Mr. Tom Meredith reports
LEXAM VG GOLD: EXPLORATION DELIVERS GOOD DRILL RESULTS
Lexam VG Gold Inc. has provided an exploration update on its Buffalo Ankerite and Paymaster projects in Timmins, Ont., Canada. Drill highlights include 23.85 grams per tonne (g/t) over 2.4 metres (m) included within 29.6 m of 3.74 g/t, and 20.16 g/t over 2.5 m included within 9.9 m of 6.96 g/t at the Buffalo Ankerite North zone, plus 17.86 g/t over 7.3 m at the Buffalo Ankerite South zone. This update includes the 20 holes completed since the last exploration news release on Jan. 10, 2011.
Buffalo Ankerite North zone
Two holes were drilled on the Buffalo Ankerite North zone (BA NZ) to test a broad area of potential indicated by historic mine information. Both holes into the area returned good results. Drill hole 106 targeted BA NZ mineralization on the Buffalo Ankerite property, and intercepted good grade and width at a depth of 425 metres: 23.85 g/t over 2.4 m included within 29.6 m of 3.74 g/t. Drill hole 107 tested near-surface BA NZ mineralization on the Paymaster property and encountered 20.16 g/t over 2.5 m included within 9.9 m of 6.96 g/t at 100 metres depth. Follow-up drilling is now taking place to determine the extent of the BA NZ mineralization on both sides of the boundary.
The exploration of Buffalo Ankerite North zone mineralization is targeting an area 100 metres wide and 500 metres long. The southern 250 metres of the mineralization is located entirely on the Buffalo Ankerite property, and the northern 250 metres straddles the boundary between the Paymaster property and the Buffalo Ankerite property. The BA NZ area was only mined on the Buffalo Ankerite side of the boundary where the majority of mining activities took place between surface and 400 metres deep in the boundary area. The steeply dipping BA North mine mineralization contains multiple quartz tourmaline breccia zones with enriched gold values. Neighbouring properties have been mined to depths exceeding 2,000 metres.
DRILL ASSAY HIGHLIGHTS
Hole No. Au (g/t) Width (m) From (m) To (m) GxW
VGP-11-106 47.9 0.9 405.7 406.6 43.8
1.53 14.5 470.0 484.5 22.2
4.88 2.1 Including 10.4
3.74 29.6 523.0 552.6 110.8
23.85 2.4 Including 58.2
VGP-11-107 6.96 9.9 99.5 109.4 68.9
20.16 2.5 Including 51.0
Intervals reported here are core lengths. True widths are not known at this
time. All depth reported as downhole. Results for all the holes drilled are
shown in the associated table.
Hole 106 intersected results below the known mineralization, and hole 107 intersected gold mineralization east of the mineralization.
Buffalo Ankerite South zone
The South zone mineralization is approximately 100 metres thick and extends west for 1,200 metres of which 800 metres are on Buffalo Ankerite and 400 metres are on the adjoining Aunor claim. The South mineralization hosts two steeply dipping gold zones, referred to as the south and the north limb structures.
Ten holes were drilled testing the Buffalo Ankerite South zone. Drill assay highlights are shown in the attached table.
Hole No. Au (g/t) Width (m) From (m) To (m) GxW
VBA-11-159 6.16 5.6 156.1 161.7 34.7
VBA-11-163 3.46 6.3 415.5 421.8 21.9
17.86 7.3 445.3 452.6 131.2
Intervals reported here are core lengths. True widths are not known at this
time. All depth reported as downhole. Results for all the holes drilled are
shown in the associated table.
The Buffalo Ankerite South zone consists of a westerly plunging folded sequence. The south limb had historic mining and further extensive exploration drilling that has produced a company resource (see qualifying report on the Buffalo Ankerite property from Feb. 11, 2009, filed on SEDAR). As the north limb has been under very little mining and exploration activity, it represents a new exploration target (see press release of Jan. 10, 2011).
