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Attention Business/Financial Editors:
DISCOVERY OF A SULFIDE RICH COPPER-NICKEL-COBALT-BEARING DYKE IN THE LAC VOLANT AREA
QUEBEC, Oct. 21 /CNW/ - The Syndicate formed by Virginia Gold Mines Inc.,
Exploration Azimut Inc., and S.E.M. Vior Inc., is pleased to announce the
discovery of an important copper-nickel-cobalt-bearing dyke in the Lac Volant
area, north of Sept-Iles, Qu‚bec.
Three shallow diamond drill holes intersected a 200-meter-thick sulfide
and magnetite rich leuconorite dyke. Sulfides are ubiquitous throughout the
dyke, either as disseminations (1-3% sulfide) or in a typical magmatic net
texture form (3-15% sulfide) plus a short massive to semi-massive (45%
sulfide) section at the lower contact of the dyke. The semi-massive sulfides
run 1.50% copper, 0.69% nickel, and 0,04% cobalt over 1.24 metre. The net
texture sections grade 0.16 to 0,23% copper, 0.12 to 0.17% nickel, and 0.01 %
cobalt over lengths of 124, 86, and 108 metres in the three holes
respectively. Overall, the average grade for the entire dyke is 0.14% copper,
0.13% nickel, and 0.01 % cobalt. Note that all samples have been analysed by
atomic absorption method in the certified laboratory of Chimitec.
This exploration program is funded by Kennecott Exploration under the
option agreement, signed last fall, by which Kennecott could earn a 50%
interest in all the claims owned by the Syndicate, within the 500-km2 former
staking ban area, by spending $2 million in exploration expenditures.
The three holes were located near the centre of an 800-metre-long, highly
conductive, max-min electromagnetic anomaly with strong coincident magnetic
and soil geochemical (Cu-Ni-Co) anomalies. The sulfide content is increasing
to the South toward the lower contact of the dyke and at depth toward the
third hole.
The Syndicate is very encouraged by the results obtained until now, which
show a geological and metalliferous environment similar to that hosting the
Voisey's Bay magmatic mineralization.
Virginia Gold Mines is among the most active mining exploration companies
in Qu‚bec, Canada, with an exploration budget exceeding $6 million for 1997,
$15 million in cash, approximately 24 million shares issued and outstanding,
and is debt free. Virginia owns more than 30 properties covering 4,000 square
kilometres. The Company concentrates its activities in the vast unexplored
regions of northern Qu‚bec.
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For further information: Andr‚ Gaumond, President, Marie-Claude Poitras, Investor Relations, (800) 476-1853 - (418) 694-9832; E-mail: mines@virginia.qc.ca
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