Success at Grevet prompts optimism for entire area

The reserve potential of the Grevet zinc project in northwestern Quebec continues to be tested by joint project partners VSM Exploration and Serem Quebec.

VSM of Montreal and Serem, an exploration company owned by the government of France, had three drill rigs at work on the project about 40 km from Quevillon, Que., this summer. Exploration of the property began in earnest in 1989 following the intersection of what was considered to be significant zinc-copper-silver mineralization.

One of the rigs has been working the 97 zone, testing the extension at depth and to the east, while the other two rigs have been testing anomalies on the eastern and western portions of the project.

“We started slowly but the program is accelerating,” VSM’s Andre Gaumond said of the Grevet project’s development. “We hope to have new results in the fall.”

Earlier this year, VSM and Serem announced a $2.1-million program for 1991 involving about 25 holes.

Plans also called for a fourth rig to be activated in September, to test more gold targets on other properties in which VSM has interests, including nearby Benoit Twp.

The initial drilling success at Grevet gave way to a feeling that the area had great potential, and VSM and Serem set out to acquire interests in surrounding properties. Deals were subsequently made with Dundee-Palliser Resources (TSE), Ressources Orient (ME), BP Canada (TSE) and Noranda Exploration to earn interests in five neighboring properties. Another significant property option had already been acquired from Orphee Resources (CDN).

An economic study by Kilborn and Associates on the Grevet project was released earlier this year. The study was based on the results of surface drilling to the end of 1990. There has been no bulk sampling and Gaumond said no decision has been reached on going underground.

The current preliminary reserve estimate stands at 18.4 million tonnes grading 7.22% zinc, 0.41% copper, 0.15% lead and 31.3 grams silver per tonne. Contained within that estimate are probable and possible reserves of 12.75 million tonnes grading 9% zinc, 0.5% copper and 36.2 grams silver. The controlling shareholder of VSM is Placer Dome (TSE), which recently boosted its interest in the junior to 54% through a private share placement. Proceeds from that placement are being used to fund VSM’s share of the costs of this year’s exploration program.

VSM and Serem became partners through a 1987 joint-venture agreement covering the exploration of 51 properties in the Abitibi Greenstone Belt area of northwestern Quebec.