Next Steps for Lexam in 2013
I. Exploration Targets
1. Continue testing for a western extension on Fuller. With a kilometer of Lexam property to the west of the quartz-feldspar porphyry structure, there remains potential to expand the Fuller zones.
2. Testing deeper levels at Fuller. Surface drilling to date at Fuller has tested to 500 metres below surface, with the mineralization remaining open at depth.
3. Testing intermediate and deeper levels at Buffalo Ankerite. 2012 exploration results indicate that the mineralization at depths between 300 metres and 500 metres below surface at the Buffalo Ankerite North Mine has zones that were not mined and have received very little surface drilling.
II. New Fuller Resource Update
A new, updated NI 43-101 resource is being prepared. It incorporates the 2011-2012 drill program results that outlined near surface lower grade gold mineralization along with the deeper mineralization outlined in the 2006 NI 43-101 resource estimate.
III. Preliminary Economic Assessment
Once the Fuller update has been completed (expected by the end of February) along with a digital resource estimate of all our other projects, Paymaster, Buffalo Ankerite and Davidson Tisdale, a preliminary economic assessment (PEA) will be prepared. The PEA will be designed to test the economics of mining each of our deposits and to examine the synergies that may exist between them.
About Lexam VG Gold
Lexam VG Gold explores for gold in the Timmins area of northern Ontario, Canada. Lexam VG Gold was formed in 2011 by the merger of Lexam Explorations Inc. and VG Gold Corp. The company is carrying out an ongoing exploration program, designed to build the resource base and to test the growth potential and determine the economics 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 had $5.1 million in cash as of December 31, 2012, with no bank debt. The company has 227 million issued and outstanding shares.
Technical Information
The information presented in this press release has been reviewed and approved by Kenneth Guy, P. Geo, a consultant to Lexam VG Gold and a Qualified Person responsible for the exploration program at the Fuller property, as defined by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101").
All drilling was completed using NQ size core. Gold analysis of the samples collected by Lexam VG Gold was assayed by ALS Chemex. Analysis consisted of a fire assay of a 30-gram sample with an atomic absorption finish. Samples assaying over 10.0 gpt Au are re-assayed with gravimetric finish. Samples noted to contain visible gold are analyzed via total metallic assay method. A rigorous Quality Control and Assurance Program is in place, using control samples such as blanks and duplicate checks. In addition, duplicate analyses of 10% of the samples are corroborated by check assays performed at a third party laboratory.
Information on the Fuller technical report and resource estimate dated May 3, 2006:
(i) Technical Report on the Fuller Gold Property, report to Vedron Gold Inc. (now Lexam VG Gold) dated May 3, 2006, by Shahé Naccashian, P.Geo and Tim Maunula, P.Geo. Messrs Naccashian and Maunula are each a Qualified Person and were at the time of the preparation of this report independent of the company in accordance with Canadian Securities Administrators National Instruments 43-101 "Standards of Disclosure for Mineral Projects" ("NI 43-101") The mineral resources were estimated using the Canadian Institute of Mining (CIM), Metallurgy and Petroleum Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005. The report is available on SEDAR (www.sedar.com) and on the Company's web site (www.lexamvggold.com).
(ii) Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(iii) The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.
Cautionary Note to U.S. Investors
All resource estimates reported by Lexam VG Gold are calculated in accordance with NI 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
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