Vior Awaits Phase 1 Drill Results At Highly Prospective Belleterre Gold Project Phase 2 Drill Program Has Commenced


The Crucial Investor takes a deep dive into Quebec-focused gold explorer Vior Inc. and concludes that he likes “the chances for Vior, as Belleterre is a formidable brownfield undertaking with numerous indications for mineralized potential.”

  1. Introduction

An previous adage in mining says that to discover a new mine, look within the shadow of the headframe of an previous or present mine. That is precisely what Vior Inc. (VIO:TSX.V; VL51:FRA) has been doing for the time being, because it has been exploring its flagship Belleterre Gold undertaking in Quebec, which comprises the historic excessive grade Belleterre gold mine (produced 759 koz @ 10.73 grams per tonne (g/t) gold (Au) from 1936 to 1959). Vior has assembled a number of fascinating property packages, with Belleterre and Skyfall (which is on development with Osisko’s Windfall gold undertaking, and likewise in Quebec) as standout tasks, seeing latest exploration. Each tasks have already seen glorious sampling outcomes, and Vior just lately accomplished a 4,000-meter (m)part 1 drill program at Belleterre, composed of 5 drill holes, for which the outcomes are anticipated on the finish of Q1, 2022. An extra 4,000m+ part 2 drill marketing campaign commenced on March third, 2022, concentrating on the following set of excessive precedence targets situated inside the potential extensions of the previous high-grade mineralization at Belleterre.

  1. Firm

The Montreal-based junior mining firm Vior has been round for a very long time, because it was based in 1984 by the present Chairman Claude St-Jacques, who additionally based the extremely profitable Virginia Gold Mines. Vior is a particular breed of hybrid explorer, because it advances its personal tasks, but in addition companions with others the place optioning out or joint venturing tasks is  applicable. A 3rd facet of its technique is the power to make strategic investments in different juniors with nice tasks and powerful administration.

The corporate focuses on tasks in North America, and extra specificly on Quebec and Nevada, as these are among the many greatest mining jurisdictions on the planet. Vior’s flagship undertaking is the Belleterre gold undertaking as talked about, which has been consolidated into a formidable 300 sq km land package deal (551 claims), as the corporate negotiated an choice settlement in August of final 12 months, to amass as much as 75% possession from Osisko Mining for the final important piece of the historic Belleterre mining camp.

Exploration is in full swing, as two sampling packages, detailed geophysics, a 3D knowledge compilation program and a part 1, 4,000m drill program had been accomplished in H2, 2021, with drill outcomes pending, and a part 2, 4,000m+ program that has simply begun. The sampling packages had been fairly profitable, as out of a complete of 1,323 samples, 28 samples returned gold values above 10 g/t Au, with the 4 highest grade samples coming in at 274.9 g/t Au, 175 g/t Au, 121.3 g/t Au and 77.4 g/t Au. These spectacular outcomes validate a number of gold showings and ensure the excessive exploration potential at Belleterre.

The second most vital undertaking for Vior is Skyfall, additionally situated in Quebec and on development with Osisko Mining’s Windfall undertaking. After a month of area exploration at Skyfall in Q2, 2021, which included until and seize samples, many of the rock samples have been processed by the laboratories and outcomes are being built-in right into a complete knowledge base for greater stage interpretation to higher delineate the possible anomalous areas of this primary area exploration program. The until sampling survey outcomes are nonetheless pending.

The corporate can also be conducting some geophysical knowledge reprocessing (magnetic inversion) in a number of areas of the property to assist with the interpretation and localization of the primary deformation zones on the undertaking. Planning for Skyfall’s summer time 2022 area exploration program is underway and will probably be finalized as soon as all processing of knowledge and outcomes from final summer time’s area program is full.

As a part of its hybrid technique, Vior additionally has an fairness funding in Ridgeline Minerals Corp (TSXV:RDG), holding 3.642 million shares, valued at C$1.33 million (share worth of C$0.365 per February 19, 2022). Ridgeline is exploring 4 extremely potential gold/silver tasks in Nevada, and just lately optioned a promising gold oxide undertaking in Idaho from EMX Royalty Corp. Ridgeline plans to spend over C$3M on exploration in 2022, and as a consequence anticipates numerous information about drill outcomes later this 12 months. Most encouragingly, it just lately signed an settlement with Nevada Gold Mines (JV between Barrick and Newmont), the place NGM can earn-in to 60% possession at their Swift undertaking, by spending US$20M over 5 years, of which US4M earlier than December 31, 2023.

