Agnico drilling Vezza project, considers going underground

Drilling is under way on the Vezza gold project in northwestern Quebec, where Agnico-Eagle Mines (TSE) is earning a 51% interest from North American Rare Metals (ME) and Dundee-Palliser Resources (TSE).

The program will test the depth potential of the property’s gold-bearing zone, which contains preliminary reserves of 2.12 million tons averaging 0.15 oz. gold per ton.

In order to earn a majority interest in the property, Agnico must spend $7.4 million before Dec. 1, 1994 ($600,000 by the end of 1992). Dundee and North American say Agnico plans to move a second rig onto the site by April 20 and may start an underground program later this year.

Agnico is interested in the Vezza deposit as a source of feed for the nearby Joutel mill. Although the mill has a capacity of 1,800 tons per day, ground problems in the mine have slowed ore production to a trickle at Joutel.