Partners cut new gold at La Grande Sud Project

A recently completed 4-hole drill program by partners Cambior (CBJ-T) and Virginia Gold Mines (VIA-T) has cut a new zone of gold mineralization on the La Grande Sud property in the James Bay region of Quebec.

Three of the holes targeted the area east of Zone 32 (inferred resources of 4.2 million tonnes grading 2.1 grams gold per tonne and 0.2% copper). Hole 175, an extension of an old hole, returned a 1.5-metre interval (beginning at 444.5 metres below surface) running 16.7 grams gold and 3 metres (from 449 m) of 12.9 grams gold.

Gold mineralization is associated with narrow quartz veins containing tourmaline, pyrite and chalcopyrite. The partners believe that the 10-metre-long mineralized system represents a new gold structure outside the Zone 32 corridor in the basaltic lava sequence close to the contact with the southern edge of the La Grande Sud Tonalite.

Hole 205 cut 4.4 metres (from 165 m) of 1.4 grams gold and a lower 1.3-metre interval of 5.9 grams gold. The lower interval represents an eastern extension of the gold-bearing corridor containing Zone 32. Hole 206 failed to return any significant results.

A single hole was collared on the northern part of the Zone 30 gold-bearing corridor, and encountered a 0.5-metre (estimated true width) interval running 35.7 grams gold. Gold occurs in fine bands and is associated with a quartz vein running along the axis of the drill core. Previous drilling in the area yielded 2.4 grams over 4.3 metres. That mineralization is associated with a sheared and pyrite mineralized mafic dyke. Both intersections lie about 150 metres east of the Pari showing.

The partners plan to follow-up the encouraging results with another 2,000 metres worth of drilling during the first half of the year. Exploration on the Zone 30 and 32 gold-bearing corridors, plus the eastern extension of the Pari showing will also continue.

Cambior, the project manager, can acquire a half-interest in La Grande Sud by spending $5.5 million on exploration over 8 years.