Virgin Metals Inc.

Virgin Metals Inc.

September 11, 2008 08:30 ET

Virgin Metals Files Technical Reports on Los Verdes and Cuatro Hermanos

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2008) - Virgin Metals Inc. ("Virgin Metals" or the "Company") (TSX:VGM) has filed technical reports on SEDAR on both of its 100% owned molybdenum/copper projects in northern Mexico, Los Verdes and Cuatro Hermanos. The reports may be accessed at

The Los Verdes report, entitled Pre Feasibility Study, Los Verdes Project reveals a project that demonstrates robust economics at metal prices well below current prices. The reserve demonstrated in the study of 7.05 million tonnes at grades of 0.137% molybdenum and 0.657% copper will support production through a little more than 7 years averaging approximately 2 million pounds per year of molybdenum in concentrates and 12 million pounds per year of copper in concentrates. The study indicates that average annual pretax cash flows of between US$45 and US$50 million will lead to a life of project undiscounted pretax cash flow of US$220.5 million after capital costs of US$138.8 million. The project pre-tax net present value at an 8% discount rate is US$96.9 million. The study does not address potential additional revenues from the tungsten content of the ore.

The Company also announces that an Environmental Impact Statement, Risk Assessment and application for Land Use Change for the Los Verdes project has been filed with the appropriate authorities in Mexico. These comprise the applications for the principal permits required for mining operations in Mexico.

The Cuatro Hermanos report defines the first mineral resource calculated to National Instrument 43-101 standards on the property. Drilling over a relatively small part of the known porphyry mineralization to a maximum depth of 300 meters defined a resource comprising 206.3 million tonnes of indicated resource at a grade of 0.407% copper equivalent and 557.5 million tonnes of inferred resource at a grade of 0.400% copper equivalent. Copper equivalents were calculated at a price ratio between molybdenum and copper of 10:1. No metallurgical testwork or economic estimates have yet been made for Cuatro Hermanos.

Virgin Metals CEO Chris Davie said; "The coincidence of these two reports appearing nearly simultaneously enables us to highlight the complementary nature of these two projects, which are only about 50 km apart in Sonora, northern Mexico. Los Verdes is a small, low capital and low operating cost project that can be implemented relatively quickly. Cuatro Hermanos, on the other hand, is a porphyry of world class size whose dimensions are only just beginning to be appreciated and whose total metal content is equally significant; contained copper in the current indicated resource is approximately 896 million pounds with approximately 2.141 billion pounds in the inferred category with molybdenum content in addition to this copper resource. We look forward to advancing our understanding of the Cuatro Hermanos Project while developing the Los Verdes Project. Some additional drill results from Cuatro Hermanos are expected to be available shortly, and we are pursuing financing alternatives for both projects on a number of fronts."

The mineral Resources and Reserves in this release were calculated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on Dec 11, 2005.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

The quantity and grade of reported Inferred Resources are conceptual in nature, and it is uncertain if further exploration will result in conversion of Inferred Resources to Indicated or Measured Resources.

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.


This press release includes certain "forward-looking information" within the meaning of applicable securities laws, including, but not limited to the following: statements as to estimated reserves and resources of the Los Verdes project; assumptions regarding development of a mine at Los Verdes; the timing of mining and processing operations at Los Verdes; and, statements as to estimated resources of the Cuatro Hermanos project. This 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 securities commissions in Canada, the Toronto Stock Exchange and other regulatory authorities. Important factors that could cause actual results to differ materially from this forward-looking information include: the outcome of assays and additional exploration sampling and drilling efforts; delays in completing or less favorable than anticipated results of a feasibility study on Los Verdes; increases in anticipated cash costs, operating costs, mining costs, capital expenditures and other costs; decreases in anticipated plant molybdenum and copper recoveries and molybdenum and copper prices; delays or problems in construction, permitting and start-up; variations in ore grade, mining, or processing problems or issues. 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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