Val-d’Or, Quebec, 8:45 am Eastern
Greetings from Val-d’Or, Quebec, which is French for “Valley of Gold” and indeed many millions of ounces have been produced around here since Gold was first discovered in the area in 1923…since then, base metals have become increasingly important resources as well…we’ve started our northwest Quebec tour which began yesterday with an incredible helicopter fly-over of the Cadillac Trend under sunny skies from Val-d’Or to Richmont Mines‘ (RIC, TSX) Francoeur Mine, just west of the Wasamac area, a total distance of approximately 125 kilometres…we took some incredible pictures (one of which, Osisko’s Canadian Malartic deposit, we’ve included in this morning’s report) and we’ll be putting some of them in a picture gallery as part of a special post tomorrow…about a 15-minute drive east of Val-d’Or is Richmont’s Beaufor Mine with Adventure Gold’s (AGE, TSX-V) very promising Pascalis-Colombiere Property immediately adjacent to it…we’ll be going into much more depth on Pascalis later in the week…tomorrow we’ll be in Rouyn-Noranda…we’ll be reporting from this region of the prolific Abitibi Greenstone Belt until early next week…
Richmont's Beaufor Mine near Val-d'Or enjoyed a strong second quarter as 29,317 tonnes were processed at an average recovered grade of 9.34 g/t Au for a total of 8,802 ounces.
The view from “above” of the infamous Cadillac Trend is truly amazing…restrictions prevented the helicopter pilot from flying directly over Osisko’s (OSK, TSX) massive Canadian Malartic deposit but below is a stunning picture nonetheless of Canada’s newest and largest commercial mine which poured its first Gold bar on April 13…
The two-kilometre long Canadian Malartic open-pit will go to a depth of 380 metres by the end of its projected 16-year run…nearly 500 workers are on site and Gold production is expected to average 625,000 ounces per year over the first five years…
We’re posting early (pre-market) this morning due to a site visit…as of 8:45 am Eastern, Gold is off $16 an ounce at $1,843 (it has been as low as $1,825.50)…Silver has declined 60 cents to $40.78…Copper has lost 9 pennies to $3.91, Crude Oil has softened to $85.85 (down $1.39) while the U.S. Dollar Index is off one-third of a point to 77.15…the greenback has been flexing its muscles recently as the “best of a bad bunch” as far as currencies are concerned…this has potential implications for other markets, so we’re watching the Dollar Index closely…a key test for the Dollar Index will be if it can push through resistance at 78 as John’s chart shows below…
Stock markets are expected to open lower this morning as concerns mount regarding the euro zone’s debt woes as well as weakening economic growth in Europe and North America…volatility has become the norm recently…in 20 out of the last 24 trading sessions, dating back to the August 8 lows, the Dow has closed with triple digit losses or gains…through all of that, the Dow is actually ahead 182 points (1.7%) entering today…the CDNX, which is what we follow and track most closely at BMR, is up 103 points or 6.1% since its August 8 close of 1682…the TSX Gold Index, by comparison, has surged 18.5% during that time…markets overall have been difficult to navigate over the last while but investors with exposure to good quality Gold stocks (juniors and producers) have seen their portfolios outperform the major indexes…
One of the most important exploration developments along the Cadillac Trend is unquestionably what’s unfolding at and around Richmont’s Wasamac deposit, 15 kilometres west of Rouyn-Noranda…the street hasn’t fully picked up on this yet but BMR readers were the first to know that Wasamac is quickly emerging as a potential multi-million ounce deposit and the area surrounding it has huge possibilities as well which is also why we’re so excited about Visible Gold Mines (VGD, TSX-V)…VGD is the most active driller in the area, besides Richmont, and for Visible Gold Mines to hit Gold on its very first hole at the previously unexplored Wasa Creek Property is highly encouraging…why this rich geological environment west of Rouyn-Noranda has gone under-explored for many decades is a question we’ll be probing in the days ahead…understanding that will enable you to take advantage of what we see as some incredible market opportunities in several situations…
Thanks for the photos, as someone based in EU these are great to see.
No mention of GBB, are you guys planning a visit?
Comment by Hugh — September 12, 2011 @ 5:09 am
Hi Hugh, we’re just getting started here, of course we’ll be covering GBB….
Comment by Jon - BMR — September 12, 2011 @ 5:23 am
Oh great – looking forward to the reports! Thanks again for all your work.
