Grevet project keeps growing for partners VSM, Serem

Partners VSM Exploration (TSE) and Serem-Quebec expect to have a few surprises in store when they table results of a pre-feasibility study at the Grevet Twp. base metals project near Quevillon, Que. When Miner was preparing this story, VSM general manager Andre Gaumond declined to predict how much reserves will increase from a previously estimated 10.2 million tonnes grading 8.27% zinc, 0.44% copper and 34.8 grams silver per tonne.

But he believes the newly discovered 97 zone should add a “surprising amount” to known reserves in zones III and IV. “We will add many millions of tonnes, there is no doubt about that,” he said. (Ed.’s note: Surface drilling has in fact added about 8 million tonnes.)

The Grevet Twp. project is one of about 51 Quevillon properties held jointly by VSM and privately-owned French company Serem-Quebec. As VSM is a 50%-owned affiliate of Vancouver-based gold producer Placer Dome (TSE), there is no shortage of money available for an underground program at Grevet and surface exploration on the nearby Orphee, Lesperance and Lesueur properties. According to Gaumond, VSM’s understanding with Placer Dome is such that if more money is needed “we just have to ask.”

However, the partnership won’t outline its plans for the Grevet or Orphee properties until they have compiled data of all work completed so far. Last year, a $5-million surface program on the Grevet property yielded an 8.6-metre intersection that averaged 15.5% zinc, 0.40% copper, and 83.5 grams silver at a vertical depth of 510 metres below surface.

News of the Grevet Twp. discovery drove VSM shares up 35 to $1.20 on the Montreal Exchange and forced the partnership to postpone plans for underground exploration. (Now listed on Toronto, the issue traded recently at $1.10 in a 52-week range of $1.30 and 87).

Now known as the 97 zone, the new discovery is located about 150 metres north and 600 metres east of zones III and IV which are all predicated on the Cameron Deformation Corridor. The Cameron Deformation has already given rise to the Flordin and Vezza gold deposits further east. Freewest Resources (TSE) is now working on a new gold discovery in a 100-ft.-wide alteration zone to the northeast of Grevet in Benoit Twp.

“We think this is a new mining camp,” said Gaumond who believes there is room for more discoveries on ground between Orphee and Grevet and in the 2-km corridor separating the Grevet discovery from VSM’s Grevet B claims.

When the joint venture finally announces its new reserve calculations, analysts expect VSM to add close to three million tonnes, bringing mineable reserves to roughly 12.48 million tonnes grading 9% zinc, 0.5% copper and 37.8 grams silver. Those calculations, including 3.88 million tonnes grading 8.5% zinc, 0.7% copper and 41 grams silver, are based on a mining rate of 3,000 tons per day, about twice the amount previously envisaged before zone 97 was discovered.

Meanwhile, an announcement in November that the 97 zone is widening at depth indicates that it extends over a length and depth of more than 500 metres. Mineralization exists below the 700-metre level.

Analysts observing VSM’s progress predict that the company’s huge land position, including claims surrounding Freewest’s Benoit Twp. discovery, increase the chances of more similar discoveries in the area.

“If the proof is in the pudding, one only has to look at the zinc discovery on claims optioned by VSM and Serem from private company Orphee Resources,” said a Toronto analyst.

However new ore reserve calculations will not include results from the Orphee property where the VSM-Serem partnership is earning a 55% interest in return for spending $750,000. Highlights there include 7 metres grading 2.07% copper, 3.88% zinc and 9.6 grams silver, intersected at a depth of 552.7-559.7 metres.

Now that results from the Orphee claims are being compiled along with Grevet, Gaumond says he expects drilling to resume this spring.