Three holes were drilled testing portions of the south limb of the South zone where data were insufficient for the resource calculation. A hole drilled in 2006, VGP-06-60, returned encouraging results (7.5 g/t Au over 3.1 m). Holes VGP-11-159 and 163 were drilled as follow-up and encountered positive results including 17.86 g/t Au over 7.3 metres. These encouraging results indicate the potential for higher-grade resource at depth on the south limb.
Additional holes as reported in the associated table, while increasing the strike extent to the west of the north limb structure, have returned lower grades of gold than desired.
The company's focus going forward will concentrate on extending the south zone at depth, based on the encouraging results obtained in the south limb drilling to date.
Paymaster porphyry zone
A total of eight new holes, VGP-10-98 to VGP-11-105, have been drilled on the property since the completion (and filing on SEDAR on Feb. 28, 2011), of the "Summary Report on Exploration and Resource Technical Report on the Paymaster Option."
These results demonstrate that the mineralization continues to extend to the east toward the property boundary with Goldcorp's Dome mine (see attached table).
Exploration drilling showed that the Paymaster mineralization contains intervals of quartz feldspar porphyry that is lithologically similar to the source of significant production at neighbouring gold mines. Three separate quartz feldspar porphyry units show continuity along strike and downdip: a main quartz feldspar porphyry body and two adjacent, subparallel quartz feldspar porphyry units.
An additional eight holes, VGP-10-90 to VGP-10-97, have been included for full disclosure purposes in the the associated table. These holes were used in the calculation of the Paymaster porphyry resource estimate, but had not been press released.
Current drill program
Four drills are currently operating in the following locations:
-
One drill is on the Paymaster property, drilling toward the Buffalo
Ankerite North zone.
- Two drills are testing the Buffalo Ankerite South zone along strike to the
west and at depth.
- The fourth drill is working on the Buffalo Ankerite-Aunor property
boundary area to test the extension of the BA South zone on the Aunor claim.
Property details
Lexam VG's properties are located amongst the biggest gold mines in Canada's most prolific area of gold production, Timmins, Ont. The mines that are adjacent to Lexam VG properties have produced over 50 million ounces of gold from depths as deep as 1,500 to 2,200 metres. Lexam VG's properties have not been mined as deep, and the exploration program is targeting areas on structure between these large gold mines that include the Hollinger mine, the Dome mine and the McIntyre mine that produced 19.3 million, 17.1 million and 10.7 million ounces of gold, respectively.
Buffalo Ankerite
Lexam VG Gold owns a 100-per-cent interest in the Buffalo Ankerite property (1,063 acres). During the period 1926 to 1953, the Buffalo Ankerite mine produced 1,018,000 ounces of gold with an average recovered grade of 6.51 grams per tonne. While underground workings are 1,200 metres deep at the BA shaft, nearly all the production occurred above a depth of 750 metres.
Paymaster
The Paymaster property is located immediately adjacent to east of the company's 100-per-cent-owned Buffalo Ankerite and Fuller properties. The property is immediately adjacent to the west of Goldcorp's Dome mine property. Since 1910, the Dome mine has produced 17 million ounces of gold.
Lexam VG Gold has the option to earn a 60-per-cent interest in the Paymaster property from Goldcorp by making $6-million in exploration expenditures by June, 2012. By March 31, 2011, Lexam VG had spent $4.3-million on the property. Once Lexam VG Gold has given notice that is has earned its 60 per cent, Goldcorp has six months to decide if it wishes to increase its ownership from 40 per cent to 70 per cent by paying Lexam VG Gold $710,000, spending $8.25-million on the property within two years and then completing a feasibility study by the end of year three.
Aunor
Aunor is a single 40-acre claim located west of the Buffalo Ankerite property. The Aunor claim is under option from Goldcorp and is part of the Paymaster option agreement.
