Underground at Grevet project `almost’ certain

Results from one of two studies to be released from the project of VSM Exploration (TSE) and Serem-Quebec at Grevet Twp. make underground exploration and future development almost inevitable, says VSM general manager Andre Gaumond Surface drilling at the Quevillon, Que., property has added about eight million tonnes to preliminary reserves, and Kilborn and Associates is now conducting an economic study scheduled to be tabled in early spring

Based on data from a 29,500-metre drill program completed in December, geological reserves at Grevet Twp. now stand at 18.4 million tonnes grading 7.2% zinc, 0.41% copper, 0.15% lead and 31.3 grams silver per tonne

The new figures include 11.2 million tonnes grading 6.51% zinc and 0.31% copper in zone 111, the largest of four zones known to exist on the property. Grevet Twp. is one of some 50 properties in the Quevillon region owned equally by VSM and its privately owned partner Serem-Quebec. Preliminary reserves in the new zone 97, discovered last summer, are estimated to be 3.4 million tonnes grading 10% zinc, 0.86% copper, 0.26% lead and 51.9 grams silver, making it the second largest zone ahead of zone 1V

If a minimum mining width of 2.5 metres, a dilution factor of one metre, and a cutoff grade of $40 per tonne are used, diluted minable reserves are estimated to be 12.7 million tonnes grading 8.95% zinc, 0.50% copper, and 36.22 grams silver

Minable reserve estimates, 90% of which are defined as probable, include 1.2 million tonnes of possible reserves in zone 97, the discovery that persuaded VSM and Serem-Quebec to postpone underground exploration. While zone 97 is still open below 900 metres, Gaumond says zone 111 has largely been delineated

When asked what effect these results will have on the future of the project, Gaumond replied, “There is no doubt we will go underground and develop the deposit. We have one of the most exciting base metal deposits in Canada. The potential is huge.” The new reserves estimates do not include results from the Orphee property, five kilometres further east where the VSM/Serem-Quebec partnership is earning a 55% interest in return for expenditures of $750,000

Under an agreement, Serem-Quebec is responsible for the first $1.5 million of any exploration funds spent on the Grevet property this year. But as VSM is a 50% owned affiliate of Placer Dome (TSE), obtaining financing for future exploration appears be no problem

Future plans include drilling to test for extensions of the 97 and Orphee zones.