Comment by Hugh — September 12, 2011 @ 6:14 am
Hope the boys at BMR had a great weekend. Have you ever heard of Bard Ventures? CBS.v?? They released some really high quality Silver results on Friday,to go along with the NPV of 555,000,000 of Moly they have already discovered, do you have any opinions??
Comment by john — September 12, 2011 @ 7:41 am
Rouyn-Noranda, Québec, Canada – September 12, 2011 – Visible Gold Mines Inc. (TSX.V: VGD) (Frankfurt: 3V4) is pleased to report that it has completed 13 holes and 8,800 metres of drilling in a Phase 1 campaign at its Wasa Creek Property, part of the Company’s optioned Lucky Break Project that covers 6,036 hectares of under-explored ground west of Rouyn-Noranda, Quebec, in the vicinity of Richmont Mines’ Wasamac gold deposit.
Visible Gold Mines is eagerly anticipating assay results for an additional 12 holes after the very first hole drilled at Wasa Creek (LBWC-11-03) cut four distinct zones of gold mineralization with encouraging assays as announced August 11, 2011. Mineralization has been observed in drill core over a wide area at this previously unexplored property, from LBWC-11-05 at the western edge to LBWC-11-11 in the northeast sector (a distance of 2,300 metres). LBWC-11-12, for example, centered approximately in between those two holes and collared 430 metres northeast of LBWC-11-03, intersected a total of 10 zones of mineralization beginning 46 metres from surface and ending near the bottom of the hole (total vertical depth was 563 metres). This included multiple mineralized shear zones up to 13 metres in length in addition to a well-mineralized five-metre quartz carbonate vein structure in Archean volcanic rock near the end of the hole. These mineralized sections contain 2-5% pyrite and some chalcopyrite.
A better geological understanding of the Wasa Creek Property is beginning to emerge. Wasa Creek covers a 3.5-kilometre stretch of the prolific Cadillac Fault, spatially related to numerous large gold deposits from east of Val-d’Or to the famous Noranda mining camp to the former 11-million ounce Kerr Addison Mine in Virginiatown, Ontario. Intense fracturing and displacement have been observed at Wasa Creek and it’s now believed that the Cadillac Fault runs in a northeast direction, as opposed to a straight east-west direction, under at least half of the property and then it bends to the east, creating a zone of major geological interest. In addition, given intriguing thickness variations in younger sedimentary rock formations of the Cobalt Group that cover the Cadillac Fault, important north-south secondary faults are now interpreted to exist at Wasa Creek in areas north of the Cadillac Fault (this is believed to be significant). Visible Gold Mines is immediately proceeding with a ground-based IP survey as well as a down-hole geophysics probe at the property in light of this new information and to assist in identifying drill targets for an aggressive Phase 2 program.
The Wasa Creek Property, and Visible Gold Mines’ entire Wasamac-area land package, is situated in an area of growing exploration and mining importance beginning approximately 15 kilometres west of Rouyn-Noranda. Wasa Creek adjoins the western boundary of Richmont’s Wasamac Property, where five drill rigs are currently active, while Richmont’s Francoeur Mine is just a few kilometres to the northwest of the eastern edge of Wasa Creek. The former Aldermac Mine, which produced copper, gold and silver between 1936 and 1943, is 2,500 metres directly north of Wasa Creek.
“Positive early indications from Wasa Creek and Richmont’s continued exploration success at Wasamac underscore the potential of this entire area which has clearly been under-explored,” stated Martin Dallaire, Visible Gold Mines’ President and CEO. “In a very short period of time our geological team has gained an immense amount of new understanding concerning structure at Wasa Creek which will aid us tremendously as we move forward and attempt to define a potential deposit. While we eagerly wait for more assays from our Phase 1 drilling, and carry out an IP survey and some down-hole geophysics, we will be shifting our Wasamac-area land package drilling from Wasa Creek to Wasa East. We’ll then return to Wasa Creek for Phase 2.”
Maps showing the location of all Phase 1 drill holes at Wasa Creek, in addition to the company’s entire Wasamac-area land package, can be viewed at Visible Gold Mines website.
Wasa East
Rock samples have been collected at Wasa East and have been sent for assaying. Very little historical work has been completed at this property but initial drilling will focus on an area where trenching was carried out and a few short holes were drilled in the 1940’s and 1950’s. Results from that work are unknown but the amount of trenching suggests that mineralization may have been detected near-surface.
