Gayot reveals more mineralization (November 26, 2001)

Partners Virginia Gold Mines (VIA-T) and BHP Billiton (BHP-N) have discovered more polymetallic mineralization in Quebec’s Caniapiscau Reservoir area, northwest of Schefferville.

Channel sampling yielded 1.1% nickel, 0.28% copper and 1.32 grams combined platinum and palladium per tonne over 19.9 metres. Three metres above the section, 6.2 metres averaged 0.83% nickel, 0.2% copper and 0.97 gram combined platinum-palladium.

About 50 metres to the west, another trench returned 0.44% nickel, 0.1% copper and 0.4 gram platinum and palladium over 9 metres. The results were not repeated on the eastern side of the original trench.

The showing, dubbed Nancy East, sits 250 metres southeast of the Nancy prospect, where trenching and drilling have yielded similar results. Both are associated with the same ultramafic unit and characterized by disseminated-to-net-textured sulphides.

Recent ground work in the Nancy, Gagnon, Pantoufle, MIA and Dechamplain areas included an electromagentic survey, which is now being expanded to cover all favourable units on the property.

At the Nancy prospect, stripping extended two exposures: a 17.6-metre section that graded 0.83% nickel, 0.17% copper and 0.99 gram platinum-palladium was extended 22 metres, which averaged 0.84% nickel, 0.17% copper and 1.02 grams platinum-palladium, and an 8.4-metre section of 1.07% nickel, 0.23% copper and 1.32 grams platinum-palladium was extended 9.4 metres, which averaged 1.06% nickel, 0.23% copper and 1.32 grams platinum-palladium. Both remain open.

At Gagnon, a 70-metre-long untested portion of the ultramafic unit was sampled. Nickel values varied from 0.31% to 1.79%; copper, from 0.08% to 0.36%; and platinum-palladium, from 0.39 to 1.66 grams. The channels were taken over 1.1-25.85 metres, with the largest including an earlier, 4.85-metre channel that averaged 2.17% nickel, 0.42% copper and 2.46 grams platinum-palladium.

Similar results were obtained from each of the Pantoufle, MIA and Dechamplain areas. Many extend showings previously exposed by similar methods.

The Gayot property covers the Venus Archean volcano-sedimentary belt. The lower portion of the belt consists of a 4-km-thick sequence of komatiitic flows interbedded with sulphidic sediments and volcanics of mafic to felsic composition. The ultramafic sequence can be followed laterally over more than 15 km.

Winter drilling is planned.

Billiton can earn a half-interest in Gayot by spending $4.5 million on exploration before Nov. 1, 2003. Exploration began in the summer of 2000 and thus is still at an early stage.

Meanwhile, Virginia has discovered a copper-gold-silver showing in a dioritic-to-tonalitic intrusion at its Elenore project in the James Bay area of the province.

Mineralization is characterized by stockworks of chalcopyrite in a series of corridors spread over a distance of 600 metres. Laterally, at least one can be followed for 150 metres.

Results from grab samples vary but ran as high as 14.28% copper, 19.29 grams gold and 75 grams silver. Channel samples generally yielded much lower grades for all three metals.

Several partially rounded boulders were discovered 300 metres away and ran up to 10.4% copper, 21.7 grams gold and 68 grams silver.