Property Stadacona-EastThe Stadacona-East Gold Property consists of 78 mining titles and covers an area of 14 square kilometres in the center of Rouyn Township in northwestern Quebec. Two past producers, the famous Horne Mine (nearly 10 million ounces of gold and 2.5 billion pounds of copper) and the Stadacona Gold Mine (approximately 466,000 ounces of gold) are situated one kilometre north and 400 metres west, respectively, from the northern and western boundaries of Stadacona-East.
A National Instrument 43-101 inferred resource for Stadacona-East of 163,800 ounces was announced by Visible Gold Mines in April of this year (980,000 tonnes grading 5.19 g/t Au at a cut-off of 2.5 g/t Au). The company continues to explore the potential of this vein-style deposit where gold mineralization is developed along northeast striking shears hosted by a meta-gabbro body. A minimum 10-hole drill program during the third quarter of 2011 will focus on the unexplored potential of the northeast section of the property.
The tectonic setting and style of mineralization at Stadacona-East is similar to many deposits (producing and past producing) that were generated within a few kilometres of important regional structures (Cadillac, Kirkland Lake and Porcupine-Destor faults).
Visible Gold Mines completed a nearly 11,000 metre drill program in early 2009, in addition to extensive magnetic and induced polarization surveys, to follow up on historical work which included nearly 30,000 metres of drilling by Cambior Inc. in the late 1980’s. The VGD geological team confirmed the continuity of gold mineralization at depth on the west part of the property (the lower limits of the gold bearing zone were extended from 500 metres to 950 metres in depth) and also got encouraging results from the eastern portion.
Stadacona-East has been explored intermittently since 1920 and was acquired (100%) by Visible Gold Mines in 2007. Any future production is subject to a 1.75% net smelter return royalty with the company holding an option to buy back 1% of that royalty.