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Golden Valley Mines Ltd. / GZZ.v in Canada

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Golden Valley Mines Ltd. / GZZ.v in Canada

Serial Spin-offs to enhance future value

===========================================

 

Golden Valley / GZZ.v is now planning 3 spinoffs, which should unlock substantial value for shareholders.

 

GZZ.v Chart .. 5yr-update : 1year : 3mos : i-Day : At C$0.455 = C$29.1 mn MktCap.

GZZ5yr.bmp.jpg

 

About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds majority property interests in projects in Canada (Saskatchewan, Ontario, and Quebec) and in the Republic of Sierra Leone in West Africa.

 

The Company has formed three subsidiaries to hold advanced projects and/or projects that are peripheral to its core business plan (grassroots exploration) and/or outside of its main area of operations (Abitibi Greenstone Belt) and has made applications for the listing of their shares on the TSX Venture Exchange (the "Exchange"), namely :

 

(1) Abitibi Royalties Inc. (which holds the Malartic CHL project, an option/joint venture project with Osisko Mining Corp. ("Osisko"), a 2% NSR on the Malartic CHL prospect held by Osisko, and the Luc Bourdon and Luc Bourdon West Project, an option/joint venture project with Noront Resources Ltd. and White Pine Resources Inc.),

 

(2) Nunavik Nickel Mines Ltd. (which holds the Company's advanced nickel-copper-PGE projects situated in the Nunavik Region of Quebec, including the Fortin property), and

 

(3) Uranium Valley Mines Ltd. (which holds the Company's 40% interest in the Beartooth Island Project, a joint venture with Ditem Explorations Inc., and the Company's 50% interest in the Otish/Mistassini Project, a joint venture with Lexam VG Gold Inc. (formerly Lexam Explorations Inc.) and which is anticipated to hold other advanced uranium joint venture projects).

 

There can be no assurance that the reorganization will be accepted by the Exchange as proposed, or at all. In addition, completion of the proposed reorganization is subject to the approval of the Company's shareholders and the Supreme Court of British Columbia.

 

website :: http://www.goldenvalleymines.com

MAPS -

#1 - OSK jv : http://www.goldenvalleymines.com/en/content/project-description-3

#2 - xxx : http://media3.marketwire.com/docs/goldenvalley0405.pdf

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GZZ's Joint Venture partners

(1) Abitibi Royalties Inc. (which holds the Malartic CHL project, an option/joint venture project with Osisko Mining Corp. ("Osisko"), a 2% NSR on the Malartic CHL prospect held by Osisko, and the Luc Bourdon and Luc Bourdon West Project, an option/joint venture project with Noront Resources Ltd. and White Pine Resources Inc.),

 

(3) Uranium Valley Mines Ltd. (which holds the Company's 40% interest in the Beartooth Island Project, a joint venture with Ditem Explorations Inc., and the Company's 50% interest in the Otish/Mistassini Project, a joint venture with Lexam VG Gold Inc. (formerly Lexam Explorations Inc.) and which is anticipated to hold other advanced uranium joint venture projects).

(on #1):

Osisko Mining Corp / OSK.t .. update : At C$13.31 = C$5.08 Bn MktCap

OSK12mo.bmp.jpg

 

(The JV with Osisko is probably the one with the greatest immediate value. GZZ has a piece of Osisko's key property, and a takeover bid for the JV company post-spinoff is a real possibility. If that does not happen, Abitibi will have a Royalty business that it can build up.)

 

Noront Resources Ltd / NOT.v .. update : At C$0.93 = C$171 mn MktCap.

NOT12mo.bmp.jpg

 

White Pine Resources / WPR.v .. update : At C$0.76 = $21.7 mn MktCap.

WPR12mo.bmp.jpg

 

(on #3):

Ditem Explorations Inc / DIT.v .. update : At $0.11 = $6.5 mn MktCap.

DIT12mo.bmp.jpg

 

Lexam VG Gold Inc / LEX.t .. update : At C$0.93 = $XXX mn MktCap.

LEX12mo.bmp.jpg

 

OTHER partners mentioned in Annual Report, etc. :

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... New Projects are being generated continuously ...

 

April 5, 2011

Golden Valley Mines Ltd.: 2010-2011 Abitibi Greenstone Belt ("AGB")

Grassroots Exploration Highlights & New Drill Results

VAL-D'OR, QUEBEC--(Marketwire - April 5, 2011) - Golden Valley Mines Ltd. ("Golden Valley" or the "Company")(TSX VENTURE:GZZ) is pleased to provide the following report on the Company's gold and base-metal exploration activities and overview of the Company's 100%-owned and funded grassroots exploration programs.

