Virgin Metals Completes Resource Drilling; Resource Calculation in Hand
Virgin Metals Inc. has completed the drilling that will provide the basis for a resource calculation at its 100% owned Los Verdes copper, molybdenum, tungsten project in the State of Sonora, northern Mexico. Some additional step out drilling has been performed and condemnation drilling is currently being carried out.
As previously reported, the mineralization occurs in a prominent ridge and consists of typical porphyry style mineralization which is modified by leaching at surface and accompanied by re-concentration in a zone of secondary enrichment. The dominant host rock is a quartz – tourmaline breccia that lies above and to the west of the Buena Vista fault. The base of the mineralization lies at the contact between the host breccia and a fine to medium grained granodiorite. In the north, the mineralization is bounded by topography.
The results of holes 23 to 41 are now available. Of these, holes 33 to 36, 40 and 41 were drilled as step out or in fill holes in or proximal to the previously established resource, while holes 23 to 32 and 37 to 39 were drilled to investigate possible extensions to the recently discovered mineralization in the area of the old open pit. Hole 29 was not drilled.
Holes 33 and 34 were drilled to test potential extension of the mineralization to the north of hole 12; slightly anomalous but insignificant copper and molybdenum values were found. Holes 35 and 36 were drilled behind the face of the existing open pit to test available grades; high grade mineralization was intersected in both holes (results given below) Hole 40 was drilled to test the northern extension of the mineralization intersected in hole 13. Due to local topography, it was drilled from the location of hole 13 at an angle of 70 degrees to the north and intersected significant molybdenum and low copper values. Hole 41 was drilled as an infill between holes 5 and 6 and returned the high grades typical of this area.
Of the holes drilled to the east of known mineralization, none intersected significant mineralization, though some did intersect quartz tourmaline breccia with typically weakly elevated copper levels.
Sampling practice at the project has been previously reported and has continued unchanged through the drilling of these holes.
Now that the drilling of the known mineralization is complete, a resource calculation is underway. Virgin Metals has engaged Chlumsky, Armbrust and Meyer LLC, Denver, to prepare a technical report that conforms to National Instrument 43-101 and which will include their estimate of mineral resources. The qualified persons for this work will be Robert Sandefur and Fred Barnard. Virgin Metals has also engaged Resource Development Inc of Denver to perform metallurgical testwork, which is also in progress.
Pursuant to the Company’s stock option plan, the Company has granted a further 100,000 incentive stock options each to Mr. Shonnard and Mr. Brogoitti. The stock options are exercisable to acquire one common share of the Company at $0.32 per share and can be exercised until November 16, 2011. This stock option grant is subject to regulatory approval.
This press release has been prepared by Mr. Gary Lohman, a registered Professional Geologist and Qualified Person (QP) as defined by NI 43-101 of the Canadian Securities Administrators. Mr. Lohman is the QP for the Los Verdes exploration program.
FORWARD-LOOKING STATEMENTS
This press release includes certain “forward-looking information” within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading “Risk Factors” and elsewhere in Virgin Metals documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Virgin Metals. The forward-looking information contained herein is Virgin Metal’s reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur.
About Virgin Metals Inc.:
Virgin Metals is a junior exploration and development company; its projects include two copper/molybdenum porphyry properties in Sonora, northern Mexico. One of these, Los Verdes, is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is expected to be the focus of expanded exploration effort.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release.
For further information
Mr. Chris J. Berlet, Director, Chief Financial Officer, (416) 364-9988, cberlet@virginmetals.com Renmark Financial Communications Inc.: Mr. Neil Murray-Lyon: nmurraylyon@renmarkfinancial.com Barbara Komorowski: bkomorowski@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717
www.renmarkfinancial.com
Source: VIRGIN METALS INC.
