Virginia Gold Mines (VIA-T) and Placer Dome (PDG-T) have signed a joint-venture agreement to explore for precious metals in the Labrador Trough area of Quebec.
The deal will last a year and will see Virginia act as operator of a $200,000 geological reconnaissance program. Costs will be shared equally. If both sides agree, the agreement can be extended after the first year. Work is set to begin this month.
At the Chute-des-Passes project, 150 km north of Lac St. Jean, Que., Virginia and Soquem, the operator, have begun a 1,500-metre drilling program. Soquem is owned by the Quebec government.
The holes aim at testing four zones — Houlire, Duhamel, MHY and DNE. The partners are looking for extensions of known nickel, copper and cobalt mineralization and several electromagnetic conductors. The zones lie at the northern and eastern sections of the Lac St. Jean anorthositic suite.Late last year, a 26-hole, 2,700-metre drilling program mainly focused on the MHY zone. It was highlighted by:
- 10.2 metres grading 0.84% nickel, 0.5% copper and 0.1% cobalt;
- 5.9 metres grading 0.9% nickel, 0.66% copper and 0.12% cobalt; and
- 4.5 metres grading 1.15% nickel, 0.56% copper and 0.15% cobalt.
Similar grades were found over shorter lengths in the Nourricier Noir, Houliere and Duhamel zones.
Soquem can acquire a half-interest in the property by spending $625,000 on exploration before June 30, 2003.
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