Virginia Mines Inc. (TSX:VGQ) announced that it has entered into agreement with Anglo American Exploration (Canada) Ltd., a subsidiary of Anglo American plc, whereby Virginia transfers to AAEC a 50 per cent undivided interest in the mining claims and other mineral tenements comprising the Baie Payne nickel property, which covers 18,890 hectares and is situated north of Kangirsuk Village, on the west bank of Ungava Bay, in northern Quebec. 

AAEC must fund an aggregate of $4,000,000 in expenditures over a six-year period to maintain its 50 per cent undivided interest in the Baie Payne properties. AAEC may, at its sole discretion, accelerate such funding. Virginia will be the operator during that period.

Baie Payne Property

The property is located at the northern extremity of the New Quebec Orogen, which represents the north-eastern extension of the Trans-Hudson Orogen, an early Proterozoic collisional zone that borders the Superior Province. The Trans-Hudson Orogen also includes the Thompson Belt of Manitoba and the Cape Smith Belt of northern Quebec, both of which host important nickel mining camps. The Baie Payne property covers important mafic/ultramafic complexes that reach over 1000 metres in thickness with a cumulative lateral spread of more than 50 kilometres. All these complexes lie in a supracrustal sequence of iron formations, basalt, and sulphide mudstones within a sheared allochtone structure called the Roberts Syncline. More than 40 Ni-Cu surface showings grading up to 6.5% Ni have been mapped and sampled within this fertile, largely unexplored environment.

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