VG Gold Paymaster Results
VG Gold Corp., (TSX: VG), (FRANKFURT: VN3, OTC: VGGCF) has announced positive exploration results from the Paymaster West Project in Timmins, Ontario.
The best diamond drill hole 09-58 returned a high-grade intersection of 129.50 gpt gold (3.78 opt) over 0.9 m (3.0 ft). Also hole 09-53 returned a longer intercept of lower grade 1.28 gpt (0.04 opt) over 30.2 m (99.1 ft). Both results occur near surface.
These near surface holes drilled at Paymaster West Porphyry were added to the phase two deeper drilling program and designed to follow up on previously reported near surface results including 1.0 gpt (0.029 opt) over 44.2 m (144.9 ft) and 1.40 (0.041 opt) over 23.0 m (75.5 ft). Deeper drilling is continuing on the Paymaster West Porphyry zone.
“It is very encouraging to find this type of gold mineralization in one of the world’s most famous mining camps. Timmins is known for its underground and open pit mines and we are seeing the potential for both scenarios at Paymaster West. During 2010 we will be accelerating the pace of drilling in order to advance Paymaster and our other exciting projects in Timmins,” stated Tom Meredith, President and CEO.
Gold mineralization at the Paymaster West Project is hosted within and peripheral to strongly altered and well mineralized quartz feldspar porphyry. Alteration consists of pervasive ankerite and sericite with local tourmaline, both disseminated and in veins. Pyrite mineralization is disseminated throughout, with local concentrations to 20%. Drilling to date has intersected several intervals of altered and mineralized Quartz-Feldspar Porphyry in each hole.
The Paymaster West Project is situated immediately to the west of Goldcorp’s Dome Mine that has produced over 17 million ounces of gold from both underground and open pit mining.
VG Gold has the option to earn a 60% interest in the Paymaster West Property from Goldcorp by making $6.0 million in exploration expenditures by June 2012. Once VG Gold has given notice that is has earned its 60%, Goldcorp has six months to decide if it wishes to increase its ownership from 40% to 70% by paying VG Gold $710,000 and spending $8.25 million on the property within two years and also completing a feasibility study by the end of year three.
Posted Jan. 27 .10