Odyssey Resources Limited

Odyssey Resources Limited

May 28, 2009 08:30 ET

Odyssey Resources Limited and Virginia Mines Inc. Enter Into an Agreement on the FCI and Auclair Projects

LONGUEUIL, QUEBEC--(Marketwire - May 28, 2009) - Odyssey Resources Limited ("Odyssey") (TSX VENTURE:ODX) is pleased to announce the execution of two option agreements with Virginia Mines Inc. ("Virginia") under which Odyssey can acquire a 50% interest in each of the FCI and Auclair properties located in the James Bay region of Quebec.

Odyssey can acquire a 50% interest in the FCI property by spending $4 million in exploration work to be carried out during the next 6 years, and making cash payments totalling $130,000 by the 3rd anniversary of the FCI option agreement. Under the Auclair option agreement, Odyssey can acquire a 50% interest in the Auclair property by spending $5 million in exploration work to be carried out over the next 6 years, and making cash payments totalling $150,000 by the 3rd anniversary of the agreement. Virginia will be the operator and will conduct the exploration work on the two properties under programs and budgets approved by both parties.

Odyssey is pleased to team up with Virginia, a company who has earned its reputation over the years as one of the most active and successful exploration companies in Eastern Canada. Mr. Crombie, Odyssey's President and CEO stated that "This transaction is a first step in Odyssey's business plan to rejuvenate the Company. The James Bay area comprises several Archean greenstone belts known to be very favourable to the presence of economic gold and base metal deposits."

FCI Property

The FCI property consists of one block of 412 claims totalling 21,105 hectares and covers 35 km of favourable geology within the Guyer greenstone belt. The FCI property is located less than 12 Km from the Transtaiga all-weather road and is readily accessible by helicopter or floatplane. To date, several gold showings have been discovered across the entire length of the property, associated with a major lithological contact between volcanic rocks and sediments. Based on field work undertaken by Virginia between 1998 and 2007, these showings yielded values of up to 108.9 g/t Au in a grab sample and up to 14.3 g/t Au over 2m in channel sampling. Limited diamond drilling on the Golden Gap showing has returned one interesting intersection grading 10.48 g/t Au over 7m and several other strongly anomalous intersections varying from 1.77 g/t Au over 3m to 0.93 g/t Au over 7.9m. A significant gold-in-till anomaly (up to 123 gold grains) remains unexplained along this favorable volcano-sedimentary contact. Moreover, polymetallic showings associated with QFP intrusions and sericite schists were also discovered at both ends of the property. The Felicie showing yielded values of up to 5.54 g/t Au, 100 g/t Ag, 1.86% Cu, 1.56% Pb and 4.94% Zn in grab samples, in the western portion of the property. The Sericite showing returned values of up to 150 g/t Ag, 0.3 g/t Au, 1.89% Cuand 1.45% Zn in grab samples, in the eastern portion of the property. Complete results have been previously disclosed in a technical report filed on SEDAR by Virginia. These targets will be tested this summer by a major work program that will consist of prospecting, mapping and sampling.

Auclair Property

The Auclair property consists of 318 claims totalling 16,783 hectares and covers a 20-km-long, folded BIF (banded iron formation) at the eastern tip of the Eastmain greenstone belt, in a geological setting similar to the one hosting the large Musselwhite gold mine in northern Ontario. The Auclair project is accessible by road all year-round. Several gold showings were discovered so far on the property in the BIF and in the hosting sediments (wackes). Based on field work undertaken by Virginia between 1995 and 1998, these showings returned values of up to 0.79 g/t Au over 24m in channel samples. Diamond drilling yielded one intersection grading 5.4 g/t Au over 7m on the Arianne showing, in the eastern part of the property, and another one grading 5.2 g/t Au over 4m on the Golder Butterfly showing, in the western portion of the property (see Virginia's press releases of June 11, 1997, June 26, 1997 and October 9, 2002).

A systematic till sampling program covering the entire property has defined two significant gold dispersion trains with probable sources in overburden covered areas. A work program consisting of prospecting and detailed mapping is scheduled for the summer of 2009 and should be followed by a diamond drill program to begin in late fall of 2009.

Qualified Person

The technical information contained in this news release was reviewed and approved by Paul Archer, Virginia's Vice President Exploration and Acquisition who is a qualified person under National Instrument 43-101.

Forward Looking Information

This news release contains certain "forward-looking information". All statements, other than statements of historical fact, that address activities, events or developments that Odyssey believes, expects or anticipates will or may occur in the future, are forward-looking information. This forward-looking information reflects the current internal projections, expectations or beliefs of management of Odyssey, based on information currently available to them. Forward looking information in this news release includes statements regarding the nature of mineralization at FCI and Auclair projects and the work program to be completed. Forward-looking information is based on assumptions and subject to a number of known and unknown risks and uncertainties beyond Odyssey's control, including uncertainties related to the outcome of the work program and other risks involved in the exploration industry, as well as those risk factors identified in the Company's most recent Management Discussion and Analysis filed on SEDAR. There can be no assurance that the beliefs and assumptions underlying the forward looking information will prove to be accurate, and actual results could differ materially from those suggested by the forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information. Odyssey undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.

About Odyssey Resources

Odyssey Resources Limited is a well-funded Canadian-based junior exploration company whose shares trade on the TSX Venture Exchange under the symbol "ODX". Odyssey's activities in recent years were focused in Morocco and Turkey.

About Virginia

Virginia is among the most active mining exploration companies in Quebec and trades on the Toronto Stock Exchange (TSX) under the ticker symbol VGQ. Virginia concentrates its activities on its numerous properties that are spread over the vast, unexplored regions of northern Quebec.

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

  • Odyssey Resources Limited
    James Crombie
    President & CEO
    450-677-2253
    450-677-2601 (FAX)
    or
    Odyssey Resources Limited
    Gerri Paxton
    Manager, Investor Relations
    450-677-2054
    450-677-2601 (FAX)
    www.odysseyresources.com