Virginia Gold active at La Grande Sud

Drilling by Virginia Gold Mines (VIA-M) at its La Grande Sud property in the James Bay region of Quebec has cut several long gold intersections.

Highlights from the program include:

* 11 metres (from 340 metres) grading 2.49 grams gold per tonne, including 4 metres of 4.44 grams gold, in hole 118;

* 7 metres (from 179 metres) of 6.17 grams gold in hole 119; and * 84 metres (from 227 metres) of 2.6 grams gold, including 13 metres (from 246 metres) of 7.24 grams gold, in hole 125.

The drilling is attempting to define the lateral extensions and depth of Zone 32. Once this is achieved, Virginia is expected to update its resource calculation.

Till-sampling has confirmed a glacial train south of a body of tonalite and identified another such train to the north. Prospecting of targets identified by the trains will follow.

In other news, Virginia has signed an agreement with Silver Century Exploration (SVC-A), a subsidiary of Agnico-Eagle Mines (AGE-T), for the Corvet Est, Corvet Ouest, Lac Guyer and Opinaca properties, all of which are in the James Bay region.

To gain a half-interest in these properties, Silver Century must spend $1.8 million on exploration over the next four years and pay Virginia $190,000. Silver Century can acquire another 1%, and thereby gain control of the project, by conducting a feasibility study. Virginia will be the operator during the option period. In 1998, Silver Century intends to spend a minimum of $250,000 evaluating these properties.

Virginia has also signed a deal with Ormico Exploration (OMX-M), affecting the Duncan project in the La Grande Belt. Ormico can acquire a half-interest by spending $500,000 on exploration over four years and paying $45,000.

Elsewhere in the region, exploration is in progress at the La Grande Nord and Poste Lemoyne projects, and work is planned for the Auclair, Lac Caron, LG-3, and Corvet Est properties.

At La Grande Nord, Noranda (NOR-T) has completed a ground geophysical survey and intends to prospect the anomalies identified to date.

At the Sagar project in northern Quebec, Virginia’s partners, Inmet (IMN-T) and Denison Mines (DEN-T), are leading a drilling program.

Farther south, at the Chute-des-Passes property, Virginia is carrying out a mapping and prospecting program aimed at evaluating the potential of untested electromagnetic conductors.