High-grade Silver, Zinc, and Lead Advanced stage of development Prairie Creek Mine-NWT

Largest Shareholder Vatukoula Gold Mine (680,000 oz Reserves, 4.3 million oz Resource)

Message: Vatukoula Gold unveils positive drilling results
Tue, 10/05/2011 - 09:39 | Fiona Bond

Vatukoula Gold Mines (VGM) has unveiled a host of positive results from its recent drilling programme at its wholly-owned Vatukoula Gold Mine in Fiji.

Significant intersections from the initial 60-hole surface oxide exploration drilling campaign included 5.14 grams of gold per tonne (g/t) over 17.55 metres and 12.09 g/t over five metres.

Up to 21 holes returned gold grades in excess of three g/t, the AIM-listed company said, with results for a further 10 drill holes still pending.

Vatukoula said the aim of the drilling was to define the strike extensions of the vertical or near-vertical mineralised structures which have been historically mined from surface.

Meanwhile, mine envelope exploration at the project, which saw six holes drilled targeting the Prince and Matanagata North East Flatmakes and associated structures, unearthed 23.19 g/t over 1.3 metres and 9.61 g/t over 0.77 metres.

Vatukoula said the positive results have indicated that it needs to continue with additional holes to firm up on dimensions of the possible down-dip extension of the Prince Flatmake ore bodies.

Chief executive David Paxton said: "We are very encouraged by the initial results from the drilling programme, which show further mineralisation close to surface and possible down dip and along strike extensions of the Vatukoula ore bodies. Our focus remains on developing the exploration potential of the mine to expand current production and we look forward to reporting additional drill results."

The mine has produced over seven million ounces of gold to date and houses a further 3.9 million ounces in resources.

CZN holds apprx 15% of VGM

VGM up 11% at 10am ET


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