SCHEFFERVILLE, Quebec VIRGINIA GOLD MINES and BHP BILLITON have signed a third agreement covering the Gayot project in the Lac Gayot region of central Quebec. The deal calls for the two companies to jointly carry out reconnaissance surveys, sampling and exploration spanning over 25,000 sq km. BHP Billiton has already invested $4 million on the property and will have earned 50%-interest when it has spent another $500,000.
The Gayot project is a hunt for nickel-copper-PGE deposits within a number of unexplored volcanic belts. Work has confirmed that area has excellent potential to host mineralization similar to that which supports Falconbridge's Raglan mine in the Ungava peninsula. Drilling at the property has intersected the L showing (11.4 m at 2.2%Ni, 1.4% Cu and 2.3 g/t Pd-Pt), the Nancy showing (19.9 m at 1.1% Ni and 1.32 g/t Pd-Pt and 2.55 m at 9.03% Ni, 0.6% Cu and 9.0 g/t Pd-Pt) and , and the Gayot showing (3.35 m at 2.5% Ni and 2.9 g/t Pd-Pt). A total of 12 showings have been discovered over 20 km at the property.
Virginia Gold Mines of Quebec City has several other properties to option. Visit www.virginia.qc.ca for a list and information about them.
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