GOLDEN VALLEY MINES LIMITED 2002-07-02 ASX-SIGNAL-G

HOMEX - Perth

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GVM is pleased to announce the addition of the extensively
mineralised Eastman project to its East Kimberley portfolio. The 227
km 2 project consolidates GVM's regional presence in the East
Kimberley and strengthens it's exposure to platinum group elements
(PGE's), copper-zinc-lead-gold (VMS) and gold.

The Eastman project, together with GVMs Laura River project, gives
GVM strategic dominance of the highly prospective Koongie Park
Formation. The Koongie Park Formation hosts significant
platinum-bearing layered intrusions and is the principal host to the
regions VMS deposits. The Koongie Park Formation also hosts the
relatively recent "new generation" high-grade gold discoveries in the
Nicholson's Find area immediately south of GVM's Laura River project.

PLATINUM GROUP ELEMENTS (PGE'S)

The project contains multiple occurrences of PGE+gold mineralisation
with grades up to 7 g/t. Mineralisation is hosted by several
chromitite seams; chromite-bearing ultramafic rocks; and PGE-bearing
shears and veins containing abundant copper mineralisation. The
hosting layered mafic-ultramafic intrusion has a strike length of
6.5km. The western 3.5km of the intrusion is largely under cover and
has not been drill tested despite small exposures of chromitite with
rockchip sample grades up to 5.4 g/t PGE's. Previous drilling in the
outcropping eastern portion of the intrusion is restricted to two
localities, and is limited and inconclusive.

COPPER-ZINC-LEAD-GOLD (VMS)

The Eastman property includes two known significant VMS occurrences
and several smaller occurrences. Significant drill intercepts by
previous explorers dating back to the 1970's include 9.6m @ 2.7% Cu,
1.5%Zn and 1.5g/t Au at the Landrigan Creek prospect, and 16.8m @
1.42%Cu, 13.3m @ 2.1%Zn and 1.1%Pb at the Eastman Bore prospect.
Drilling is limited at both Landrigan Creek and Eastman Bore with
good potential for extensions and satellite deposits. Exploration
will benefit from modern geophysical techniques not available when
the area was explored previously. In addition, aeromagnetic data
indicate that the VMS-hosting stratigraphy extends under cover
through the western half of the property, where it is totally
untested. The potential for further VMS deposits, which typically
occur in clusters, is rated highly.

GOLD

There has been no modern gold exploration in the Eastman project
despite discoveries of high-grade gold mineralisation hosted by the
Koongie Park Formation in the Lamboo (Nicholson's Find) area. Old dry
blowing heaps present within the project are regarded as encouraging.

R Linnell
CHAIRMAN