1. Test for higher grade mineralization adjacent to and below the
previously mined areas.
2. Determine if parallel zones of mineralization exist at the project.
The latest exploration results
demonstrate we are advancing towards our exploration goals. "Over the past
two months our drilling at Buffalo Ankerite has consistently returned
higher grade intervals over good thicknesses. Three drills are operating
in order to determine the significance of these results," stated Tom
Meredith, President and CEO.
Higher Grades Discovered Near
Previously Mines Areas
Hole VGP-11-109 was drilled adjacent to
Buffalo Ankerite's historically mined North Zone, returning 10.66 gpt over
4.6 meters and was designed to identify extensions of the known
mineralization. This result was a follow-up to hole VGP-11-107 (released
June 9, 2011), which intersected 20.16 gpt over 2.5 m, inside of a wider
interval of 6.96 gpt over 9.9 m.
Holes VGP-11-111 and VGP-11-110
both targeted mineralization below the previously mined areas. Higher
grades were encountered in both holes, returning 17.63 gpt gold over 3.0 m
and 9.05 gpt gold over 1.4 m, respectively. These results offset hole
VGP-11-106, which interested 23.85 gpt over 2.4 m and 47.9 gpt over 0.9 m
(released June 9, 2011). With the discovery of higher grades at depth and
limited exploration in the area, these results are an important
development. Further drilling will look to help establish continuity and
to further extend the zone.
Testing for Parallel Zones
The
Buffalo Ankerite North Zone appears to be comprised of several parallel
mineralized zones. Recent drilling (hole 109) has encountered what appears
to be a new structure located 150 m east of the resource (see Figure
1.4.). The interval, which starts just 30 meters below surface, returned
5.18 gpt over 12.4 m, including 17.00 gpt over 1.5 m. Although early, the
results are encouraging and could represent a new target area for resource
expansion. Follow-up drilling is currently being planned and is expected
to commence in August.
Exploration Drill Program
There are
currently four diamond drills operating on Lexam VG Gold's properties in
Timmins. Three drills are located at the Buffalo Ankerite Project and one
drill is located at the Fuller Project. This pace of exploration is
expected to continue throughout 2011.
Property Details
Lexam
VG's properties are located amongst the biggest gold mines in Canada's
most prolific area of gold production, Timmins, Ontario. The mines that
are adjacent to Lexam VG properties have produced over 50 million ounces
of gold (see Figure 1) from depths as deep as 1,500 to 2,200 metres. Lexam
VG's properties have not been mined as deep and the exploration program is
targeting areas on structure between these large gold mines that include
the Hollinger mine, the Dome mine and the McIntyre mine that produced 19.3
million, 17.1 million, and 10.7 million oz. of gold,
respectively.
Buffalo Ankerite
Lexam VG Gold owns a 100%
interest in the Buffalo Ankerite property (1,063 acres). During the period
1926-1953 the Buffalo Ankerite Mine produced 1,018,000 ounces of gold with
an average recovered grade of 6.51 grams per tonne. While underground
workings are 1,200 metres deep at the BA Shaft, nearly all the production
occurred above a depth of 750 metres.
About Lexam VG
Lexam
VG Gold explores for gold in the Timmins area of northern Ontario, Canada.
Lexam VG Gold was formed on January 1, 2011 by the merger of Lexam
Explorations Inc. and VG Gold Corp., resulting in a well-funded
exploration company that is 27% owned by Chairman Rob McEwen. The company
is carrying out an aggressive exploration program with 70,000 meters of
drilling for 2011, designed to build the resource base and to test the
potential on its four key property assets: Buffalo Ankerite (100%
interest), Fuller (100% interest), Davidson Tisdale (68.5% interest) and
Paymaster (60% interest). Lexam VG Gold has $14 million in cash as of
March 31, 2011, with no bank debt. The company has 225,440,265 issued and
outstanding shares.
To view Figure 1. Properties Map, Surface Plan
and Cross Section Details, please visit the following link:
http://media3.marketwire.com/docs/LEXFigure1.pdfTo
view Figure 2. Buffalo Ankerite North Zone Longitudinal Section (Looking
West), please visit the following link:
http://media3.marketwire.com/docs/LexFigure2re.pdf
LEXAM VG GOLD.....WE ARE GOLD!
