TSX: LEX   |   OTCQX: LEXVF   |   FWB: VN3A
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as of 3:45pm EDT, 3/24/2017

Paymaster Property

The Paymaster property is part of the former producing Paymaster Mine and it holds the Paymaster West project, that was initially explored and mined down to 600 feet between 1915 and 1919. Limited drilling in the 1950’s at the 1,500 foot level and at the 2,500 foot level encountered good grades and widths, indicating that there is excellent potential at depth.
Paymaster is located next door to Dome Mine, a Goldcorp producer still in operation after 100 years. Dome Mine delivered over 17 million ounces of gold and produces to a depth of 5,500 feet, while other neighbours in Timmins have been mined to 7,000 feet.
Lexam VG Gold entered into an option and joint venture agreement with Goldcorp on the Paymaster Property in 2008. Under the terms of the agreement Lexam satisfied requirements that included exploration expenditures of $6 million and 27,000 metres of core diamond drilling on the property within the four years of the option term. In 2012 the Company fulfilled its commitments and exercised its option to acquire a 60% ownership interest in the property, seizing the opportunity to expand its known gold mineralization zones (expansion to the east of the gold resource areas from Fuller Property, Buffalo Ankerite South Mine and Buffalo Ankerite North Mine) and to add subsequent resource potential (development of a resource at the Paymaster West Project) to an already well developed land package.

From September 2009 Lexam VG Gold started to release sets of holes from the exploration program on the property that confirmed the presence of near surface, high-grade and widespread gold mineralization. Hole VGP-09-20 was released on October 19, 2009 and measured 1,390 grams per tonne Au over 0.9 m - see photo on the right.

In June 2013 a NI 43-101 compliant updated resource estimate was completed on Paymaster.

  Paymaster Project - Open Pit (at cut-off of 0.51 gpt Au) and Underground (at cut-off of 2.57 gpt Au) Resource Estimate
    Open Pit Indicated           Open Pit Inferred           Underground Inferred      
  Tonnes   Grams   Gold     Tonnes  Grams  Gold     Tonnes  Grams  Gold
  (000's)   per Tonne (ounces)     (000's)   per Tonne (ounces)     (000's)   per Tonne (ounces)
  4,660   1.61   242,000     1,400   1.61   72,000     220   6.14   43,000

Lexam's net resources are calculated at 60% of Paymaster Project's resources above. These numbers are presented on the Company's resource page.

Drill Results - View Results (PDF)
Paymaster Surface Plan and Cross Sections - View Diagrams (PDF).
To view project area photos and maps please click here.

Projects

Timmins Gold Camp
        Buffalo Ankerite
        Davidson Tisdale
        Fuller
        Paymaster
        PEA
Baca

   

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