ValGold Resources has all Pistons Firing in South America, Canada
By Paul Wallis
The word for ValGold (TSX.V: VAL) is “busy”. In conversation, they’re upbeat and enthusiastic about their new Venezuelan and Guyanan acquisitions, “Literally just waiting for the equipment to arrive”, according to Investor Relations Officer Jeff Stuart. In the meantime they’re drilling, compiling data from past drill programs and building a vast knowledge base – from scratch in some cases.
In late November, the company announced high-grade assays from the Tower Mountain Gold Property, located in the Matawin Gold Belt, 40 km southwest of Thunder Bay, in Ontario. Intersections of high-grade gold occurred in TM-07-56, where 1.5m graded 58.20 g/Tonne Au (1.697 oz/t gold) and in TM-07-58 where 1.5m averaged 18.70 g/Tonne Au (0.545 oz/t gold).
The drill program was a short run – eight holes – but added a wealth of knowledge to the existing data from seven drill programs comprising 67 drill holes, totaling 16,618 metres, completed between 2002 and 2005.
The news from Tower Mountain is good: mineralization in all eight holes. The data has painted an increasingly attractive picture of the mineralized systems here. To wit: The main vein appears to range from 0.6 to 20 meters in true width, with a narrow high-grade core (up to 160 g/t Au over 1.5 m) and a more moderately mineralized periphery. Even low-grade data here should prick up the ears of savvy investors: 0.94g/t over 106.5 m, for example.
Meanwhile, back in South America, a growing pool of data, including assay results from a 2007 drill program at the Los Patos occurrence in Venezuela, indicates the presence of significant gold mineralization, including substantial near-surface mineralization. The data is also considered “highly prospective” for other minerals, including alluvial diamonds, and preliminary radiometric indications of uranium, copper-nickel and/or platinum group metals.
This is the point where listed miners have to prove their mettle – excuse the pun – and ValGold has adopted a no guesswork approach, utilizing the whole spectrum of survey. Some areas are almost entirely lacking, in terms of market-standard information.
ValGold’s South American concessions total approximately 3,570 square kilometres, and relate to a geological formation known as the Guiana Shield, which underlies northeastern South America. It is comprised of ancient Archaen and Paleoproterozoic blocks. Geologists are faced with some of the most demanding and potentially rewarding work their field has to offer in these very old structures, where mineralization is complex and highly evolved.
ValGold CEO Stephen Wilkinson, who has three decades of mining experience, provided some useful insight in a recent interview on Smartsox.com regarding the geological and gold mining history of the region. Venezuela’s gold potential was first recognized in the 1890s, when the British military discovered and mined considerable amounts of gold from surface deposits – 13 tonnes of it, according to Mr. Wilkinson, a huge amount for the time.
The Venezuelan holdings comprise three concessions in Bolivar State, acquired from Honnold Coporation in October for $8 million in cash and shares, of which $2 million has already been paid. The company has benefited from a positive exchange rate, where appreciation of the Canadian dollar against the US dollar resulted in a saving of 25% – $2 million – on net outlay.
ValGold has been conducting systematic drills across its concessions, notably the Los Patos Gold Occurrence, where a 7,971 metre, 28-hole program was completed in the summer this year. The company found visible gold in a drill core from this region, reflecting the high-grade nature of mineralization here – just 4.5 km northeast of Crystallex's La Tomi gold mine.
The Los Patos gold occurrence is actually located within ValGold’s Lo Increible 3 concession and is one of several gold occurrences found along the east-west striking, 6.8 km long, Los Chivos Shear Zone.
The other two Venezuelan concessions are collectively called the Chicanan Concessions: The Carolina and Mochila Occurrences, which comprise a variable geology. The Carolina Occurrence has had some prior exploration, but the primary geological feature, the Mochila Lineament, containing two large gold occurrences, has had no previous drilling. ValGold is currently conducting a diamond drill program of 20 holes in the Mochila Occurrence, expected to be completed soon.
ValGold’s due diligence report for October 9, 2007 contains important preliminary data, and helpful technical information regarding associated geological features and prospects. This was the basis of the ground work for the current Fall Winter 2007 program of ongoing exploration.
