Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

February 16, 2010 09:00 ET

Virginia Energy and Denison Commence Drilling on Hatchet JV Property, Athabasca Basin, SK

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2010) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) and Denison Mines Corp. (TSX:DML) are pleased to announce the start of drilling on the Hatchet Lake uranium property in Saskatchewan. The 2010 program is budgeted at $700,000 and will include approximately 2000 metres of drilling in 8 to 10 holes in the Tuning Fork area, along with ground electromagnetic surveys on three grids in the Hatchet South and Richardson-Lake Crooked Lake areas.

The Hatchet Lake property is subject to a Joint Venture agreement between Virginia and Denison, each holding a 50% interest with Denison as the operator. This very large property consists of 11 claims totaling 39,930 hectares within the relatively shallow, northeast portion of the Athabasca basin. It is located 20 kilometres north of Points North Landing, and 17 kilometres north of the McClean Lake Mill owned by AREVA-Denison-OURD. Several winter roads are present on the claims, allowing relatively economical drill access and support.

The Hatchet Lake property is underlain by sandstones of the Athabasca Group, which unconformably overlie highly deformed and metamorphosed rocks of the Mudjatik and Wollaston Domains. The target is an unconformity-type uranium deposit and/or a basement-hosted deposit at or near the contact between the Athabasca sandstones and underlying basement rocks. The Hatchet property includes faults and conductors similar to those that host nearby unconformity-related uranium deposits and prospects such as Jeb (AREVA-Denison-OURD), Dawn Lake and La Rocque Lake (Cameco-AREVA-JCU), Moonlight (AREVA-Denison-JCU), Midwest (AREVA-Denison-OURD) and Roughrider (Hathor-Terra). In recent years, the Hatchet Joint Venture has completed a thorough technical compilation, several airborne and ground geophysical surveys, and six drill holes (see Santoy Resources Ltd. News Releases of October 30, 2008, October 3, 2007 and July 18, 2007).

The depth to the unconformity at the Tuning Fork target is 100 to 140 metres, shallow enough for open pit mining. The drill program is designed to test a 3800 metre-long extension of the conductor system which hosts the Top Creek and Moonlight uranium targets on the adjacent Wolly property (AREVA-Denison-JCU). The Moonlight uranium zone is located 3.5 kilometres southeast of the Tuning Fork area and is reported to have returned drill results of up to 1.78% U3O8 over 4.75 metres in sandstone. Historic wide-spaced drilling of the Tuning Fork conductor has identified a locally faulted and sheared, twinned pair of graphitic-pyritic pelite units, spaced 40-50 metres apart. Weak uranium enrichment and illite, limonite and hematite alteration are present along the conductor. For example, historic Asamera hole Q20-1 is reported to have encountered 0.126% U3O8 over 0.9 metres. Property maps are available at http://www.santoy.ca/i/pdf/NR-02-15-2010-4-fig.pdf.

In the Richardson-Crooked Lake area to the north, the Joint Venture plans line cutting and ground geophysical surveys to better define the location of a six kilometre-long conductor system with uranium and base metal enrichment associated with sulphide mineralization and alteration in sandstone and basement rocks. The unconformity in this area varies between 0 and 120 metres depth. A number of historic uranium, cobalt, copper, nickel, zinc, arsenic, and gold-enriched drill intercepts have been reported on the Hatchet property, including S.M.D.C. hole 61 which intersected "uraniferous sulphide breccia" which assayed 7.34% cobalt, 1.66% nickel and 16.07% arsenic over 2.5 metres (and 5.0 m of 73 ppm U), hole 74 which intersected 2112 ppm uranium, 256 ppm arsenic and 202 ppm cobalt over 3.4 metres, and hole HT-96 which intersected 2600 ppm uranium over 1.0 metre plus adjacent sections which assayed 5.95% copper over 2 metres and 0.612% cobalt over 2.5 metres.

In summary, the Hatchet property is extremely large and well located with respect to infrastructure. It is highly prospective for unconformity uranium deposits based on the host rocks, alteration, numerous faulted conductor trends, and the shallow depth to the unconformity.

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.

On Behalf of the Board of Directors
VIRGINIA ENERGY RESOURCES INC.

"Norman Reynolds"

Norman Reynolds, President & CEO

Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Virginia Energy Resources Inc.
    Norman Reynolds
    President
    (604) 669-4799
    or
    Virginia Energy Resources Inc.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    www.virginiaenergyresources.com