Vior has 81.25 million shares excellent (totally diluted 101.25 million), 14.875 million warrants (@C $.15 to C$0.30 and expiring in July/2022 and March/2023) and several other choice collection to the tune of 5.129 million choices in complete, the bulk priced at C$0.10 and $0.13 and expiring in 2024 and 2027.  Vior has a present market capitalization of C$15.43 million based mostly on the March 4, 2022 closing share worth of C$0.19. 

The present money place of Vior is approx. C$3.2 million, and the corporate is cashed up for the time being to finish the present 4,000m+ drill program, after finishing two flow-through raises in This fall, 2021 for a complete of C$2.3 million. Typically, the all-in prices of diamond drilling within the decrease Abitibi area of Quebec are already extraordinarily low cost at roughly C$160/m, however as well as there are additionally important tax incentives for flow-through capital raises devoted to exploration in Quebec. Administration holds a minimum of 16% of the present shares excellent (CEO Fedosiewich holds roughly 10.5%), shut strategic holders personal roughly 30%, and the corporate additionally enjoys roughly 16% institutional possession (together with SIDEX, a Quebec sponsored junior exploration fund, FTQ, the labor sponsored pension fund and two different regional Quebec based mostly funds). Vior can also be backed by Osisko Mining Inc., which owns a 6.7% undiluted share place.

Vior is mainly run by two folks: President and CEO Mark Fedosiewich, and Government Vice President Laurent Eustache. Fedosiewich has 35 years of expertise in investments and mining. He has a robust monetary background as he’s a former first vice chairman of CIBC Wooden Gundy, the complete service brokerage division of CIBC, a significant Canadian financial institution, and has established a really in depth mining/monetary enterprise community. Laurent Eustache is an expert geologist with 15 years of progressive expertise together with Agnico-Eagle Mines, Aurizon Gold Mines and as former portfolio supervisor at SIDEX ($100 million+ AUM). They’re supported by the aforementioned Chairman St-Jacques, who is just not solely the founding father of Vior, but in addition of Mazarin and Virginia Gold Mines, and likewise has a robust mining trade community. He’s very near the Osisko workforce and, along with Fedosiewich, instrumental in finishing the cope with Osisko Mining.

  1. Initiatives

Vior owns a portfolio of eight tasks, though the main target is clearly on the Belleterre undertaking lately, and to a lesser diploma on the Skyfall undertaking as talked about. The corporate additionally views the Ligneris undertaking as a strategic asset within the portfolio because it contains a close to district scale, gold-rich VMS goal and is situated close to Amex’ Perron undertaking. Typically, administration deploys a disciplined method and technique when buying its tasks, with the next strict standards:

  • Protected and mining-friendly mining jurisdictions
  • In shut proximity to an present mine, historic mine or a complicated undertaking
  • Good infrastructure close by and straightforward accessibility
  • Venture potential to go from an early to a extra advance exploration stage

Seven out of Vior’s tasks are situated in Quebec, one of the mining pleasant jurisdictions worldwide. Vior additionally has its early stage Tonya undertaking in Nevada, U.S.,  which is the highest ranked jurisdiction in line with the latest Fraser Institute Survey of Mining Firms.

Belleterre Venture

After consolidating the historic Belleterre Mine property with the Osisko Mining claims, the final and central piece of the puzzle, the corporate has assembled a steady, district-scale land package deal with a strike size of 37km:

This district-scale land package deal has by no means been consolidated on this scale earlier than, and is situated on a Greenstone Belt with favorable mafic volcanics, and consists of the historic excessive grade Belleterre Gold Mine (produced 759 koz Au @10.7 3g/t and 95 koz Ag between 1936 and 1959), has good infrastructure and has a number of gold milling services with obtainable capability close by, and the complete space may be very underexplored ever since. Notably, over 90% of the historic manufacturing was extracted from the only Vein 12, however there look like no less than 21 veins on the historic mine property, most of them indicated on the map within the subsequent paragraph.

