VSM/Serem build reserves on new Grevet zinc zone

A recently completed deep drill hole on zone 97 of the Grevet zinc property in northern Quebec reveals the deposit is getting wider at depth (T.N.M., Nov. 5/90). Hole 121, which tested the eastern extension of the deposit, cut 8.6 meters (true width) grading 7.46% zinc, 0.88% copper and 32.7 grams silver per tonne at a depth of 700 metres.

Included in the wide interval were higher-grade sections of 1.4 metres averaging 18.6% zinc, 0.89% copper and 33.2 grams silver, and 2.3 metres averaging 11.7% zinc, 2.23% copper and 85.1 grams silver.

“Hole 121 is of major interest since it indicates the zone widens to the east and at depth,” said Mario Caron, president of VSM Exploration (TSE) which owns a 50% stake in the project. The other partner is Serem-Quebec.

Other recent drill results that confirm the significance of the new deposit are as follows: True Silver Width Zinc Copper (gram/ Hole (metre) (%) (%) tonne) 114 1.31 19.5 0.09 22.2 115 1.10 15.8 0.68 80.5 117 3.40 5.4 0.11 20.4 119 1.92 6.9 0.04 85.5 2.52 21.4 0.44 49.8 121 8.59 7.5 0.88 32.7

Holes 114, 115 and 117 are situated on the fringes of the deposit, while two other holes 119 and 121 are located in its centre. “Hole 114 is of particular interest as it extends zone 97 westward for more than 400 metres,” said Caron.

The latest batch of results show that zone 97 extends over length and depth of more than 500 metres. The new zone was discovered back in May and will add substantially to the overall zinc and copper reserves in the property’s other two zones, III and IV.

Two drills are continuing to probe zone 97 and a revised estimate of preliminary reserves for the property is scheduled for release later this year, the company said. Placer Dome (TSE) controls more than 50% of VSM’s shares which have traded recently at $1.03 within a 52-week range of 65 cents-$1.50.