Virginia, Diabior work Quebec properties

Two Montreal-listed juniors, Virginia Gold Mines and Explorations Diabior, are busily engaged in northern Quebec.

The companies have concluded two option agreements with Soquem on the Eastmain Ouest and Reservoir properties in Quebec’s Eastmain Belt. On the 180-sq.-km Eastmain Ouest property, a 50-50 joint venture between Virginia and Diabior, Soquem can acquire a 50% interest in return for $600,000 in exploration expenditures over four years. On the 90-sq.-km Reservoir property (solely owned by Soquem), Diabior and Virginia can acquire a 50% combined interest in the property by spending $300,000 on exploration over three years.

Eastmain Ouest and Reservoir share a geochemical anomaly (followed over 40 km) that is associated with many gold showings.

An exploration campaign has begun on Diabior’s wholly owned La Grande Sud project in northern Quebec. Last year, 13 mineralized zones were discovered in the area, with gold concentrations varying between 11.52 and 36.99 grams per tonne. The zones are part of a major deformation zone which coincides with the presence of a large corridor containing highly anomalous gold values.

Virginia has announced the beginning of exploration on its Sagar and Wakeham projects, also in northern Quebec.

Work on the Sagar property will be financed by Kennecott Canada, which has an option to acquire a half interest by spending $3 million on exploration over five years, and an additional interest by paying for a feasibility study. Virginia and Kennecott will, among other things, try to locate the source of highly mineralized boulder fields, the average value of which is 68.23 grams gold per tonne. Many other targets will also be tested.

On the Wakeham property, Virginia and its equal partner, Placer Dome (TSE), will begin exploring geophysical and geochemical targets within the Wakeham Supergroup.