Big Red Diamond Corporation

Big Red Diamond Corporation

October 28, 2009 09:24 ET

Big Red Diamond and Virginia Energy Delineates Radioactive Zone in Bedrock, Otish Mountains, Quebec

MONTREAL, QUEBEC--(Marketwire - Oct. 28, 2009) - Big Red Diamond Corporation (TSX VENTURE:DIA) and Virginia Energy Resources Inc. (TSX VENTURE:VAE) are pleased to announce the identification of a highly radioactive, uranium-mineralized zone in basement bedrock on the Strategis property, located on the margin of the Otish Basin in central Quebec.

Big Red's field consultant, IOS Services Geoscientifiques Inc. completed a two-week field program consisting of prospecting, 405 soil samples and a 25 line-km ground magnetic survey. The program was hampered by very poor early winter weather conditions that restricted the fieldwork to only one of the three prime exploration targets.

Twenty-one radioactive rock samples (18 from bedrock and 3 boulders) were collected over a 425 m long by 85 m wide area. The sample sites averaged 19,738 counts per second (range of 5000 to 49,500 cps) using a hand-held RS-125 spectrometer. The radioactivity is thought to be primarily caused by uranium mineralization as indicated by semi-quantitative spectrometer analyses and the presence of yellow secondary uranium minerals. The mineralized zone is the extension of the Lorenz Gully southwest zone on the adjacent Lorenz property, where Virginia is earning up to 100% from Xemplar Energy Corp. The mineralized trend has now been traced for approximately 900 m strike length on the two properties, and is located 300 to 500 m laterally from outcropping sandstones sitting above the Otish basin unconformity.

Under the terms of an option agreement signed on September 15, 2009, Virginia can earn a 100% interest in the 5100-hectare Strategis property from Big Red, subject to a 2% Net Smelter Royalty interest in favour of Big Red and certain underlying vendors, of which 1.5% can be bought back at any time by payment of $1.5 million. To earn its interest, Virginia paid $50,000 on signing and must issue $180,000 in shares within four months after signing. Big Red is financing the current work program.

Mr. Rejean Girard, P.Geo., of IOS Services Geoscientifiques Inc. based in Chicoutimi, Quebec, is the qualified person responsible for the current exploration program at Strategis and has verified the data reported above. The technical information in this news release has been reviewed by Michael S. Cathro, P.Geo., Virginia's Vice-President of Exploration and a Qualified Person as defined in National Instrument 43-101.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Big Red Diamond Corporation
    Jean-Francois Perrault
    President & CEO
    514-904-1788 (FAX)