BullMarketRun.ca

From Val-d’Or, Quebec
9:30 pm Eastern

The Wasamac area west of Rouyn-Noranda has been hugely under-explored – some ground has been completely unexplored – and Richmont Mines (RIC, TSX) and Visible Gold Mines (VGD, TSX-V) are leading the charge to outline major new deposits and potentially millions of ounces of Gold in this part of northwest Quebec and the rich Abitibi Greenstone Belt. Richmont, of course, is much further along with its growing Wasamac deposit but Visible Gold Mines came out with powerful, almost eye-popping news this morning regarding its optioned Wasa Creek Property (immediately adjacent to Wasamac) that was very much overlooked due to weak overall markets today.  VGD closed unchanged at 40 cents on nearly 600,000 shares (all Canadian exchanges).  Tuesday’s trading could get really interesting as investors digest the news.

Assay results are still pending for 12 additional holes drilled in Phase 1 at Wasa Creek but what jumped out at us was the detailed and very bullish geological interpretation of what Visible Gold Mines has discovered so far.  I’m not a geologist, but I know enough about the Cadillac Trend to realize that at Wasa Creek VGD now has all the ingredients for a very significant potential discovery.  And here’s why:

1. The news stated, “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 (bolding and underlining – our emphasis).”

This kind of action – a “bending” of the Cadillac Fault – likely created intense pressure, heat, fracturing, etc., which in turn has greatly increased the chance that a mineralized system or deposit has formed at this property.

2. The news stated, “North-south faults are now interpreted to exist at Wasa Creek in areas north of the Cadillac Fault (this is believed to be significant).”

There is obviously a lot of faulting at Wasa Creek and why VGD chose to specifically highlight these north-south structures is a question we’ll be putting to President and CEO Martin Dallaire when we interview him tomorrow (confirmed).

3. The news stated, “Mineralization has been observed 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).”

Check the map.  This is looking very, very good. Especially for a Phase 1 program with a lot of “blind” holes.

4. The news stated, “LBWC-11-12…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.”

Wow.  We’ve said this before – Visible Gold Mines has an all-star geological team (Robert Sansfacon’s incredible understanding of structure was an important factor in the discovery of the 10 million+ ounce Canadian Malartic deposit) and how they have advanced this property, and the nearby Wasa East claims, over just the past couple of months is nothing short of phenomenal.

5. The news stated, “An aggressive Phase 2” drill program is on the way.

Assay results (except one) aren’t in yet but already the company is identifying drill targets for a confirmed Phase 2 – what does that tell you?

Visible Gold Mines has a lot of work ahead of it and they aren’t wasting any time as they’re immediately proceeding with a ground-based IP survey and a down-hole geophysics probe. In many ways, finding a deposit can be like chasing a needle in a haystack but VGD is moving swiftly through a lot of hay right now.  Of course there’s risk but this kind of gritty, smart geological work is what has led to huge discoveries in northwest Quebec and built many of the communities along the amazing Golden Highway.  This is precisely what makes this industry and these aggressive junior exploration companies so exciting to follow.

Wasa East is looking very promising as well, and Visible Gold Mines has also started drilling its Joutel Project 150 kilometres north of Rouyn-Noranda.  Folks, this is an action-packed drama that’s not going to end anytime soon.  Visible Gold Mines is indeed a rising star out here.

Don’t forget, VGD (60%) has optioned Wasa Creek, Wasa East and the entire Lucky Break/Cadillac Break Project from Cadillac Mining (CQX, TSX-V) which closed at 16 cents today for a market cap of only $4 million.

Note:  The writer (Jon) holds a position in Visible Gold Mines and Cadillac Mining.