September 27, 2011
Lexam VG Gold Inc.: Positive Results Expand Mineralization and Open Up Potential at Buffalo Ankerite
TORONTO, ONTARIO--(Marketwire - Sept. 27, 2011) - Lexam VG Gold Inc. (TSX:LEX)(OTCQX:LEXVF)(FRANKFURT:VN3A) is pleased to announce encouraging exploration results from twenty-one new holes at the Buffalo Ankerite Project, located in Timmins, Ontario, Canada. Drill highlights include: 13.44 grams per tonne (gpt) gold over 2.2 metres, 8.82 gpt gold over 3.4 metres and 27.10 gpt gold over 1.2 metres. The holes contained in this release were focused on expanding Buffalo Ankerite's South Zone to the west and at depth. In addition, drilling has discovered what appears to be a potentially new mineralized structure parallel to the existing resource.
"With historic production totalling 1 million ounces of gold, Buffalo Ankerite is one of the largest historic mines owned by a junior in Timmins. Our exploration drilling continues to demonstrate that the zones extend beyond the limits of the previous mining, returning encouraging grades over potentially mineable widths. The focus for the remainder of 2011 is to further grow the resource, in order to prepare an updated estimate, which is scheduled for the first quarter of 2012," stated Tom Meredith, President and CEO.
South Zone Resource Expanded West and at Depth (Fig. 1 and 3)
Drilling in the upper portion of Buffalo Ankerite's South Zone focused on extending the mineralization beyond the current resource and the previously mined areas. Holes completed in this area returned 7.50 gpt gold over 2.4 metres, 27.10 gpt gold over 1.2 metres and 11.64 gpt gold over 1.4 metres, successfully extending the near surface resource by up to 50 metres laterally. Drilling also tested for deeper mineralization within the same area, returning 8.82 gpt gold over 3.4 metres and 5.12 gpt gold over 1.6 metres, with the results occurring 350 and 450 metres below surface, respectively. These results demonstrate the potential to expand the existing resource in multiple directions. The grades encountered in these holes are consistent with the Buffalo Ankerite Mine's past production.
Six additional holes were also drilled to test the deeper potential. Each of these holes intersected the zone but returned lower gold values. Although lower grade, these holes indicate that the zone is continuous over a potentially large area.
Discovery of a Potential New Parallel Zone (Fig. 1, 2 and 3)
Buffalo Ankerite is comprised of several parallel zones. Recent drilling has encountered what appears to be a new zone located between Goldcorp's former producing Aunor Mine (past production 2.5 million ounces) and Lexam VG Gold's Buffalo Ankerite Mine (past production 1.0 million ounces). One of the initial holes from this area returned 13.44 gpt gold over 2.2 metres within a wider intercept that returned 3.47 gpt gold over 16.8 metres, starting at 550 metres below surface. A second deeper hole, located 800 metres below surface, returned 5.74 gpt gold over 0.9 metres, showing the zone extends at depth.
Four additional holes also tested the potential of this new zone, intersecting Quartz-tourmaline breccia veins with anomalous gold values. Although early, the results are encouraging and could represent an exciting exploration target.
Buffalo Ankerite South Zone Mineral Resource
------------------------------------------------
tonnes gpt oz. Au
------------------------------------------------
Indicated 1,217,114 4.59 179,322
------------------------------------------------
Inferred 1,800,828 4.35 251,872
------------------------------------------------
P.A. Bevan, P.Eng., February 11, 2009 -"Qualifying Report on the Buffalo Ankerite Property, South Porcupine, Ontario, Canada (NTS 42E 12/SW)"
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
(3) The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
Exploration Drill Program
Four diamond drills are operating at the Buffalo Ankerite Project. Three of the drills are located at the North Zone, with the remaining drill located at the South Zone, where the results from this news release were focused. Lexam VG Gold is planning to update the resource estimate for Buffalo Ankerite based on the 2011 drilling and anticipates publishing the results in the first quarter of 2012.
Buffalo Ankerite
Lexam VG Gold owns a 100% interest in the 1,063 acres of the Buffalo Ankerite property. 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.
Lexam VG Gold has an option to earn a 60% interest in the Aunor claim, which lies contiguous to the west of the Buffalo Ankerite claims and which hosts a portion of the South Zone's mineralization. The Aunor claim is surrounded on 3 sides, east, north, south, by the Buffalo Ankerite property.
