VSM confirms depth extensions of Grevet zone, joins TSE

Newly listed on The Toronto Stock Exchange, Montreal-based VSM Exploration (TSE) continues to intersect high-grade zinc mineralization at the Grevet project, about 40 km northeast of Quevillon, Que. Two holes, drilled to confirm the grade and thickness at depth in zone III, both intersected more than 6 metres grading 12-14% zinc. At 579 metres below surface, hole 112 cut 8 metres grading 12% zinc, 0.24% copper and 34.6 grams silver per tonne while at 453 metres, hole 112A intersected 6 metres grading 13.6% zinc, 0.26% copper and 31.3 grams silver.

Included within these zones is a 3-metre section grading 17.2% zinc and a 2-metre section grading 17.6% zinc.

With $1 million earmarked for further exploration on the Grevet property, VSM and equal partner Serem-Quebec will continue to drill zone III and the recently discovered zone 97, both of which remain open in all directions.

Preliminary reserves on the property currently stand at 10.2 million tonnes grading 8.27% zinc, 0.44% copper and 34.9 grams silver per tonne. By the end of the year, new reserve figures for zones III and 97 will be available, VSM President Mario Carron told a group of brokers and analysts at a recent gathering.

“I honestly think that by the end of this year we will have in excess of 15 million tonnes,” Carron said. At this point, improving the confidence of the reserves to support a production decision would become a priority, he added.

VSM and Serem-Quebec, optimistic about future discoveries in the Grevet-Mountain area, have acquired options on additional properties in the area, including an agreement with BP Canada (TSE) and Noranda (TSE) to acquire a 50% interest in the property surrounding the original Grevet B discovery.

“It’s only a matter of time before a new discovery is made (in the area),” Carron told the group.

VSM closed at $1.05 on Oct. 16, its first day of trading on the TSE, down from a $1.12 opening price. Placer Dome (TSE) has a 52% interest in VSM.