Technical
Information
The information presented in this press release has
been reviewed and approved by Kenneth Guy, P.Geo, a consultant to Lexam VG
and the Qualified Persons responsible for the exploration program at the
Paymaster as defined by National Instrument 43-101 "Standards of
Disclosure for Mineral Projects" ("NI 43-101"). For further information
about the Paymaster property see the technical report titled "Summary
Report on Exploration and Resource Technical Report on the Paymaster
Option" prepared by Kenneth Guy and P.A. Bevan, dated December 20, 2011
(the "Paymaster Report"). The Paymaster Report is available on SEDAR under
VG Gold Corp.'s profile (a predecessor company to Lexam VG
Gold).
All drilling was completed using NQ size core. Gold analysis
of the samples collected by Lexam VG Gold was assayed by ALS Chemex.
Analysis consisted of a fire assay of a 30-gram sample with an atomic
absorption finish. Samples assaying over 10.0 gram per tonne Au are
re-assayed with gravimetric finish. Samples noted to contain visible gold
are analyzed via total metallic assay method. A rigorous Quality Control
and Assurance Program is in place, using control samples such as blanks
and duplicate checks. In addition, duplicate analyses of 10% of the
samples are corroborated by check assays performed at a third party
laboratory.
Cautionary Note to U.S. Investors
All resource
estimates reported by Lexam VG Gold are calculated in accordance with NI
43-101 and the Canadian Institute of Mining and Metallurgy Classification
system. These standards differ significantly from the requirements of the
U.S. Securities and Exchange Commission. Mineral resources which are not
mineral reserves do not have demonstrated economic
viability.
Caution Concerning Forward-Looking
Statements
This press release contains certain forward-looking
statements and information. The forward-looking statements and information
express, as at the date of this press release, Lexam VG's plans,
estimates, forecasts, projections, expectations or beliefs as to future
events and results. Forward-looking statements involve a number of risks
and uncertainties, and there can be no assurance that such statements will
prove to be accurate. Therefore, actual results and future events could
differ materially from those anticipated in such statements. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements include, but are not limited to, factors
associated with fluctuations in the market price of precious or base
metals, mining industry risks, risks associated with foreign operations,
risks related to: litigation, property title, the Paymaster Option, the
state of the capital markets, whether shareholder and regulatory approvals
for the proposed transaction are forthcoming, environmental risks and
hazards, uncertainty as to calculation of mineral resources and reserves
and other risks.
Readers should not place undue reliance on
forward-looking statements or information. Lexam VG undertakes no
obligation to reissue or update forward-looking statements or information
as a result of new information or events after the date hereof except as
may be required by law. See Lexam VG's Annual Information Form for
additional information on risks, uncertainties and other factors relating
to the forward-looking statements and information. All forward-looking
statements and information made in this news release are qualified by this
cautionary statement.
To learn more about Lexam VG Gold (
News
-
Market
indicators), visit our website:
www.lexamvggold.com.
Table 1. Drill Holes VGP-11-108 to VGP-11-111 Summary Data
-------------------------------------------------------------------------
Hole sec- grid len- len-
# tion grid ele gth gth dip az Assay Assay Width
-------------------------------------------------------------------------
VGP-
11-
108 8200.6 5446.4 11038.8 2472 567.0 -52 278 9.4 11.8 2.4
--------------------------------------------------------------------
100.1 102.0 1.9
--------------------------------------------------------------------
119.4 120.9 1.5
--------------------------------------------------------------------
161.1 163.5 2.4
--------------------------------------------------------------------
404.6 406.1 1.5
--------------------------------------------------------------------
532.8 540.7 7.9
--------------------------------------------------------------------
including 1.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
VGP-
11-
109 7800.0 5242.8 11031.8 1102.3 336.0 -45 276 29.1 41.5 12.4
--------------------------------------------------------------------
including 1.5
--------------------------------------------------------------------
82.4 83.9 1.5
--------------------------------------------------------------------
93.7 136.8 43.1
--------------------------------------------------------------------
120.0 124.5 4.5
--------------------------------------------------------------------
150.0 151.8 1.8
