Virginia adds to Coulon JV after positive summer exploration (September 24, 2007)

Breakwater Resources (BWR-T, BWLRF-O) shares were among the busiest in Toronto recently on good news from the company’s Coulon joint-venture in Quebec with Virginia Mines (VGQ-T, VGMNF-O).

Following news of extended zones and a new discovery, the joint venture has been altered to include the Fontanges Sud and Coulon Pitaval properties, located north and south of the original Coulon property, respectively.

The new surface area of the property is 1,600 sq. km, with 1,981 additional claims, bringing the total to 3,250 claims, covering the Coulon volcanic belt over a span of 90 km.

Breakwater stock was up 8 to $2.49 apiece on the news, on more than 13 million shares traded, while Virginia Mines climbed 22 to $6.45 on a trading volume of 62,000 shares.

Under the new agreement, Breakwater still has the option to acquire a 50% interest in the project, but must spend $7.5 million over nine years instead of $6.5 million over eight years. Payments totalling $180,000 over four years remain unchanged.

Over the summer exploration season, prospecting and geological mapping led to a discovery of Spirit, semi-massive to massive sulphide mineralization rich in chalcopyrite and sphalerite, with some galena. The mineralization was followed over 80 metres in a north-south direction between widths of 4 to 7 metres with a beepmat conductor and appears to be open laterally as it disappears at both ends under thick overburden.

Seven grab samples collected in small trenches over 30 metres yielded between 0.82% and 7.22% copper, 0.28% and 12.95% zinc, 36.6 grams and 200 grams silver per tonne, and up to 1.24% lead.

Virginia plans to continue channel sampling and ground geophysics followed by drilling.

Another area was also discovered on the Ishikawa grid, where sampling of several rusty boulders found in a 2-sq.-km area returned values reaching 6.14% copper, 4.08% zinc, 2,000 grams silver per tonne and 20.7% lead.

The company drilled three new holes on lens 44, two of which returned significant values.

Hole CN-07-77B returned a 10.5-metre interval grading 8.39% zinc, 0.95% copper and 47.83 grams sliver per tonne. A 3-metre intersection from the same hole yielded 5.08% zinc, 0.99% copper and 32.57 grams silver. Intervals were located at vertical depths of 360-370 metres.

Starting at 400 metres depth, hole CN-07-83 intersected 23 metres grading 2.28% zinc, 1.63% copper and 26.64 grams silver, including 5 metres grading 8.66% zinc, 1.21% copper and 18.82 grams silver.

Lens 43 has been extended by 240 metres towards the southwest with hole CN-07-79 yielding 9.65 metres of 2.22% zinc, 2.8% copper and 22.06 grams silver starting at 380 metres depth.

The company also drilled two holes to test the extensions of lens 9-25 and some regional targets. One hole returned insignificant mineralization, while the results of the other have not come in yet.