 

Program Summary:

 

For the year 2010, a total of 4,015 metres of diamond drilling was completed testing 26 separate targets on eight (8), 100%-owned properties, including the Pascalis Cu-Zn (QC-ON Prospects Location Map: Cu-Zn-Ag target #85), Princess Annie (QC-ON Prospects Location Map: Au target #46), Entre Deux-Lacs (QC-ON Prospects Location Map: Cu-Zn-Ag target #23), Lac Laverdiere (QC-ON Prospects Location Map: Au target #30), D'Orso (QC-ON Prospects Location Map: Cu-Zn-Ag target #64), Agar (QC-ON Prospects Location Map: Cu-Zn-Ag target #59), Salve Lake (QC-ON Prospects Location Map: Au target #52)and the Blue Mountain (QC-ON Prospects Location Map: Au target #7) Prospects (please refer to the various 2010 Company news releases for the specific details on each of the drill programs and the Quebec & Ontario Prospects Location Map).

 

New Drill Results:

 

At the Salve Lake Prospect located near Matheson, Ontario and the Blue Mountain Prospect located near Kirkland Lake, Ontario, anomalous gold values have been intersected in the initial drill programs on the properties.

 

Based on these encouraging initial drill results, additional follow-up drilling is warranted to further assess the potential of these mineralized gold zones at depth and along strike to the northwest and southeast, respectively. The Company is currently in the process of pursuing joint venture opportunities to continue work on the properties.

 

Salve Lake Prospect:

 

New drill assay results include 1.60 g/t Au over 1.45 m in hole GSL-10-02 within a previously undrilled section along the Pipestone Deformation Zone ("PDZ"), currently thought to be a splay off of the Destor Porcupine Deformation Zone ("DPFZ"). The gold-bearing Pipestone Fault (PDZ) structure is proximate to the small, but high-grade Croesus Mine (southwest corner of Munro Township), as well as many other gold occurrences situated along its strike length including the Maude Lake gold deposit (northwest corner of Beatty Township), located two (2) kilometres on-strike to the northwest of the property where the drilling was completed.

 

/more...

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GZZ's Joint Venture partners

 

(on #1):

Osisko Mining Corp / OSK.t .. update : At C$13.31 = C$5.08 Bn MktCap

OSK12mo.bmp.jpg

 

(The JV with Osisko is probably the one with the greatest immediate value. GZZ has a piece of Osisko's key property, and a takeover bid for the JV company post-spinoff is a real possibility. If that does not happen, Abitibi will have a Royalty business that it can build up.)

(1) Abitibi Royalties Inc. (which holds the Malartic CHL project, an option/joint venture project with Osisko Mining Corp. ("Osisko"), a 2% NSR on the Malartic CHL prospect held by Osisko, and the Luc Bourdon and Luc Bourdon West Project, an option/joint venture project with Noront Resources Ltd. and White Pine Resources Inc.),

 

Given the huge MktCap of GZZ's JV partner (OSK.to = $5 billion)*, this deserves a closer look.

(1)

From GZZ's website:

Background

Golden Valley Mines acquired the Malartic CHL Gold property through staking in 2005. The property, currently considered prospective to host mineralized extensions of the main Canadian Malartic deposit which is currently being evaluated by Osisko for production, is located between 2.5 to 3.6 kilometres to the east. Drill results indicate the existence of 4 zones: the “Shaft Zone”, the “Jeffrey Zone”, the “Mammoth Zone”, and the “Norrie zone”.

 

Currently, there is a 26,000 metre partner funded drill program underway at the Malartic CHL Prospect.

/more: http://www.goldenvalleymines.com/en/content/project-description-3

 

(2)

The following excerpt is from the OSK website / http://www.osisko.com/en/properties/

 

Projects & Properties Overview

Osisko's primary business objective is the exploration and development of the flagship Canadian Malartic gold deposit. While the Canadian Malartic mine is being built and commercial production is planned for Q2 2011, Osisko will continue towards its goal of becoming a major player on the Canadian Mining scene by means of exploration projects at Canadian Malartic Extension and Malartic CHL (option agreement with Golden Valley (TSX-V: GZZ)), among others. Five (5) other locations in Canada are currently being explored: Quebec (Duparquet, Dunn), Ontario (Hammond Reef, Mountjoy) and Nova-Scotia (Goldboro).

 

Canadian Malartic - about 11 Million oz. ?

8.97 Million Ounce NI 43-101 Proven and Probable Gold Reserves1

2.23 Million Ounces NI 43-101 Indicated Gold Resource2

470,000 Ounces NI 43-101 Inferred Gold Resource3

 

Two important offshots of Malartic:

+ Shaft1 zone, and

+ Porphyry 12 zone

Lie inside the so-called GZZ Option area

/see map: http://www.osisko.com/pdfs/3-Geology%20and%20location%20of%20main%20mineralized%20zones.pdf

 

== == == == ==

 

*With a MktCap of $5 billion, Osisko seems to have become a poster child of a large, low-grade deposit, which has become too expensive for the majors to take over. There's an interesting discussion about it on FS:

 

What Brent Cook looks for in juniors

High margin deposits the key to future junior acquisitions

MP3: http://www.netcastdaily.com/broadcast/fsn2011-0401-1.mp3

 

One creative way for a major to get involved, would be to acquire Abitibi Royalties, as a "cheap way in" to a piece of Osisko's deposit.

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