Wasa East adjoins part of the eastern boundary of Richmont’s Wasamac Property, immediately south of the Wasa Shear, and is mostly composed of volcanic rocks (basalt, andesite and diorite). Wasa East is situated between two major faults that are approximately 2.5 kilometres apart – the Cadillac Fault and the Wasa Shear, the principle structure hosting gold mineralization at the Wasamac deposit.
Geophysical anomalies indicate there could be many parallel zones to the Wasa Shear and the Cadillac Fault, and ground surveys show the presence of a fault suggesting a direction which can connect both gold-bearing systems. Visible Gold Mines considers Wasa East highly prospective for hosting a potential gold deposit and is looking forward to drilling this area.
Joutel Project
Drilling has commenced at the Joutel Extension Property, 150 kilometres north of Rouyn-Noranda with the first hole of a 7,500-metre Phase 1 drill program nearing completion. Most of the planned Phase 1 holes are within 2,000 to 5,000 metres of three former gold mines and two past producing copper mines. A northwest-southeast mineralized structural pattern, based on geophysical surveys, appears to strike directly southeast of Agnico-Eagle’s past-producing Telbel, Eagle and Eagle West mines for two kilometres and may extend farther to the former village of Joutel and beyond (please see map with drill plan on Company’s website under the Joutel section).
“Joutel is a significant former mining camp with tremendous potential to host additional gold deposits,” stated Dallaire. “Robert Sansfacon, our senior geologist, is applying a fresh geological approach to the project which has us very excited about the potential success of this current drill program.”
Visible Gold Mines has an option to earn a 50% interest in Joutel from Agnico-Eagle Mines.
Qualified Person
This news release was written by Martin Dallaire, P.Eng., President and Chief Executive Officer of Visible Gold Mines and approved by Jeannot Théberge, P.Geo., in his capacity as a Qualified Person (QP) under NI 43-101.
Quality Control
Visible Gold Mines has implemented and adheres to a strict Quality Assurance/Quality Control for its current drill programs. It includes one mineralized gold standard, one duplicate and one blank for one batch of 20 samples. Analyses are performed by ALS Chemex, Val-d’Or, or Techni-Lab, Ste-Germaine – Boulé, accredited laboratories.
About Visible Gold Mines
Visible Gold Mines Inc. is a dynamic company aggressively searching for the next important gold deposit in northwestern Quebec, an area consistently ranked as one of the world’s best jurisdictions for mining and exploration. Visible Gold Mines is in the midst of a $6.5 million, 40,000 metre drill program covering strategic areas in the Rouyn-Noranda mining region. The Company has no debt and its current cash liquidity is approximately $4.2 million.
Comment by Martin — September 12, 2011 @ 8:45 am
Looking Good!!!!!!
Visible Gold Mines is immediately proceeding with a ground-based IP survey as well as a down-hole geophysics probe at the property in light of this new information and to assist in identifying drill targets for an aggressive Phase 2 program.
Comment by Martin — September 12, 2011 @ 8:59 am
I remember one of the insider at Bre-X jump out of the helicopter in Indonesia when he learned that there was no gold in the ground . I hope the the folks at BMR won’t do the same thing when they will look at there Ventur portfolio at the end of the day or at the end of this month. Just a joke.
Comment by Andre — September 12, 2011 @ 11:52 am
SFF dropped 2 cents today and closed at 22 cents… this price is low…. time to collect some at this one time low price. GBB as usual, no support and closed at 34.5 cents, down one cent. BER has dropped to 24.5 cents at one point and I have started collecting at 25 cents… watch out for the jump anytime. My sixth sense stock will shine again soon. NAR finally, someone dumped at 13.5 – 14.5 cents …. scooped some since it reached my collecting point. TYP closed at 75 cents, down 2 cents…. also come to my collecting point but I will wait for a day or two… MTU dropped 6.5 cents to close at 43.5 cents but the volume is low…. VGD has very good potential to move up tomorrow, perhaps with a 15% up tomorrow. CQX up 3 cents with low volume, closed at 16 cents.
Comment by Theodore — September 12, 2011 @ 12:24 pm
CQX up 23%. Whole region seems to be taking off. Agree VGD should continue higher. If you can’t stand the heat Andre stay out of the kitchen. My small producer NWM had more solid news.
Comment by Patrick — September 12, 2011 @ 12:39 pm