Fuller
The 100-per-cent-Lexam-VG-owned Fuller property lies immediately north of the Buffalo Ankerite property.
The information presented in this press release has been reviewed and approved by Kenneth Guy, PGeo, a consultant to Lexam VG and the qualified person responsible for the exploration program at the Paymaster as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects."
All drilling was completed using NQ-size core. Gold analysis of the samples collected by Lexam VG Gold was assayed by ALS Chemex. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over 10.0 grams per tonne Au are reassayed with gravimetric finish. Samples noted to contain visible gold are analyzed via total metallic assay method. A rigorous quality control and assurance program is in place, using control samples such as blanks and duplicate checks. In addition, duplicate analyses of 10 per cent of the samples are corroborated by check assays performed at a third party laboratory.
BUFFALO ANKERITE NORTH ZONE -- DRILL HOLES VGP-11-106 AND 107 SUMMARY DATA
Assay from
Hole No. (m) Assay to (m) Width (m) Au g/t GxW
VGP-11-106 91.1 92.1 1.1 1.95 2.1
236.8 239.5 2.7 0.77 2.0
255.1 256.5 1.3 1.60 2.1
405.7 406.6 0.9 47.9 43.8
470.0 484.6 14.5 1.53 22.2
Including 2.1 4.88 10.4
500.1 503.7 3.7 1.59 5.8
523.0 552.6 29.6 3.74 110.8
Including 2.4 23.85 58.2
557.5 559.6 2.1 1.02 2.1
VGP-11-107 45.2 46.1 0.9 3.68 3.4
62.8 64.3 1.6 1.25 2.0
99.5 109.4 9.9 6.96 68.9
Including 2.5 20.16 51.0
Two holes
Intervals reported here are core lengths. True widths are not known at this
time. All depth reported as downhole.
BUFFALO ANKERITE SOUTH ZONE -- DRILL HOLES VBA-10-154 TO VBA-11-163 SUMMARY DATA
Assay from
Hole No. (m) Assay to (m) Width (m) Au g/t GxW
VBA-10-154 347.4 352.2 4.8 2.7 12.9
367.6 372.8 5.2 1.06 5.5
VBA-10-155 236.0 237.1 1.1 2.6 2.9
VBA-11-156 275.2 278.6 3.4 2.01 6.7
283.9 285.0 1.1 0.82 0.9
292.8 294.5 1.7 1.51 2.6
305.9 307.0 1.1 1.54 1.6
312.7 314.6 1.9 2.13 4.0
344.0 345.2 1.2 1.51 1.7
375.4 376.4 1.0 0.87 0.9
411.2 412.4 1.2 0.74 0.9
VBA-11-157 405.8 409.4 3.4 0.51 1.8
414.0 414.8 0.8 1.31 1.1
431.6 434.7 3.1 0.64 2.0
VBA-11-158 287.0 288.3 1.3 0.79 1.1
316.6 319.9 3.3 0.70 2.3
VBA-11-159 156.1 161.7 5.6 6.16 34.7
168.1 168.9 0.8 4.01 2.9
VBA-11-160 350.4 351.7 1.3 1.27 1.7
366.9 368.7 1.8 2.10 3.8
371.8 372.9 1.1 2.99 3.3
381.0 384.7 3.7 0.53 2.0
406.1 407.5 1.4 0.75 1.0
410.3 418.8 8.5 1.12 9.6
VBA-11-161 287.5 288.9 1.4 0.53 0.8
318.9 326.7 7.8 1.34 10.6
338.8 340.2 1.4 0.90 1.3
VBA-11-162 384.5 385.8 1.3 4.95 6.5
392.0 392.9 0.9 1.08 1.0
398.0 399.4 1.4 1.56 2.1
401.7 406.6 4.9 1.67 8.2
409.7 411.2 1.5 0.95 1.4
421.0 422.5 1.5 2.17 3.1
VBA-11-163 32.0 33.6 1.6 0.54 0.8
396.7 398.1 1.4 1.89 2.6
404.3 406.0 1.7 1.32 2.2
410.6 412.2 1.6 1.36 2.2
415.5 421.8 6.3 3.46 21.9
428.4 433.7 5.3 2.85 15.1
439.2 440.7 1.5 0.68 1.0
445.3 452.6 7.3 17.86 131.2
467.7 468.8 1.1 2.65 3.0
470.0 473.6 3.6 0.60 2.2
478.0 479.6 1.6 3.47 5.5
489.5 490.8 1.3 3.37 4.2
491.8 493.3 1.5 0.52 0.8
10 holes
Intervals reported here are core lengths. True widths are not known at this
time. All depth reported as downhole.
