Virginia, BHP renew vows

Virginia Gold Mines (VIA-T) and BHP Billiton‘s (BHP-N) diamond exploration arm have signed a third 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.

BHP will pay Virginia, the project operator, $50,000. Reconnaissance worked is slated to begin in 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 Nov. 1, 2003.

Highlighting work so far are several significant drill intercepts. Among the most significant are those from the L showing (2.2% nickel, 1.4% copper, and 2.3 grams combined platinum-palladium per tonne over 11.4 metres) and the Gayot showing (2.5% nickel, plus 2.9 grams platinum-palladium over 3.4 metres).

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