Paymaster Property
The Paymaster West Property is part of the former producing Paymaster Mine that is located next door to Goldcorp’s Dome Mine, which has produced 17 million ounces of gold and is still in operation after 100 years. The Paymaster West project was initially explored and mined down to 600 ft between 1910 and 1928. Limited drilling in the 1950’s at the 1500 foot level and at the 2500 foot level encountered good grades and widths demonstrating that there is excellent potential at depth.
The neighboring Dome Mine produces gold to a depth of 5,400 feet, and other neighbors have been mined to depths of 7,000 feet.
VG Gold entered into a joint venture with Goldcorp on the Paymaster West Property in 2008. VG Gold has the right to earn 60% aof the project This agreement provides VG the opportunity to expand the known gold mineralization zones and adds subsequent exploration potential to an already excellent land package.
Terms of VG Gold and Goldcorp Joint Venture Agreement:
• Entered into J.V. agreement effective June 13, 2008
• VG has option to earn 60%
• Under option agreement VG must incur expenditures of $6.0M by 2012
• Minimum 10,000 meters drilled by end of year two
• Goldcorp has a 6 month Back-in-Right once VG has completed 60% option terms
• Goldcorp can increase interest from 40% to 70% and become operator if:
• Goldcorp makes payment of $710,000 to VG Gold, incurs exploration expenditures of $8.25M, and completes a feasibility study within three years.
| Paymaster West Project Holds Excellent Exploration Potential at Depth |
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On November 9, 2009 VG Gold released the a set of holes from the companies ongoing exploration program that confirmed presence of near surface, high-grade, and wide spread gold mineralization.
Drill Results - View Results (PDF)
Drilling Hole Location - View Locations (PDF)
Paymaster Cross Sections - View Maps (PDF)
To view project area photos and maps please click here.
To view our resource page, please click here.
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