Lexam VG Gold Inc.: Positive Results Expand Mineralization and Open Up Potential at Buffalo Ankerite
TORONTO, ONTARIO--(Marketwire - Sept. 27, 2011) - Lexam VG Gold Inc. (TSX:LEX)(OTCQX:LEXVF)(FRANKFURT:VN3A) is pleased to announce encouraging exploration results from twenty-one new holes at the Buffalo Ankerite Project, located in Timmins, Ontario, Canada. Drill highlights include: 13.44 grams per tonne (gpt) gold over 2.2 metres, 8.82 gpt gold over 3.4 metres and 27.10 gpt gold over 1.2 metres. The holes contained in this release were focused on expanding Buffalo Ankerite's South Zone to the west and at depth. In addition, drilling has discovered what appears to be a potentially new mineralized structure parallel to the existing resource.
"With historic production totalling 1 million ounces of gold, Buffalo Ankerite is one of the largest historic mines owned by a junior in Timmins. Our exploration drilling continues to demonstrate that the zones extend beyond the limits of the previous mining, returning encouraging grades over potentially mineable widths. The focus for the remainder of 2011 is to further grow the resource, in order to prepare an updated estimate, which is scheduled for the first quarter of 2012," stated Tom Meredith, President and CEO.
South Zone Resource Expanded West and at Depth (Fig. 1 and 3)
Drilling in the upper portion of Buffalo Ankerite's South Zone focused on extending the mineralization beyond the current resource and the previously mined areas. Holes completed in this area returned 7.50 gpt gold over 2.4 metres, 27.10 gpt gold over 1.2 metres and 11.64 gpt gold over 1.4 metres, successfully extending the near surface resource by up to 50 metres laterally. Drilling also tested for deeper mineralization within the same area, returning 8.82 gpt gold over 3.4 metres and 5.12 gpt gold over 1.6 metres, with the results occurring 350 and 450 metres below surface, respectively. These results demonstrate the potential to expand the existing resource in multiple directions. The grades encountered in these holes are consistent with the Buffalo Ankerite Mine's past production.
Six additional holes were also drilled to test the deeper potential. Each of these holes intersected the zone but returned lower gold values. Although lower grade, these holes indicate that the zone is continuous over a potentially large area.
Discovery of a Potential New Parallel Zone (Fig. 1, 2 and 3)
Buffalo Ankerite is comprised of several parallel zones. Recent drilling has encountered what appears to be a new zone located between Goldcorp's former producing Aunor Mine (past production 2.5 million ounces) and Lexam VG Gold's Buffalo Ankerite Mine (past production 1.0 million ounces). One of the initial holes from this area returned 13.44 gpt gold over 2.2 metres within a wider intercept that returned 3.47 gpt gold over 16.8 metres, starting at 550 metres below surface. A second deeper hole, located 800 metres below surface, returned 5.74 gpt gold over 0.9 metres, showing the zone extends at depth.
Four additional holes also tested the potential of this new zone, intersecting Quartz-tourmaline breccia veins with anomalous gold values. Although early, the results are encouraging and could represent an exciting exploration target.
Buffalo Ankerite South Zone Mineral Resource
------------------------------------------------
tonnes gpt oz. Au
------------------------------------------------
Indicated 1,217,114 4.59 179,322
------------------------------------------------
Inferred 1,800,828 4.35 251,872
------------------------------------------------
P.A. Bevan, P.Eng., February 11, 2009 -"Qualifying Report on the Buffalo Ankerite Property, South Porcupine, Ontario, Canada (NTS 42E 12/SW)"
(1) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(2) The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
(3) The mineral resources were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
Exploration Drill Program
Four diamond drills are operating at the Buffalo Ankerite Project. Three of the drills are located at the North Zone, with the remaining drill located at the South Zone, where the results from this news release were focused. Lexam VG Gold is planning to update the resource estimate for Buffalo Ankerite based on the 2011 drilling and anticipates publishing the results in the first quarter of 2012.
Buffalo Ankerite
Lexam VG Gold owns a 100% interest in the 1,063 acres of the Buffalo Ankerite property. 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.
Lexam VG Gold has an option to earn a 60% interest in the Aunor claim, which lies contiguous to the west of the Buffalo Ankerite claims and which hosts a portion of the South Zone's mineralization. The Aunor claim is surrounded on 3 sides, east, north, south, by the Buffalo Ankerite property.
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