Drill Tracker Weekly: Variscan Confirms Historical Results from French Government VMS Drilling

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Variscan Mines (ASX:VAR)

Price: $0.048

Market cap: $15 million

Cash estimate: $2.5 million

Project: Porte-aux-Moines

Country: France

Ownership: 100 percent

Resources: Not reported BGRM resource (see below)

Project status: Resampling historic core

• Variscan Mines confirms the results of historical BGRM (French Government) drilling from the 1980s on the Porte-aux-Moines deposit in Western France. The Company acquired the Mereac PER licence through the application process in November 2014. The Company controls an additional two exploration permits in France and has additional permits under application. In the 1980’s, the BGRM completed over 9,000 metres of drilling and 2 km of underground development including five cross cuts outlining a zinc rich VMS (Volcanogenic Massive Sulphide) deposit.

• Highlights of the resampling programme include three intervals in hole PAM5, the first and second and quite possibly the third appear to be the same horizon that has been strongly folded. Intervals in PAM5 include:

• 14 metres @ 7.1% Zn, 1.2% Pb, 1.0% Cu, 101 g/t Ag and 0.83 g/t Au from 211 metres
• 31 metres @ 10.4% Zn, 2.1% Pb, 1.2% Cu,105 g/t Ag, 1.0 g/t Au from 236 metres
• 5 metres @ 6.2% Zn, 0.8% Pb, 0.3% Cu, 93% Ag, 0.43 g/t Au from 290 metres

• The BGRM reported a resource estimate as part of a 1989 pre-feasibility study (not reported by the Company) of 1.86 Million tonnes grading 7.83% Zn, 1.60% Pb, 0.76% Cu, 96.6 g/t Ag based on horizon with variable thickness up to 20 metres wide extending from surface to 300 metres depth. The zone is tightly folded with the upper 50 to 100 metres of the BGRM resource oxidized. The Australia-based Company expects to complete a JORC resource by the end of 2015. It is expected that some additional drilling will be required to meet JORC standard.

• Additional work towards establish a resource estimate will include accessing and digitizing all hard copy data held by BGRM, as well as baseline EM surveys over the known mineralization to assist regional targeting on the 411 square kilometre exploration licence. 

Discovered by BGRM in 1970′s: Over 9 km drilling, 2 km of underground development. No historical production.

Current resampling program: 31 metres @ 7.1% Zn, 1.2% Pb, 1.0% Cu, 101 g/t Ag, 0.83 g/t Au, including: 8 metres @ 25% Zn, 5.4% Pb, 1.6% Cu, 208 g/t Ag, 1.39 g/t Au.

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly 

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Roxgold Inc (TSX:ROG).
2. Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell.
3. In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d’Or, Québec. Travel to and from the site in Val d’Or were paid by Integra Gold Corp. 
4. Foran Mining Corp. (FOM) is covered at Mackie Research by analyst Peter Campbell.
5. In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran’s McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.