To have an concept in regards to the historic operation, here’s a map indicating mine shafts and many of the veins:

When this map, it seems to be like vein 12 was by far the biggest recognized vein construction on the property. Curiously, the vein appears to begin out comparatively flat and close to floor, and step by step dips steeper and deeper alongside strike, contained between two fault strains. This sort of geology might very properly generate some in depth geological detective work, but in addition signifies important mineralized potential that might have simply been missed by former house owners. It made me curious to what extent the direct environment of the historic mine are a precedence goal for administration.

VP Laurent Eustache had this to remark: “The direct extension of historic mineralization might in some locations have nice potential. We’re focusing our efforts to higher perceive the structural methods controlling the mineralization to higher decide which of them ae of upper financial curiosity. Our Part II drilling marketing campaign will goal and ultimately validate a few of our preliminary interpretations and modelling.”

The March 3, 2022, information launch shed extra mild on this:

“The Part II drill program will include eight (8) high-priority drill targets totaling over 4,000 meters (“m”) and will probably be centered on the previous Belleterre mine concessions. Numerous extensions of previous producing gold bearing buildings are being focused and are detailed under (Determine 2):

  • 4 (4) holes will take a look at the southwest extension of the 12W vein. This construction is interpreted to be the extension of the primary historic high-grade mineralized horizon of the previous producing Belleterre mine, the place the vast majority of gold manufacturing occurred. Vein 12W can also be parallel to the regional Gainsmoor deformation shear zone (Determine 3), which is interpreted as a key structural management to mineralization for the better Belleterre district.
  • Three (3) holes will take a look at the Mill Creek shear zone, which parallels the Gainsmoor deformation zone and hosts a number of historic high-grade veins accessed by way of two of the 4 shafts of the previous Belleterre gold mine. Two of the three holes will take a look at the northeast extension of the construction and will probably be situated inside 250 m of shaft 4 and spaced 400 m from one another alongside the construction the place intrusives and related gold mineralization have traditionally been acknowledged. The third gap, a better than 300m step out from shaft 2, will take a look at the southwest extension of the mineralized construction. (Determine 2)
  • One (1) remaining gap will take a look at a 400 m step out to the southwest extension of veins 15 and 26, the place each zones have been traditionally underexplored. (Determine 2)”

Determine 2 might be seen right here, displaying the part 2 drill targets:

And Determine 3 right here, indicating historic excessive grade mineralization in an up to date 3D mannequin:

Crucial right here can also be the truth that many of the very in depth property is vastly underexplored, as solely the direct neighborhood of the Belleterre Mine (indicated in inexperienced) has seen in depth drilling, as might be seen right here (historic drill holes are little black dots):

Including to this, earlier drilling didn’t exceed 250 meters, and because the Belleterre Mine has been mined to a depth of 750m, and gold mineralization within the Greenstone belt in Quebec usually continues to depths a lot bigger than this, administration has excessive hopes of discovering important financial gold mineralization. Eustache had this so as to add: “Once you consider it, the Belleterre brownfield space potential is exclusive. You sometimes don’t discover as much as 12km strike of confirmed high-grade mineralization related to main structural complexity simply! Many multi-million ounce historic gold camps within the Abitibi are smaller than this. Initially, what excited us was the low stage of exploration at depth on the historic mine development. Many examples of exploration success stem from the vertical continuity at depth of excessive grade mineralization. That is maybe one of the efficient and least dangerous exploration methods utilized by the explorers and Belleterre affords the precise the identical kind of optionality.

“On prime of that and now that we’ve compiled knowledge from the camp in additional element, the truth is {that a} good a part of the historic mine development has seen little or no cohesive exploration. This opens up much more choices for potential a number of deposits, which isn’t unusual in this sort of geological surroundings.“

The aforementioned part 1 drill collars are represented in blue on the final map, and might be seen right here on a considerably enlarged map:

I questioned why Eustache picked these targets to drill, was it a mix of historic drill outcomes, latest sampling and geophysics? That is what he needed to say:  “The Part I drilling marketing campaign was designed to higher perceive the final structural framework of the 5.5 km lengthy Historic Mine Pattern, concentrating on some massive step outs from the recognized mineralized zones. This technique was design to validate some structural and potential gold continuities at depth to assist vectorize the following drilling phases.”

