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Abstract
The exploration of Buffalo Ankerite North Zone mineralization is targeting an area 100 metres wide and 500 metres long. The southern 250 metres of the mineralization is located entirely on the Buffalo Ankerite property and the northern 250 metres straddles the boundary between the Paymaster property and the Buffalo Ankerite property (see Figure 1). The BA NZ area was only mined on the Buffalo Ankerite side of the boundary where the majority of mining activities took place between surface and 400 metres deep in the boundary area. The steeply dipping BA North Mine mineralization contains multiple quartz tourmaline breccia zones with enriched gold values. Neighbouring properties have been mined to depths exceeding 2,000 metres.
Lexam VG Gold has the option to earn a 60% interest in the Paymaster property from Goldcorp by making $6 million in exploration expenditures by June 2012. By March 31, 2011 Lexam VG had spent $4.3 million on the property. Once Lexam VG Gold has given notice that is has earned its 60%, Goldcorp has six months to decide if it wishes to increase its ownership from 40% to 70% by paying Lexam VG Gold $710,000, spending $8.25 million on the property within two years and then completing a feasibility study by the end of year three.
Lexam VG Gold explores for gold in the Timmins area of northern Ontario, Canada. Lexam VG Gold was formed on January 1, 2011 by the merger of Lexam Explorations Inc. and VG Gold Corp., resulting in a well-funded exploration company that is 27% owned by Chairman Rob McEwen. The company is carrying out an aggressive exploration program with 70,000 meters of drilling for 2011, designed to build the resource base and to test the potential on its four key property assets: Buffalo Ankerite (100% interest), Fuller (100% interest), Davidson Tisdale (68.5% interest) and Paymaster (60% interest). Lexam VG Gold has $14 million in cash as of March 31, 2011, with no bank debt. The company has 224,816,981 issued and outstanding shares and is listed on the Toronto Stock Exchange (LEX), on OTCQX (LEXVF) and on the Frankfurt Exchange (VN3A).