Cambior options Virginia’s La Grande Sud

Quebec miner Cambior (CBJ-T) has set its sights on La Grand Sud, a gold project being explored by Virginia Gold Mines (VIA-M) in the James Bay area of northern Quebec.

A recent option agreement with Virginia allows Cambior to acquire up to a 50% interest in La Grand Sud (which covers 198 sq. km.) in return for exploration expenditures of $7 million over the next six years. The major also agreed to acquire 238,800 shares in stages over the 6-year period.

La Grand Sud contains a resource of 350,000 oz. gold, mostly in the 32 and 103 zones. Of this total, Zone 32 hosts 320,000 oz. within 6.5 million tonnes grading 1.5 grams gold and 0.2% copper (at an 0.5-gram cutoff grade). Zone 103 has 30,000 oz. within 650,000 tonnes at a similar grades.

Earlier this spring, Virginia reported new results from Zone Veines, including 19.64 grams over 3 metres, 14.67 grams over 4 metres, and 18.14 grams over 6.5 metres.

Cambior will operate the work program, which will be overseen by a joint management committee.

The first phase will include till sampling, trenching and drilling. Elsewhere in Quebec, Virigina has signed an agreement with provincially owned Soquem for its Chutes-des-Passes property northeast of Saint-Jean Lake. The agreement grants Soquem an option to acquire half of the project for $500,000 in exploration expenditures over three years and a small cash payment.

Chutes-des-Passes covers a portion of an anorthosite and troctolitic complex. Numerous geophysical conductors associated with nickel-copper-cobalt mineralization have been identified, which are believed to be similar to those found in the Voisey’s Bay region of Labrador.