As drilling of those 5 holes was accomplished in December, however outcomes are anticipated on the finish of March, I questioned if COVID-19 might have something to do with this. CEO Fedosiewich answered,  “Lab delays are quite common lately, and are associated to COVID as you say, but in addition labor shortages, vacation time on the finish of the 12 months and an total improve of drilling exercise. The turnover for our summer time area program samples was additionally three to 4 months, so we conservatively guesstimate about three months for our drill outcomes.”

The following 4,000m+ part 2 drill program will start as quickly as administration can safe a strong drill rig contractor. Discussions are ongoing and needs to be finalized quickly, and administration expects to begin drilling someday early March, based mostly on the submissions/availability they’ve obtained. Apart from a part 2 drill program, there may even be a brand new area program, and each are totally funded with the at present obtainable money. Administration can also be considering a part 3 drill program later this 12 months for Belleterre, however this can rely upon further funding, which is scheduled sooner or later mid-year.

Up to now for exploration plans. When wanting into possession and royalties, the whole Belleterre undertaking is, other than the vast majority of the claims already 100% owned by Vior, largely topic to a few choice agreements: with JAG Mines Ltd., 9293-0122 Quebec Inc. and Osisko Mining Inc. The choice with JAG permits Vior to amass 100% of this particular land package deal for C$2.3 million in money and/or shares, and C$2 million in exploration expenditures, over the course of 4 years, with C$2 million of the C$2.3 million in money or shares scheduled for the final 12 months, representing little or no fee obligations till June 31, 2025. JAG holds the equal of a 1% web smelter royalty return (NSR) over the property.

The acquisition choice with 9293-0122 Quebec Inc., which covers the Belleterre Gold Mine and its direct environment, permits Vior to buy a 100% curiosity, by paying C$2.1 million in money and/or shares earlier than 2023 year-end or thereabouts, and with no exploration expenditures. There will probably be no royalty concerned on these claims. This buy choice was organized throughout the primary consolidation acquisition part for the Belleterre undertaking, when quite a few different claims had been acquired from different events. Most of those events had been granted a 1% NSR, and Globex was granted a 2% gross steel royalty.

The choice settlement with Osisko Mining permits Vior to amass as much as 75% of Osisko’s present curiosity in its Belleterre properties. 51% might be acquired by issuing C$225,000 in shares over three years and by incurring C$1.25 million in exploration expenditures earlier than August 2024. Vior has the suitable to amass one other 24% by incurring one other C$1.75 million in exploration expenditures inside three years after exercising the 51% choice. No royalty is a part of this deal, until the curiosity of one of many JV companions drops under 10%.

Skyfall Venture

The second most vital undertaking for Vior is the Skyfall undertaking, additionally situated in Quebec. That is an equally massive land package deal of 26,758 hectares (260.6 sq km), and 100% owned by Vior. It’s situated adjoining to the east of the Windfall deposit (6 million+ oz Au useful resource, owned by Osisko Mining), and the Gladiator and Barry deposits (mixed 2 million ounce Au useful resource, owned by Bonterra). Administration might take into account doing a three way partnership with gamers within the space, which embrace Osisko and Bonterra. The fascinating factor is that this package deal covers the japanese extension of the City-Barry Greenstone Belt, and may be very underexplored, resulting from restricted land entry till a couple of years in the past. As might be seen, it isn’t immediately subsequent door to Windfall however the geologic make-up of the property (Greenstone) mixed with the inclusion of a significant fault zone and gold showings makes this land package deal on the very least fairly potential for gold exploration.

A until sampling program from March 2021 offered numerous gold samples, and on prime of this seven clusters had been recognized, which created numerous enthusiasm with firm geologists and administration, however sadly this sort of sampling can’t be translated or extrapolated into g/t Au samples, so there clearly is gold, however how a lot precisely should be verified by customary sampling first.

