Summer exploration has commenced at a number of properties optioned by VSM Exploration (TSE) and its privately owned French partner Serem-Quebec in the Quevillon-Desmaraisville region of northwestern Quebec.
A 50% owned affiliate of gold miner Placer Dome (TSE), VSM says it is spending $2.1 million this year to explore five properties including the Grevet, BMJ and Orphee projects. VSM is also contributing toward exploration on properties optioned from Dundee-Palliser Resources (TSE) and BP Resources Canada and Noranda (TSE) as well.
Most of the funding is earmarked for drilling on Grevet BMJ’s zone 97 and the Orphee zone where VSM feels that known reserves can be increased. Both these zones are still open in all directions.
The discovery last year of zone 97 forced VSM to postpone plans for underground exploration on the Grevet property where minable reserves stand at 12.7 million tons of grade 8.95% zinc, 0.50% copper and 36.2 oz. silver per ton. That discovery drove VSM shares up to $1.20 on the Montreal Exchange compared to their low of 68 cents. They traded recently at $1 in Toronto.
VSM general manager Andre Gaumond says the joint venture will drill about 25 holes this summer on the Orphee and 97 zones to test for mineralization to the east and at depth. Located on strike and about five kilometres from Grevet, Orphee has already yielded a 12-ft. intersection averaging 12.1% zinc, 0.6% copper and 0.36 oz. silver within a zone which has subsequently been traced for over almost 1,000 ft.
The 1991 budget does not include any development work on zones 111, 1V and 97 on the Grevet property where VSM, the French Bureau of Geological Research, Placer Dome and the mining engineering firm Kilborn are carrying out an economic analysis.
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