Virginia, Billiton cut PGMs at Gayot

Junior Virginia Gold Mines (VIA-T) and its partner, Billiton, have drilled wide intersections of nickel, platinum and palladium mineralization at their Gayot project in Quebec’s Caniapiscau Reservoir area, northwest of Schefferville.

In 1999, Virginia discovered several promising showings within a volcanic belt that may be an eastern extension of the La Grande belt.

Although the first grab samples returned impressive nickel and platinum group metal (PGM) grades, initial drilling into several showings and geophysical anomalies returned only sub-economic grades.

The project’s potential improved during a recent 16-hole, 1,530-metre drilling program on the L and Nancy showings.

Four holes drilled into L intersected significant mineralization, including:

– returned 9.5 metres (from 29 metres) grading 1.67% nickel, 0.77% copper and 1.6 grams combined platinum and palladium (Pt-Pd) per tonne in hole 21A;

– 6.9 metres (from 8 metres) of 1.4% nickel, 1.5% copper and 1.32 grams Pt-Pd in hole 23A;

– 11.4 metres (from 12 metres) of 2.2% nickel, 1.41% copper and 2.29 grams Pt-Pd in hole 23B; and

– 0.4 metre (from 86 metres) of 3.28% nickel, 2.4% copper and 3.22 grams Pt-Pd, plus another 0.6 metre (from 132 metres) of 4.56% nickel, 0.61% copper and 3.08 grams Pt-Pd, in hole 25B.

Mineralization in holes 21A, 23A and 23B occurs at a contact between ultramafic rock and a felsic tuff, whereas mineralization in hole 25B is hosted by sulphide veins in footwall tuffs.

Virginia says off-hole electromagnetic anomalies in holes 22, 23B and 25B indicate there is continuity northwest of the L showing.

Drilling into the Nancy showing revealed wider, but lower-grade, mineralization within disseminated sulphides at the base of, and within, an ultramafic flow.

Drill highlights from the Nancy showing include:

– 4 metres (from 25 metres) of 1.76% nickel, 0.19% copper and 1.22 grams Pt-Pd in hole 26;

– 15.2 metres (from 4 metres) of 0.75% nickel, 0.11% copper and 0.62 gram Pt-Pd in hole 27; and

– 22.6 metres (from 4 metres) of 0.51% nickel, 0.07% copper and 0.44 gram Pt-Pd in hole 31A.

Both L and Nancy remain open at depth. The partners plan to resume drilling shortly.

Gayot is wholly owned by Virginia, but Billiton can earn a half-interest by spending $4.5 million on exploration over three and a half years.