--------------------------------------------------------------------
169.8 172.5 2.7
--------------------------------------------------------------------
203.7 208.8 5.1
--------------------------------------------------------------------
219.9 222.2 2.3
--------------------------------------------------------------------
239.0 261.9 22.9
--------------------------------------------------------------------
including 4.6
--------------------------------------------------------------------
246.6 253.5 6.9
--------------------------------------------------------------------
269.1 301.4 32.3
--------------------------------------------------------------------
including 7.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
VGP-
11-
110 7600.0 5200.0 10997.9 1128.6 344.0 -45 267 79.5 82.4 2.9
--------------------------------------------------------------------
152.6 156.3 3.7
--------------------------------------------------------------------
179.0 180.4 1.4
--------------------------------------------------------------------
180.4 183.5 3.1
--------------------------------------------------------------------
190.5 194.7 4.2
--------------------------------------------------------------------
194.7 197.0 2.3
--------------------------------------------------------------------
230.7 232.0 1.3
--------------------------------------------------------------------
254.2 264.6 10.4
--------------------------------------------------------------------
including 1.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
VGP-
11-
111 7593.4 5599.7 11018.5 1873.3 571.0 -50 266 75.6 76.5 0.9
--------------------------------------------------------------------
78.1 79.2 1.1
--------------------------------------------------------------------
374.0 377.0 3.0
--------------------------------------------------------------------
383.0 385.9 2.9
--------------------------------------------------------------------
446.8 448.0 1.2
--------------------------------------------------------------------
463.7 464.9 1.3
--------------------------------------------------------------------
467.7 470.7 3.0
--------------------------------------------------------------------
476.8 521.3 44.5
--------------------------------------------------------------------
including 8.9
--------------------------------------------------------------------
including 3.0
-------------------------------------------------------------------------
Table 1. Drill Holes VGP-11-108 to VGP-11-111 Summary Data
----------------------------------------------------------------------
Pro-
Hole sec- grid len- len- Au- per-
# tion grid ele gth gth dip az gpt GxW ty
----------------------------------------------------------------------
VGP-
11-
108 8200.6 5446.4 11038.8 2472 567.0 -52 278 1.32 3.2 P
-----------------------------------------------------------------
1.34 2.6 P
-------------------
1.14 1.7 P
-------------------
2.93 7.0 P
-------------------
1.34 2.0 BA
-------------------
1.64 12.9 BA
-------------------
4.88 6.7 BA
----------------------------------------------------------------------
----------------------------------------------------------------------
VGP-
11-
109 7800.0 5242.8 11031.8 1102.3 336.0 -45 276 5.18 64.4 P
-----------------------------------------------------------------
17.00 25.9 P
-------------------
1.36 2.0 P
-------------------
1.33 57.1 P
-------------------
UGO P
-------------------
1.48 2.7 P
-------------------
1.72 4.7 P
-------------------
1.26 6.4 BA
-------------------
3.78 8.6 BA
-------------------
3.80 86.9 BA
-------------------
10.66 48.7 BA
-------------------
UGO BA
-------------------
1.67 54.1 BA
-------------------
3.08 22.6 BA
----------------------------------------------------------------------
----------------------------------------------------------------------
VGP-
11-
110 7600.0 5200.0 10997.9 1128.6 344.0 -45 267 0.98 2.8 P
-----------------------------------------------------------------
1.31 4.8 P
-------------------
UGO
-------------------
3.15 9.6 BA
-------------------
1.12 4.7 BA
-------------------
UGO BA
-------------------
3.35 4.1 BA
-------------------
2.25 23.2 BA
-------------------
9.05 13.0 BA
----------------------------------------------------------------------
----------------------------------------------------------------------
VGP-
11-
111 7593.4 5599.7 11018.5 1873.3 571.0 -50 266 10.45 9.6 BA
-----------------------------------------------------------------
4.90 5.4 BA
-------------------
2.86 8.4 BA
-------------------
1.54 4.5 BA
-------------------
9.10 11.1 BA
-------------------
1.12 1.4 BA
-------------------
1.54 4.7 BA
-------------------
2.79 124.2 BA
-------------------
8.83 78.3 BA
-------------------
17.63 53.7 BA
----------------------------------------------------------------------
BA - Buffalo Ankerite property; P - Paymaster property
Intervals reported here are core lengths. True widths are not known
at this time. All depth reported as down hole.