Osisko Outlines New Gold Zone at Malartic CHL Prospect: Financial News

Osisko Outlines New Gold Zone at Malartic CHL Prospect
Monday October 29, 2007 12:27 pm ET

MONTREAL, QUEBEC--(MARKET WIRE)--Oct 29, 2007 -- Golden Valley Mines Ltd. (CDNX:GZZ.V - News) is pleased to provide the following report received from its joint venture partner Osisko Exploration Ltd. (CDNX:OSK.V - News)(DEUTSCHE BOERSE: EWX) at the Malartic CHL Prospect:

"Ongoing compilation work has outlined a new porphyry-hosted gold mineralized zone (referred to as the "Jeffrey Zone"), located approximately 3.6 kilometres east of the center of the Canadian Malartic deposit and 2.1 kilometres east of recently announced drill hole CM07-2008 (see Osisko's October 23, 2008 press release).

Compilation of historical drilling performed by East Malartic Mines Ltd. in the 1930's and by Lac Minerals Ltd. in the 1980's has outlined a zone of disseminated mineralization hosted within the CHL Porphyry intrusion, where it comes into contact with the southern edge of the Cadillac fault. Notable historical intersections include:

 

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Hole No.  From (m)  To (m)  Length (m) Au g/t
EMS-106     139.3   200.4        61.1    0.57
EMS-107     118.2   196.9        78.7    0.62
EMS-110     170.8   205.6        34.8    1.00
G82-01       69.6    94.8        25.2    1.63
G82-02       13.7    88.4        74.7    1.30
G82-03       91.1   169.1        78.0    1.33
G82-05      143.3   216.4        73.1    0.83
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The east-west oriented "Jeffrey Zone" appears to extend over a distance of 800 meters and have a true thickness from 20 to 60 metres. Several of the historical holes stopped in disseminated mineralization and the system is open to depth beyond 150 meters. The porphyry body, as well as surrounding peripheral dykes that are hosted in volcanic rocks, contain higher-grade shear-hosted vein mineralization at deeper levels, including the following intersections (true widths unknown): 1.5 metres averaging 28.0 g/t Au (DDH EMS-240 from 127.0 to 128.5 metres); 14.0 metres averaging 10.2 g/t Au (DDH EM88-17 from 863.2 to 875.4 metres) and 4.1 metres averaging 9.0 g/t Au (DDH G83-07 from 179.6 to 183.7 metres).

The "Jeffrey Zone" constitutes a new, highly favourable exploration target for low-grade, bulk tonnage mineralization in the Malartic gold camp. Osisko plans to drill-test this target in Q1 2008 (total of 2,000 m of diamond drilling). As previously announced, other targets that will be drilled before year end include the Southeastern Extension of the Canadian Malartic deposit as well as the Western Porphyry Zone.

Osisko has the right to acquire a 70% interest in the Malartic CHL Property in consideration for $150,000 in cash payments over a four year period ($70,000 paid to date) and by completing a minimum $2,000,000 in exploration work over a four year period. Upon earning its 70% interest, Golden Valley will maintain a free-carried interest of 30% to production.

Osisko Exploration Ltd. is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation." About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest and then seeks partners to continue exploration funding. This allows the Company to continue its generative programs and systematic exploration efforts at other majority-owned grassroots projects. As of October 29, 2007, the Company holds majority property interests in 136 projects consisting of 4,279 mining titles (234,820 hectares) in Saskatchewan, Ontario and Quebec.

Michael P. Rosatelli, P. Geo. is a "Qualified Person" as defined in National Instrument 43-101 and has reviewed the technical information presented in this news release.

Forward Looking Statement: This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict and are not to be interpreted as guarantees for future performance. These forward looking could cause actual events or results to differ materially from those anticipated in such forward-looking statements. All forward looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on such forward-looking statements.