Virgin Metals Inc.
TSX : VGM

Virgin Metals Inc.

April 02, 2008 08:31 ET

Virgin Metals Extends Limits of Cu-Mo Mineralization at its Cuatro Hermanos Property

TORONTO, ONTARIO--(Marketwire - April 2, 2008) - Virgin Metals Inc. ("Virgin Metals" or the "Company") (TSX:VGM) presents assay results for an additional six drill holes at the Company's 100% owned Cuatro Hermanos copper-molybdenum porphyry property located 150 km southeast of Hermosillo in Sonora, northern Mexico. Assay results presented here, for holes CHRC21-08 through CHRC26-08 comprise the final six of a twenty six-hole 5,907 meter reverse circulation drill program which began in July 2007. Highlights for the recent drilling include:

Hole CHRC21-08 intersected 178.31 m grading 0.234% Cu 0.015% Mo; hole CHRC22-08 intersected 262.13 meters grading 0.170% Cu, 0.026% Mo; hole CHRC25-08 intersected 143.25 m grading 0.280% Cu, 0.013% Mo; and hole CHRC26-08 intersected 161.56 meters (151.82 meters true thickness) grading 0.233% Cu, 0.020% Mo.

Holes CHRC21-08 through CHRC26-08 were drilled within a 1,500 m long x 500 m wide band of phyllic and silicic hydrothermal alteration located along the northern and eastern sides of the porphyry complex, in areas historically called the Sulfate Zone and the Main Zone, respectively. Exploration completed to date by Virgin Metals indicates that copper-molybdenum mineralization is continuous between the two zones; accordingly the current campaign is aimed at demonstrating this potential continuity and ultimately calculating a resource for the area.

Virgin Metals' President and CEO, Chris Davie, commented, "We have achieved our stated objectives for this first phase of exploration, and in so doing have demonstrated that the mineralizing system at Cuatro Hermanos is as large and robust as we had originally believed. We are encouraged by results for the drilling, but as yet have not defined the limits of the mineralized envelope around Cerro San Felipe nor the limits in depth. With many of the drill holes ending in copper-moly mineralization, and some showing evidence of increasing grade at depth, we plan to complete a 5,000 meter core drilling program in the coming months to test the porphyry at considerably greater depths." Assay results for Virgin Metals' drill holes are summarized in Table 1 below:



Table 1. Reverse Circulation Drilling - Cuatro Hermanos Project
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Hole ID Inclination Total From To Intercept
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(degrees) Depth
(m) (m) (m) (m)
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CHRC21-08 -90 208.79 30.48 208.79 178.31
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Including 30.48 140.21 109.73
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CHRC22-08 -90 288.04 25.91 288.04 262.13
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And 71.63 262.13 190.50
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CHRC23-08 -90 187.45 88.39 187.45 99.06
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CHRC24-08 -90 105.16 89.92 105.16 15.24
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CHRC25-08 -90 217.93 74.68 217.93 143.25
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Including 112.78 217.93 105.15
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CHRC26-08 -70 204.22 35.05 196.60 161.56
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Including 35.05 57.91 22.86
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And 126.49 150.88 24.39
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Hole ID True Cu Mo Ag
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Thickness
(m) (%) (%) (g/t)
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CHRC21-08 178.31 0.234 0.015 1.80
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Including 109.73 0.289 0.019 2.20
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CHRC22-08 262.13 0.170 0.026 0.93
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And 190.50 0.184 0.032 1.04
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CHRC23-08 99.06 0.218 0.013 1.45
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CHRC24-08 15.24 0.133 0.010 1.18
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CHRC25-08 143.25 0.280 0.013 2.05
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Including 105.15 0.320 0.016 2.34
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CHRC26-08 151.82 0.233 0.020 2.34
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Including 21.48 0.355 0.015 2.66
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And 22.92 0.286 0.028 3.07
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Mineralization at Cuatro Hermanos is localized primarily in quartz-sericite-pyrite dominant phyllically altered Lower Tertiary quartz diorite, granodiorite, and diorite, containing varying amounts of chalcopyrite, chalcocite, bornite, and molybdenite as disseminations and veinlet stockworks. Potassic alteration is noted near the bottom of many of the drill holes where it occurs as patchy orthoclase flooding and veining, associated with increased concentrations of chalcopyrite. To date, only a small portion of this large porphyry system has been evaluated.

Virgin Metals geologists are presently compiling the drill data to calculate a Cu-Mo-Ag resource for the Sulfate-Main Zone, and the West Zone. The assay results paired with information from a recently completed induced polarization/resistivity survey will be evaluated to help plan the aforementioned 5,000 meter core drilling program, scheduled to begin during the second quarter of 2008. A map showing the location of the drill holes, along with other information about the Company and its projects is available at: www.virginmetals.com.

Samples of drill cutting at Cuatro Hermanos were collected at 1.52 m (5 ft.) intervals, and reduced in size whenever necessary to 3 to 4 kg using a Jones riffle splitter. Plastic sample bags were immediately sealed on-site using pre-numbered security tags. The samples were stored securely for a short time at the Company's field office near the project, until they could be transported by Company personnel to ALS Chemex's sample preparation facility in Hermosillo. A duplicate pulp and the reject material for all samples are being stored securely for possible future use. All assay work is being carried out at ALS Chemex's ISO 9001-2000 certified laboratory in Vancouver, Canada. Virgin Metals has incorporated quality control measures for the analytical work including the insertion of standards, blanks, and duplicate samples, details for which will be made available in a future news release.

Also at Cuatro Hermanos, Company geologists have identified and sampled an east-northeast striking, south-dipping high-grade quartz molybdenite vein at Moly Hill, in the West Zone, which assayed 1.40% Mo across a width of 1.5 meters at surface. The hanging wall of the structure is cut by a swarm of (less than)1.0 cm to 15 cm wide quartz-molybdenite veinlets localized in phyllically altered diorite. Eight contiguous 2.5 meter wide chip/channel samples collected across the veinlet swarm in a dozer cut located 15 meters east of the outcropping vein returned 0.149% Mo across a width of 20 meters. Grades for individual samples within this interval vary between 0.054% to 0.347% Mo.

Southwest of Cuatro Hermanos on the Company's 50 square kilometer San Lorenzo property, reconnaissance stream sediment sampling has provided encouragement, with four of thirteen samples returning highly anomalous copper values ranging from 180 to 320 ppm Cu. The anomalous geochemistry defines a cluster of drainage basins encompassing approximately 4 square kilometers in the south-central portion of the claim block. The area is underlain by hydrothermally altered granitic rocks cut locally by quartz-tourmaline breccias. Additional on-the-ground work continues, since the recent assay results will help prioritize areas for more detailed studies, with the goal of generating drill targets that could be explored in tandem with the nearby Cuatro Hermanos project.

Exploration at the Cuatro Hermanos and San Lorenzo projects are under the supervision of John C. Spurney, the company's Vice President of Exploration. Mr. Spurney, a qualified person as defined under the terms of National Instrument 43-101, has reviewed the contents of this press release.

About Virgin Metals

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 undergoing a feasibility study and is expected to evolve rapidly towards production while the other, Cuatro Hermanos, is presently the focus of an intense exploration effort.

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.

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