Junior mining and exploration companies the world over are in melt down. Yet the fundamentals for massive mineral product demand are still apparent. Many commentators believe there will be a quick turnround in the financial markets for the mining companies. Ironically all this is delaying a lot of exploration when the project piepline had not recovered from the last downturn in the industry. However, in the mean time, companies like ValGold Resources are suffering. Typical of the sector, it has elected to substantially change its strategic direction in response to on-going market conditions. “With the recent share price melt down which ValGold has experienced along with most other junior resource issuers, ValGold now intends to focus its exploration and development efforts onto only those projects with demonstrated mineral resources and a strong potential for advancing to production. Early stage or ‘greenfields’ projects appear for the time being to be not financeable and seem to have little or no bearing on market valuations. This is evidenced by the near global devaluation of junior resource issuers and the dramatic loss in value of the TSX Venture Exchange Composite Index which has plunged approximately 20% since September 30.

“In addition, ValGold will endeavour to advance its current advanced projects using joint ventures or earn-in transactions. Its Ontario projects such as Tower Mountain near Thunder Bay and Garrison Township on the Golden Highway of the Timmins mining camp have recently garnered attention from both junior and intermediate gold companies. Under its new strategy, ValGold has commenced its search for new acquisitions of projects having existing resources that would add value to our property portfolio. This search includes assets both within Canada and other jurisdictions that are mining-friendly and politically sound. ValGold’s management has already identified potential mining projects that match our requirements and management intends to pursue the most promising of these.”

As its first act under this change in strategy Valgold has terminated its option agreement with Newmont Overseas Exploration to earn an interest from Newmont in certain mineral property exploration permits and licenses in northwest Guyana. Under the terms of the agreement, ValGold could have earned a 100% of Newmont’s interest in those properties by incurring expenditures of $5.0 million over four years. ValGold’s option to purchase a 100% interest in and to the Fish Creek property in Guyana has also been terminated. Both of the Newmont and Fish Creek projects are considered early stage and would require significant additional work to determine whether drill targets existed. The expected budgets for the required work are considered be beyond the capacity of the Company to fund in the current market for junior resource stocks.