A drilling program totalling 12,000 ft has been started on two properties in the state of Virginia in the United States, Virginia Gold Mines (ME) reports.
The drilling will be performed on the Hughes and London-Virginia properties. According to the company, visible gold has been seen in the core of a drill hole on the Hughes, while chalcopyrite, sphalerite and wide intersections of pyrite have been found on the London-Virginia.
Signing an agreement to earn a 50% interest in one of the two properties was Cambior Inc. (TSE). While Virginia Gold will operate the exploration program, Cambior must invest $2 million before the end of 1990 to earn its interest.
The two principal shareholders of Virginia Gold, which owns a third property (Tellurium) in the same area, are Cambior and Vior Inc. (TSE). The Tellurium property is undergoing surface exploration work.
Virginia Gold, which was recently listed for trading on the Montreal Exchange, has completed a unit share offering worth $750,000. A total of 1.25 million shares and 1.25 million warrants were issued at 60 per unit; two warrants will purchase one share at 80 before Dec 1.
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