Lexam VG Gold, Inc., is currently working toward additional exploration of their Buffalo Ankerite property located as part of the Timmins Gold Camp in Canada.
With multiple projects on the horizon, Lexam VG Gold has decided to focus on their Buffalo Ankerite project. Recently, Lexam VG Gold has released information about the status of that project. Said Tom Meredith, President and CEO of Lexam VG Gold, “In our last few press releases, which were in June, July and September, we put up some very nice and encouraging drill results from our Buffalo Ankerite property.” According to Meredith, Buffalo Ankerite is the current focus of their business plan. He said, “That is the focus of our drilling for this year, 2011. We have several drills going on that property and we have two principal zones – a north zone and a south zone.”
Lexam VG Gold has decided to focus on Buffalo Ankerite with good reason. The property, historically, has produced a million ounces of gold. Though they have divided the property into two zones, more information is currently available on the south zone. Said Meredith, “We already have a resource estimate for the south zone of about 430,000 ounces. So, what we are looking to do is to expand that with the current drilling that we are doing. We want to drill off the strike length of the zone between surface and about 1500 feet deep so that would be the first tier.” Neighbouring mines average about 6000 feet deep. Meredith said that drilling this first section would only represent a portion of the potential 430,000 resource, “This would represent about the top 25% of the mineralization, the near surface portion. We're looking to expand the 430,000 ounces to a bigger number on the south zone with the drilling that we have been doing in 2011.”
There are also possibilities for the north zone. Said Meredith, “We had a small resource there historically and that's where we have focused drilling now. It's got nice, high-grade zones in it as you can see from the press releases that we put out during 2011. So we are following up on that and looking to build a resource from these multiple sources of high-grade gold. We are looking to build up a resource on the north zone as well.”
When discussing a timeline for additional resource growth, Meredith said, “For the south zone, we should have something out by the first quarter of 2012. For the north zone, because we are at an earlier stage with the north zone, it's a little bit too early to say when we would have a resource on that, but it would probably be sometime by mid 2012 for an initial resource update.”
Lexam VG Gold is focused on surmounting their challenges as they come. Meredith said, “We are lucky in that our challenges are simply how successful the exploration itself is. We have property that we own 100% – patented mining claims.” Despite not knowing exactly what they will find, Meredith is optimistic. He said, “It's proven gold geology. We are in good shape all the way around in terms of property ownership and geology and property being at the heart of the Timmins camp. We are well funded. We really have all our bases covered.”
The next step for Lexam VG Gold is to continue with their drill programs. Said Meredith, “We've identified where the mineralization is and we are systematically drilling off the mineralization. We've got plenty more holes to drill. Once we drill more holes we can follow that up by drilling to greater depth. We are on a good geological structure, with multiple gold zones, so it's a good place to be exploring.”
The Buffalo Ankerite property has a 4000 foot deep production shaft, with five compartments on the property from previous mining that was done on the property up until 1953. The mine closed at that time due to low gold prices as well as the fact that there was no mining subsidy available for the US controlled Buffalo Ankerite Mine, while other mines did stay in operation with the Canadian government subsidy. While there is established gold mineralization on the property, Lexam VG Gold is taking a different tact from historical operations. Previously miners simply followed the vein and didn't do a lot of exploration. Conversely, Meredith said, “As is the modern practice, we are doing our exploration first and will be planning our mine second. As a result of that, we have found a lot of stuff that they left behind and there is more to find.” Once Lexam VG Gold does get a handle on what is in the Buffalo Ankerite property, they could develop plans to start with an open pit on the south zone and then move to a 1000 foot depth with underground ramp mining.
Investors may be interested in Lexam VG Gold for several reasons. Meredith said, “We're located in Timmins, neighboring some of the largest gold mines in Canada. We have a key piece of the Timmins geology. Our potential is quite significant.” On top of that, according to Meredith, the cost of mining in Timmins is reasonable and will create the possibility that it will be economically feasible to produce.
Currently, Meredith said “we have enough funding to get us through 2011 and probably get through 2012 as well. We're in good shape funding-wise.” In terms of location, Timmins is mining-friendly with services and supplies close by. Said Meredith, “The key is to successfully explore and build our resource base.”
Ultimately, Lexam VG Gold's goal is to increase the Buffalo Ankerite resource from 1.4 million ounces up to 2 million ounces in 2012, and then keep growing. Said Meredith, “We are developing an asset that will become more and more attractive to larger mining companies. We think that as we grow the resource, the company will get re-rated to a higher value. Our goal is to build shareholder value through successful exploration and increase value by growing our resource.”
For more information:
http://www.lexamvggold.com
Lexam VG Gold Inc.
Bay Wellington Tower
181 Bay Street
Suite 4750, P.O. Box 792
Toronto, Ontario
Canada M5J 2T3
Tel: 647-258-0395
Fax: 647-258-0408
Thomas Meredith, President
647-258-0395 - Ext 250
Investor Relations
Mihaela Iancu
Tel: 647-258-0395 - Ext 320
Email: info@lexamvggold.com