Victory Gold finds old mine still has something to give

Victory Gold Mines (VGO-CNSX ) is proving that a historic small scale mine in Timmins still has gold to give.

The company, which is preparing for a near term move to the TSX Venture exchange, released results from 12 new drill holes on the Gold Pike Mine property in the famed Ontario gold camp.

Highlights from the best four holes included: 6 metres grading 6.7 grams gold; 15.6 metres grading 3.91grams gold; 15.2 metres grading 1.73 grams gold and 7.5 metres grading 3.65 grams gold.

The holes were drilled into a 300 metre long mineralized structure which hosted an open pit mine that was briefly operated by Royal Oak Mines back in the early 1990s.

Victory’s latest holes were designed to outline gold zones from surface to a depth of 150 metres, but it says the next stage of drilling will aim at extending mineralization to the west and to a depth of 250 metres.

Gold mineralization was first outlined by Noranda during the 1980’s as the company defined a mineralized zone over a strike length of 300 metres to a depth of 250 metres.

The property hosts 3-km of strike length along the Destor Porcupine Fault Zone.

Royal Oak Mines put an open pit mine into production in between 1992 and 1993, and managed to process roughly 100,000 tonnes of ore with a head-grade of 3.4 grams gold.

Gold Pike is adjacent to Brigus Gold’s (BRD-T) Black Fox mine, which is currently operating as both an open pit and an underground mine.

Victory has the right to earn a 70% interest on the property and has already earned into an initial 50% interest.

News of the latest drill results helped send the company’s shares up 2¢ or 12% to 19¢ on 55,000 shares traded.