PAYMASTER PROPERTY -- DRILL HOLES VGP-10-90 TO VGP-11-105 SUMMARY DATA
Assay from
Hole No. (m) Assay to (m) Width (m) Au g/t GxW
VGP-10-90 29.4 37.5 8.1 1.30 10.4
106.1 107.6 1.5 1.70 2.6
VGP-10-91 4.1 7.3 3.2 0.71 2.2
62.5 66.7 4.2 1.48 6.3
125.6 127.5 2.1 1.32 2.6
242.6 245.4 2.8 0.91 2.6
247.6 249.3 1.7 1.31 2.2
VGP-10-92 7.5 9.8 2.3 0.88 2.0
141.1 144.0 2.9 0.79 2.3
VGP-10-93 6.3 8.1 1.8 3.74 6.7
22.8 26.2 3.4 0.95 3.2
67.2 68.3 1.1 1.96 2.2
77.1 80.8 3.7 1.71 6.3
VGP-10-94 3.0 5.5 2.5 0.84 2.1
118.3 130.1 11.8 1.01 12.0
129.5 130.1 0.6 9.31 5.4
VGP-10-95 11.8 13.1 1.3 4.09 5.2
60.8 64.3 3.5 0.98 3.4
158.7 181.0 22.3 1.57 34.9
Including 4.2 2.72 11.5
VGP-10-96 60.8 64.3 3.5 0.98 3.4
130.8 133.8 3.0 1.12 3.4
135.9 139.0 3.1 0.99 3.0
308.8 317.0 8.2 3.07 25.1
410.8 415.6 4.8 0.59 2.8
423.3 430.7 7.4 1.96 14.4
532.2 533.2 1.0 14.75 13.9
VGP-10-97 86.7 91.4 4.7 0.75 3.5
120.7 123.3 2.6 7.67 19.9
129.2 135.9 6.7 0.53 3.6
527.0 528.2 1.2 2.13 2.6
VGP-10-98 193.2 195.0 1.8 1.89 3.4
350.0 350.9 0.9 3.46 3.2
376.7 379.7 3.0 0.72 2.2
434.3 442.4 8.1 1.23 10.0
VGP-10-99 623.3 632.9 9.6 1.13 10.9
528.4 529.3 0.9 4.46 3.8
VGP-10-100 638.6 639.5 0.9 6.61 5.8
VGP-10-101 294.0 303.3 9.3 0.53 4.9
VGP-10-102 249.8 260.2 10.6 0.54 5.6
VGP-11-103 255.76 259.99 4.23 0.74 3.15
269.87 273.98 4.11 1.82 7.49
277.34 278.40 1.07 4.85 5.17
VGP-11-104 364.75 366.28 1.52 2.54 3.87
VGP-11-105 34.44 39.01 4.57 0.60 2.72
60.35 61.87 1.52 9.33 14.22
159.41 162.46 3.05 6.09 18.57
268.22 270.05 1.83 7.85 14.36
16 holes
Holes 90 to 97 were included in the resource estimate filed Feb. 28, 2011, on
SEDAR. Intervals reported here are core lengths. True widths are not known at this
time. All depth reported as downhole.
We seek Safe Harbor.
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