Virginia Energy Resources Inc.
TSX VENTURE : VAE

Virginia Energy Resources Inc.

December 21, 2010 09:38 ET

Geophysics Underway and Drilling Approved for Virginia-Denison Hatchet Lake JV Property, Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2010) - Virginia Energy Resources Inc. (TSX VENTURE:VAE) is pleased to report that it has approved a 12-hole, 2300-metre drill program on the Richardson-Crooked Lake target on the Hatchet Lake property in the Athabasca Basin of Saskatchewan. The property is held by Virginia and Denison Mines Corp. (TSX:DML) in a 50-50 Joint Venture with Denison as Operator.

The drilling is planned for February 2011 and will be preceded by a ground-based Horizontal Loop Electromagnetic (HLEM) survey to refine the position of several shallow conductor targets. The Richardson-Crooked Lake area is located 20 km north of the Tuning Fork target where the JV partners identified unconformity-style mineralization in a winter 2010 drill program (see Virginia News Release of June 29, 2010). In addition, the JV partners plan ground geophysical surveys in 2011 on the adjacent Murphy Lake property.

The 2011 drilling and geophysical survey will target a historically described, six-kilometre-long conductor system with uranium and base-metal enrichment associated with sulphide mineralization and alteration in sandstone and basement rocks. The Richardson-Crooked Lake target is located on the shallow northeast margin of the Athabasca Basin with depths to the basement contact targets varying from zero to 120 metres, well within the limits of low-cost open-pit mining.

While there has been considerable historic drilling in this area, most of the holes were vertical and did not effectively test the steeply dipping conductors. Nevertheless, a number of historic uranium and polymetallic base-metal (Co, Cu, Ni, Zn, As, Au) drill intercepts were reported, including SMDC Hole 61 which intersected "uraniferous sulphide breccia" which assayed 7.34% Co, 1.66% Ni and 16.07% As over 2.5 m (and 5.0 m of 73 ppm U), Hole 74 which intersected 2,112 ppm U, 256 ppm As and 202 ppm Ni over 3.4 m, and Hole HT-96 which intersected 2,600 ppm U over 1.0 m plus adjacent sections which assayed 5.95% Cu over 2 m and 0.612% Co over 2.5 m. The association of uranium with very high base-metal values is very encouraging as it is typical of the "polymetallic" class of sandstone-hosted deposits such as Cigar Lake, Roughrider and the Sue A, B, and E deposits. Most of the holes in this area did not extend far below the unconformity, and therefore, did not adequately test for mineralization in the basement rocks.

The 39,930-hectare Hatchet Lake property is located 25 km north of Points North Landing, and 17 km north of the McClean Lake mill owned by AREVA-Denison-OURD. The target is an unconformity-type or basement-hosted uranium 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). For additional background see the Virginia's February 16 and June 29, 2010 news releases, as well as property maps at www.virginiaenergyresources.com.

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 by National Instrument 43-101.

About Virginia Energy Resources Inc.

Virginia Energy Resources Inc. is a uranium development and exploration company. The Company holds a 29% stake in the advanced stage Coles Hill uranium project in Virginia. Additionally, the Company is pursuing active exploration programs in the Athabasca Basin on its Murphy River and Hatchet River uranium properties, which are held in a 50-50 Joint Venture with Denison Mines Ltd., and its 100% owned uranium properties in the Otish Basin of Quebec. The Company is also a 37% shareholder of Boss Power Corporation. Virginia Energy Resources Inc. trades on the TSX Venture Exchange under the symbol VAE.

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

Walter Coles Jr., President & CEO

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Virginia Energy Resources Inc.
    Walter Coles, Jr.
    President/CEO
    (604) 669-4799
    or
    Virginia Energy Resources Inc.
    Tony Perri
    Investor Relations, Manager
    (604) 669-4799
    www.virginiaenergyresources.com