Visible Gold Mines Inc. (CVE: VGD) (Frankfurt: 3V41) has expanded its Horsefly property in Québec after acquiring 304 additional mining claims beside IAMGOLD Corporation‘s (TSE: IMG) (NYSE: IAG) Nelligan Mining Complex.
Announced Monday, the deal gives the junior explorer a larger foothold in one of the province’s most active gold districts.
The newly acquired claims sit immediately west of IAMGOLD Corporation in the Chibougamau Mining Camp. As a result, Visible Gold now controls 392 contiguous mining claims at Horsefly. The property lies in the Eeyou Istchee James Bay region, about 140 kilometres northeast of Lebel-sur-Quévillon. It also sits roughly 45 kilometres southwest of Chapais.
Geologists consider the Chibougamau volcano-sedimentary belt prospective for gold. The belt has produced several deposits over decades of exploration. Meanwhile, IAMGOLD’s nearby Nelligan complex hosts three major deposits containing 4.3 million ounces of gold in the Measured and Indicated category. In addition, the complex contains 7.5 million ounces in the Inferred category.
Visible Gold said historical exploration has already identified several promising zones on the expanded Horsefly ground. One area, known as Chemin Barrette-Ouest, shares geological similarities with the Nelligan showing. Additionally, a grab sample at Lac Phooey returned 9.26 grams per tonne gold and 0.24 per cent copper.
Diamond drilling has also produced notable results. At Lac Phooey, hole LAN-07 intersected 18.13 grams per tonne gold over 1.65 metres. Furthermore, hole H-1455-002 returned 1.10 grams per tonne gold over 1.00 metre. However, the company said it has not yet determined the true widths of those intervals.
Read more: NevGold expands high grade antimony discovery at Nevada’s Limousine Butte Project
Read more: NevGold expands Bullet Zone discovery as drilling confirms oxide gold-antimony system
Geological traits justify systematic exploration
Recent geophysical work has added further context. High-resolution heliborne magnetic surveys mapped deformation corridors and shearing zones across the property. In addition, remote sensing outlined a sizeable felsic to intermediate intrusion northwest of Horsefly Lake. Companies often associate those structural features with orogenic gold systems.
Management believes those geological traits justify a systematic exploration program. Consequently, the company plans to advance target generation across what it describes as a largely underexplored land package. Executives said only a small portion of the ground has seen meaningful drilling to date.
“This expansion enhances our strategic footprint directly west of IAMGOLD’s Nelligan Mining Complex, which hosts three major gold deposits totalling 4.3 million ounces of gold (Measured and Indicated) and 7.5 million ounces of gold (Inferred),” said Jean-Marc Lacoste, president and CEO of Visible Gold.
“Encouraging historical results and surface showings from only a small portion of the expanded Horsefly property underscore the strong exploration potential across the largely underexplored land package, which we intend to methodically unlock.”
Visible Gold will pay a total of CAD$150,000 in cash for the claims. The company will provide CAD$50,000 upon signing the agreement and CAD$100,000 at closing. In addition, it will issue 1,000,000 common shares to the vendor at closing.
.
