Latest hole hits new zinc zone ups potential of VSM’s Grevet

A new high-grade zinc zone has been discovered by 50/50 partners VSM Exploration (ME) and Serem-Quebec on their Grevet base metal property, about 40 km northeast of Quevillon, Que.

Located in an area roughly 150 metres north of the property’s other known zinc zones, the new discovery was found by drill testing of a pulse EM anomaly.

A single hole, drilled to investigate the anomaly, intersected 8.6 metres (28 ft.) grading 15.5% zinc, 0.40% copper, and 83.5 grams silver per tonne at a vertical depth of 510 metres (1,675 ft.) below surface.

Included within the above interval was a higher-grade section of 5.7 metres (14 ft.) grading 22.08% zinc, 0.29% copper and 101.5 grams silver per tonne. Assays as high as 51% zinc over 1.1 metres (3.6 ft.) were also included in the high-grade section.

Known as the 97-zone, the new discovery is about 150 metres (500 ft.) north and 600 metres (2,000 ft.) east of zones III and IV for which drill-indicated reserves have already been published.

“This new zone has the potential to significantly increase the reserves already outlined in zones III and IV,” said VSM President Mario Caron.

He told The Northern Miner that one drill rig is continuing to test the new discovery along strike to the east, while a second machine is conducting more detailed drilling on the III and IV zones where minable reserves were reported previously at 6.1 million tonnes grading 9.77% zinc, 0.52% copper and 38.4 grams silver.

“This discovery has changed the scope of the Grevet project for the better,” said Caron, who added that the company will have no trouble funding its share of future exploration expenses following a $5-million public financing.

The Grevet property lies along a major regional structure known as the Cameron Deformation Corridor which hosts the known zinc deposits as well as the Flordin and Vezza gold deposits on other properties to the east. Serem and VSM own or have options on properties covering a continuous 30-km strike length along the corridor in Grevet, Mountain and Ruette twps.

“We have always felt we would find more zinc zones on the Grevet property, but people were skeptical,” said Caron, “But now we have the proof that a new mining camp could really be in the making.”

The company plans to do more surface drilling this summer, and may modify its original plan for an underground program at the III and IV zones in light of the recent discovery in hole 97. Follow-up drilling, currently under way, is testing the lateral and depth extensions of the new zone found in hole 97.

“We think the newly discovered zinc zone could come to within 200 metres of surface,” said Caron. “The other two zones (III and IV) were visible in outcrop, but our latest discovery is totally covered by overburden,” he said.

Shares of VSM, of which there are currently 11.8 million issued, (19 million fully diluted) have traded recently at $1.20 within a 52-week range of $0.45-$2.10. The company’s major shareholders are Placer Dome (TSE) with a 55% stake and MSV Resources (ME) with another 12.6% interest in VSM’s share capital.