VenCan, River Gold report impressive Edwards mine assays

Assays from sill drifting in the two zones being developed at the Edwards gold mine near Dubreuilville, Ont., have revealed a higher grade than was expected.

The mine is owned by VenCan Gold (VCG-M) but is being developed and operated by River Gold Mines (RIV-T), whose lease agreement with VenCan gives it the right to mine the deposit in return for $500,000 and half the net operating profits.

A deal with River Gold permits that company to mine the property, recoup its costs and keep half the profits thereafter.

Chip samples from the mine’s Carbonate zone, taken at the 200-ft. level, returned a weighted average grade of 3.51 oz. gold per ton, calculated across a mining width of 4.26 ft., along a drift section length of 128.3 ft.

Individual samples include 34.17 oz. gold over 1 ft. and 30.62 oz. over 1.3 ft.

Muck sample assays across the full drift width (up to 14.5 ft.) averaged 3.26 oz. gold along the same drift section as above.

In the east section of the Porphyry zone, chip sample assays at the 200-ft.

level returned an average of 1.16 oz. gold, calculated across a mining width of 4.26 ft., along a drift section length of 39.4 ft.

Muck sample assays across the full drift width (up to 6 ft.) averaged 0.32 oz. gold along the same drift section as above.

The west section of the Porphyry zone yielded chip samples assaying 1.09 oz.

gold, calculated across a mining width of 4.26 ft., along a drift section of 73.8 ft.

Muck sample assays across the full drift width (up to 10 ft.) averaged 0.64 oz. gold along the same drift section as above.

At VenCan’s annual meeting in Toronto, a pending lawsuit from Extendor Minerals (a company controlled by a former VenCan Gold director) was described by VenCan President Kenneth Baird as “a nuisance suit.” Robert Hill filed a $75-million breach-of-contract suit (plus $250,000 in punitive damages) against VenCan, claiming that his alleged right of first refusal on VenCan’s disposition of the Edwards property was ignored by VenCan when it made its deal with River Gold.

Baird told shareholders that VenCan’s counsel believes the chances of a judgment being issued in Hill’s favor are “remote” and that if Hill does win, the settlement would likely not exceed $1 million, despite the much higher amount sought. Baird said VenCan is trying to get the matter dealt with in court by May.

Baird also told shareholders that VenCan is expected to receive a Toronto Stock Exchange listing sometime this year.