Virginia Gold Mines (VIA-T) and BHP Billiton‘s (BHP-N) diamond exploration arm have signed a third strategic agreement in as many years.
The latest deal involves jointly surveying, sampling, and exploring some 25,000 sq. km in northern Quebec. Under the so-called “Gayot Extension” the pair are seeking nickel-copper-platinum-group-element deposits in several unexplored volcanic belts in the Lac Gayot region of the province.
Under the deal, BHP will pay Virginia, the project operator, $50,000. Reconnaissance worked is slated to begin in early August.
Over the past three years, BHP Billiton has invested more than $4 million as it works to earn a half-interest in the project. To complete its earn-in the major must spend $4.5 million before November 1, 2003.
Highlighting work so far are several significant drill intercepts; the most significant came from the L showing — 2.2% nickel, 1.4% copper; 2.3 grams combined platinum-palladium (Pd-Pt) per tonne over 11.4 metres, the Nancy showing — 1.1% nickel, 1.3 grams Pd-Pt over 19.9 metres and 9% nickel, 0.6% copper; 9 grams Pd-Pt over 2.6 metres and the Gayot showing — 2.5% nickel, 2.9 grams Pd-Pt over 3.4 metres.
The agreement is subject to regulatory approval.
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