Vior commenced area exploration in Might of this 12 months on Skyfall, and accomplished this program in August. It consisted of prospection, mapping, stripping, channel sampling and extra until sampling. In response to Eustache, the corporate has prioritized Belleterre, nonetheless, it’s within the strategy of producing the brand new maps and exploration targets for Skyfall based mostly on the 2021 summer time area outcomes.

Different tasks

Vior sees the Ligneris undertaking in Quebec as its third precedence, and has budgeted C$250k for exploration expenditures in 2022. It was optioned out to Ethos Gold Corp., however that firm determined to return it to Vior for a compensation of 1 million Vior shares (plus 1 million full 3-year C$0.30 warrants, for exploration expenditures incurred) final 12 months, as drill outcomes didn’t generate ample financial grades, after historic drilling returned spectacular outcomes like 13.5 g /t Au over 10.5m, 62.1 g/t Au over 2.9m and 5.1 g/t Au over 5.9m. Eustache had this to say in regards to the present standing of Ligneris: “Historic drilling demonstrates the financial potential of the property. Little or no exploration has been finished within the extensions of the primary mineralized zones. We’re finishing a complete until survey and a excessive decision magnetic survey that may assist to delineate the orientation of potential extensions of mineralization on the property.”

One other undertaking of curiosity is Mosseau, that hosts the Morono deposit with a historic non-compliant useful resource of roughly 40 koz Au. The undertaking’s footprint was just lately elevated in direct extension of the Morono deposit, by way of a property change with SOQUEM for free of charge. Vior is at present looking for a robust companion to advance and create worth on the undertaking.

  1. Conclusion

Vior seems to be able to take advantage of the present excessive gold costs, after finishing its part 1 drill program at Belleterre in December of final 12 months and anticipating drill outcomes subsequent month. I view the exploration of the district-scale Belleterre undertaking as a brand new starting, after advancing a number of lower-profile tasks within the final 5 years. The area, a part of a prolific Greenstone Belt, has been traditionally underexplored though it hosts a historic excessive grade gold mine, a major vein system (over 20 recognized excessive grade veins) and quite a few excessive grade gold showings, and as such it’s prone to characterize important exploration potential. A wildcard for Vior is its early funding in Ridgeline Minerals, which might doubtlessly present masses of cash in case of exploration success with its tasks in Nevada and Idaho. As with all early stage explorers, possibilities of success are nearly binary, however I like the chances for Vior as Belleterre is a formidable brownfield undertaking with numerous indications for mineralized potential.  

I hope you’ll discover this text fascinating and helpful, and may have additional curiosity in my upcoming articles on mining. To by no means miss a factor, please subscribe to my free e-newsletter on my web site www.criticalinvestor.eu, so as to get an e-mail discover of my new articles quickly after they’re printed.

The Crucial Investor is a e-newsletter and complete junior mining platform, offering evaluation, weblog and newsfeed and all types of details about junior mining. The editor is an avid and significant junior mining inventory investor from The Netherlands, with an MSc background in development/undertaking administration. Quantity cruncher at undertaking economics, in search of high-quality corporations, principally progress/turnaround/catalyst-driven to keep away from an excessive amount of dependence/affect of long-term commodity pricing/market sentiments, and sometimes in search of long-term deep worth. Getting burned up to now himself at junior mining investments by following overly constructive sources that most of the time prevented to say (hidden) dangers or crucial flaws, The Crucial Investor discovered his lesson properly, and goes a couple of steps additional ever since, offering a recent, extra in-depth, and significant imaginative and prescient on issues, therefore the title.

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The writer is just not a registered funding advisor, and at present has an extended place on this inventory. Vior Inc. is a sponsoring firm. All information are to be checked by the reader. For extra data go to www.vior.ca and browse the corporate’s profile and official paperwork on www.sedar.com, additionally for vital danger disclosures. This text is offered for data functions solely, and isn’t supposed to be funding recommendation of any type, and all readers are inspired to do their very own due diligence, and discuss to their very own licensed funding advisors prior to creating any funding selections.

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