ("g/tonne") gold over a true width of 19.0 meters ("m") {0.21 ounces/ton ("oz/t") over 62.3 feet ("ft")}. Most of the diamond drill holes targeted the main Los Patos gold zones and, although assays are still pending on several of the deeper holes, results so far indicate the presence of a gold mineralized body to a depth of 225m below surface. The Los Patos gold zones remain open in all directions and will require further drilling to define their limits. Since the last news release on the Increible 3 drilling, ValGold has received and compiled assays for an additional six holes, LI07-25 to -30. The company reports that each of the six holes intersected well mineralized gold zones.

The main Los Patos gold zone continues to consist of wide mineralized intersections that in LI07-30 returned an interval of economic significance that assayed 3.22 g/tonne gold over 13.0m (0.1 oz/t gold over 42.7 ft), including, a 3.0m interval grading 9.64 g/tonne (9.8 ft grading 0.28 oz/t) gold. This LI07-30 intersection occurred at a vertical depth of approximately 200m which is one of the deepest for Los Patos to date.

It goes without saying that Venezuela hosts some of the world’s largest gold deposits. Two of the most massive, Crystallex International’s (KRY-T, Amex) Las Cristinas deposit and Gold Reserve‘s (GRZ-T, Amex) Brisas, are adjacent to ValGold’s Chicanan East and West concessions which cover numerous gold occurrences. Many of these occurrences have seen little or no previous exploration work and as such are considered highly prospective for the discovery of a large, near surface gold deposit. One area of particular interest is the Mochila Lineament area where a number of gold occurrences are hosted within a thick and complexly folded and faulted layered mafic-ultramafic intrusion. According to the 43-101 report available on SEDAR, this structure contains numerous artisinal workings covering and area of 14km by 3km.

Crystallex International Corporation is developing the Las Cristinas gold deposit, which contains a total estimated 20 million ounces of gold.

Gold Reserve Inc. is developing the 10 million ounce Brisas project, which is in Bolivar State in southeast Venezuela near the small community of Las Claritas.

Guyana Properties

Besides Venezuela, the company controls a massive land position next door in Guyana in a JV with Newmont Mining (NYSE:NEM). In late October 2006, ValGold signed a letter of intent to enter into an agreement with Newmont Overseas Exploration Limited, a subsidiary of Newmont Mining Corporation, to earn 100% interest (subject to certain interests reserved by Newmont) in four highly prospective properties in northwest Guyana. The total size of the areas is approximately 4,900 km² or 1,213,500 acres.

The properties are located in the northern part of the Archean-Proterozoic Guiana Shield. This terrane is considered to be the equivalent of the Birimian Supergroup in West Africa, which is host to several large gold deposits including AngloGold Ashanti's Obuasi Mine in Ghana that has annual production of approximately 400,000 ounces and a current mineral resource in the order of 24 million ounces. Major deposits found within the Guiana Shield include the Rosebel mine in Suriname, the Omai mine in Guyana and the Las Cristinas and Brisas deposits in Venezuela.

The properties are considered highly prospective for gold and, potentially, diamonds, uranium and copper-nickel and/or platinum group metals (PGM). Several gold occurrences have already been discovered on the properties including the Makapa occurrence where rock samples have returned gold values as high as 136.0 g/T. Limited drilling at the same occurrence has intersected up to 18.3 g/T gold over 2.0 metres in silicified volcaniclastic conglomerate. Large areas have also seen no work or have good gold stream silt anomalies that have not been investigated. Alluvial diamonds have been found at a number of locations yet very little exploration has been conducted for this commodity. Radiometric surveys have identified several uranium anomalies and layered, intrusive, mafic to ultramafic rocks could potentially host copper-nickel and/or PGM mineralization.

To date, a small, first pass, drill program was completed on the Erakiri gold occurrence on August 16th. A total of nine holes were drilled for a total accumulated length of 1,331 metres. All of the holes targeted porphyry-volcanic contacts along which placer gold is present.

Besides drilling at Erakiri, three large soil-sampling programs have been completed over gold targets in the Whana and Piai areas. Follow-up mapping, sampling and trenching, is currently underway, with drill programs slated to begin winter 2007.

Exploration for Gold and Base Metals in Ontario:

The Ontario properties, which will ultimately be spun out into its own corporate vehicle, stand on their own merits.

A 43-101 compliant report is currently being written by ACA Howe International on the Garrison gold property located 100 kilometers east of Timmins, Ontario. A resource calculation for the JP Zone will comprise part of the report. Drilling on the property was completed in July and has been ongoing almost continuously since late 2005. During this period, a total of 74 holes have been drilled on the property for an accumulated length of 32,012 metres.

An eight hole drill program was completed August 9th on the Tower Mountain gold property located 40 kilometres west of Thunder Bay. A total of 2,090 meters were drilled to test mostly extensions to previously discovered zones such as that in 04-36 where 50.0 g/t gold were intersected over a core length of 1.5 metres. Assays for all eight holes are currently pending.

ValGold’s qualified person on these projects is Tom Pollock - Vice-President of Exploration.

Tom brings more than 25 years of exploration and management experience and has held various positions with BHP Minerals Ltd. from 1980 to 2000, which saw him work in Canada, Mali, Ghana, Saudi Arabia and China. His last position with BHP was Country Manager (Exploration) for China where he managed several joint ventures and four exploration offices. Following this, Tom worked as a geological consultant for a number of Vancouver based exploration companies. Mr. Pollock graduated from Queen's University in 1977 with a B.Sc. in geology and from McGill University in 1980 where he received a M.Sc.A. in mineral exploration.

This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.

The author and are not shareholders in the companies herein mentioned, and the author, as an employee of Resourcex Publishing Corp is expressly prohibited for owning any securities about which they may write for a period of 30 days prior to and 30 days after initial publication of the article in which the securities of any company are mentioned.
Published: 2007-09-27
Author: Eric Pratt

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