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Golden Valley Mines: Cheechoo Project Exploration Results, Abitibi Program Update, Flow-Through Private Placement Announced

Golden Valley Mines: Cheechoo Project Exploration Results, Abitibi Program Update, Flow-Through Private Placement Announced

Posted: 2005-12-21

MONTREAL, QUEBEC -- December 21, 2005 - Golden Valley Mines Ltd. (TSX VENTURE:GZZ) provides the following update on its exploration activities in Quebec and Ontario: Cheechoo Gold Project Area, James Bay, Quebec: Preliminary lake-bottom sediment sample results have now been received from the August, 2005 survey. In total, 311 samples were collected over the Cheechoo (Block A, B,C) and Sharks claims, in addition to 61 over the Sharks East extension claims and a further 68 samples located on five proximal, but isolated and 100%-owned claim blocks. A preliminary review of the received sample and analytical database has outlined a number of anomalous gold values. Final results are not expected from the field contractor until quality assurance work has been completed and results from a second analysis method (Neutron Activation Analysis - INAA) has been received to compare results. Further details regarding the anomalies will be reported accordingly. The lake-bottom sediment sampling survey and sample preparation prior to dispatch to the analytical laboratory was completed by IOS Services Geoscientifiques of Chicoutimi and supervised by Rejean Girard (P.Geo). All the samples were submitted to Activation Laboratories Ltd. in Ancaster, Ontario for multi-element (59) determination by inductively coupled plasma mass spectrometry (ICP-MS). Golden Valley Mines is one of the principal claim holders in the area of Virginia Gold Mines Inc. Eleonore property that hosts the Roberto Zone gold discoveries. Golden Valley Mines now holds interests in 1,017 claims in the new emerging gold discovery area, including 14 wholly owned (100%) properties, and two option/joint ventures with Sirios Resources Inc. covering 53,524 hectares (535 km2) in the region (refer to the November 16, 2005 press release for more information). 2) Abibiti Greenstone Belt - Grassroots Drilling Program (Quebec & Ontario): Ground geophysical surveying completed over the past few months has delineated definite priority drill targets on six of the Company's 100% owned grass-roots properties. Drilling on these properties will commence in early 2006. These include the Golden Jet (VMS: map, #47), Cook Lake (Au: Map, #58), Hunter Mine Group (VMS: Map, #50), Sea Serpent (Au: map, #9), Blue Mountain (Gold: map, #28), and Lac Lemoyne (VMS: map, #31) prospects. Field work is planned or in progress for a number of other individual properties. Further detail regarding the properties and drill targets will be announced prior to the drill rig mobilization. Refer to the Quebec & Ontario prospects location map on the Golden Valley Mines website, http://www.goldenvalleymines.com/abitibi. Michael P. Rosatelli, Senior Geologist, is Golden Valley Mines' Qualified Person as defined by National Instrument (NI) 43-101 and the person responsible for the preparation of this press release. Flow-Through Financing of up to CDN$500,000: Golden Valley Mines also announces a non-brokered flow-through private placement of up to 1,515,151 flow-through common shares of the company at a price of $0.33 per flow-through common share, resulting in gross proceeds of up to CDN$500,000. The offering will be made to purchasers, which may include officers and directors of the Company, residing in the Provinces of British Columbia, Alberta, Ontario, and Quebec, in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the private placement shall occur on or before December 31st, 2005, and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. Where applicable, a finders fee equal to 3% of the gross proceeds raised will be payable to an arms length party. All the securities issued pursuant to the offering shall be subject to a hold period of four months from the date of closing. The proceeds from the private placement will be used by Golden Valley for exploration purposes primarily on its James Bay property which is comprised of 1,017 claims covering 132,259 acres (535 km2) in the region. The Company holds contiguous claim blocks on both the west and east sides of Virginia's Eleonore property that hosts the Roberto Zone gold discoveries. For a map of the project area, refer to www.goldenvalleymines.com/cheechoo. For further information Golden Valley Mines Ltd. Glenn J. Mullan President and CEO Toll free: (877) 879-1688, ext. 222 mullan@goldenvalleymines.com Golden Valley Mines Ltd. R. Bruce Durham Vice-President, Exploration Toll free: (877) 879-1688, ext. 252 durham@goldenvalleymines.com www.goldenvalleymines.com[Opens a new window]