QUEBEC - Vancouver-based GOLDCORP has made an arrangement with VIRGINIA GOLD MINES of Quebec City to acquire Virginia's promising Elonore gold project in the James Bay Lowlands. The deal brings development one step closer, thanks to Goldcorp's operational and financial strength.
Last month Virginia reported that it had tested the Roberto zone to a depth of 900 metres. The best-ever intersection was found at depth, namely 22.56 g/t Au over 15 metres. The company has encountered only success in outlining the Roberto zone, which is open in all directions over at least a 1,900-metre lateral distance. There are at least two other zones of equal interest. Maps and sections are posted at www.Virginia.qc.ca.
"Of the 212 drill holes completed to date on the entire property, over 70% have
reported assays greater than 10 grams of gold per tonne," said Goldcorp president & CEO Ian Telfer. "And the principal Roberto deposit remains open in both strike and depth. Goldcorp plans to continue aggressive exploration and development on Elonore, with resource and scoping studies to be initiated early in 2006."
Under the agreement between the two companies, shareholders of Virginia will receive 0.4 of a Goldcorp common share and 0.5 of a share in a new public exploration company for each share of Virginia. The new exploration company will carry the Virginia name. Goldcorp plans to issue 19.6 million common shares, making the deal worth approximately US$420 million.
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